Alcoholic beverage maker Independent Distillers Group has warned it may have to close its factory in Melbourne if the Federal Government’s alcopops tax passes the Senate.
The company, which makes alcopops including Woodstock Bourbon and Vodka Cruiser, says it has already laid off 23 people after a sharp drop in sales as result of the change to excise on alcopos, which has pushed up prices by around 70%.
The Government plans to re-introduce legislation to support the excise hike in the coming weeks, after it was rejected by the Senate earlier this year.
IDG executive Peter Murphy says the tax hike could force the company to close its factory in the Melbourne suburb of Laverton.
“That will cost 135 working Australians in the western suburbs of Melbourne their jobs,” he told AAP.
Murphy says the tax was responsible for a 30% fall in sales and claims alcopops represents only 6% of the total alcohol market.
“To put a tax on that small portion of the market will never have an impact on binge drinking.”
The New Zealand-based company could look at pulling production back to its home base of Auckland if the bill passes the Senate.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
