Thank you to every member who participated in the campaign to call on their local MP to support our request for a Parliamentary Inquiry into the Australian spirits Industry. The Minister for Industry, the Hon Ed Husic MP announced the Parliamentary Inquiry into Food and Beverage Manufacturing in Australia. We established a Taskforce to ensure we as an industry maximise the benefits of this critical and hard-fought opportunity. Members may be aware that more than half of the submissions to the inquiry came from the spirits industry and associated supply chain. This was a mammoth task and thank you to all who participated in the process.

Special thanks to the members who appeared before the committee and hosted the committee at site visits. I have no doubt the Parliamentary Committee have a deeper understanding of the issues that are facing our industry. More significantly, they have a better understanding of the opportunities that lie ahead.

  

We argued that the Australian Spirits Industry could be a $1Billion export industry by 2035 if the Government got the policy settings right. Just like the wine industry, a generation before us, with a focussed and coordinated response, and just the right incentives in place, our industry can flourish.

We told the committee that Spirits production is not new to Australia; however, the modern craft spirits industry is still emerging, having been dormant for a long time. Decisions by successive Australian governments had a disastrous effect on the local spirits industry. This led to the closure of most large-scale domestic spirits production in Australia.

Today, there are now 700 distilleries – half of them in regional Australia, bringing important economic benefits to these communities.

The Australian distilling industry should be integral to the government’s Future Made in Australia policy. However, the government’s outdated policy settings and inaction has placed Australian-made spirits at a significant competitive disadvantage in our home market and abroad.

The current policy settings are a tax on premiumisation and a handbrake to growth – and are at odds with consumer trends.

A recent report by Mandala shows that with the right policy interventions and support, Australian spirits manufacturing could grow to be a $1 billion export industry by 2035.

Just as previous governments recognised the potential of Australian wine, with the right policy settings and infrastructure, Australian spirits can become the next export powerhouse.

Consumers know that nothing tastes like Australia. Australia outclasses the world’s best in terms of quality, innovation and flavour.

This is evidenced by Australia taking home prestigious international honours like:

We have the natural advantages, the unique Australian agricultural inputs, native and indigenous ingredients, the climate, and the innovation, that differentiate Australian spirits from the rest of the world.

The risk is that other spirits markets will outpace Australian distillers from realising the potential to capture global consumers who value provenance, quality, and premium and distinctive spirits.

We emphasised to the committee that if we do not act now, Australian distillers will lose market share – that we have every right to claim – to other new world and emerging spirits markets. This will be an opportunity missed.

A generation ago, in a Parliamentary Committee just like this one, gave the wine industry the recognition, direction, and support it needed to become the industry it is today.

We called on the committee to adopt all our recommendations. They all need to be done.

If they do so, Australian spirits will truly become an export powerhouse and a domestic growth success story.

Ahead of the report being finalised, the Australian Distillers Board met to discuss an engagement strategy for each of the recommendations in the submission. The Board also agreed that whilst they will develop a strategy for each of the themes, it would be prudent to determine a focus for achievable, relevant and impactful outcomes in line with government priorities.

The strategy focuses on developing a theme that has a broader benefit to members and is consistent with an industry wide approach, that of an Export Assistance Package.

Trade Assistance Package

The Australian spirits industry could be a $1 billion exporter by 2035, with the support of the Federal Government to deliver the policy interventions needed to realise this potential.

In delivering such support, the Government will create the conditions for the industry to thrive in both international and domestic trading environments, delivering support across three key areas: trade tools, trade promotion and product integrity.

Further details of the strategy will be provided in the following months.

If any member has anything to add to the discussion, they are invited to email the CEO directly with their comments.

The following information covers the key areas of the export assistance package.

Trade Tools

Delivering the frameworks and tools to support increased trade in Australian spirits.

Trade Promotion

Building the profile and reputation of the Australian spirits category

Product integrity

Protecting the reputation and quality of spirits

   

Significant changes have commenced as of 26 August 2024, following amendments made to the Fair Work Act 2009 (Cth) (Act) by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024.

Two of the most pressing changes for employers are the introduction of the right to disconnect, and changes to casual employment.

What is the right to disconnect?

Before considering what the right to disconnect is, it may firstly be helpful to outline what the right to disconnect is not. The right to disconnect does not prevent employers from contacting their employees outside of the employee’s normal working hours.

The right to disconnect instead gives employees the right to refuse to monitor, read, or respond to communications from their employer (or third parties related to their employment, such as suppliers) outside of their working hours, unless that refusal would be unreasonable. This entitlement is also a workplace right under the general protections provisions of the Act, ensuring that employees who reasonably decline after-hours contact are not subjected to adverse action by their employers.

When determining whether an employee’s refusal to respond to out-of-hours contact is reasonable, there are a number of factors to take into consideration. These factors include, but are not limited to:

If there is a dispute regarding the right to disconnect, employees and employers must firstly try to resolve this at the workplace level. If the dispute cannot be resolved, both employees and employers can ask the Fair Work Commission (Commission) to deal with the dispute. The Commission may make orders, such as requiring an employee to respond to contact, or requiring an employer not to make contact, outside of normal working hours.

Changes to casual employment

Prior to 26 August 2024, an employee was considered a casual employee where the employer made them an offer on the basis of there being no firm advance commitment to continuing and indefinite work according to an agreed pattern of work, and the person accepted the offer on that basis and became an employee.

The new definition of casual employment takes the emphasis away from the contract of employment and considers whether the employment relationship is characterised by the absence of a firm advance commitment to continuing and indefinite work, and whether the employee is, or would be, entitled to a casual loading or casual rate of pay.

The Act provides guidance on whether the employment relationship is characterised by the absence of a firm advance commitment to continuing and indefinite work. That includes what the contract says about the employment relationship, but it also includes consideration of:

Employers should note that employees who were casual employees prior to 26 August 2024 will remain casual employees post 26 August, unless they are converted to permanent employment through a casual conversion process, or otherwise accept an offer of permanent employment.

Casual employment information statement

The Fair Work Ombudsman publishes the Casual Employment Information Statement (CEIS), and the Act requires that this document be provided to all casual employees upon commencement of employment. From 26 August, employers are also required to provide a copy of the CEIS to casual employees at regular intervals throughout their employment.

For small businesses, the requirement is to provide the CEIS as soon as reasonably practicable on commencement of employment, and again after 12 months of employment.

For non-small businesses the requirement is to provide the CEIS as soon as reasonably practicable on commencement of employment, again after 6 months of employment, 12 months of employment, and on every subsequent 12-month anniversary of employment thereafter.

Casual conversion process

Further changes have been made to the casual conversion process. The new casual conversion pathway is employee-led: eligible casual employees can notify an employer that they don’t believe they meet the definition of a casual employee, and are therefore converting to permanent employment.

The eligibility requirements to make this notification are:

Employers have an obligation to consult with employees who make a request using this new pathway, and will have 21 days to respond to a notification from the employee.

If the employer accepts the notification, they are required to respond in writing to tell the employee what type of employment they will be converted to (full-time or part-time), say when the change will take effect, and let the employee know their hours of work.

Importantly, whilst the language in the Act has changed to be one of notification, rather than a request, there are grounds for refusing to convert a casual employee making a notification to permanent employment. If the employer doesn’t accept the notification, the response must be in writing, and set out reasons for the decision.

There are 3 grounds for not accepting the notification:

Whilst there is no definition of ‘fair and reasonable operational grounds’ the Act gives some indication of what may constitute a refusal based on these grounds:

The Commission has powers to deal with disputes about casual conversion. First the employer and the employee have to try and resolve a dispute at the workplace level, if it is not resolved at the workplace level then the dispute can be referred to the Commission for mediation, conciliation, or arbitration if the dispute remains unresolved.

What should employers do in light of these changes?

For many employers, the introduction of the right to disconnect may not pose significant changes to their way of working. However, some steps you may choose to take to prepare your organisation are:

Although the right to disconnect does not prevent employers from making contact with employees, it is an apt time to consider the psychosocial hazards that may exist where employees are receiving frequent out-of-hours contact and seek ways to minimise the impact of this. This could be by:

To ensure you are compliant with the changes to casual employment, we recommend:

The grace period for beverage manufacturers selling glass wine and spirit containers in Queensland to register their product barcodes ends on 1 November 2024.

After this date, all-glass wine and spirits beverage manufacturers must ensure their products are registered with QLD Containers for Change and correctly labelled with a barcode as outlined in Section 99P of the Waste Reduction and Recycling Act 2011.

All beverage manufacturers have been sent reminders about the end of the grace period.

To abide by the legislation manufacturers will need to ensure:

Note: While the product registration and barcode labelling must be completed by 1 November, the 10-cent refund mark is not required until 1 January 2027.

Thank you for your support. If you have any questions, you can contact Kristian Olofsson. 

The Royal Agricultural Society of NSW has tonight announced the recipients of its inaugural Sydney Royal Distilled Spirit Show, with fourteen champions from across Australia crowned in categories ranging from Champion Traditional Gin to Champion Single Malt Whisky and Champion Ready to Drink.

Out of the fourteen champions announced there was a notable representation from winners across regional Australia with gins from Lord Howe Island, Yamba and the Central Coast all taking home champion prizes while the Central Coast was also named the home of single malt whisky.

Taking the top award, however, was St Agnes Distillery which won the inaugural Best Distilled Spirit of Show thanks to the St Agnes XO Grand Reserve, with the 40-year-old world-class brandy earning an impressive 98 points out of 100.

Sydney Royal Chair of Judges, Stuart Gregor said “The inaugural Sydney Royal Distilled Spirits Show was, I think, a great success with the competition receiving more than 270 entries and delivering a wonderfully varied range of winners, with a strong emphasis on regional NSW,” Gregor said.

“If you had told me that a rum from Canberra and a gin from Yamba would be category champions, I might have raised some eyebrows, but both are absolute belters, world class examples of their respective styles and worthy gold medal winners in any competition in the world.

“The highest pointed entrant in the entire show was the St Agnes XO Grand Reserve 40-year-old brandy and quite honestly nothing really came close. The final aggregated score for it was 98/100 and to be perfectly truthful I’m a bit surprised it didn’t end up as 99 or 100.

“This is a truly incredible brandy, as good, and frankly probably better than many of the most expensive and prestigious French Cognacs. It has an almost impossibly rich and unctuous palate and length that seems to go forever. Sure, its expensive ($1000 a bottle or thereabouts) but if drinking the greatest spirits in the world is your thing, then you simply MUST taste this St Agnes.”

Across the competition 14% of entries received a gold medal, followed by 32.6% claiming silver and 41.7% bronze. This resulted in 88% of all entries receiving a medal which proved that despite the challenges the industry is currently facing, the quality Australian distillers are producing has never been better.

The Central Coast’s Amber Lane Distillery is a perfect example of this, with the relatively young distillery taking home Champion Single Malt Whisky with their Alchemical Series: Water and putting the Central Coast on the map.

“The winner of the whisky class was a brilliant effort from Amber Lane Distillery. Their Alchemical Series: Water was a really strong winner and continues a run of wins for this Central Coast based distillery. An outstanding whisky from a producer who will very soon surely be much better known,” Gregor said.

For the coffee lovers out there the inaugural Champion Ready to Drink went to Curatif’s Espresso Martini, which impressed the judges with its complex flavours while Champion Liqueur went to The Canberra Distillery for its Coffee Liqueur. The Canberra Distillery also struck gold with the Old George Reserve Rum winning The Chair of Judges Annual Prize.

“The inaugural winner of the competitive Ready to Drink class was a truly delicious, and perfect for early afternoon judging, Espresso Martini from Curatif. This was as good as anything you would expect to be served in the best bars around town, it retained a lovely crema on top and balanced coffee and sweetness perfectly,” Gregor said.

In the competition’s highest entered category ‘gin’, three standouts stole the show and that was Yamba Distilling Co which won Champion Traditional Gin thanks to its Duke - Dry Gin, the Central Coast’s Pants off Distillery which claimed Champion Contemporary Gin with its Pants Off Antz Pants Gin and Lord Howe Island Distilling Co which took home Champion Other Gin courtesy of its Wolfe Rock Gin.

“The wildest named winner was the Pants Off – Pants Off Antz Pants gin which collected the trophy in the largest and most competitive class in the show – Contemporary Gin. It is a lovely modern style showcasing some great pepper characteristics and a soft, well balanced palate.”

Putting Australian agave spirits in the spotlight thanks to their one-of-a-kind creations, Top Shelf International has not only led the way for the variety in Australia but can now add Champion Alternative Spirit to their accolades with Act of Treason Reposado taking the top prize.

“Australia is now growing a few thousand Hectares of Agave, the succulent that makes the famous Tequila and Mezcal spirits of Mexico and our inaugural winner, the Act of Treason – reposado (meaning rested in barrel for several months) was as good an example as most highly regarded commercial Tequilas. The agave for this is grown near Airlie Beach in Northern Queensland and is a product to watch for sure.”

Also recognised was Manly Spirits Co’s Grape & Grain Vodka which won Champion Vodka and Champion NSW Distilled Spirit, Fleurieu Distillery’s Country to Coast #5 which was crowned Champion Grain or Blend Whisky and Lord Byron Distillery’s Pure Single Rum – Ex Red Wine. 2023 release Cask #8 which scored Champion Cane Spirit or Rum.

This year’s Sydney Royal Distilled Spirit Show Awards was also held in conjunction with the 2024 Sydney Royal Beer & Cider Show with champion results. All results are available here.

History of the RAS and Distilled Spirits:

While 2024 might mark the inaugural standalone Sydney Royal Distilled Spirits Show, the Royal Agricultural Society of NSW has a long history of judging Australian spirits with the 202-year-old company’s records stating that at the 1870 Sydney Royal Easter Show 3 bottles of gin were entered into the ‘Spirits, from Grape, Cane, Grain, Roots &c’. The RAS last judged Australian spirits in 1981.

By joining the Australian Distillers Association, you are part of one of the fastest growing and most diverse manufacturing industries in Australia. You share in the passion, commitment and ethical standards required to unleash the potential of you and your business.

We outline below 6 reasons to be a member of your national Association. There are many ways you can save further dollars and easily recoup the cost of your membership.

We look forward to welcoming you to our growing Community.

JOIN NOW

Writer Nick Ryan has invited spirits product submissions for his Top 20 Spirits of 2024 column, to be published in the annual drinks issue of The Weekend Australian Magazine (see 2023 and 2022 editions).

If you would like to submit a product for tasting and consideration, please refer to this form for details of where to send your products and the information required to accompany your submission.

Please bear in mind that the selection of products is entirely at his discretion and inclusion in the shortlist is not guaranteed, given the sheer volume of products he receives.

We recommend sending a maximum two products through to Nick that are both new and novel.

Please note that the deadline for submissions of Friday 27 September, has been extended to 30th September. If you or your team have any questions, please do not hesitate to contact us.

Endeavour Group has unveiled its first Trade Supplier Charter, which builds on existing policies and initiatives, and Complete Liquor, established by data and insights company Circana, as a data tool for retail liquor trade suppliers.

Complete Liquor will give liquor trade suppliers access to a free report offering a top-level overview of the beer, wine, spirits and pre-mix categories, providing a clear and comprehensive market perspective.

Endeavour Group CEO and Managing Director Steve Donohue said the Trade Supplier Charter and Complete Liquortool demonstrate Endeavour’s focus on strong partnerships and innovation.

“We have doubled the number of small suppliers we work with since 2018, and now 90 percent of what we range is sourced from independent, small suppliers. Importantly, some of the most popular drinks we sell today didn’t exist two years ago, which is a testament to their responsiveness to changing customer preferences,” Donohue said.

“After three years as a standalone company, we are pleased with our progress in building long-term partnerships with our suppliers, but we are always looking for ways to improve.

“From the introduction of 14-day payment terms for smaller suppliers, the launch of Dan Murphy’s Marketplace to give suppliers more routes to market, and hosting regular Supplier Forums and sharing data and insights, our track record demonstrates this.

“We want to promote mutual, sustainable growth with our suppliers, we want to drive innovation, and seek to promote high standards of ethical conduct. That is why our Trade Supplier Charter is built on three principles: transparency, simplicity, and genuine collaboration.

“By taking a transparent, simple and collaborative approach to our discussions with suppliers, we have heard consistently of the need for quality data and insights to help guide their decision-making.”

Paul Hinds, Managing Director, APAC, Circana said: “Circana’s Complete Liquor is designed to help identify opportunities and streamline decision making by offering the most comprehensive view of the market to suppliers and retailers. Combining unmatched measurement capabilities and our deep industry expertise, we are excited to partner with retailers across the liquor sector to provide the first single source of truth for the industry.”

by Andy Young
The Shout.
September 16, 2024

At the recent Spirits Victoria Association Annual Conference in Ballarat, Brogan Carr announced she was undertaking PhD studies at Melbourne University to investigate the chemical and sensory contributions that native botanicals have for Australian Gins.

Spirits Victoria considers this an extremely important research project as there are very few published papers on the topic and this research will vastly improve our industry’s understanding of the impact these ingredients have to a product category that is the largest in the craft space in Victoria. Spirits Victoria hope this is the first step towards an Australian Botanical Library.

Brogan is on the start of a long journey to collect data and conduct detailed chemical analysis, but as a first step, she needs our help. Brogan has developed a questionnaire that allows distilleries to provide information in a confidential manner - all information is de-identified and stored on a secure cloud server.

The results of the research will not be available for some years, but we hope to be able to publish them when they are available.

So this is our call to action - help Brogan by completing the Survey, which can be accessed using the QR code below (The password for the QR code is SVA24). You can contact Brogan to ask questions about the research at carrbl@student.unimelb.edu.au.

Thank you for assisting what we hope is the first of many research projects that can help our industry improve and develop.

Australian spirits tax rises to $103.89 today in another cruel blow to spirits manufacturers, venues and consumers who are already grappling with challenging economic conditions.

The world’s third highest spirits tax has now risen by more than 20 per cent since the onset of the pandemic, thanks to a system of six-monthly indexation to CPI that dates back to an era where there were only two distilleries in Australia.

Australian Distillers Association chief executive Paul McLeay said there are now more than 700 distilleries in this country making world-class spirits, and their prospects depend on urgent intervention by the Federal Government.

“The continued Government inaction on this issue is incredibly frustrating for our industry, which already contributes $15.5 billion in added value to the Australian economy and supports more than 100,000 jobs,” he said.

“We know that our economic potential could be much greater. Analysis from Mandala Partners has demonstrated that spirits manufacturing can be a $1 billion export industry for Australia by 2035, but only if we have the right policy settings.

“The Federal Government must act now by freezing the spirits tax and partnering with industry to create an export body for spirits, just as it has done so successfully with Wine Australia over recent decades.”

Chronic instability hampering ambitions

Craig Michael, director of Bellarine Distillery in Drysdale, Victoria, said the tax is now $25 per litre higher than when the company began operations in 2015.

“These six-monthly increases are becoming increasingly difficult for our business to sustain, and they are impossible to plan for,” he said.

“How can we accurately undertake financial modelling and make business decisions if we don’t know what tax rate we will be paying in six months’ time?”

Hitting everyday punters’ hip pockets Night Time Industries Association chief executive officer Mick Gibb said the dreaded six-monthly tax increases are yet another impost on struggling hospitality venues.

“Every time the tax increases, the bar owner has to pay more for the tequila in that margarita, the gin in that martini or the vodka with that soda,” he said.

“Sometimes venues have no choice but to pass on these costs by increasing their prices. That ends up hitting the hip pockets of everyday punters who then say, ‘I’d love to go out more, but I just can't afford it’.”

Gibb said the tax increase compounds the existing inflationary pressures impacting venues, such as rent, electricity, freight and insurance.

“But in contrast to those unavoidable cost increases, these six-monthly tax hikes are completely at the Federal Government’s discretion,” he said.

“Freezing the tax is a sensible measure to ease the pressure on venues and consumers, and will also help the Government achieve its goal of reducing inflation.”

Spirits & Cocktails Australia chief executive Greg Holland says the latest tax increase simply cannot be justified in the current economic circumstances.

“Enjoying a drink with friends is one of life’s few simple pleasures for Australians who are currently struggling with the cost of living,” he says.

“Sadly, this custom is increasingly being priced out of reach for many people, thanks to relentless alcohol tax hikes every six months.”

The Federal Government today confirmed the world’s third highest spirits tax will be increased yet again on 5 August to $103.89 per litre.

The 5 August CPI increase will be the 75th tax hike on spirits since automatic indexation was introduced by Paul Keating in August 1983, in his first Budget as Treasurer.

Spirits & Cocktails chief executive Greg Holland said Keating’s Budget speech of the day demonstrates it is completely absurd that these tax increases are still continuing in 2024:

“The new system will afford a greater degree of stability for consumers and industry alike.

“These traditional excises will rise gradually in line with inflation and as wages and other incomes themselves increase.”

Paul Keating, August 1983 Budget Speech

“Automatic indexation was introduced to suit the economic conditions of the day. It was never intended to continue indefinitely,” said Holland.

“Far from rising ‘gradually’, as Mr Keating intended, spirits tax has now increased by almost 20% in the last four years.

“Far from providing ‘stability’, the Australian spirits industry is now suffering from an extremely unstable investment environment, thanks to these tax hikes every six months.

“As for wages? Australia today has some of the worst real wage growth of the OECD’s 38 member nations.

“Further increases to this tax simply do not pass the pub test.”

Australian Distillers Association chief executive Paul McLeay said the current excise burden is even more egregious, given the evolution of the spirits manufacturing industry over the last 41 years.

“There were only two distilleries in Australia when these six-monthly tax hikes began in 1983,” he said.

“Today there are 700 distilleries and we want to work with the Federal Government to build a major export industry that Australians can be proud of, just like our globally renowned wine industry.”

Albanese Government holds all the cards

McLeay noted Treasurer Jim Chalmers’ recent statement that Australia, ‘has been dealt the most incredible cards as a country’.

“The Treasurer was speaking in relation to the Government’s domestic manufacturing agenda, and in the case of spirits, his words certainly ring true,” said McLeay.

“We have unrivalled access to base ingredients like grains, sugarcane and grapes, rare native botanicals for gins and liqueurs, and an incredible inventory of wine barrels for maturing dark spirits.

“It would be a terrible shame if this enviable opportunity was squandered by continued Government inaction on spirits tax.”