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  • 2 years ago
One of Australia’s biggest grocery retailers is accused of deceiving shoppers on boutique gin. It's an example of private label alcohol which analysts say is growing in prominence and could hurt smaller producers.

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00:00 The major retailers are paying businesses like this to make home brand alcohol products.
00:07 So this is a 330ml glass bottle with cider for a supermarket.
00:14 The company also makes 500,000 bottles a week of low cost wine.
00:19 It's easier for a product to go from a concept straight through to the shelf if you're using people that already have the infrastructure set up.
00:26 Major liquor retailers are now selling hundreds of home brand products.
00:31 It's really taken off, especially in wine and beer and now we're seeing it more in spirit seltzers and RTDs.
00:38 The biggest players include supermarket giant Coles and Woolies spin off Endeavor which owns BWS and Dan Murphy's.
00:47 They control the cost of production and then they have a product that's exclusively on their shelves.
00:53 Although the shopper doesn't always know they're buying it.
00:57 So I just bought this bottle of gin from a liquor store that's owned by the supermarket giant Coles.
01:02 It looks pretty boutique, it says it's made in Tasmania but if you flip it over here it says it was made by a Coles subsidiary company making this home brand.
01:13 I actually thought it was a small Tasmanian producer and I thought how could they do it that cheap?
01:18 It's almost deceiving the public I believe. They're mimicking small business and small spirit brands.
01:26 Beer brands have also been raising concerns.
01:30 We're getting further squeezed by retailers preferencing private label products after they have met the terms of the majors.
01:37 Coles and Endeavor say they work with suppliers and they're giving shoppers booze on a budget.
01:43 IDL also says the retailers are supporting businesses like theirs.
01:49 There will always be a place for homes of brands to be developed.
01:53 One industries gain could result in a squeeze for others.
01:57 those.
01:57 [BLANK_AUDIO]
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