Beer drinkers should not expect more savings from the lower alcohol duties, with the release of recent data showing a slight decline in savings from the expected maximum, an industry source said. The data shows there was an average 27 HK cents saving in February and 28 HK cents last month, the source said. In March, the average savings rose to 33 HK cents, which might be explained by higher imports of more expensive brands following the government's announced halving of the 40 per cent beer tax in late February. News about lower prices highlighted maximum average savings of 29 HK cents per 330ml unit of beer, which is based on Customs and Excise Department data for last year. 'I don't expect the average savings on beer to go beyond 29 HK cents a bottle,' the source said. The Beer Coalition will forward revised prices for more than 50 beer brands to the trade and the government by Friday. The new price list will help the government monitor whether all the savings are being passed on to consumers. It will also pressure wholesalers, distributors and retailers to fully reflect the savings in the price although it is difficult to ensure this is always the case, the source said. Beer prices will only drop permanently by the full amount of the reduced duty if the savings are passed on by the entire supply chain. The coalition acknowledges that it is powerless to ensure each stage of the supply chain passes on all savings, meaning companies could take advantage of the lower duties to pad profits. Asahi, which a Consumer Council survey accused of increasing its six-pack price from HK$40 in late February to HK$60 two weeks ago, is not a member of the coalition. The coalition is part of the Hong Kong Food Drink & Grocery Association and its members account for about 80 per cent of the local beer market. Catering sector legislator Tommy Cheung Yu-yan said consumers should not be concerned about the actual savings from the lower taxes because the government keeps track of the duties paid. 'The 29 HK cents is simply the Beer Coalition's way of explaining to you how they calculate the savings,' Mr Cheung said. 'Anybody would expect to get 100 per cent of the savings, so it is important that consumers do this with their eyes open.' Mr Cheung said he will target major retailers and chain stores like Circle-K and 7-Eleven, which account for about 70 per cent to 80 per cent of the beer sold in Hong Kong. He also expects restaurants to adhere to the lower prices even if beer and other beverages are included in set meals or menus. Chain of distribution Beer moves through several tiers before reaching the consumer, including wholesalers and retailers The number of beer retailers: 20,000
