Australia: Beer may be re-defined to be distinguished from malternatives

Australia could change its legal definition of beer in order to stop brewers using a tax loophole to pass off sweet, pre-mixed alcoholic drinks as beer, AFP cited a report on November, 23.

The report follows the government's decision to increase the tax on alcopops - bottled or canned fizzy drinks usually mixed with rum or vodka - by 70 percent to curtail binge drinking among young people.

Some drinks companies have sidestepped the tax by producing drinks brewed using the same methods as beer but with all the "beer characteristics" removed and sugar and colouring added, it is reported.

The products, known as "malternatives", are also packaged like a flavoured beverage and sell for as little as two Australian dollars (1.25 US) a drink - significantly cheaper than the "alcopops" that fall under the new tax regime.

A leading producer of alcopops, Independent Disillers Australia, said that restricting the characteristics of beer would impact companies which produced flavoured versions of the national drink.

25 November, 2008