For the Alcohol Beverages Industry - Realising our potential - Alcohol Beverages Australia
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2030 Vision for the
Alcohol
Beverages
Industry
R EALIS I NG OU R POTENTIAL
Realising our
potential
2
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
1 2
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)
3 4
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
5 6
Our globally
award-winning
beer, wine,
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY
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.
7 8
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
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.
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY
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
11 12
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
2030 VI S I O N FO R TH E ALCO H O L B E VE R AG ES I N DUSTRY
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
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
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
17 18OPPORTUNITIES 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 20OPPORTUNITIES 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 22OPPORTUNITIES 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 24OPPORTUNITIES 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 26OPPORTUNITIES 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 28Building
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 30BUILDING 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 32BUILDING 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 34BUILDING 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 36BUILDING 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 38This 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!
39 402030 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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