Have we already reached (and gone past) peak cocktail? Or is it just because tax adds so much to each drink that cocktails have become unaffordable to the people who want to drink them?
In this newsletter:
- the price difference between a cocktail in Sydney, and the same drink in Chicago
- just how much booze tax are you paying whenever you buy a cocktail?
- what a 25% cut to the spirits excise might look like
- what a 25% cut to the excise for on-premise only would look like
The federal budget lands in May, so the discussion around tax on spirits is back — but in this economy, it doesn’t really go away.
This week I read a story on Eater’s Pre Shift newsletter where one Chicago bartender broke down why — and how — he sells his cocktail at $10. He gave the spirits, the prices, and it all worked out to a GP of around 80%.
It makes for startling reading if you’ve grown up in Australia’s spirits world. Here’s what the ingredients in one cocktail, the Rule Of Three, cost:
We use Monkey Shoulder, which is a fairly well-respected bottle. A 750 milliliter bottle costs me $23.50. Then we use Cocchi Americano, which, again, is a recognized brand for aromatized wine and goes for $18.17 per bottle. Diplomático Reserva, which is $34 for a liter bottle, and amontillado sherry, which is $17.93 a bottle, round out the major spirit ingredients. Then we use Peychaud’s bitters, which cost me $6.32, and a homemade fig leaf cordial.
You can read the full piece here.
He goes on to say that the drink is a 90ml cocktail, so with a little guessing, I costed a cocktail to the 19% pour cost he talks about.
| Ingredient | Bottle Cost | Bottle Size | Per 30ml | Recipe Specs (ml) | Cost |
| Monkey Shoulder | $23.50 | 750ml | $0.94 | 20ml | $0.63 |
| Cocchi Americano | $18.17 | 750ml | $0.73 | 20ml | $0.48 |
| Diplomatico Riserva | $34.00 | 1000ml | $1.02 | 10ml | $0.34 |
| Amontillado Sherry | $17.93 | 700ml | $0.77 | 10ml | $0.26 |
| Peychaud's Bitters | $6.32 | 148ml | $1.28 | 3ml | $0.13 |
| Fig Leaf Cordial | $6.00 | 1000ml | $0.18 | 10ml | $0.06 |
| --- | --- | --- | --- | --- | --- |
| TOTAL | 73ml | $1.90 |
(It's probably not a great drink based on my specs, but hey, it gives us an idea.)
Obviously I got to thinking: how much would that same drink cost in Sydney?
Now, comparing the cost of a cocktail in Chicago to one in Sydney, is unlikely to be a one-to-one comparison — the rents are different, labour laws and wages are different, the culture is different.
But what role does Australia’s spirit excise play in the cost of a cocktail — how would that same cocktail be priced in Sydney?