Coopers Chief Says Excise Rises Are Unsustainable
Coopers Brewery's managing director says rising alcohol taxes are driving consumers toward an illegal market that now accounts for 14 per cent of alcohol sales.
Updated on Nov. 9, 2026 in Beer
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Coopers Brewery managing director Michael Shearer has criticised government alcohol excise increases, calling them unsustainable. He warned that illegal tax-free alcohol sales have grown to 14 per cent of all alcohol sales.
Why it matters
Excise on alcohol rises every February and August, and higher legal prices are pushing demand toward illegal markets, mirroring the trend seen with tobacco. Shearer warned the illegal alcohol market could grow to match the size of the illegal tobacco trade without intervention.
The Australian Taxation Office estimates $1.23 billion in alcohol taxes were lost to illegal sales in 2024-2025, with illegal tax-free sales now making up 14 per cent of all alcohol sales. Coopers Brewery's national market share has risen to six per cent, but the source does not detail how the illegal market's growth will be curbed.
The players
Michael Shearer
Michael Shearer is the managing director of Coopers Brewery, one of Australia's best-known independent brewers.
Coopers Brewery
Coopers Brewery is an Australian family-owned brewer based in South Australia, known for its traditional ales.
The details
A slab of Coopers beer is priced at $65, with excise rates varying by alcohol strength so stronger drinks are taxed more heavily. Shearer pointed to the tobacco experience, where a 20-pack of cigarettes averages $40 with about $28 in tax, while black market packs sell for around $12.
Timeline
The 2015-2020 period saw the smoking rate fall by 22 per cent.
Legal tobacco sales dropped 29 per cent in the year to September 2025.
The Australian Taxation Office's estimate covers the 2024-2025 financial year.
Market Landscape
Australia's twice-yearly alcohol excise indexation, applied each February and August, sets the price floor that legal brewers must work within. The same pattern that has pushed tobacco buyers toward illicit supply is now showing up in beer, shifting market share toward unregulated sellers.
Higher excise means a slab of beer or a pack of cigarettes costs more at the bottle shop or tobacconist, which can push buyers toward cheaper, untaxed alternatives. Shoppers should be aware that black market goods carry no assurance of quality or safety.
The takeaway
Rising excise can shift spending to illegal channels, so tax policy and enforcement have to be weighed together. Consumers paying higher prices at legal retailers should understand that the cost pressure is part of a wider market shift.
Further reading
Explore more on the Beer section for context on how pricing and tax shape the category.
Source note: This article includes information reported by Mail Online.
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