Canadian Club: Over beer? How CC became the fastest growing alcohol trademark in Australia

Agency: The Works

Advertiser: Canadian Club (owned by Beam Global Australia)

Author: Tom Donald

Total Campaign Expenditure: $1-2 million


New tax blindsides the business

In mid-2009, Beam Global Australia (BGA) was at a crossroads. A year earlier, Federal taxes on ‘Ready To Drink’ (RTD) premixed drinks were raised over 70%, causing the price of BGA's portfolio to shoot through the roof. A slab of RTDs had cost roughly the same as a slab of beer, but not anymore. Not even close...

Excise tax rate is increased and set to incrementally grow faster for RTD than beer, leading to a 60-100%price disadvantage by the end of 2010