Australian spirits manufacturers have welcomed recommendations from a federal parliamentary inquiry that will assist in unlocking the industry’s $1 billion export potential.

The House of Representatives Standing Committee on Industry, Science and Resources tabled recommendations from its Inquiry Into Food and Beverage Manufacturing in Australia yesterday, following a referral by Minister for Industry and Science, the Hon Ed Husic MP, on 18 March, 2024.

The bipartisan committee, chaired by Labor MP Rob Mitchell, recommended the establishment of a body called Spirits Australia to improve regulation, support innovation and realise export opportunities, acknowledging the success of the Wine Australia model.

The committee further recommended that the Federal Government provide increased Austrade assistance for small and medium enterprises looking to export Australian food and beverage products to Asia.

The committee acknowledged that 40 per cent of the submissions it received came from the alcohol industry and raised concerns about the system of alcohol taxation in Australia. Due to the complexity of this issue, the committee did not draw any conclusions but recommended that a House Select Committee be formed to inquire and report into all aspects of Australia’s alcohol industry.

Australian Distillers Association chief executive Paul McLeay thanked the committee for the interest it had shown in the spirits sector and understanding its opportunities and challenges.

“These recommendations demonstrate the committee recognises our potential to follow in the footsteps of Australian wine, which has become a $2.5 billion export industry by working in partnership with the Federal Government,” he said.

“We call on the Government to adopt our Spirits Export Accelerator Strategy as the first step towards fulfilling the objectives of the Spirits Australia body.”

Spirits & Cocktails Australia chief executive Greg Holland said the industry looks forward to working with the Government to implement the report’s recommendations.

“But we must remind the Government that Spirits Australia cannot be industry funded while we are paying the world’s third highest spirits tax. There simply isn’t the headroom for an additional levy,” he said.

“Wine Australia was fully Government funded in the beginning, and it remains partly Government funded today, as the committee itself acknowledges in its report.

“Spirits Australia must be funded initially by allocating a modest amount of the $6 billion in excise our industry pays to the Government every year.”

ADI's early bird discount for the 2025 International Spirits Competition ends February 7, 2025, so you only have two weeks left to take advantage of this extra saving.

In addition, when members of the Australian Distillers Association enter their spirits and use the discount code ADA2025 they will save $100/spirit off ADI's non-member rate.

Benefits for those that enter:

ADI ISC registration closes March 7, 2025 so don't wait to enter!

Members can find all the details about our competition here:

ADI ISC competition info

or you can contact Eric Zandona, competition director, directly at the American Distilling Institute.

The Alcohol Beverages Advertising Code (ABAC) is “strongly advising” alcohol marketers to self-audit all of their brand social media accounts to ensure age restriction controls are in place.

ABAC said it will shortly be commissioning compliance monitoring of age restriction controls across alcohol and alcohol alternative Instagram, Facebook and Youtube accounts.

ABAC said that both signatory and non-signatory accounts will be audited and that a checklist with links explaining how to apply age restrictions is available on the ABAC website.

In addition ABAC said it has recently published its best practice guide for responsible alcohol sponsorship.

In a statement about the guide the ABAC Scheme Limited said: “The new guide highlights how the Code currently applies to sponsorship activity, and importantly, the new guidance for sponsorship agreements will assist the industry to proactively ensure that their decision to engage in an agreement with a particular individual, group or event is socially responsible.

“This valuable new resource will assist the industry in maintaining socially responsible marketing practices. We encourage alcohol marketers to share this resource with their sponsorship and marketing teams and incorporate it into their internal policies.

“The guide is a useful addition to ABAC’s existing range of compliance training resources, which are freely available on the ABAC website, and the ABAC pre-vetting service for checking ads before going to market.

“With the final quarter of 2024 attracting an increase in complaints, determinations and Code breaches, it is timely for alcohol marketers to revisit these resources and ensure that their staff and agencies complete the free online training course available on the ABAC website.”

In its latest quarterly report ABAC said social media posts and website images showing or directly implying alcohol consumption before or while swimming in a pool or engaging in water-based activities were the most common reason for a Code breach.

The Scheme added: “Other concerns that resulted in breaches of Code standards highlight for marketers where care is needed when developing marketing included:

ABAC continues to offer its free pre-vetting service for alcohol marketers and encourages brands across Australia to have the advertising checked before going live.

Information about the Code and the services available to alcohol marketers is available on the ABAC website.

Article by Andy Young, The Shout.

Distillers, Suppliers and Industry friends,

As we finish off the year, I wanted to wish you and your team as well as your family a very merry Christmas, and a successful new year.

Like many of you, I have had a very challenging 2024. We have had to trim staff as sales flattened and we have had to tighten our belts and be more creative. But we can proudly now say we have got through. I am hoping and confident that 2025 will be a better year for the craft spirits industry in Australia. That we can work towards thriving once more rather than just surviving.

We have a lot to look forward to in 2025. The Australian Distillers Association will celebrate our 21st Birthday next year. Our “coming of age” will be an opportunity to re-engage with the Association on your terms.

The Board has worked hard to ensure our Association has a clear strategic plan for the next three years. You can view the plan here.

We have reconfigured the Project Groups to encourage a focus and genuine member engagement with topics that are crucial to building a sustainable future for our industry. The Project Groups are: Technical Stands; Safety; Sustainability; and Training & Education. I encourage you to consider participating, and you can express your interest here.

I’d like to thank all members who joined the ADA’s ongoing campaign and actively participated in advocating for fair and sustainable excise reform this year. To those who wrote a submission to the various parliamentary inquiries, appeared as witnesses, invited your local MP to your distillery, was interviewed by radio and television for, participated in project group or other committee - either at the local, state or national level – your peers and I thank you. We have had a huge year.

One of our Associations highlights has been the governance reforms that mean the Board is now more accountable to you, as a member, than ever before. The creation of the divisions and the opportunity for the state organisations to have a Memorandum of Understanding with the national organisation mean the member experience is simpler, your fees are less, the administration is streamlined and we have an effective singular voice when dealing with Government and other stakeholders. Welcome aboard NSW-ACT Distillers Association, Queensland Distillers Association, and Distillers South Australia. We welcome other divisions to complete the process early in the new year.

As we look to the future, we will continue to advocate for conditions that allow our Australian spirits industry to thrive. This includes our latest campaign for a Spirits Export Accelerator Scheme that will provide both incentives and support to bolster the spirits industry’s international competitiveness and create the conditions for a thriving export industry worth $1 billion by 2035. Such schemes encourage small distilleries to grow beyond the remission threshold, and further support medium and large distilleries in their growth aspirations. We know that with targeted and coordinated support, we will give all Australian distillers, whether they export or not, the conditions and support to grow and thrive. When the Australian Government supported the wine industry a generation ago, it transformed the industry for growth, and we know the same can be done for Spirits. We just need a willing and informed partner in the Federal Government to make sensible changes to unleash our potential.

A vibrant and productive spirits industry can also promote growth in domestic manufacturing, while increasing trade and employment, supporting innovation and technology, helping the growth of regional industry, all while showcasing the very best of Australian spirits to the world. The Federal Government can play a pivotal role in catalysing the growth of the industry, in support of many of its own priorities – such as growing manufacturing and regional jobs.

We are also doing our part to ensure we have a safe and sustainable industry. The National Distilling Institute is an industry-first, made possible through a grant from the Victorian Government. We have trained distillers to teach the course. The subject matter experts that write the course are your peers. And the students are your colleagues. There are already more than 30 students who have started the journey to complete the Certificate IV in Artisan fermented Products (Distilling).

We also have now have a fit-for-purpose safety course – the Introduction to Distillery Safety. Designed by industry, for industry, and delivered by industry experts, on-site at operational distilleries, this course is a game-changer for Australian distillers. It is offered at an affordable and accessible rate, so every distiller in the country can benefit from doing the course.

Ensuring we operate fairly and comply with employment laws can take up valuable time and resources when running our businesses. I’m pleased that all members can now access a free Human Resources advisory service. This service alone is worth thousands of dollars, and it’s completely covered as part of your annual membership fee.

If you have not had the chance, I also recommend you check the ADA soundcloud page to get the updates from the Chief Executive, Paul, who will continue his regular podcast updates for all the latest ADA and industry news and developments. Check the podcast page here.

Lastly, I’m pleased to announce that tickets have now gone on sale for the 2025 Annual conference. If you’re like me, you’ll find attending absolutely invaluable as far as gaining industry insights, connecting with your peers and broadening your business networks and industry knowledge goes. You can access early bird tickets here. The 2025 Conference will have a particular focus on brand building and sales as well as industry updates and developments. We will also be bringing back our break out information sessions – one of the most successful new additions to our conferences to date. So, bring your team along and I hope see you there.

On behalf of the Board and staff of the ADA, we wish you all a safe and happy Christmas, and a successful start to the New Year.

Holly Klintworth

Managing Director & Head Distiller Bass & Flinders Distillery
President Australian Distillers Association

The Australian Distillers Association is pleased to welcome our new energy partner Choice Energy who have joined to assist members with strategies and solutions to reduce their energy costs and improve energy efficiency.

The worst outcome for members engaging Choice Energy is “peace-of-mind, knowing that not even a that a team of energy geeks could find a way to reduce their spend on energy. It costs them $0 to find out too”.

Australian owned and operated, with more than 12,000 business customers, Choice Energy is an award-winning commercial energy consultancy, which believes in a predictable, fair and low-cost energy future for businesses.

In 2024, Choice Energy has already assisted over 1,000 businesses identify and save over $5,000,000 in energy costs through the following services.

 Complimentary energy bill health checks (electricity and gas)

 Commercial energy broking and procurement (small and large-market)

 Quality commercial solar solutions with leading warranties and a performance guarantee

Choice Energy have recently worked with existing Australian Distillers members on saving over $3,000 on their energy costs.

In the coming weeks, as part of the Australian Distiller's new webinar series  we will be hosting a webinar on how members can access Choice Energy services and help reduce the cost of doing business.

Look out for the invite in your inbox soon, in the meantime, if you would like to find out if Choice Energy can help you reduce the cost of doing business simply contact Alex Townsend on the details below and submit your most recent energy bill*.

Contact Alex Townsend on 0435 080 646 or send a recent copy of your energy bills via email. 

*Excludes bills that are not registered to an ABN

The board of the Australian Distillers Association met earlier in the year to determine the future strategic direction of the industry. We will provide a comprehensive update at the AGM to be held early next year. But you can view the summary of the strategic plan here.

2025 STRATEGIC PLAN

2025 will see the re-organisation of specialty Project Groups. Members will recall the existence of some of these project Groups already. The Technical Standards Project Group has been established for three years. The Safety and Sustainability Project Group will be split apart in acknowledgement that there is significant workload for both of these topics. We have created an additional Education and training Project Group.

You can see the individual charters of the Project Groups in the Members Portal.

If you are currently a member of Technical Standards Project Group, we will ask if you want to maintain your membership. If you are member of the Safety & Sustainability Project Group, you will be asked which of the new Project Group you want to be a member of (you can maintain membership of both). We will be seeking new members of the Training & Education Project Group.

If you want to join any of the Project Groups, send an email to Michael with the name of the Project Group in the Subject and 100 words claim to why you want to be on the Project Group and what benefits, interest or skills you will bring to the Project Group.

Each Project Group will be sponsored by a Director of the ADA and administration and support will be provided by us. The Project Group are advisory bodies and can make recommendations to the Board of the ADA.

We know there are many more distillers who want to export, but they don’t quite know how to go about it, and they are too financially constrained to embark on an export venture single handedly.

We have been continually engaging with the Federal Government to highlight our ambitions of growing exports, which we know can drive job creation in regional areas, where 50% of distilleries are based. We know that Australia is making some of the world’s highest quality, most distinctive spirits – we have seen this repeatedly again this year with prestigious global accolades that have generated a lot of consumer interest overseas.

However, the reality is that very few distillers are currently exporting and the quantities involved are mostly very small, compared to other countries.

Australian wine is a $2 billion-plus export industry today, which has been made possible by enabling measures that were put in place a generation ago by the Federal Government. So, we are advocating for a similar suite of assistance and incentives that can provide the coordination and support our industry needs to grow exports.

The measures we are seeking include more robust definitions around Australian spirits categories, market intelligence resources and coordination for Australian distillers who want to showcase their products at major global trade shows.

The distillers who currently export will tell you it is very challenging as a ‘category of one’. This is why we need a coordinated approach from Government, so we can present a united front for Australian spirits, just as you see from Australian wine at these major trade shows. The other benefits of a coordinated promotion and compliance will benefit all Australian producers, irrespective if they export, or not.

Don Farrell, Minister for Trade, announced the Inquiry into the utilisation of benefits under Australia’s free trade agreements in May. Sandra North formerly of Seven Seasons and now of Seppeltsfield Rd Distillers and David Vitale of Starward appeared before the Committee alongside Spirits & Cocktails Australia chief executive Greg Holland and chair Dan Hamilton. This was another opportunity for our industry to showcase its potential to become a $1 billion export industry by 2035.

Sandra and David’s evidence highlighted the uniqueness and quality of Australian spirits. They advised the Committee that while FTAs are important to growing spirits exports, current FTAs require reforms to ensure safe passage for our innovative products featuring exotic ingredients. Eg Green Ant Gin.

Sandra and Dave advised the Committee that FTAs are not a silver bullet for spirits exports to succeed. They said supporting policy measures must include reform of spirits excise and the establishment of an export body, Spirits Australia, that will undertake similar functions to those of Wine Australia.

Like the Food & Beverage Inquiry, we now wait for the Committee to deliver its final report, which is likely to be early next year. We hope the inquiry will deliver bipartisan recommendations that support our export agenda.

Chief executive Paul McLeay discusses the Australian Distillers Association's recent participation in the Inquiry into the understanding and utilisation of benefits under Free Trade Agreements.

Also discussed is the peak body's campaign for Federal Government funding to support its export ambitions; its MOUs with state-based distilling associations; the evolution of its project groups; and more.

Paul is interviewed by James Atkinson, media and communications manager at Spirits & Cocktails Australia.

You can also listen to spirits industry highlights from the parliamentary inquiry on the Drinks Adventures podcast.

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