Almost No Profit

Press, Volume CVI, Issue 31115, 19 July 1966, Page 1

Almost No Profit

(N.Z. Press Association) DUNEDIN, July 18. The liquor price-cutting war in Dunedin became more intense today when one hotel was selling beer “almost at a loss.” Ths European Hotel is selling beer at 4s 6d a flagon, instead of the normal price of 6s 3d. The brewery price to hotels is 8s 6d a gallon, but the cost of labour for washing and filling the flagons and that for the labels, tops, gas and equipment maintenance would mean that the beer is being sold for almost no profit, or at a loss.

The managing director of the hotel company, Mr W. B. Scoular said: “This

Is another effort on our part to try to persuade the trade that price cutting does not pay.” The price cutting started with whisky, but more recently the emphasis has been on gin and vodka. Wines and other spirits have also been sold at reduced rates. Flagon sales at the European Hotel were treble tbe normal for a Monday, Mr Scoular Mid. Asked how long the reduced rate for flagon beer would apply, he said: “If there Is no reaction from the chief price cutters we will continue until we get some action.”