Australia’s spirits manufacturers have welcomed Prime Minister Anthony Albanese’s Future Made in Australia Act, which promises to deliver large-scale investment in Australia’s manufacturing capability.

Speaking at the Queensland Media Club in Brisbane last week, the Prime Minister outlined the act and how it will help “to drive growth, improve competition, lift productivity and create the next generation of prosperity and opportunity”.

The PM said: “As the Treasurer, Jim Chalmers, has put it – Australia’s economy is not productive enough, not resilient enough and not competitive enough. We need a new wave of economic reform to change this.

“In this time of transformative opportunity, our Government will not be an observer or a spectator – we will be a participant, a partner, an investor and enabler.

“To anchor this reform and secure this growth, today I announce that this year our Government will create the Future Made in Australia Act. We will bring together in a comprehensive and co-ordinated way a whole package of new and existing initiatives. To boost investment, create jobs and seize the opportunities of a future made in Australia.

“We want to look at every measure that will make a positive difference. This means looking at how government procurement can support small business and local manufacturing, as well as sustainability and the circular economy.

“Putting together the most efficient and effective combination of financing facilities and investor incentives to drive new economic growth.”

According to Spirits & Cocktails Australia (SCA) and the Australian Distillers Association (ADA), spirits manufacturing generates $15.5bn in added value to the Australian economy. In addition the more than 700 distilleries and manufacturing plants across Australia support more than 5700 jobs in the spirits industry plus a further 100,000 jobs throughout the value chain.

ADA Chief Executive Paul McLeay said:

“This announcement comes hot on the heels of the Government opening the Inquiry into Food and Beverage Manufacturing in Australia, which is the perfect forum for us to showcase our potential contribution to the Australian economy.

“At a time when there is renewed excitement at the export potential of Australian wine, the spirits industry can help deliver the Government’s objective of diversifying our economy and trade.

“In fact, new economic modelling shows Australian spirits could become a $1bn export powerhouse by 2035.

“We wholeheartedly agree with the Prime Minister’s statement that Australia, ‘must be more assertive in capitalising on its comparative advantages’.

“Australia has an abundance of riches when it comes to spirits manufacturing, in terms of ingredients, infrastructure and technical prowess.

“We just need to get the policy settings right to fulfil our potential, starting with urgent reform of Australia’s spirits tax, which is clearly at odds with the Government’s economic objectives for the manufacturing sector.”

Spirits & Cocktails Australia chief executive Greg Holland said the country’s major spirits manufacturers are ideally placed to provide the international investment that the Government aims to attract.

“The Australian spirits industry is composed mainly of small businesses, with 88% of manufacturers employing less than 20 employees,” he said.

“Foreign direct investment is the key to unlocking industry growth. To date however, only three per cent of businesses have been able to access this vital funding.

“Given the right policy settings, our international members are eager to step up their investments in Australia to enhance the industry’s capacity to grow exports and create jobs at our distilleries, half of which are located in regional areas.

“The Prime Minister spoke of the need to aim high to realise the opportunities ahead, noting that while there was unlimited potential, there is limited time to be truly competitive with the progress already made in countries like Japan, Canada and the United Kingdom.

“These countries have already taken bold steps to enhance their spirits manufacturing capabilities, by freezing excise duties and investing in developing their spirits manufacturing industries.

“The time is ripe for Australia to join the race and capitalise on our natural advantages that set Australian spirits apart on the world stage. We are willing and able participants, ready to harness the opportunities of the future.

“We congratulate the Prime Minister on another important initiative for the Australian manufacturing sector and look forward to working with his government to realise the potential of the Australian spirits industry.”

Andy Young, The SHOUT

We are pleased to be able to provide our members with the final Mandala Report or ‘Spirits Industry Sector Competitiveness Plan’.

The ADA, Diageo and Bundaberg Rum commissioned a Spirits Industry Sector Competitiveness Plan report. This report will be officially launched at the 20th Anniversary Conference.

It is a timely piece of work given the Parliamentary Inquiry that we now have as it lays a clear and sensible growth opportunity that exists in our shared industry and makes clear recommendations for both excise reform and the introduction of a Spirits Australia Proposal.

DOWNLOAD THE REPORT      FACT SHEET

 

   

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The Australian

The 20 Anniversary Conference will be our best conference ever. There are only 23 sleeps to go!

The conference features 27 hours of Professional development and 34 hours of experiences and networking. We will also feature 2 full days of trade show.

See exhibitors here

Thanks to the amazing support of the sponsors, we have been able to keep the conference ticket prices at a very affordable rate of only $600 per participant.

Register here to take your place in history by being part of this memorable and impactful experience. 

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2024 marks the 20-year Anniversary of the Australian Distillers Association.

A highlight of the 2022 Annual Conference was the collaborative blend to commemorate the 30 year anniversary of Bill and Lyn Lark having a license to operate a craft distillery, marking the modern renaissance of distilling in Australia.

All participants at the conference were able to share in a toast to commemorate the 30 anniversary of Lark license and received a commemorative bottle of the collaborative blend. The liquid was supplied by 36 Australian whisky makers and they were acknowledged for their contribution.

The 2024 Annual Conference provides the opportunity to celebrate our 20-year anniversary in a special way.

The Australian Distillers will celebrate our 20 year anniversary with a special and unique gin.

Thank you to the sub Committee that participate and curated this unique blend.

The participants were:

They have curated a delicious blend representing the unique taste of Australia with

There will be a bottle of this unique Gin for all conference participants. The recipe and label artwork will be made available after the conference for any members who wish to re-create the gin on their premises and use our logo to celebrate the unique milestone.

The Australian spirits industry looks forward to participating in the Inquiry into Food and Beverage Manufacturing in Australia, announced by the Federal Government. The House of Representatives Standing Committee on Industry, Science and Resources commenced the inquiry following a referral from the Minister for Industry and Science, the Hon Ed Husic MP, on 18 March 2024. The Terms of Reference are highly relevant to the spirits sector, comprising a broad suite of opportunities for expanding innovation and value-adding in the food and beverage manufacturing industry.

This announcement is very timely for the Australian spirits industry, which has clear potential for an export boom like that previously enjoyed by wine. Our industry has experienced rapid growth in recent years, with over 700 distilleries and manufacturing plants across the country, supporting more than 5,700 jobs in spirits manufacturing and a further 100,000 jobs throughout our value chain. We have built a reputation for producing innovative world-class spirits, building global consumer demand for quality spirits made in Australia.

The industry generates $15.5 billion in added-value to the Australian economy, however, this contribution could be even greater with policy settings that encourage domestic and foreign investment in our industry. We will then be in a position to enhance our manufacturing capabilities, grow exports and create jobs at our distilleries, half of which are located in regional areas.

This is the first ever Federal Government inquiry that is open to the spirits sector, which has made remarkable progress in recent years.

Spirits manufacturing needs a comprehensive plan to ensure our growth is sustainable over the longer term. Without targeted interventions, the Australian spirits industry will be left behind as governments in other emerging spirits markets – like Japan and Ireland – invest in the potential of their domestic industries.

A webinar was conducted on 28 March that included the ADA Board, ADA State Presidents, the Spirits & Cocktails Australia Board, and the SCA Corporate Affairs Committee. The webinar addressed the Parliamentary Inquiry ToR, process, timeline and key stakeholders. It then discussed the proposed industry response and the need to activate our network.

Taking advantage of the MOU between ADA and SCA, a taskforce has been set up between the two organisations and Nicole Lestal will be the taskforce lead and support will be provided by ADA and SCA. We have met with the committee members, the Ministers office, the Committee secretariat, the Assistant Minister, the Department and have begun to brief industry stakeholders.

State Presidents will be requested to host a similar workshop for their State organisations in the coming week.

All divisions, groups and individuals will be encouraged and assisted to make a submission to the inquiry.

As previously advised to members, the AGM has been postponed in light of the proposed governance reforms. We have advised WA Consumer Protection Division that we have delayed our AGM and they acknowledged our delay. Once the new Constitution is finalised, it will be circulated to Members and the Annual General Meeting will be called that will include Special Resolutions.

Since 1 July 2021 the Excise remission scheme for manufacturers of alcoholic beverages (Remission scheme) has provided eligible alcohol manufacturers with a full (100%) automatic remission of excise duty, up to a maximum of $350,000 per financial year, on alcoholic beverages they manufacture and enter into the Australian domestic market for home consumption. The Remission scheme replaced the Excise refund scheme for alcohol manufacturers (Refund scheme).

There has been some significant discussion from members about the Remission scheme and the consequences of the market distortion the scheme creates. The board has had lengthy discussions, as have the recent States Presidents meeting as well as other member engagement.

One of the board members, Ian Schmidt from Iniquity, has prepared a short opinion piece about unintended consequences and some erroneous myths. The Executive have asked that a discussion board be established in the members portal to have a member forum about this topic. It will be restricted to members only by logging onto the members portal.

Participate in the Discussion Forum

We are excited to announce the launch of the Certificate IV in Artisan Fermented Products (Distilling), marking the first accredited course for craft distillers in Australia. This achievement made possible by the support of Agriculture Victoria, Spirits Victoria Association, Australian Distillers Association, National Distilling Institute, and industry experts, underscores Victoria's leadership in distillery education. This is an Australian first!

Victorian Distillers will be leading the country as the first cohort begins this exciting journey.

The following are the first cohort had their first day on 19 March at Starward Distillery. The first cohort of students are:

Course Information

We have launched the pilot program for the highly anticipated "Introduction to Distillery Safety Course".

This initiative, brought to you by the support from Agriculture Victoria and The Spirits Victoria Association, Australian Distillers Association and Valudus Risk Assessment, aims to embed safety standards within the Victorian distillery industry.

This course will be led by the esteemed Sebastian Reaburn. This one-day, in-person course is designed to equip distillery professionals, like yourself, with relevant, industry specific, workplace safety training. The comprehensive curriculum covers essential safety protocols and responsibilities, ensuring participants understand the critical importance of compliance and the potential ramifications of non-adherence.

Course Information

This Safety program will be made available to all members in the future.

  

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.

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:

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