The NZ Herald, in a typically infomercial style, has reported that Guinness are launching a new Mid-Strength version of their famous ale. The article states that the “new product will not cost any less, but its alcohol content will be 2.8 per cent rather than the regular 4.2 per cent.”
What I’d like to know, since the journalist has either not bothered to ask or at least to not report, is why the product costs the same as full strength Guinness yet clearly will:
- cost significantly less in excise tax (given that it is 2/3 the strength),
- encourage the ability for more consumption, in terms of volume, and
- may, possibly, cost less in raw ingredients
There may well be a fair answer (e.g. the smaller batches remove the economies of scale) but, from this article, it appears as though Guinness are receiving free advertising without no questions asked.
I’ve noticed many smaller NZ breweries definitely staggering their prices according to excise level. We should be demanding this from the major players too.
And we should certainly be demanding more from our journalists.