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Deloitte Report on the Economic Contribution of the Spirits Industry in Australia

4 Apr 2024 3:28 PM | Anonymous member (Administrator)

Deloitte was engage by SCA to report on the Economic Contribution of the Spirits Industry in Australia. Deloitte was engaged by Spirits & Cocktails Australia to do a follow up report to the industry analysis that was conducted a couple of years ago. This report took the opportunity to ask additional questions to enable further insights and analysis.

DOWNLOAD THE REPORT HERE

The key insights have been used in the Pre-Budget Submission and will be used in the preparation for the Parliamentary Inquiry and associated advocacy.

Thank you to the 250 distillers that participated. The input by members ensured the report is relevant, credible and reliable. In acknowledgement of the effort required to complete the survey, Spirits & Cocktails Australia and the ADA offered three prizes for those who completed the survey.

  • 1st prize was five tickets to the ADA Conference and a $5,000 travel voucher.
  • 2nd prize was two tickets to the conference and a $2,000 travel voucher
  • 3rd prize was a bottle of the Collaborative blend whisky

The winners were selected at random by Deloitte. They are:

 Winner Distillery   Name

 1

 Settlers Spirits  Phillip Jeffries
 2  Woodwater Distillery Justin Mok
 3  Nine Circles  Cat Coathup

The report noted The Australian spirits industry supports economic activity both directly through its operations and through purchases from suppliers.

In 2022-23, this economic activity was worth nearly $15.5 billion in total value add and supported over 100,000full-time equivalent (FTE) jobs across Australia, of which approximately 51,300 people are directly employed in the industry.

The Australian spirits industry supply chain is made up of four stages, starting with approximately 700 spirit manufacturers that produce 366 million litres of finished product within Australia, attracting 3.5 million patrons to their distillery doors in FY23.

Key findings included:

  • We are a growing industry. 700 spirits manufacturers currently operating, up from 200 in FY19
  • Local manufacturing: 366 million litres of finished product manufactured in Australia, including 61 million litres of spirits under maturation in FY23.
  • Patronage: 3.5 million visits by patrons to distillery doors in FY23
  • Exports: Exports of spirits increased 69% over the decade to reach nearly $112 million in FY23

Spirits Industry Survey also reveals the important contribution to regional Australia, with 48% of respondents located outside of capital cities.

Strong grow is expected for the spirits industry with 69% of spirits manufacturers expecting revenue to increase in FY24 and Revenue is expected to increase by 10% on average in FY24.

Capital investment is expected to rise by 2.3% in FY24, with 30% of spirits manufacturers expecting their capital expenditure to increase.

Barriers to growth

  • Excise tax burden
  • Inflation and rising costs of inputs
  • Economic uncertainty
  • Difficulty growing in existing market


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