Steinlager cheaper overseas than in NZ

A major New Zealand beer costs almost three times as much here than in the United States or Britain.

A six-pack of Steinlager Pure typically sells for about $16 in New Zealand. But travel 10,000km from where it is brewed, to America, and it can be bought for about $6.

And at British supermarket Asda, a six-pack of Classic sells for the equivalent of just over $4.

Lion Breweries, which makes the beer, says the prices fall in line with its competitors overseas and reflect the different marketplaces.

The six-pack in New Zealand is also at somewhat of an awkward price point _ on Countdown's online shopping site, six stubbies of Steinlager Pure cost $20, but a dozen on special goes for $25 (normally $42). Twelve regular Steinlagers are on special for $18.

But a New Zealander who had recently been on holiday in the US said the difference was enough to make him want to stop buying the beer here.

"I came across it in the shop and thought, `You've got to be joking'.

"There have previously been articles on the price of milk [overseas], and New Zealand is up in arms... [but] this is much more extreme _ the difference is up to $15, which is a huge margin.''

A six-pack in New Zealand includes about $2.70 in alcohol excise tax, which is calculated per litre of alcohol. There is also about $2.10 in GST for a $16 case.

The remainder is $11.20, still almost double some overseas prices.

Lion external relations director Liz Read said beer prices in different markets had been set over time, and it would be difficult to break down their components.

"I guess overall you could say it's a reflection of the different marketplace for beer pricing.

"It will be a whole lot of factors... Some of it will be tax, some of it will be making sure the pricing is in line with the other beers that it competes with in the marketplace.

"Sometimes it's a matter of retail behaviour, as well.

"In the wine market in the UK, for example, the supermarket environment is very competitive so that's influenced the price of New Zealand wine [being sold there].''

Many New Zealand-made products were cheaper overseas, she said.

"If you look at any category you will find the same thing.

"The price of New Zealand butter in Europe... could well be cheaper than here.

"Comparing New Zealand domestic prices for any product category with overseas prices is a somewhat futile exercise, given there are so many factors that contribute to market conditions and prices in different countries.''

New Zealand prices are more expensive than the US, but Australia's are higher still.

A six-pack of Steinlager Pure at an Australian online retailer costs about $23, including a higher alcohol excise tax.

"Historically, when there's been a bit of a price rise, it's stuck,'' Ms Read said.

- Michael Dickison, New Zealand Herald