Australians are likely to start spending more on beer and wine as growth in sales of whitegoods indicates a positive trend, reports Colin Kruger at The Age.
According to “the Harvey Norman Test” the increase in sales of fridges and washing machines, reported by Harvey Norman last week, is a leading indicator of a likely rise in spending at retail outlets such as bottle shops.
Consumer analyst company Nielsen maintains the cycle is improving, and the worse is behind us.
“We’re now comfortable to spend again but we are more likely to spend within our means,” Michael Walton, executive director of consumer and business intelligence at Nielsen Pacific, said.
However the trajectory of the trend is towards craft beer and international beer brands than VB, which has returned as the nation’s most popular brand.
Nielsen predicts $1.7 billion growth in sales over the next three years, and around $500 million will be spent on beer. Of that, around $1 of every $6 spent on packaged beer is expected to go on premium imported brands.
Last week the beer industry called on the government to freeze tax on beer in a confidential submission to Treasury that claimed the industry was no longer recession-proof, with less spending on beer as households tighten their belts. The tax on beer is now up 50 per cent of the price of a $37 case of VB, it said.
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