Australian Distillers participated in the pilot led by Convergence Tech to deliver a world-first Australian blockchain pilot that stands to radically overhaul a 100 year-old tax system and has the potential to recover at least $45m annually in lost tax revenue, based on KPMG analysis.

The National Blockchain Pilot has successfully demonstrated the potential of blockchain technology to improve tax revenues, combat fraud and enhance the productivity and competitiveness of the spirits industry on the global stage.

Importantly for our Members, once implemented, the capability will also help protect honest distillers from illicit competition selling spirits products at unsustainable price points or earning unfair margins.

We commend our Members, Government and Convergence.Tech for their close collaboration during the Pilot, demonstrating the benefits that public-private partnerships can achieve. We encourage the Australian Government to move forward with a full implementation of this capability to deliver these significant benefits for our Members, taxpayers and the broader economy.

“From a distiller’s perspective, the Blockchain Excise Pilot has the potential to streamline excise administration, reduce counterfeit product and parallel importation risks, lay the foundations for a “trusted trader” style arrangement with the ATO, and simply provide confidence to producers, as well as their investors, customers, and other stakeholders, that their excise obligations are 100% accurate, compliant and up to date. “

William Edwards - Founder at Archie Rose Distilling Co.

“By making sure there is compliance it means we won’t have rogue operators, creating a level playing field for everyone. And that’s probably the most exciting thing – the transparency and dynamism of the technology. It’s this capability and opportunity to unlock

more significant improvements that will drive strong uptake of the technology throughout the industry”

Paul McLeay - Chief Executive Officer of the Australian Distillers Association

Download the full report by clicking the image below.

The policy settings for the spirits industry in Australia were set more than thirty years ago. There have been minor tweaks since that time, yet the industry has had significant change and development.

Like the wine industry of thirty years ago, it took the industry and Government to work together to have a fresh look at the barriers that industry faced and the most economical and sustainable approach to secure the industry future growth.

One of the key transitions was the establishment of a Parliamentary Inquiry to give the industry an engaged review. The parliamentary inquiry process is bipartisan in nature and allows for a deep dive on all of the issues that affect the industry that the government has influence over.

The Australian Distilling Industry is at the stage where it is appropriate that the Australian Government has a significant review into our industry to ensure it has the opportunity for sustainable growth and is not held back by out of date and unnecessary policy settings.

We have an opportunity to outline the long-term needs for future growth of the industry and the value of creating a representative body as a key driver to achieve those longer-term objectives and pave the way for fundamental change in the industry that will support its continued growth.

The Safety and Sustainability Project Group has comprehensively updated their presence in the members portal. See here for updates including their role, video resources, toolkits, and useful links. Congratulations to Ian Schmidt for driving these member focussed resources.

Safety and Sustainability Project Group

As you may be aware, there are many ongoing discussions of technical standards for aged spirits in Australia. An example of which is the significant discussion about the term “Rum” used by Australian producers who are using the term without making Rum as defined by the Excise Act.

The Australian Distillers Association President and CEO were requested to engage with ACCC the Australian Government to determine our position. There have been several meetings with Australian regulators regarding the terms, including a border force and DFAT discussion with CEO Paul McLeay and Vice President, Cam Syme to discuss Geographical Indicators in the context of the Australian EU FTA. The concern was raised that Australia does not keep our own house in order, where the Australian Government was considering putting resources in place to protect international GIs.

Australian Whisky producers understand that Australian whisky and rum are unique. Our technical standards are not as cumbersome as some of our international producers. In Australia, "whisky" means a spirit obtained by the distillation of a fermented liquor of a mash of cereal grain in such a manner that the spirit possesses the taste, aroma and other characteristics generally attributed to whisky and has been matured by storage in wood for at least 2 years. Rum has a similar definition.

During the Australia UK Free Trade Agreement negotiations, the Australian Distillers Association, on behalf the Australian producers agreed to review our definition of Whisky and determine if the technical standard is contemporary, meets industry practices, and has the rigour to maintain consumer expectations.

As reported in the article ‘Australian Distillers Members experience a unique opportunity for professional development and networking with global peers as part of the recent UK Ireland Tour’, in June 2022 a delegation of 12 Australian distillers met with the Irish Whiskey Association and the Scotch Whisky Association for bilateral meetings to identify the obligations, benefits and compliance regime of implementing Geographical Indicators and other technical standards.

The Australian Distillers established a Technical Standards Project Group and have invited the Scotch Whisky Association to present at an open forum in August to all members.

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At the Australian Distillers Association 2022 Conference in April, Greg Holland from Spirits & Cocktails Australia, advised participants of the opportunity to join him at the SpiritsEurope conference to be held in Dublin. The following delegates opted into a unique opportunity for professional development and networking with global peers.

The delegation consisted of:

Over the course of the program, the delegation engaged in roundtable meetings with our peers from the Irish Whiskey Association and Scotch Whisky Association to discuss key issues impacting the Australian spirits category, including technical standards, sustainability and trade with the UK and Ireland. These roundtable meetings were complemented by the delegation’s attendance at the spiritsEUROPE Congress in Dublin, which provided insight into the European experience of responding to rising inflation and supply chain issues in the wake of COVID, and trade issues emerging from Brexit and the negotiation of new EU and UK free trade agreements.

spiritsEUROPE also extended an invitation for Greg and Australian Distillers CEO Paul McLeay, as respective heads of our trade associations, to deliver a presentation on the impact of global and local spirits producers working together on joint advocacy initiatives. Their presentation was followed by a similar presentation from Chris Swonger of DISCUS, and together these sessions were used as a catalyst for a discussion among spiritsEUROPE members to consider their forward plan for global and local producers working together on issues impacting their domestic markets, and across Europe. DISCUS has invited us to present a similar proposal and organise a trade delegation at their conference in May next year.

The delegations’ engagements in Dublin were enhanced by positive interactions with the Australian Ambassador to Ireland, who attended the roundtable meeting with the Irish Whiskey Association and a dinner event with Spirits & Cocktails. The Ambassador shared his enthusiasm and support for the growth of Australian-produced spirits to be exported to Ireland and has been forthcoming with ideas and offers of support since our engagement with him.

Behind-the-scenes tours.

Additionally, the delegation attended a series of behind-the-scenes tours of distilleries and visitor experiences in Northern Ireland, the Republic of Ireland and Scotland. These visits were facilitated by colleagues at both Irish Whiskey Association and Scotch Whisky Association, with the generous support of several our members. These visits were also often led by distillers and senior managers of the visitor experiences, which provided several opportunities for meaningful discussions with the delegation.

The distillery visits and experiences included:

   

UK/Australia Free Trade Agreement

Additionally, there were meetings with Australian consular and trade officials in London to discuss the UK/Australia Free Trade Agreement and market entry opportunities for Australian-manufactured spirits products. As well as the World Spirits Alliance, where Australia was able to participate as a panellist to discuss nutrition and health labelling issues, in particular Australia’s recent experience of pregnancy warning labelling and our ongoing engagement with FSANZ on sugar and energy labelling. Thank you to David Ridden for being able to attend the component in Geneva.

The delegation also discussed key issues impacting the Australian spirits category including sustainability and trade with the UK and Ireland, insights into the European experience of responding to rising inflation and supply chain issues in the wake of COVID, and trade issues emerging from Brexit and the negotiation of new EU and UK free trade agreements

The delegation also benefited from behind-the-scenes tour and knowledge sharing from large and craft distilleries in Northern Ireland, Ireland and Scotland to deepen their understanding of the processes and scale of production.

The benefits of the tour include:

The Presentation made by the CEOs to SpiritsEUROPE and the presentations given by Irish Whiskey Association and Scotch Whisky Association are attached and can be accessed by members below.

Spirits & Cocktails Australia & Australian Distillers Presentation - spiritsEUROPE Congress

IWA-Australia Presentation 

SCA – Australia Presentation 

   

Let your spirits soar.

Established in 2015 and developed in close consultation with the executive of Australian Distillers, the Melbourne Royal Australian Distilled Spirits Awards are Australia’s first and largest national spirits competition highlighting the innovation and excellence of Australian spirits.

The Awards are shaped by an Industry Advisory Group who work closely with Melbourne Royal to maintain the program’s relevance and to develop its future direction. The Group features some of the Australian distilling and bar industry’s most highly regarded professionals –

Seb Costello – Head Judge, formerly of Bad Frankie

Julian White – Whisky & Alement

Luke McCarthy – Founder & Editor, Oz Whisky Review

Sebastian Reaburn – Anther Distillery

Stuart Gregor – Australian Distillers President, Four Pillars Distillery

Following a detailed review, the Awards have once again evolved to best represent the industry and its diversity and sees the introduction of a new trophy for Whisky.

After successfully delivering the Awards remotely through the lockdowns of 2020 and 2021, judging this year returns to in-person at Melbourne Showgrounds in August, with entries now open.

Key dates

For further information contact

Damian Nieuwesteeg

Email

To enter visit

melbourneroyal.com.au/spirits 

Australia’s Starward Whisky has been named the Most Awarded Distillery of the Year at the world’s largest and most competitive international spirit competition; the 2022 San Francisco World Spirits Competition (SFWSC).

Melbourne-based Starward is the first Australian distillery to take the top honour in the competition’s 22 year history, beating close to 5,000 of the world’s most renowned spirits including whisky, gin, and tequila from countries such as Scotland, Japan, USA and UK.

The Most Awarded Distillery of the Year title follows Starward’s win of 12 Double Gold and 3 Gold medals at the SFWSC in April 2022. This was the largest haul of perfectly scored gold medals by any distillery across the entire 2022 competition.

This title is only awarded to distilleries who have consistently produced the finest quality spirits, and Starward is thrilled and humbled to be awarded this global accolade.

Starward Founder, David Vitale said: “To become the first Australian whisky to be named the Most Awarded Distillery of the Year at the world’s most competitive spirits competition is a dream come true.” 

“Fifteen years ago we had an idea to bring an approachable and delicious Melbourne whisky to life and to receive this recognition confirms what we’ve always known, that Australia is home to some of the finest whisky and spirits in the world,” he said.

“This achievement would not be possible without the passion, commitment and shared dream of our team. With this win, we are excited to take Starward to new horizons both here and abroad,” David said.

Paul McLeay, CEO Australian Distillers Association said: “The Australian Distillers Association are very excited to celebrate with Starward on this momentous and historical win,” Paul said.

“This recognition will help further the industry’s emergence on the global stage and accelerate the growth of the Australian Spirits Industry. There’s exciting times ahead for both Starward and our Spirits Industry,” he said.

Starward’s award winning whisky is available for purchase at its website, at the Starward distillery in Port Melbourne, at certain bars and restaurants across the country and national drinks retailers including Dan Murphys, Vintage Cellars, BWS and Liquorland.

The NSW Government will subsidise up to 12 NSW-based niche and specialty food and beverage manufacturers to exhibit in the Flavours of NSW zone at Fine Food Australia 2022 in Melbourne.

Many businesses across NSW have been impacted by flooding and COVID-19 in recent months, so to ensure adequate time to complete their expression of interest to receive a $5,000 subsidy to exhibit in the Flavours of NSW zone at Fine Food Australia 2022, Investment NSW is extending the closing date for applications to 30 May 2022.

The Flavours of NSW zone showcases the diverse food and beverage manufacturing capabilities of NSW and promotes NSW Government support for the industry. Subsidy recipients will receive $5,000 towards their exhibition costs at Fine Food Australia, which is being held at the Melbourne Convention and Exhibition Centre (MCEC) from 5 to 8 September, 2022.

Applications to express your interest close on 30 May 2022.

FIND OUT MORE

Australian whiskies are some of the world’s best, consistently recognised for their quality and innovation. Time and again, they have won over discerning judges to bring home coveted international awards, delighting whisky fans along the way.

In 2022 we celebrate 30 years of contemporary Australian craft distilling. This modern story began in 1992 when Bill and Lyn Lark were granted the first licence to distil whisky in Tasmania since 1839, becoming the first Australian distillery to produce single malt spirit in 154 years.

On the 30-year anniversary of Australian craft distilling, we invited you to join with the ‘Godfather of Australian Whisky’, Bill Lark, to create a special blend to celebrate this significant milestone. The response was nothing short of incredible. Thirty-six Australian distilleries contributed their carefully crafted spirits, which were then expertly blended by Bill to create The Big Blend.

While this unique whisky is not available for sale, all participants of the 2022 Australian Distillers conference will receive a specially packaged and labelled bottle of this very special blend. This extraordinary collaboration of Australian Distillers members reflects 30 years of passion, creativity, dedication, entrepreneurship, and true Australian spirit. Australian Distillers extends our appreciation and thanks to all of the distilleries who contributed whisky to The Big Blend.

An historic alliance of award-winning craft distillers and large spirits companies is in Canberra this week calling for urgent government action to fix Australia’s punitive spirits tax regime.

Australia currently has the third highest spirits tax in the world, with automatic six-monthly indexation further increasing the disproportionate burden placed on spirits, compared to all other alcohol categories.

A joint Pre-Budget Submission by the Australian Distillers Association and Spirits & Cocktails Australia recommends reducing the spirits tax to match brandy, and freezing CPI increases for three years to ease the burden on distillers recovering from bushfires and COVID-19 lockdowns. The alliance is also calling for an increase in the excise refund limit, from $100,000 to $350,000, to grant craft distillers an equivalent level of support to small wine producers.

“About two-thirds of Australian distillers are based in rural and regional communities and after a horror year, they urgently need this unfair tax fixed,” ADA President and Four Pillars cofounder Stuart Gregor said.

“Once they bounce back, we know the benefits will flow from the farm to the glass. They’ll create more jobs, buy more produce from rural suppliers and help attract tourism to their communities, but they are being held back by this punitive tax burden.”

Critically, the Submission’s recommended action would also be revenue-positive, boosting tax revenues by $1.4 billon over forward estimates, according to independent modelling conducted by PwC.

Spirits & Cocktails Australia Chief Executive Greg Holland also cited evidence from the United Kingdom, where a decision in 2017 to freeze the spirits tax actually boosted government revenue and prompted a wave of investment, particularly in rural areas.

“In comparison, Australia’s out-of-control tax is now so high, it is actually suppressing demand, meaning less revenue than if the tax rate was lower,” Mr Holland said.

“This simple change would mean more money in government coffers to spend on social services and other investment as the economy recovers from COVID, as well as a much-needed stimulus for our distillers and the tourism and hospitality sectors.

“What’s more, we know Australian spirits can compete on the world stage and they have the potential to become a lucrative export earner. But right now you can buy a bottle of Australian whisky or gin in the USA and pay less than you pay here. That’s just crazy.”

The modelling, conducted for Spirits & Cocktails Australia by consultancy firm PwC, analysed three different options to make Australia’s alcohol tax regime more fair by either: cutting the spirits tax rate to match the brandy rate; freezing CPI rises for three years; or a combination of both measures.

The PwC modelling showed all three options would aid the spirits sector while generating more revenue for Treasury.