ACCC ruling on CUB and Byron Bay label has ramifications for other beer and wine brands
Last week’s announcement (29 April 2014) by the Australian consumer watchdog ACCC that it has reprimanded brewer Carlton & United (CUB) over the manner in which it advertised Byron Bay Pale Lager (Brauwelt International reported) seems set to have wider implications for the brewing industry.
The Craft Beer Industry Association (CBIA) acknowledged the announcement that the ACCC has issued infringement notices to CUB regarding the labelling of Byron Bay Pale Lager that it produces under licence for the Byron Bay Brewing Company.
Labelling has been a much discussed topic in the industry for many years and CBIA welcomes any decision that helps clarify what is required of its members. CBIA believes that, as an industry, craft beer producers have a responsibility to ensure that their consumers are provided with all of the necessary information to make an educated choice about what beer they buy.
Dave Bonighton, CBIA Chair, said: “We hope that the decision will help give the necessary guidance to the industry about what is required on our labels. This decision has possible implications for all companies that have all or some of their beers contract brewed and we will be working with the ACCC and seeking independent legal advice to ensure that the industry is educated about its legal requirements.”
It seems certain that the ACCC’s announcement affects the whole of the brewing industry. As part of the announcement, ACCC Chairman Rod Sims said: “The ACCC will be writing to other participants putting them on notice of this matter in order to ensure that marketing and labelling in the beer market appropriately reflects where and by whom beer is brewed.”
With the ACCC focusing more on labelling and beer provenance, it will encourage brewers to be more transparent about ownership and even brewing locations. This could impact brewers with multiple brand ownerships and those with contract arrangements. Matt Kirkegaard, a writer on brewsnews.com.au, summarized the situation, saying: “A requirement for ’where and by whom’ labelling could affect many smaller brewers that currently have contract brewing arrangements that they do not disclose. It would be a significant imposition on small brewers if the ACCC requires that they update their labels every time they change their contract brewer to reflect where the beer is made, but if small brewers drag their heels on a level of transparency that the ACCC finds acceptable, they might have even more onerous standards imposed upon them.”
Incidentally, the recent ACCC decision could sound a warning for companies behind many wines currently on sale under private labels. The retailer Woolworths alone has (through Pinnacle Liquor Group) 256 wine trademarks registered in Australia and many brand names suggest a “cottage industry”, artisanal production style, and methodology. The Winemakers Federation of Australia’s CEO Paul Evans said: “The Federation has noted this outcome closely and will assess its broader industry implications, including for the home brands of the major retailers.” A Woolworths Liquor spokeswoman said the company “takes its regulatory obligations extremely seriously and complies with all relevant regulations.”
