Cheap spirits, pricey condoms: how war in the Middle East is shifting the way Australians spend

1. Cheap drinks There has been a years-long trend in Australia of drinking less, but better quality, alcohol. That has started to change as consumers search for cheap drinks. The ASX-listed alcohol packaging company Orora has detected a global shift toward cheaper spirits since the start of the Iran war. The volume of sales is also less than they had previously forecast due to diminishing customer confidence. Steven Fanner, the executive director at Spirits & Cocktails Australia, says Australians are “trading down” due to rising living costs. “They are getting something that’s a little bit cheaper, or opting for lower alcohol content, not necessarily as a responsibility measure but more because of cost,” Fanner says. The consumer trend is making it difficult for businesses that would ordinarily increase their prices to offset rising costs such as freight and fuel. “The question for businesses is how do you contain the price of products for the consumer because they don’t have any more money to spend, even if the cost of producing the product and getting it to market is going up,” Fanner says. Similar pressures are being felt by cafes and restaurants grappling with rising costs and financially strained customers, many of whom are cutting back on takeaway coffees and eating out . 2. …