6 Mar 2009

Alcohol prices set to rise again

7:14 pm on 6 March 2009

The cost of alcohol in New Zealand is going up - and it could be the first of two price increases this year.

The Hospitality Association says several producers have put up the prices they charge retailers by between 2% and 7%.

Brewers are understood to be facing rising costs for raw materials including malt, barley, sugar, glass and aluminium.

Alcohol price increases normally occur in June or July when the Government adjusts excise duty in line with inflation.

Hospitality Association chief executive Bruce Robertson says consumers will not be happy if there is a further price rise mid-year, but jobs and businesses will be at risk if retailers try to absorb the extra cost, rather than passing it on to consumers.