For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia

 
For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
2030 Vision       for the
                 Alcohol
              Beverages
                Industry

                                     R EALIS I NG OU R POTENTIAL
                 Realising our
                     potential

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
I
                                                                        n times of crisis, Australians come together     Our viticulture industry has developed into
                                                                        as a community. We give each other               a world leader as a producer of premium,
                                                                     strength and support to rise to the challenges      distinguished wines, coveted around the globe.
                                                                     we face as a nation. Most recently, we have         Now the craft taking place in our distilleries
                                                                     been tested by the coronavirus pandemic,            and breweries is also attracting the attention
                                                                     which has robbed some of us of loved ones,          of global enthusiasts, as they win international
                                                                     placed strain on our physical and mental            awards recognising their prestige, distinctive
                                                                     well-being and significantly impacted our           Aussie-inspired tastes and the ingenuity of
                                                                     economy. We have been fortunate to avoid            their creators.
                                                                     the devastation the virus has had on many
                                                                     countries around the world, and as a nation         At the heart of the industry are its people:
                                                                                                                         passionate, creative and entrepreneurial
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                     we are coming back stronger than ever.
                                                                                                                         winemakers, distillers and brewers working
                                                                     But we need to pay particular attention to          across the country to produce exceptional
                                                                     those industries and individuals who have           beverages. The revenue produced by our local
                                                                     been more severely affected. Australians want       alcohol beverage industry delivers benefits

                                                                                                                                                                                  R EALI S I NG OU R POTENTIAL
                                                                     to return to our previous way of life: to spend     right along the supply chain, bringing jobs and
                                                                     time with family and friends, to celebrate,         money into our communities, including those
                                                                     to collaborate and to connect. For many             in rural and regional Australia. Our producers
                                                                     Australians, these experiences are often shared     are destinations for domestic and international
                                                                     over a drink. We look forward to having a           tourists seeking to visit cellar doors and tasting
                                                                     beer with colleagues after a day’s work; a glass    rooms for unique, first-class and authentically
                                                                     of wine at a family dinner; or a cocktail with      Australian experiences.
                                                                     friends on a special night out. Social distancing
                                                                     has hampered this, but Aussies are now              Through measures such as improving market
                                                                     reconnecting as we emerge from the shadow           access for exporters, and reducing red tape
                                                                     of the virus.                                       and unnecessary regulation to enable small
                                                                                                                         producers to reinvest in their operations and
                                                                     The fact that lockdowns did not result              increase employment, this statement sets out a
                                                                     in increased alcohol consumption across             comprehensive vision which would maximise
                                                                     Australia underscores the more responsible,         the opportunity for local businesses to bottle
                                                                     mature relationship our country has                 the best of Australia and share it with the
                                                                     developed with alcoholic beverages over             world.
                                                                     the past 20 years. Harmful drinking and
                                                                     underage drinking rates continue to fall, with
                                                                     Australians choosing to drink lesser quantities,                                   Bryan Fry
                                                                     but higher quality beers, wines, ciders and                                              Chair
                                                                     spirits — often Australian–made.                                    Alcohol Beverages Australia

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
There’s more to
                                                                     your favourite drink
                                                                     than you realise
                                                                     Behind the person filling your glass stands a passionate
                                                                     workforce – farmers, orchardists and vignerons; winemakers,
                                                                     brewers and distillers; bottle makers, truck drivers, supply chain
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                     managers, sales reps and sommeliers; and countless other roles.

                                                                     T
                                                                          aken together, our businesses support                   industry and government, the alcohol beverage

                                                                                                                                                                                         R EALI S I NG OU R POTENTIAL
                                                                          485,000 jobs and contribute $52bn in                    sector offers enormous potential to contribute
                                                                     total value add. We export $3.6bn of product,                to the growth of our economy and job creation
                                                                     underpin many regional communities, and                      in our communities over the next decade.
                                                                     invest heavily in environmental sustainability,
                                                                     R&D and innovation.                                          For example, we estimate that our growth
                                                                                                                                  ambitions as an industry could see us directly
                                                                     Australia's drinking culture has changed to                  employ an additional 47,700 Australians by 2030.
                                                                     a point where moderation is the new norm,
                                                                     in part because Australians are becoming                     We are open for business and primed for
                                                                     more aware of the negative impacts of misuse,                expansion, with strong policies to drive
                                                                     thanks to the introduction of pioneering public              sustainable growth for our industry and the
                                                                     education and self-regulatory systems.                       broader economy. We stand ready to work
                                                                                                                                  with all levels of government to ensure we
                                                                     Our products contribute to sociability and                   deliver on our potential for the country and
                                                                     wellness, and are at the heart of celebration                the communities we live in.
                                                                     and our Australian way of life.

                                                                     It hasn’t been the easiest start to the decade,
                                                                     with shuttered businesses and lost livelihoods
                                                                     the legacy of COVID restrictions, and our
                                                                     industry has suffered more than most. Despite                                         Andrew Wilsmore
                                                                     this, our outlook remains positive, and we                                            Chief Executive Officer
                                                                     believe that with concerted action from                                         Alcohol Beverages Australia

                                                                     Unless otherwise noted, all industry facts, figures and projections are sourced from research conducted by
                                                                     Deloitte Access Economics for Alcohol Beverages Australia: Alcohol Beverages Industry: Economic contribution
                                                                     and future opportunities, Deloitte Access Economics (2021)

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                                                                     R EALI S I NG OU R POTENTIAL
                                                                     Table of contents

                                                                     Our connections                         9
                                                                     Current economic contribution          11
                                                                     Unleashed economic contribution        13
                                                                     Key drivers to realise our potential   15
                                                                     Opportunities for growth               18
                                                                     Building better outcomes               30
                                                                     Our commitments                        39

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
Our globally
                                                                     award-winning
                                                                     beer, wine,
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                                                                     spirits and

                                                                                                                               R EALI S I NG OU R POTENTIAL
                                                                     cider are a
                                                                                       We take delight in making them
                                                                                       and serving them – both here
                                                                                       in Australia and around the

                                                                     source of         world – and in the role they play
                                                                                       enhancing life’s special moments

                                                                     national pride.
                                                                                       and bringing people together.

                                                                                       We already achieve more as an
                                                                                       industry than many people might
                                                                                       expect, and have so much more
                                                                                       potential to realise.

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
Our connections
                                                                                 Enjoyed responsibly, our products help bring people
                                                                                  together, facilitating connections and forming part
                                                                                         of our national culture and identity.

                                                                                                                                                                               Our industry powers                        Our products are world-                        Our industry supports
                                                                                                                                                                               regional tourism, with more                class and award-winning.                       Australian farmers. The
                                                                                                                                                                               than 600,000 tourists visiting             Tasmania’s Sullivan’s Cove is                  strong relationship between
                                                                                                                                                                               wineries in Margaret River in              the only distillery to have won                alcohol beverage producers
                                                                                                                                                                               2018-19, as just one example.3             “Best Single Cask Single Malt”                 and farmers has helped foster
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                                                                                                                               Visitors to the region spent               twice at the World Whiskies                    growth and innovation in
                                                                                                                                                                               $3.2bn over the same period.               Award - just one example                       Australian agriculture and take
                                                                                                                                                                                                                          amongst yearly wins in beer,                   it to the world. Australian malt
                                                                     Moderate alcohol consumption      In our regional communities,       In Australian culture, drinks                                                   wine, spirits and cider.                       barley has become highly sought

                                                                                                                                                                                                                                                                                                                  R EALI S I NG OU R POTENTIAL
                                                                     has been associated with a        the local pub or club is often     bring people together and                                                                                                      after world-wide for quality
                                                                     range of benefits for social      the hub of the community, used     are often at the heart of                                                                                                      and purity, and now accounts
                                                                     and mental wellbeing,1            as a place for locals to connect   socialisation. We connect                                                                                                      for 30-40% of the global export
                                                                     as well as lower all-cause        and get together.                  with our friends, families and                                                                                                 malt barley trade.4
                                                                     mortality,2 when compared                                            colleagues through the ritual
                                                                     to both heavy alcohol                                                of sharing a drink.
                                                                                                                                                                           Our beer, wines, spirits and ciders contribute heavily to the
                                                                     consumption and abstinence.
                                                                                                                                                                           profitability of almost all pubs, bars, restaurants and many
                                                                                                                                                                           sporting clubs throughout all corners of Australia. The vast
                                                                                                                                                                           majority of these businesses are small to medium enterprises
                                                                                                                                                                           driving jobs in urban and regional communities.

                                                                                                                                                                           A ‘true local’ example
                                                                                                                                                                           In 2018, the north-west Victorian
                                                                                                                                                                           community of Nandaly bought its own
                                                                     At celebrations across the        Our drinks and hospitality         Our products are a
                                                                     country, our products play a      venues are a place of              source of national pride,        pub in an effort to prevent the town from
                                                                     role in life’s key milestones,    relaxation, pleasure and           internationally recognised       losing its only meeting place as a focal
                                                                     such as weddings, birthdays       discovery. They help us            for their high quality and       point of the community.
                                                                     and anniversaries. The people     unwind after a long work-          often enjoyed with high-end
                                                                     who sell and serve them           week, enhance our enjoyment        food pairings – contributing
                                                                     are story-tellers at heart,       of food and open our minds to      to the premium ‘Australia
                                                                     providing education and helping   the craft behind the industry.     brand’.                          1
                                                                                                                                                                             Peele, S., & Brodsky, A. (2000). Exploring psychological benefits associated with moderate alcohol use: A necessary corrective to
                                                                     match the perfect beverage to                                                                           assessments of drinking outcomes? Drug and Alcohol Dependence, 60, 221-247.
                                                                                                                                                                           2
                                                                                                                                                                             University of Sheffield (2019) Mortality and morbidity risks from alcohol consumption in Australia: Analyses using an Australian
                                                                     that special occasion.                                                                                  adaptation of the Sheffield Alcohol Policy Model (v2.7) to inform the development of new alcohol guidelines.
                                                                                                                                                                           3
                                                                                                                                                                             Wine Australia (2020), Wine Tourism Snapshot 2018-19
                                                                                                                                                                           4
                                                                                                                                                                             Australian Export Grains Innovation Centre (2018), Barley, Australian Grain Note

                                                                 9                                                                                                                                                                                                                                               10
For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
Current economic                                                What we bring

                                                                      contribution                                                          $52bn
                                                                                                                                             in economic
                                                                                                                                                 value
                                                                                                                                                                                     $9.3bn
                                                                                                                                                                                           in taxes
                                                                                                                                                                                   (incl. excise, WET, and GST)
                                                                                                                                                                                                                           $3.6bn
                                                                                                                                                                                                                               in exports

                                                                      2019/20 – Our industry today                                             16m                                   $465m                                $29.2bn
                                                                      We are farmers, primary manufacturers, supply chain                       adult                                    capital                          tourist spend on
                                                                      operators, wholesalers, tourism operators, retailers                    consumers                                expenditure                          food & drinks
                                                                                                                                                                                               (2020)                              (2018)
                                                                      and food and beverage businesses. We proudly serve
                                                                      consumers in Australia and around the world.
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                                                                      We actively contribute to job creation and                      Workplace
                                                                      economic development in regional Australia:

                                                                           35% of our workforce is located in the regions.                    485k                                       55%                                    76k

                                                                                                                                                                                                                                                            R EALI S I NG OU R POTENTIAL
                                                                                                                                  direct and indirect jobs                               workforce                        alcohol beverage
                                                                           Some of our biggest organisations operate out of           (Full-time, part-time and casual)                  under 35                            businesses
                                                                           regional Australia, providing high-value jobs to
                                                                           the community.

                                                                           Our wineries, distilleries and breweries attract
                                                                                                                                              48%                                        35%                                 68.6k
                                                                           tourists to the regions, supplying local communities               workforce                               workforce in                              licences
                                                                           with broader economic benefits.                                    is female                             regional Australia

                                                                      We play an integral role in Australian tourism, both
                                                                      domestic and international, with 50% of visitors to
                                                                                                                                      Social responsibility
                                                                      Australia associating their travel with food and drink
                                                                      experiences.

                                                                      Our industry is a significant contributor to government                 9.7%                                    29.8%                                  18.6%
                                                                      revenue, accounting for $9.3bn in total taxation ($6.9bn                in lifetime                              in underage                        in alcohol-related
                                                                      Excise + WET & $2.4bn GST).                                          risky drinking 5                              drinking 5                        physical abuse 5
                                                                                                                                         (18+ drinkers, 2013 - 2019)                      (2013 - 2019)
                                                                      In 2019-2020, our manufacturing industry invested
                                                                      $465m in capital expenditure. This investment has grown
                                                                      by 6.7% per year over the last five years, compared to
                                                                      Australia’s total non-mining capital expenditure growth                                          Average alcohol                                    Average alcohol
                                                                      of 2.5% per year over the same period.
                                                                                                                                           12.98L                      consumption per
                                                                                                                                                                       capita6 (1977 - 1978)
                                                                                                                                                                                                          9.51L           consumption per
                                                                                                                                                                                                                          capita6 (2017 - 2018)

                                                                                                                                  5
                                                                                                                                      Australian Institute of Health and Welfare, ‘Alcohol, tobacco & other drugs in Australia’,
                                                                                                                                      https://www.aihw.gov.au/reports/alcohol/alcohol-tobacco-other-drugs-australia/contents/introduction, December 2020
                                                                                                                                  6
                                                                                                                                      4307.0.55.001 - Apparent Consumption of Alcohol, Australia 2017-18, Australian Bureau of Statistics

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For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
By 2030
                                                                                                                              Total value add

                                                                  Unleashed                                                      $64bn               An additional

                                                                  economic                                                       contribution to
                                                                                                                                 the Australian
                                                                                                                                   economy
                                                                                                                                                     $3.7bn direct
                                                                                                                                                     $8.3bn indirect
                                                                  contribution
                                                                                                                                                       (Based on 2020 modelling)

                                                                                                                              Jobs
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                                                                                                                                                     An additional 4.7k
                                                                                                                                   286k
                                                                  2030 – Our potential
                                                                  With optimal policy settings and investment, the alcohol                           directly employed

                                                                                                                                                                                    R EALI S I NG OU R POTENTIAL
                                                                                                                                   Australians
                                                                                                                                                     each year for the
                                                                  beverage sector can realise substantial opportunities for
                                                                  growth over the next decade, increasing our contribution          directly
                                                                                                                                   employed
                                                                                                                                                     next ten years
                                                                  to the economy whilst providing better outcomes for our
                                                                  environment and our communities.

                                                                  Throughout our Vision publication, we have identified
                                                                  significant impediments to our future growth scenario,
                                                                  with Australia's internationally comparative high taxes
                                                                                                                              Exports
                                                                  on alcohol a source of significant frustration.
                                                                  A reduction in tax and other costs to doing business
                                                                  will make our industry more attractive to investors and
                                                                  improve capital flows to the sector to support a thriving
                                                                  industry moving forward.
                                                                                                                                 $8.6bn              More than
                                                                                                                                   in exports        doubling

                                                                                                                              Skills

                                                                                                                                 $100m               An additional
                                                                                                                                   in technical,
                                                                                                                                 vocational and
                                                                                                                                                     $35m investment
                                                                                                                                tertiary education
                                                                                                                                                     in skills
                                                             13                                                                                                                    14
For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
Key drivers to
                                                                  realise our
                                                                  potential
                                                                  Opportunities for growth
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                   1
                                                                            Future job

                                                                                                                                  R EALI S I NG OU R POTENTIAL
                                                                            creation

                                                                   2
                                                                            New markets for       Building better outcomes
                                                                            Australian products

                                                                   3                               6
                                                                            Enriching the                   Safe and sociable
                                                                            tourism experience              communities

                                                                   4                               7
                                                                            Making it easier                Stronger
                                                                            to do business                  regions

                                                                   5                                8
                                                                            Driving technology              Positive impact on
                                                                            and innovation                  the environment

                                                             15                                                                  16
For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
Opportunities
                                                                        for growth
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                                              R EALI S I NG OU R POTENTIAL
                                                                                 creating
                                                                              income and
                                                                                  jobs for
                                                                               Australians

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OPPORTUNITIES FOR GROWTH                                                                              Our goals

                                                                   1                                                                                                    Provide quality and clear career                       industry to reflect and capitalise on the full
                                                                                                                                                                        opportunities within the industry and                  range of talent and experience within the
                                                                                                                                                                        in the regions for Australians: We aim to

                                                                  Future
                                                                                                                                                                                                                               workforce. We will aim to improve the
                                                                                                                                                                        grow our industry’s present $65m investment            rate of females in management positions to
                                                                                                                                                                        in technical, vocational and tertiary education        equivalence with the proportion of female
                                                                                                                                                                        to $100m by 2030 to promote opportunities for          employees in the industry as a whole (48%).

                                                                  job creation
                                                                                                                                                                        professional careers across the entire supply chain.
                                                                                                                                                                                                                               Diversity of employment: The industry
                                                                                                                                                                        Invest in skills development with a future             already supports a wide range of careers
                                                                                                                                                                        view: With investment in data scientists, AI           including general business and management,
                                                                                                                                                                        in agriculture and services, and robotics in           hospitality and sciences. 45% of our industry
                                                                  The alcohol beverage industry supports almost half a million                                          manufacturing and throughout the supply                holds a post-school qualification, with the
                                                                  Australian workers. Whilst many of these are highly skilled                                           chain, our industry will become more highly            manufacturing sector having the highest share
                                                                                                                                                                        specialised in the skills required to support the      at 60%. In the future, we will make demands of
                                                                  professional roles, the industry is also a significant employer of                                    growth and adoption of these new technologies.         courses and qualifications that are designed to
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                  young adults, as well as unskilled and semi-skilled workers in                                                                                               meet the needs of high innovation industries.
                                                                                                                                                                        Greater diversity in management roles:
                                                                  regions with higher levels of under- or unemployment.                                                 We need to increase the number of women in
                                                                                                                                                                        management roles in the alcoholic beverages

                                                                                                                                                                                                                                                                                     R EALI S I NG OU R POTENTIAL
                                                                  Positive job                   Building                             Protecting
                                                                  multiplier                     young adult careers                  the regions
                                                                  Every person employed in the   Many Australians find their first    The heart of our industry, as     Policy priorities
                                                                  Australian alcohol beverages   job behind a bar, in a restaurant    well as 35% of our workforce,
                                                                  industry supports another      or even pruning vines. These         is based outside the major
                                                                  employed person.               roles provide training and           cities, which means we play a     I N D U S T R Y DY N A M I C                           R EALI S I NG OU R POTE NTIAL

                                                                                                 development opportunities for a      vital part in providing jobs to   Workers in hospitality and tourism have been           We support continued government assistance
                                                                                                 continued career in ours or other    young adults in the regions.      especially impacted by the COVID-19 crisis.            to help employers retain staff in these industries
                                                                                                                                                                                                                               until they can stand on their own feet again.
                                                                                                 industries. For example, staff       These roles vary widely, from
                                                                                                 who have served in hospitality       agriculture, manufacturing
                                                                                                                                                                        Whilst respecting the rights of workers, Australia’s   We support further harmonisation and
                                                                                                 roles often have a strong service    and supply chain through to       labour laws should seek to make it easier for          simplification of the system to incentivise new
                                                                                                 culture, a beneficial attribute      hospitality and tourism.          employers to take on staff.                            hirings and aid with retention. Whilst respecting
                                                                                                                                                                                                                               the rights of workers, Australia’s labour laws
                                                                                                 for other careers.                                                                                                            should take into account the need to make it
                                                                                                                                                                                                                               easier for employers to take on staff to meet the
                                                                                                 For those who choose to stay                                                                                                  needs of our growers and service expectations of
                                                                                                                                      “Since the first program
                                                                                                 with the industry there are a                                                                                                 our customers.
                                                                                                                                       in 2006, there are over
                                                                                                 wealth of fulfilling career paths,
                                                                                                                                       100 alumni, many already         Parts of our industry are highly seasonal, and we      We support reforms to working visas to allow
                                                                                                 including options to establish                                         place significant value on international expertise     for the freer movement of talent to meet labour
                                                                                                                                       making significant
                                                                                                 small businesses and start                                             and exchange of ideas.                                 shortages, and drive innovation and adoption of
                                                                                                                                       contributions to the                                                                    new technologies between countries.
                                                                                                 creating new jobs of their own.
                                                                                                                                       sector, through their
                                                                                                                                       own companies, sector            The success of our industry relies on workers in       We support regional employment initiatives,
                                                                                                                                                                        SMEs in regional businesses.                           including regional work visas and pathways
                                                                                                                                       committees, company                                                                     for young, unemployed and underrepresented
                                                                                                                                       boards and in research.”                                                                Australians to work in regional Australia.

                                                                                                                                       BRIAN WALSH                      Our industry is highly taxed, but our suppliers        We support reducing alcohol, payroll, and
                                                                                                                                                                        and employees pay the price in terms of reduced        company taxes to be competitive with other OECD
                                                                                                                                       Former Wine Australia Chair,     investment and job creation.                           nations, so that we can invest in capital and our
                                                                                                                                       on the Future Leaders Program                                                           people to help grow the economy.

                                                             19                                                                                                                                                                                                                     20
OPPORTUNITIES FOR GROWTH                                                                                     Our goals

                                                                   2                                                                                                           More than double our export portfolio by                  Work together as an industry:
                                                                                                                                                                               an additional $5bn to $8.6bn. Wine exports                Opportunities for exporters across all
                                                                                                                                                                               will continue to lead, but a specific focus on            categories should be created to represent

                                                                  New markets for
                                                                                                                                                                               growing the distillery market, in particular,             collectively at trade shows and facilitate
                                                                                                                                                                               has the potential to create a similar trajectory          connections for the smaller players.
                                                                                                                                                                               to wine export growth that started in the

                                                                  Australian products
                                                                                                                                                                               1970s. Innovations in brewing, new products
                                                                                                                                                                               including zero or low alcohol, and diversifying
                                                                                                                                                                               markets, product and packaging offerings also                  “There’s no doubt the free trade
                                                                                                                                                                               provide broader trade opportunities for the sector.             agreements have facilitated
                                                                                                                                                                                                                                               the increased number of
                                                                  Australian beer, wine and spirits are globally renowned.                                                     Establish export capability building
                                                                                                                                                                                                                                               enquiries from Asia”.
                                                                                                                                                                               bodies: Expanding the Rural RDC model
                                                                  For decades they have represented the changing face and
                                                                                                                                                                               (or establishing something similar) for other
                                                                  aspirations of Australia overseas, reflecting today our reputation                                           categories will help smaller producers grow
                                                                                                                                                                                                                                               MARK LITTLER
                                                                                                                                                                                                                                               General Manager and
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                  for provenance, quality, innovation and bold natural beauty.                                                 their export capability, understand how to
                                                                                                                                                                                                                                               Master Distiller at Hellyers Road,
                                                                                                                                                                               leverage free trade agreements, navigate
                                                                                                                                                                                                                                               on the China and Japan free trade
                                                                                                                                                                               ‘non-tariff barriers’, and gain access to
                                                                  Already a strong                     Bottling the Australian          Discovering our                                                                                        agreements
                                                                                                                                                                               international markets.
                                                                  contributor                          character                        potential

                                                                                                                                                                                                                                                                                                    R EALI S I NG OU R POTENTIAL
                                                                  Exports of Australian alcohol        Australian beverages are         The growth in volume and
                                                                  beverages are worth $3.6bn,          becoming part of life for        prestige of Australian wine
                                                                  and account for 1% of total          millions of international        exports over the last half
                                                                  exports. Broken down                 consumers. Every time            century is an astounding success       Policy priorities
                                                                  by product category, the             someone enjoys a glass of        story for our country, and
                                                                  contribution is 85% wine, 14%        one of our products, either      we should look to extend and
                                                                                                                                                                               I N D U S T R Y DY N A M I C                              R EALI S I NG OU R POTE NTIAL
                                                                  spirits and 1% beer and cider.       in their homeland or here in     replicate this into new markets
                                                                  More than half (62%) of all          Australia on holiday, a little   with other categories. By way          There is a significant opportunity for the industry and   We support the inclusion and prioritisation of
                                                                                                                                                                               government to work together to further build exports      the total alcohol beverage sector, not just wine,
                                                                  wine produced in Australia is        of our national character is     of example, consider the rapid         of Australia’s wines, beers and spirits, building on      in trade negotiations.
                                                                  exported7, primarily to China,       on show - each drop tells a      growth of the Japanese whisky          the export success of Australia’s wine sector.
                                                                  the United States and the            story of our climate, our land   market over the past two
                                                                                                                                                                               An industry which focuses on quality of                   We support the need for both public and private
                                                                  United Kingdom. Meanwhile,           and our people. Investment in    decades, transformed from a            consumption over quantity benefits our community          investment in the development of export
                                                                  only 7% of spirits and less          the quality and awareness of     largely domestic industry into         and will compete strongly in world markets.               capability of the alcohol industry as a whole,
                                                                  than 1% of beer we produce           our products helps grow our      an estimated US$1.1bn global                                                                     including craft distilleries and brewers.

                                                                  are exported. Given that in          reputation overseas.             market by 2025.10
                                                                                                                                                                               The quality of our food and drink is one of our           We will work with governments to improve
                                                                  2020 Australia had nearly 300                                                                                strongest intangible assets.                              enforcement, target counterfeiting and to
                                                                  distilleries8 (versus 30 in 2010),                                                                                                                                     strengthen and implement penalties for illegal
                                                                                                                                                                                                                                         removal of track and trace information, including
                                                                  and 700 breweries9 (versus 70                                                                                                                                          lot codes or other traceability measures.
                                                                  in 2010) this provides a rich
                                                                  basis for export growth.

                                                                  The burgeoning spirits sector
                                                                  shows all the hallmarks of
                                                                  successful growth that Australian
                                                                  wine experienced in its growth
                                                                  from the 1970s. Spirits’ share of                                                                        7
                                                                                                                                                                              Australian wine exports slow down due to China tariffs,
                                                                  total exports has surged from                                                                               https://www.wineaustralia.com/news/media-releases/australian-wine-exports-slow-due-to-china-tariffs, February 2021
                                                                                                                                                                           8
                                                                                                                                                                              The Whisky List, https://thewhiskylist.com.au/distilleries/australia
                                                                  around 5% in 2009 to 14% in 2019.                                                                        9
                                                                                                                                                                              Independent Brewers Association
                                                                                                                                                                           10
                                                                                                                                                                              Grand View Research (2020), Japanese Whisky Market Worth $1.1 Billion By 2025, CAGR 9.4%

                                                             21                                                                                                                                                                                                                                    22
OPPORTUNITIES FOR GROWTH                                                                                       Our goals

                                                                  3                                                                                                                 Increase foot traffic: We aim to boost                         Partner with Tourism Australia:
                                                                                                                                                                                    domestic and international spending by                         As a key driver of tourism internationally and
                                                                                                                                                                                    tourists on food and drinks from $29.2bn                       domestically, we believe we can make a strong

                                                                 Enriching the
                                                                                                                                                                                    in 2019 to $40bn by 2030.                                      contribution to enhancing the profile
                                                                                                                                                                                                                                                   of Australia as a destination.
                                                                                                                                                                                    Collaborate more closely with state and
                                                                                                                                                                                    regional tourism bodies: Success in one

                                                                 tourism experience
                                                                                                                                                                                    region should inform our efforts across the
                                                                                                                                                                                    country. We can build on our experience                                “The great Aussie pub is an
                                                                                                                                                                                    to deliver services that match the levels                               icon – we’ve had famous
                                                                                                                                                                                    of sophistication expected by urban and                                 songs composed about
                                                                 Our industry is the fourth largest driver of destination choice for                                                international tourists and adapt quickly                                them as well as in them”.

                                                                 travellers around the world, with every bottle sold overseas serving as                                            to emerging trends and demand.
                                                                                                                                                                                                                                                            KAREN HALABI,
                                                                 an advertisement for our country, helping secure the tourist dollar                                                                                                                        Great Aussie pubs,
                                                                                                                                                                                                                                                            Australian Geographic
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                 long before visitors arrive on our shores. As Australia re-opens to
                                                                 international tourism, the experiences provided at our bars, restaurants,
                                                                 breweries and cellar doors are set to form a core part of our offering.
                                                                                                                                                                                Policy priorities

                                                                                                                                                                                                                                                                                                            R EALI S I NG OU R POTENTIAL
                                                                 A reputation for                    Not just a day trip                   Food and drink is at
                                                                 hospitality                         The profile of breweries,             the heart of every
                                                                                                                                                                                    I N D U S T R Y DY N A M I C                                   R EALI S I NG OU R POTE NTIAL
                                                                 Our hospitality and retail          wineries and distilleries as places   community
                                                                                                                                                                                    In many parts of Australia, our hospitality venues             As a key tourism driver, communities would
                                                                 venues nationwide are critical      to visit, in and of themselves,       In the past, travel and                  and breweries, distilleries and wineries play an               benefit from a more prominent profile for
                                                                 in driving a positive experience    is increasing. In 2019, 1.5m          alcohol beverages were most              integral role in the visitor experience.                       hospitality and alcohol beverages in government-
                                                                 for domestic and international      overnight trips in Australia          commonly linked by wine                                                                                 funded tourism campaigns.

                                                                 tourists. Our products also         involved a visit to a brewery,        tourism. Today, Australia’s
                                                                                                                                                                                    Tourism policy and research – for example the                  We support broader and more consistent
                                                                 serve as a great example of the     480,000 trips included a visit to     iconic wine regions are some of          National Visitor Survey conducted by Tourism                   consideration of issues relating to our industry
                                                                 regional diversity of this great    a distillery, and 5.4m involved       the most desirable destinations          Research Australia – does not always account for               in tourism policy and research, and the use of the
                                                                                                                                                                                    alcohol beverages, or only accounts for wine.                  terminology ‘food and drink’, as opposed to ‘food
                                                                 country. Whether it’s a cold beer   a visit to a winery. These            in the world, but visitors are                                                                          and wine’ in such work.
                                                                 in an outback pub, a whisky         destinations range from large         increasingly finding food
                                                                 beside an alpine fireplace,         breweries that are a parochial        and drink experiences right              There is growing trend of consumers wanting an                 Specific programs to drive collaboration within
                                                                                                                                                                                    experience that is immediately self-satisfying or to           regions are essential to adopt a more experiential
                                                                 or a crisp white in a seaside       part of a state’s heritage, to        across the country. The                  share on their social media pages.                             approach where the customer gets more out
                                                                 restaurant, our products are        small enterprises which rely          emergence of micro-distilleries                                                                         of visiting an area than product alone. ‘Socially
                                                                 central to the way in which we      on tourism to supplement their        and breweries has brought                                                                               Sorted’ is an excellent example to take inspiration
                                                                                                                                                                                                                                                   from and scale up for the industry.11
                                                                 welcome visitors to our country.    income and build their brands.        additional tourism to a wider
                                                                                                                                           range of locations and settings          COVID has taught us that we need to prioritise                 We need governments to help grow the sense
                                                                                                                                           around Australia, both urban             domestic tourism, particularly from interstate, to             of importance for Australians to travel within
                                                                                                                                                                                    inject money into local economies.                             Australia.
                                                                                                                                           and regional.

                                                                                                                                           Our retail stores are portals to         Business events and corporate travel can be fickle.            Governments must continually invest in new or
                                                                                                                                                                                                                                                   improved conference facilities and facilitate world-
                                                                                                                                           the regions, and a number of                                                                            class events to ensure Australia remains a compelling
                                                                                                                                           our pubs and hotels have also                                                                           destination for domestic and inbound events.
                                                                                                                                           become famous destinations
                                                                                                                                           for food and beverage (e.g. The
                                                                                                                                           Royal Mail Hotel in Dunkeld),
                                                                                                                                           or cultural icons in their own
                                                                                                                                           right (e.g. the Silverton Hotel).   11
                                                                                                                                                                                    ‘5 ways to be like these wine businesses crushing social media marketing’, Moritz, D, Socially Sorted, April 2018

                                                         23                                                                                                                                                                                                                                                24
OPPORTUNITIES FOR GROWTH                                                                                    Our goals

                                                                 4                                                                                                               Best-in-class liquor licensing:                            Online Alcohol Sale and Delivery:
                                                                                                                                                                                 In consultation with retailers, consumers                  The Retail Drinks Online Alcohol Sale &
                                                                                                                                                                                 and local communities, we will outline and                 Delivery Code of Conduct provides a pathway

                                                                 Making it easier
                                                                                                                                                                                 advocate for policy and liquor regulation that is          for governments to improve compliance in
                                                                                                                                                                                 a ‘best-in-class’ model for liquor licensing and           the responsible online sale and delivery of
                                                                                                                                                                                 regulation: continuing to provide substantial              alcohol. Online alcohol sales in Australia

                                                                 to do business
                                                                                                                                                                                 government revenue; based on a balanced                    have increased by an annual rate of 16.7%
                                                                                                                                                                                 appraisal of the evidence; and including                   over the past five years12 – arguably outpacing
                                                                                                                                                                                 targeted policies and regulatory measures that             government regulation. The Code of Conduct
                                                                                                                                                                                 align community needs and expectations with                upholds the principles of responsible retailing,
                                                                                                                                                                                 the freedom to sell and supply responsibly.                and presents a consistent framework across all
                                                                 Australia's biggest alcohol beverage companies stand tall amongst                                                                                                          jurisdictions in promoting self regulation.
                                                                 their overseas peers. But it’s easy to forget that the vast majority
                                                                 of operations in the industry are small or medium enterprises,
                                                                                                                                                                             Policy priorities
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                 which are disproportionately affected by burdensome regulation. In
                                                                 order for these businesses to continue creating jobs and economic
                                                                 value, more work needs to be done to streamline the regulatory                                                  I N D U S T R Y DY N A M I C                               R EALI S I NG OU R POTE NTIAL

                                                                 environment and create positive conditions for investment.

                                                                                                                                                                                                                                                                                                                 R EALI S I NG OU R POTENTIAL
                                                                                                                                                                                 Red tape stifles innovation and job creation in our        We support regulatory reform to reduce market
                                                                                                                                                                                 businesses, and especially so in small and medium          distortions and lower costs and friction for both
                                                                                                                                                                                 enterprises.                                               existing businesses and new entrants.
                                                                 Growing amongst                   Key costs                            Licensing complexity
                                                                                                                                                                                 We pay the 4th highest beer tax,13 3rd highest             We support reducing Australia's onerous taxes
                                                                 adversity                         Producers face many costs            Each state and territory                 spirits tax,14 and 7th highest wine tax in the             on alcohol so they are internationally competitive
                                                                 The alcohol beverage industry’s   not borne by businesses              in Australia has its own                 developed world – a total of $6.9bn raised from            and provide certainty for national and foreign
                                                                                                   in other sectors, including                                                   alcohol-specific taxes every year.                         investment in the industry and reduce the burden
                                                                 $52bn contribution to the                                              classification system for                                                                           of compliance for our businesses.
                                                                 Australian economy is made        alcohol-specific taxes, liquor       liquor licences, as well as
                                                                 all the more significant by its   licensing, restrictions on           additional requirements at               Onerous conditions around remittance periods for           We support the review of ATO remittance
                                                                                                   operating hours and a number                                                  alcohol taxation seize up valuable working capital.        timeframes to better align with standard supplier
                                                                 context in one of the most                                             the local government level.                                                                         terms and improve cashflow for producers.
                                                                 highly taxed liquor markets in    of additional requirements           This complexity creates
                                                                 the world. But there doesn’t      around packaging, including          substantial compliance costs             Inconsistent regulatory approaches across the country      Where appropriate, we support a whole-of-
                                                                 have to be a trade-off between    different Container Deposit          and uncertainty, especially              (especially between states, and even between local         government approach to industry regulation,
                                                                                                   Schemes across the country.                                                   councils) impose additional costs on the industry and      beginning with a single national Responsible
                                                                 protecting our communities                                             for businesses undergoing                act as a disincentive to investment.                       Service of Alcohol certification.
                                                                 and growing the industry if       Excise levied on beer and spirits    structural changes that move
                                                                 producers and government          automatically increases by CPI       them between different licensing         Regulation must also keep pace with technological          We support the adoption of best-practice models
                                                                 are willing to work together      twice per year, creating a non-      categories. Appellations of              change and societal trends, for example to quality and     as part of Liquor Act Reviews to keep pace with
                                                                                                                                                                                 moderation in alcohol consumption.                         the changing nature of the industry and the
                                                                 to identify and implement the     virtuous compounding effect          licence applications can turn a                                                                     evidence around consumption impacts.
                                                                 most targeted and effective       and perversely being a leading       simple licence application into a
                                                                 solutions.                        contributor to overall CPI growth.   years-long process.

                                                                                                   “One of the major keys to supporting the Australian
                                                                                                    music industry’s global success is for the removal of
                                                                                                    unnecessary and complex regulations on live music.”

                                                                                                     DEAN ORMSTON                                                           12
                                                                                                                                                                               Ibis World, Online Beer, Wine and Liquor Sales in Australia industry trends (2015-2020)
                                                                                                                                                                            13
                                                                                                                                                                               Prof Kym Anderson, Excise Duties on Beer: Australia in International Perspective, School of Economics, University of Adelaide,
                                                                                                     CEO, APRA AMCOS                                                           February 2020. (AUD, beer assumed to be typical 4.4% ABV for comparison purposes)
                                                                                                                                                                            14
                                                                                                                                                                               OECD 2019, ‘Selected Excise Duties in OECD Countries, in Consumption Tax Trends 2018: VAT/GST and Excise Rates,
                                                                                                                                                                               Trends and Policy Issues’, OECD Publishing, Paris, p. 141

                                                          25                                                                                                                                                                                                                                                    26
OPPORTUNITIES FOR GROWTH                                                                                      Our goals

                                                                  5                                                                                                            Map the value chain and adopt blockchain                 Industry collaboration: We will continue to
                                                                                                                                                                               technology: In few other industries is it so             establish channels for industry collaboration

                                                                 Driving technology
                                                                                                                                                                               critical to establish a product’s origin and             to learn from one another and evolve our
                                                                                                                                                                               ingredients. Once provenance is verified at the          products in line with changing consumer
                                                                                                                                                                               point of transaction, blockchain can be used to          demand. As part of our pursuit of these
                                                                                                                                                                               provide accountability and transparency right            objectives the industry will investigate the

                                                                 and innovation
                                                                                                                                                                               through the value chain.                                 establishment of a vehicle to meet its future
                                                                                                                                                                                                                                        research and development (R&D) needs.
                                                                                                                                                                               We aim to be the first alcohol industry in the
                                                                                                                                                                               world to map the value chain, and should the
                                                                                                                                                                               business case provide justification we will
                                                                 Since 2010, technology and data accessibility has shifted seismically,                                        move to adopt blockchain technology by 2030.                   “It’s a pretty huge pilot
                                                                 and over the next ten years the rate of change will only accelerate.                                                                                                          distillery for an R&D
                                                                                                                                                                               Monitoring and reporting: Our producers
                                                                                                                                                                                                                                               program, but it’s reflective
                                                                 We have at our fingertips a range of innovation with the potential to                                         aim to lead the way in collecting and
                                                                                                                                                                                                                                               of how important innovation
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                 reshape our sector, from automation of manufacturing through to                                               monitoring environmental data across the
                                                                                                                                                                                                                                               is to us as distillers”.
                                                                                                                                                                               industry. This would include investigating pre-
                                                                 Artificial Intelligence (AI) and advanced blockchain applications.                                            existing options for establishing sustainability                 WILL EDWARDS
                                                                                                                                                                               metrics, aligned to the global investment                        Founder,
                                                                                                                                                                               community, which provide common, defined

                                                                                                                                                                                                                                                                                                 R EALI S I NG OU R POTENTIAL
                                                                 Research and                         The benefits of                      Customer-led focus                                                                                   Archie Rose Distilling Co.
                                                                 development                          innovation                                                               terms, reporting frameworks, and standards
                                                                                                                                           A number of these consumer
                                                                                                                                                                               and metrics.
                                                                 In 2019–2020, the alcohol            Competing on the world stage         trends are generating significant
                                                                 manufacturing industry               has driven innovation and            changes in the industry, which
                                                                 invested $465m in capital            productivity growth within           is keenly focussed on customer
                                                                 expenditure. Data analytics          the Australian alcohol beverage      needs. The megatrends to            Policy priorities
                                                                 have been put to use to make         sector, as businesses are exposed    wellbeing and sustainability in
                                                                 our farms, orchards and              to new products and technologies,    particular are expected to bring
                                                                                                                                                                               I N D U S T R Y DY N A M I C                             R EALI S I NG OU R POTE NTIAL
                                                                 vineyards more efficient and         as well as emerging trends in        about profound and lasting
                                                                 optimise our use of inputs such      consumer behaviour.                  change for our producers and        Government-supported R&D has helped Australian           We support continued efforts by government to
                                                                                                                                                                               alcohol beverage producers rise to the global            stimulate genuine innovation in our sector and
                                                                 as water and fertiliser. Retailers                                        retailers. Innovation is already    forefront of our industry, competing with the best in    across the economy more broadly, including tax
                                                                 and hospitality venues are           The growth of mid, low and           starting to take place with new     the world on cost and quality, while also providing      incentives, grants and collaborative research.
                                                                                                      no alcohol beer has been an                                              export opportunities.                                    The benefits provided by the Rural RDCs model in
                                                                 also using data to personalise                                            products such as natural wines,                                                              fostering agricultural innovation justifies exploring
                                                                 their marketing strategies           innovative response to consumer      zero or low alcohol, seltzers;                                                               options to broaden to other value-added sectors,
                                                                 and enhance the customer             demand and lifestyle changes,        and in services such as online                                                               including spirits and beer.

                                                                 experience. AI solutions are         with the two highest selling beers   retailing and delivery.
                                                                                                                                                                               For a country which stakes its reputation on the         We support government taking the lead in this
                                                                 already in place in a growing        in Australia being 3.5% ABV.                                             quality and sustainability of our products, Australia    vital area, through pilot programs and assistance
                                                                 number of our winery,                                                                                         has a vested interest in emerging industry-led           to industries wishing to establish their own
                                                                                                                                                                               verification technologies such as blockchain and         standards for verification and accountability.
                                                                 brewing and distilling sites.                                                                                 DNA fingerprinting.

                                                                 The model provided by Rural                                                                                   Automation, AI & robotics will transform our industry,   Governments must provide appropriate
                                                                 RDCs helps foster agricultural                                                                                with a wave of new technologies from autonomous          assistance to help local businesses be at the
                                                                 innovation.                                                                                                   vehicles to completely automated supply chains           forefront of these developments and improve
                                                                                                                                                                               expected over the coming two decades.                    Australia’s competitive advantage.

                                                          27                                                                                                                                                                                                                                    28
Building
                                                              better
                                                           outcomes
2030 VI S I ON FOR TH E ALCOHOL B E VER AG ES I N DUSTRY

                                                                                R EALI S I NG OU R POTENTIAL
                                                              for the people
                                                                  and places
                                                                    we touch

                                                    29                         30
BUILDING BETTER OUTCOMES                                                                                      Our goals

                                                                   6                                                                                                            Continue to support world-leading                     their ‘Choose to DrinkWise’ campaign. We'll
                                                                                                                                                                                initiatives to drive harm minimisation:               support ABAC working with government

                                                                  Safe and sociable
                                                                                                                                                                                We’ll continue to work constructively with            to enhance existing protections to prevent
                                                                                                                                                                                government and not-for-profit organisations           alcohol marketing to minors and ensure that
                                                                                                                                                                                to provide a world-leading example of how             the Code keeps pace with emerging media
                                                                                                                                                                                industry and community can come together to           channels to ensure its continued effectiveness.

                                                                  communities
                                                                                                                                                                                actively reduce alcohol-related harm.
                                                                                                                                                                                                                                      Safety and wellbeing of our customers:
                                                                                                                                                                                Promotion, sale and supply initiatives:               As an industry, we commit to providing
                                                                                                                                                                                We have a demonstrated commitment to                  consumers with low and zero alcohol options,
                                                                                                                                                                                the responsible promotion, sale and supply            and to continue to work with governments in
                                                                  As an industry, we take great pride in our craft, our products and                                            of alcohol beverage products, and have                supporting drink-driving initiatives.
                                                                  the way we serve them. We want them to be positive features of the                                            implemented a range of retail-led initiatives
                                                                                                                                                                                including ‘ID25’ and ‘Don’t Buy It For Them',
                                                                  lives of our customers and their communities. We’re acutely aware of                                          while also partnering with DrinkWise in
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                  the potential for harm if they are misused, which is why the industry
                                                                  has taken a leadership role in supporting education and information
                                                                  campaigns to encourage those who choose to drink alcohol to do so                                             Policy priorities
                                                                  responsibly and in moderation. We support government interventions

                                                                                                                                                                                                                                                                                               R EALI S I NG OU R POTENTIAL
                                                                  which are proven to be effective, targeted to the areas of greatest                                           I N D U S T R Y DY N A M I C                          R EALI S I NG OU R POTE NTIAL

                                                                  need and respectful of the choices made by the overwhelming                                                   The joint approach to alcohol advertising from        We strongly support the continuation of ABAC
                                                                  majority of Australians who drink in moderation.                                                              government and industry has proven to be effective
                                                                                                                                                                                in ensuring that marketing does not promote harmful
                                                                                                                                                                                                                                      and would welcome long-term commitment from
                                                                                                                                                                                                                                      all levels of government to continue to endorse
                                                                                                                                                                                drinking, whether in the form of over-consumption     ABAC as Australia’s world-leading quasi-
                                                                                                                                                                                or underage drinking.                                 regulatory model.
                                                                  DrinkWise: industry-               Targeting misuse at the               ABAC code
                                                                                                                                                                                ABAC demonstrates the potential of a combined         We support industry involvement and
                                                                  led social change                  point of sale                         We strongly support the              approach to mitigate the risk of harm, and the        consultation in government programs and
                                                                  Fifteen market-leading             Over the years, our retailers have    globally recognised high             benefits of private-sector consultation in health     regulation, grounded in reputable and accessible
                                                                                                                                                                                policy formulation are widely recognised, including   data, that transparently seeks to minimise harms
                                                                  industry producers and retailers   developed a number of world first     standards for alcohol                by the World Health Organization.16                   caused by alcohol consumption.
                                                                  provide contributions to the       initiatives to deter sales to under   advertising administered
                                                                  independent and not-for-profit     18s including ‘ID25’ and ‘Don’t Buy   through the Alcohol Beverages        Government campaigns which have been successful       We support an approach to public health
                                                                                                                                                                                in changing attitudes around misuse have              education that prioritises the elimination of high-
                                                                  social change organisation,        for Them’, and improve online         Advertising Code (ABAC),             recognised the nuanced way in which Australians       risk behaviour which endangers others, such as
                                                                  DrinkWise. Recognised              and delivery services through         a joint initiative of the industry   see risk.                                             drink driving, whilst adopting a measured and
                                                                  globally for the success of        an ‘Online Code of Conduct’.          and Federal Government                                                                     realistic approach to changing attitudes around
                                                                                                                                                                                                                                      lower-risk behaviour.
                                                                  its behaviour-changing             DrinkWise has worked with             which, amongst other
                                                                  campaigns,15 DrinkWise aims        venues and retailers on a number      objectives, serves to prohibit       Recent policy initiatives, including the Australian   After broad consultation, ensure that critical policy
                                                                  to create a safer and healthier    of visual campaigns at the point of   any alcohol advertising which        Alcohol Guidelines, have been formulated by           decisions are transparent and conducted free from
                                                                                                                                                                                committees which included members with a public       bias either for or against the alcohol industry.
                                                                  drinking culture in Australia.     sale to help deter alcohol misuse.    is targeted at or is likely          history of anti-alcohol campaigning and links to
                                                                                                                                           to have strong appeal to             temperance groups.17,18
                                                                                                                                           minors, encourage excessive
                                                                                                                                                                                DrinkWise has proven an effective partner to          We support continued industry and government
                                                                                                                                           consumption, or suggest alcohol      industry and governments. Their evidence-based        investment in the work of DrinkWise, with
                                                                                                                                           has therapeutic benefits.            campaigns focus on real and lasting cultural and      collaborations that create a safer and healthier
                                                                                                                                                                                social changes, rather than just raising awareness.   drinking culture and reduce alcohol-related
                                                                                                                                                                                                                                      harms.

                                                                                                                                                                                                                                                       Continues on page 33 →

                                                             31                                                                                                                                                                                                                               32
BUILDING BETTER OUTCOMES                                                                                                           Our goals

                                                                    Policy priorities

                                                                        I N D U S T R Y DY N A M I C                            R EALI S I NG OU R POTE NTIAL

                                                                        Some of the most effective measures to address          In conjunction with government, we support
                                                                        alcohol related harm are those which are directed to    highly targeted interventions that address harms
                                                                        those at risk of misuse.                                and encourage personal responsibility, while
                                                                                                                                not penalising the majority of the population that
                                                                                                                                continue to drink in moderation.

                                                                        A large proportion of alcohol-related harms and         We support more research into the relationship
                                                                        violence19 is committed by repeat offenders20 and       between alcohol misuse and harms, to develop
                                                                        factors such as mental health, homelessness, and        more targeted harm minimisation and intervention
                                                                        other addictions make breaking the cycle challenging.   support.

                                                                        It is important to obtain as complete a picture as      We support all jurisdictions improving their data
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                        possible of the context surrounding alcohol-related     collection to the level of NSW BOCSAR to provide
                                                                        crime and harms.                                        national consistency and availability, with a
                                                                                                                                continual improvement and consistency in data
                                                                                                                                collection and methodology around alcohol-
                                                                                                                                related assaults, ambulance attendance and
                                                                                                                                hospital admissions, so as to ensure interventions

                                                                                                                                                                                                                 R EALI S I NG OU R POTENTIAL
                                                                                                                                are based on the best possible evidence.

                                                                         “The campaign strongly resonated with 18 to 24 year-olds
                                                                          by purposely avoiding parental, lecturing overtones.
                                                                          Speaking to young adults in their preferred language and
                                                                          tone resulted in the campaign being embraced and shared
                                                                          amongst their peers. Campaign research demonstrated the
                                                                          approach worked, with over one-third of the target audience
                                                                          drinking less on a night out after seeing the campaign.”

                                                                           SIMON STRAHAN,
                                                                           CEO of DrinkWise
                                                                           on the How to Drink Properly Campaign

                                                                   15
                                                                      Drinking: Do it Properly, https://drinkwise.org.au/our-work/drinking-do-it-properly
                                                                   16
                                                                      World Health Organization, (2016) Framework of Engagement with Non-State Actors. Sixty-ninth World Health Assembly WHA69.10
                                                                   17
                                                                      Aston J. (2019), Canberra's new drinking guidelines set for whitewash, Australian Financial Review Dec 13 2019.
                                                                   18
                                                                      Snowdon C (2017), The new drinking guidelines are based on massaged evidence, Spectator 30 Oct 2017
                                                                   19
                                                                      Paul Nelson et al, National Drug & Alcohol Research Centre, The University of Sydney, Burnet Institute
                                                                   20
                                                                      Lily Trimboli and Nadine Smith (2009), Drink-driving and recidivism in NSW, NSW Bureau of Crime Statistics and Research

                                                        33                                                                                                                                                      34
BUILDING BETTER OUTCOMES                                                                                    Our goals

                                                                  7                                                                                                              Promote our presence in the regions: As a                 Applying cutting edge innovation: Our
                                                                                                                                                                                 regional-facing industry, growth in the alcohol           members are working with universities and
                                                                                                                                                                                 beverage sector means growth in our regional              other educational institutions to transfer

                                                                 Stronger regions
                                                                                                                                                                                 operations and employment. Looking forward                insights from lab-based R&D to practical
                                                                                                                                                                                 to 2030, the industry will look to promote the            application in the field.
                                                                                                                                                                                 benefits it provides to regional Australia, while
                                                                                                                                                                                 advocating for reforms that would allow it to             Our pubs, clubs, restaurants, retail and
                                                                                                                                                                                 make a greater contribution to the regions.               hospitality venues are integral to the
                                                                 The Australian alcohol beverage industry plays an enormous part                                                                                                           local community and rise or fall on local
                                                                 in the lives and livelihoods of regional Australians: supporting local                                          Greater investment in research and                        industry. Attracting visitors to a region allows
                                                                                                                                                                                 development (R&D): Our producers are                      hospitality to flourish through an injection of
                                                                 economies and woven into the fabric of our communities through the                                              increasing their investment in R&D and                    new spending into the local community.
                                                                 pubs and clubs where we come together.                                                                          plant to help their regional businesses address
                                                                                                                                                                                 and adapt to climate change, and drive more
                                                                                                                                                                                 efficient farming practices through greater
                                                                 The local meeting room           Benefits throughout the               Direct contributions
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                                                                                                                                 use of technology.
                                                                 In regional communities,         supply chain                          While just 33% of businesses
                                                                 the local pub or club is so      It’s about more than the places       operate in the regions, 43% of
                                                                 often the ‘living room’ of the   where drinks are served –             liquor licences are held in those
                                                                                                                                                                             Policy priorities
                                                                 community. A cornerstone         it’s also about where they’re         areas, a figure that rises to 61%

                                                                                                                                                                                                                                                                                                                    R EALI S I NG OU R POTENTIAL
                                                                 of any country town, they        born. Australia has more than         for manufacturing licences.
                                                                 support local sporting clubs     65 wine-growing regions,              These operations inject money            I N D U S T R Y DY N A M I C                              R EALI S I NG OU R POTE NTIAL
                                                                 and cultural endeavours, and     planted with 146,000 hectares         directly into local suppliers and
                                                                                                                                                                                 The success of our industry relies on workers in          We support regional employment initiatives,
                                                                 form the backdrop for the big    of wine grape vineyards.21 A          more broadly into the regional           small and medium regional businesses.                     including regional work visas and pathways
                                                                 moments of our lives.            significant proportion of the         economy, whilst supporting a                                                                       for young, unemployed and underrepresented
                                                                                                                                                                                                                                           Australians to work in regional Australia.
                                                                                                  four million hectares sown            workforce across a wide range
                                                                                                  annually to barley ends up in         of careers, from viticulture,            Agriculture is the life-blood of the regions.             We support multi-government frameworks for
                                                                                                  beer or spirits,22 and cane spirit,   retail and hospitality, through          Investment in agriculture should be formulated            physical infrastructure investment and policy
                                                                                                  hops and cider apples all lay         to manufacturing and                     and agreed upon by all levels of government, to           development in agriculture, as proposed in
                                                                                                                                                                                 limit political influence and provide certainty to        the National Farmers Federation’s Regional
                                                                                                  claim to their own corners of         management.                              investors.                                                Agriculture Deals policy.23
                                                                                                  our country. For practically
                                                                                                  every bottle sold, a farmer                                                    Smart agriculture and regional manufacturing              We support extension and improvement of
                                                                                                                                                                                 will require better connectivity than is currently        current satellite and mobile internet coverage
                                                                                                  somewhere benefits.                                                            available.                                                in regional Australia, and where demand
                                                                                                                                                                                                                                           permits, the provision of metro-comparative
                                                                                                                                                                                                                                           infrastructure and speeds at
                                                                                                                                                                                                                                           competitive rates for regional businesses.

                                                                                                                                                                                 Attracting and retaining skilled workers to regional      We support continued investment in regional
                                                                                                                                                                                 enterprises is made more difficult when critical          health, education and community services to
                                                                                                                                                                                 social infrastructure falls below the standards           improve liveability and attract the workforce our
                                                                                                                                                                                 expected in the cities.                                   industry needs for continued growth.

                                                                                                                                                                                 Agricultural and regional businesses can and do           We support an expansive approach to defining
                                                                                                                                                                                 exist right up to the outskirts of the major cities,      such businesses for the purposes of grant
                                                                                                                                                                                 yet often miss out on vital support or access to          funding or visa programs.
                                                                                                                                                                                 government programs due to their postcode.

                                                                                                                                                                            21
                                                                                                                                                                               Milton A., Wong S. & Gatt A. (2019), National Vineyard Scan 2019: summary report, Gaia Agricultural Intelligence CT-TR-2019-00037
                                                                                                                                                                            22
                                                                                                                                                                               Australian Export Grains Innovation Centre (2018), Barley, Australian Grain Note
                                                                                                                                                                            23
                                                                                                                                                                               National Farmers Federation (2019), 2030 Roadmap: Australian Agriculture’s Plan for a $100 Billion Industry

                                                         35                                                                                                                                                                                                                                                        36
BUILDING BETTER OUTCOMES                                                                                   Our goals

                                                                 8                                                                                                          Reduce our overall carbon footprint:                          Demonstrate our sustainability practices:
                                                                                                                                                                            By continuing our investment in renewable                     We believe that industry should play a
                                                                                                                                                                                                                                          leadership role in sustainability. We will

                                                                 Positive impact
                                                                                                                                                                            energy and sustainable agricultural practices
                                                                                                                                                                            we aim to reduce our overall carbon footprint                 continue to publicise and demonstrate the
                                                                                                                                                                            to help Australia achieve its global targets.                 sustainability practices our members have
                                                                                                                                                                                                                                          put in place across the agriculture and food
                                                                                                                                                                            Support the development of a competitive

                                                                 on the environment
                                                                                                                                                                                                                                          manufacturing sector, with a view to sharing
                                                                                                                                                                            Australian-based carbon offsets framework:                    knowledge and resources, and encouraging
                                                                                                                                                                            Acknowledging as an industry we may not                       other businesses to follow suit.
                                                                                                                                                                            achieve carbon neutrality in the short term,
                                                                                                                                                                            we will support an Australian carbon offsets                  Improve the recycling process: Many of
                                                                 Alcohol beverage companies are deeply invested in the end-to-end                                           scheme and re-invest the returns into the                     our members are signatories to initiatives
                                                                 supply chain, and we have a close connection to the land where we grow                                     industry to support innovation.                               and commitments to reduce packaging waste
                                                                                                                                                                                                                                          or have implemented progressive internal
                                                                 our raw ingredients. As an industry, we share a common commitment                                          Improve food waste in hospitality: From                       programs to that effect. We will continue to
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                 to taking care of the environment that supports our operations and                                         coffee grounds to vegetable peelings, surplus                 advocate for collective action and provide a
                                                                                                                                                                            supplies to leftover meals, food waste is a fact
                                                                 contributes so much to the quality and character of our products.                                          of life for every hospitality venue. A stronger
                                                                                                                                                                                                                                          forum for members to compare and share their
                                                                                                                                                                                                                                          practices towards achieving a truly efficient
                                                                 This is a commitment reinforced by the increased expectations of our                                       focus on profitability post-COVID will drive                  path to a circular economy.
                                                                 international customers, as well as current and potential investors.                                       further improvements in dealing with food

                                                                                                                                                                                                                                                                                                    R EALI S I NG OU R POTENTIAL
                                                                                                                                                                            waste and enhancing our reputation and                        Sustainable packaging: our members are
                                                                                                                                                                            increasing social equity with our customers.24                already investigating the development of
                                                                 A binding commitment              Experts in drought and            Leaders in energy                                                                                    sustainable packaging and packaging practices
                                                                 to sustainability                 water management                  Manufacturing industries are           Planning for climate change and water
                                                                                                                                                                                                                                          that go beyond recycling to model a circular
                                                                 Across the industry, investment   Internationally, we are known     typically heavy energy users,          scarcity: As an industry we will prioritise research
                                                                                                                                                                                                                                          economy by 2030.
                                                                 strategies are focused on         for our expertise in drought      so our members see both a              into crop and plant resilience to combat more
                                                                 sustainable practices, from       resilience, water management      commercial interest and a social       frequent extreme weather impacts, and collaborate
                                                                 renewable energy to packaging     and fire mitigation, and as       responsibility in developing           with research institutions to best mitigate
                                                                 sustainability and innovative     climate risk increases in other   less intensive solutions. Industry     against anticipated climate change impacts.
                                                                 ways to manage waste – from       countries, our assistance is      leaders are already able to capture
                                                                 paddock to palate.                becoming increasingly sought      enough renewable energy to
                                                                                                   after by growers and producers    not only meet their own needs,         Policy priorities
                                                                                                   of alcoholic beverages around     as well as export to the grid,
                                                                                                   the world.                        and many alcohol beverage
                                                                                                                                                                                I N D U S T R Y DY N A M I C                              R EALI S I NG OU R POTE NTIAL
                                                                                                                                     businesses and industry sectors
                                                                                                                                     have achieved or are working               We recognise the onus for reducing packaging              We support initiatives to incentivise and partner with
                                                                                                                                     towards carbon neutrality.                 waste lies with industry, however there is a role for     industry that are proven to be effective in reducing
                                                                                                                                                                                government to play, particularly in harmonisation of      waste and improving the recyclability of packaging,
                                                                                                                                                                                regulation and capacity building of industry.             including funding for industry-initiated and led
                                                                                                                                                                                                                                          audits to determine the current state of recyclability
                                                                                                                                                                                                                                          and develop a roadmap towards a circular* economy.

                                                                                                                 “By resetting our emissions to net zero, we’re
                                                                                                                                                                                There is also a need for greater certainty and            We support industry being involved in the development
                                                                                                                  sending a strong message to our people and                    transparency around carbon offsets in Australia.          of the National Carbon Offset Standard and urge
                                                                                                                  our supply chain that we are deepening our                                                                              governments to work closely with industry on issues
                                                                                                                                                                                                                                          relating to compliance and monitoring, so consumers
                                                                                                                  collective responsibility to measure, manage                                                                            can have confidence in the impacts of their choices.
                                                                                                                  and reduce our emissions.”

                                                                                                                  STUART IRVINE
                                                                                                                  CEO, Lion                                                * Defined as developing ways to continually re-acquire and reintroduce product cycle assets to market
                                                                                                                                                                           24
                                                                                                                                                                                White, M (2020), "Waste Away", Restaurant and Catering Assn Magazine, February 2020

                                                          37                                                                                                                                                                                                                                       38
This is our
                                                                 commitment:
                                                                 To grow our industry and maximise our
                                                                 contribution to our nation’s economy, culture
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

                                                                 and international profile.

                                                                 To continue to bring Australians together,

                                                                                                                    R EALI S I NG OU R POTENTIAL
                                                                 supporting the friendships and occasions that
                                                                 bring meaning to our lives.

                                                                 To replicate the success of our world-leading
                                                                 wine exports across other categories and
                                                                 expand our suite of offerings into new products
                                                                 and markets.

                                                                 To be positive, leading contributors to
                                                                 the sustainability of the environment and
                                                                 communities around us.

                                                                 And at all times to champion responsibility in
                                                                 the production, marketing and sale of alcohol.

                                                                 To the future!

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2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY

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                    R EALI S I NG OU R POTENTIAL
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