Don't blame us: your beer is bound to cost more soon, say Gong publicans

The twice yearly alcohol tax excise was increased on Monday and it will be a matter of time before it filters down to clientele, some of the Illawarra's hospitality industry leaders say.

The excise is indexed every six months and rose by 1.8 per cent on February 5.

Ryan Aitchison, the publican of the Illawarra Hotel said his establishment will eventually pass on the increased costs.

"The margin on beer is lower than the margin on food for us.

"Customers don't want to see their beer's price go up but it's passed onto us by the big companies.

"Local breweries don't pass it on when they can get away with it."

The Australian beer market is largely made up of two companies Asahi and Kirin group from Japan who through subsidiaries like Carlton and United Breweries, supply 90% of the mainstream beer that Australians consume and control brands like VB and XXXX.

"We're running on a tight rope ... there's only so much a customer can afford to pay," Mr Aitchison said.

Steve and Karen Hay, visiting the region from Morriset in the Lake Macquarie area, said price rises had changed their habits.

"It puts you off going out, it's just ridiculous how it goes up twice a year," Mr Hay said.

"I don't go to the pub as much as I want to.

"I don't drink at home, I don't buy cartons and all that. I like going to the pub and it's dear now."

Adam Murphy, the owner of Wollongong's Humber, Heyday, and Halfway bars said the cost of liquor will have increased by more than 15 per cent in the last two years once the February increase is added.

"It's extra sensitive with the cost of living issues and we are very aware of it - it's not something we want to do," Mr Murphy said.

"We hope that people are aware that hospitality industry is doing whatever we can."

Julie Economos and Ashley Potter were more concerned with the rising price of essentials.

"If we go somewhere fancy we notice it has gone up a little bit, we often go to BYOs anyway and take our own bottle of wine which I think a lot of people do now," Ms Economos said.

"I think the supermarket prices are way more extravagant. It's ridiculous every time you go in, it goes up every single week."

"I haven't but I haven't been drinking much, maybe that's why," Ms Potter, who voiced concerns about the rising cost of essential items like nappies, said.

The Australian Bureau of Statistics reported that the living costs for employee households rose 6.9 per cent last year.

For some at the Illawarra Hotel the impact was not as substantial.

"I haven't noticed, and I don't drink much," Scott Prosser said.

"I haven't really noticed it, I do have a few beers now and again, but not a huge amount, I am aware of it," Patrik Wylen said.

Phillip O'Shea runs Five Barrel Brewing, a family run brewery in Wollongong, says the constant increase compounds with the higher cost of materials used in making beer.

"When farmers have a bad year, prices go up, the war in Ukraine made the price of barley go up 40 per cent ... it feels like one thing after the next, everybody is hurting for extra money and we are essentially a luxury item.

"At times like these it's important to remember supporting local is important and the backbone of the economy, we try to support our local economy as best we can"

Alex Gomez is another who has changed how he approaches socialising.

"We don't go out, it's very rare, you get a drink at home now.

"I'm very mindful, I'm now reading what has the highest alcohol content to the price, before, I'd just have something I'd enjoy."

Mr Gomez would now rather stay at home: "We'd rather do something at home then go out, not everyone drinks, but I do."