The ongoing Middle East conflict has intensified an already challenging economic environment, making it crucial for costs and risks to be equitably distributed between suppliers and retailers.
The Australian Beverages Council Ltd (ABCL) is calling on retailers to work collaboratively with manufacturers to address escalating cost pressures.
CEO of the ABCL Geoff Parker revealed a recent survey of members identified rising fuel prices, increased freight costs, and higher ingredient expenses are compounding existing constraints on Australian beverage manufacturers.
“Beverage manufacturers have continued to provide stable shelf prices despite our members grappling with cost pressures prior to recent events. There is a limit to how much more they can absorb further increases,” Mr Parker said.
The industry is advocating for a balanced approach to retailer-supplier relationships that supports household affordability without compromising the long-term viability of Australian manufacturing.
“Our members understand the cost-of-living pressures facing Australian households, but continuing to accept unsustainable concessions from suppliers is not a genuine long-term solution for Australian beverage manufacturers,” Mr Parker said.
