Australia will miss out on the economic opportunity presented by its promising spirits manufacturing sector without urgent intervention by the Federal Government, the Inquiry Into Food and Beverage Manufacturing heard today in Canberra.

Peak industry bodies Spirits & Cocktails Australia and the Australian Distillers Association today appeared before the House of Representatives Standing Committee on Industry, Science and Resources at Parliament House.

Australian Distillers Association chief executive Paul McLeay said 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“However, the Government’s outdated policy settings and inaction has placed Australian-made spirits at a significant competitive disadvantage in our home market and abroad,” he said.

“Just as previous governments recognised the potential of Australian wine, with the right policy settings and infrastructure, Australian spirits can realise a $1 billion export opportunity by 2035.

“If we do not act now, Australian distillers will be outpaced by other emerging spirits markets in meeting growing consumer demand for premium products – and Australia will miss out on the economic windfall that could be ours.”

Spirits & Cocktails Australia director Nicole Lestal said the Government must release the handbrake that is the current excise regime.

“While Australian spirits account for 20% of alcohol consumption, it accounts for 50% of alcohol taxes,” she told the Committee.

“This structural disadvantage impedes innovation and opportunities to re-invest in Australian spirits manufacturing.

“Our global spirits industry experience tells us that when governments act decisively and across multiple fronts to provide coordinated support, it incentivises investment to achieve scale and unlock further opportunities for economic value-add and innovation.”

Quotes from witnesses appearing for Spirits & Cocktails Australia:

“Suntory Oceania’s new $400 million carbon neutral facility in Ipswich, Queensland, provides the Committee with a real time example of the positive impact that direct foreign investment can have on the Australian food and beverage manufacturing sector. However, there is little or no incentive for global spirit companies to invest in the expansion of the Australian spirits industry while our excise rates are so overwhelmingly uncompetitive with other countries like Japan, the United States, Ireland, Scotland and Mexico.”
Mark Hill – treasurer, Spirits & Cocktails Australia and managing director, Suntory Global Spirits Oceania

“After the UK Government froze excise in 2015, Brown-Forman invested approximately $500 million in acquiring three Scotch whisky distilleries. Nine successive freezes in the U.K. have provided certainty to further invest in expanding these businesses, tripling exports and significantly enhancing their tourism offerings as a result, among other economic benefits. Unfortunately, the current conditions and the uncertainty borne of Australia’s excise regime – which is the third highest spirits tax in the world – are inhibitors for global companies like ours making such an investment in this market.”
Kylie McPherson – member, Spirits & Cocktails Australia and vice president, director of public affairs Brown-Forman Australia

“New world whisky is currently on the rise in many corners of the world. Australia has an opportunity to grow our category into something of global significance synonymous with quality and innovation, following in the footsteps of Japanese and Scotch whisky, while contributing substantially to domestic employment and economic growth.”
Satya Sharma – director, Spirits & Cocktails Australia and chief executive officer, Lark Distilling Co.

Quotes from witnesses appearing for Australian Distillers Association:

“We know that nothing tastes like Australia. Australian spirits celebrate flavour and unique native ingredients that are not found anywhere else in the world. This provides Australia with a point of difference from other spirits-producing nations. That’s why our industry needs coordinated, targeted support to both succeed at home and take distinctive Australian spirits to the world.”
Holly Klintworth – president, Australian Distillers Association and managing director, Bass & Flinders Distillery

“My experience of living in the US for the last five years has shown that it is extremely difficult to build an export market for Australian spirits without the coordinated support that only Government can provide. When Starward shows up at prestigious international trade shows like ProWine, I blow my entire export marketing budget on a trestle table that gets lost in the acres of exhibitors, while Australian winemakers have pride of place in an elaborate pavilion, proudly showcasing their provenance. It’s unfortunate that when we ask Austrade for the same opportunities, we are informed that their support does not extend to spirits. The consumer demand is there, we just need Government to recognise the potential of our industry.”
David Vitale – vice president, Australian Distillers Association and founder, Starward Australian Whisky

The Spirits & Cocktails Australia and Australian Distillers Association submissions are available to download on the Inquiry website.

In light of recent changes to Wage Summaries and General Awards effective 1 July 2024, we have updated our HR Advisor resources.

Please note, only some awards attract wage updates from 1 July, 2024, see below:

Effective – 1 July 2024:

The below remain unchanged, however have been included for convenience:

Additional information can be sourced from Fairwork, links provided below.

Fairwork – ‘2023 - 2024 Annual Wage Review

Fairwork – ‘2023 - 2024 Annual Wage Review - award minimum wage increase

All Fairwork Awards can be found here

Tax Relief

As you may already know, the Australian Taxation Office (ATO) will be implementing tax relief effective from 1st July 2024 for all Australians.

Due to this upcoming change, adjustments will be made to the net amounts transferred to each employee if they are currently set up for recurring transfers from the business bank account. For further details, please refer to the following link. On this link, please find the new net amounts payable to your employees from the first pay run in July.

Superannuation Guarantee rate increase

Additionally, as of July 1, 2024, the super guarantee will increase from the rate 11% to 11.5%. The super guarantee will continue to rise by 0.5% until it reaches 12% from FY26. Please refer to this link for additional reference.

If you have any questions or require further clarification, please feel free to contact us at the new Australian Distillers HR Advisory Service.

HR Advisory Service

On Friday, 5 July 2024 the Fair Work Commission handed down a decision (Decision) in an ongoing matter to address uncertainty in the General Retail Industry Award 2020(Retail Award). 

Clause 15.7 of the Retail Award 

Following consultation between unions and employer groups, minor amendments have been made to clause 15.7(c) of the Retail Award. Clause 15.7(c) previously read:  

Column 1 Type of employment    Column 2 When an employer must pay overtime    Full-time employee Overtime is payable for hours worked:  in excess of the ordinary hours of work; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2; or  outside the roster conditions prescribed in clause 15 - Ordinary hours of work and rostering arrangements.  Part-time employee  Overtime is payable for hours worked:  in excess of their guaranteed hours as agreed in clause 10.5 (a) or as varied under clause 10.6 or clause 10.11; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2. Casual employee  Overtime is payable for hours worked:  in excess of 38 ordinary hours per week or, if the casual employee works in accordance with a roster, in excess of 38 ordinary hours per week averaged over the course of the roster cycle; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2; or   in excess of 11 hours on one day of the week and in excess of 9 hours on any other day of the week.

The Decision took effect immediately from 5 July 2025 however, in accordance with section 165(3) of the Fair Work Act 2009 (Cth), the changes to the Retail Award do not take effect in relation to a particular employee until the start of the employee’s first full pay period that starts on or after 5 July 2024.

The employer may roster an employee to work ordinary hours on 6 days in one week if the employee is rostered to work ordinary hours on no more than 4 days in the following week.

Following the Decision and effective from 5 July 2024, clause 15.7(c) has been replaced with the following: 

The employer may roster an employee to work ordinary hours on 6 days in one week per two-week cycle, provided that in the other week in that cycle the employee is rostered to work ordinary hours on no more than 4 days. 

Clause 21.2 of the Retail Award 

As a result of the Decision, clauses 21.2(a), 21.2(b) and 21.2(c) of the Retail Award have been deleted the replaced with a table for ease of reading and usability. The new clause 21.2(a) reads as follows:

An employer must pay an employee overtime for hours worked in accordance with Table 10—Application of overtime:

Table 10 – Application of overtime:

In addition, table references and references to clauses 21.2(a) have been amended through the Retail Award where appropriate.

 

When do these takes take effect?

Whilst the Decision does not make significant changes to the substance of the Award conditions, the changes reflect the Fair Work Commission’s ongoing commitment to addressing usability of the Retail Award and removing uncertainty. However, should you have any questions about how the Decision may affect the rostering or payroll practices in your business, please use our HR Advisor Service.

Due to the popularity of the Mojito Mix at the annual Australian Distillers Conference 2024 Fever-Tree would like to extend a limited time offer, available exclusively to ADA members. Purchase one case of Fever-Tree Mojito Mix 8x500mL and get the second case half price.

Orders will be placed by Fever-Tree through Paramount or ALM. If interested in this offer, please contact us via email for the order to be processed. If you do not have a Paramount or ALM account and still wish to have this deal, please reach out and our sales team will endeavour find a way to accommodate.

Any queries relating to the deal, please contact Steve Carr – Trade Marketing Manger 

Deal valid for 6 weeks.

Australian spirits manufacturers are tonight questioning the Federal Government’s overly optimistic growth projections for the industry, which are in spite of the Budget’s failure to take action on spirits excise.

Today’s Budget shows that spirits excise is down $200 million on estimates published last year.

Forward estimates nevertheless predict growth of $180 million for 2024-25 and annual growth of $200 million for the three years thereafter.

Spirits & Cocktails Australia chief executive Greg Holland said these projections appear misguided while spirits excise remains unchecked.

“It’s difficult to understand how Treasury has arrived at these growth predictions for our industry while we are still completely hamstrung by the world’s third highest spirits tax,” he said.

“We are already paying $101.85 per litre, with six-monthly increases coming yet again in August and February.

“We wish we shared the Government’s optimism, but its growth forecast is simply not achievable under these conditions.”

Australian Distillers Association chief executive Paul McLeay said the inaction on spirits tax is particularly disappointing given the Government’s ambitions to grow domestic manufacturing.

“While we are hugely supportive of the Future Made In Australia policy, we hope the Government does not miss the opportunity to scale other manufacturing industries like spirits, in pursuit of its more costly objectives in solar, green steel and minerals processing,” he said.

“We have 700-plus distilleries in this country making products that simply cannot be replicated by manufacturers in other nations, because they are singular expressions of Australian ingredients, provenance and technical prowess".

“It won’t take billions of dollars of investment to kick-start our industry. We don’t need excessive subsidies, we just need modest adjustments to policy settings, starting with tax relief.

“We look forward to making this case for the Government in the food and beverage manufacturing inquiry over the coming months.”

Entries for Sydney Royal’s very first Distilled Spirits competition have opened today, with producers from across Australia being encouraged to enter the inaugural competition.

Run by the Royal Agricultural Society of NSW (RAS) and chaired by Australian drinks industry veteran, and Australian Distillers Past President, Stuart Gregor, the new Sydney Royal Distilled Spirits Show will offer producers a chance to benchmark their products under the expert taste buds of Gregor’s panel of judges and potentially be crowned an inaugural Champion.

“As the popularity of distilled spirits in Australia continues to grow, so does the importance of producers benchmarking products with others in the industry”, Gregor said.

“This competition will not only allow us to identify the best producers in the industry at this point in time, but also to share valuable feedback with exhibitors to assist in the continued improvement and refinement of their product, and hence, the industry as a whole”.

The Sydney Royal Distilled Spirits show will offer a fantastic range of classes for producers to enter, including Brandy, Cane Spirit, Gin, Liqueur, Rum, Vodka, Whiskey, Alternative Distilled Spirits, Non-Alcoholic and stand-alone Ready to Drink (RTD) classes, with fifteen Champion Trophies up for grabs including Champion Non-Alcoholic Spirit and Champion Ready to Drink.

“It is important to acknowledge the increasingly popular choice of Australians to consume spirits in the ready-to-drink format of pre-mixed bottles or cans, and the Sydney Royal will be amongst the first Shows in the world to taste and assess this burgeoning category of modern-style drinks, alongside more traditional, full-bodied spirits”, Gregor said.

As an organisation focused on championing Australian agriculture, the new competition will aim to highlight products made with at least 85 percent Australian-grown ingredients. This requirement is currently implemented across all Sydney Royal wine, beer & cider, dairy produce, and fine food competitions.

While it is the inaugural show for the RAS, the renowned agricultural company has judged spirits before, with historical records confirming South Australian gin and Queensland rum entered classes as far back as 1870 and 1877, respectively. The organisation went on to continue judging select spirits alongside wine classes at the Sydney Royal Easter Show, before wine became a stand-alone Sydney Royal event in 2000.

“While spirits have played a small part in the rich history of the RAS, the move to create a stand-alone spirits Show is a testament to the incredible growth within the industry, and I consider it an immense privilege to be called upon to lead the judging for the inaugural Show”, Gregor said.

Entries for the 2024 Sydney Royal Distilled Spirits Show will close on Wednesday 22 May with judging will take place in early September 2024.

ENTER HERE

Following the conclusion of the Sydney Royal wine, beer & cider and distilled spirits competitions, consumers will get a unique chance to sample some of the medal-winning products at the Grape, Grain & Graze Festival (GGG) which will take place on Saturday 21 September

Three more industry legends were inducted into the Australian Distillers Association Hall Of Fame on Tuesday night as its 20th anniversary conference concluded in Brisbane.

Graham Golchert (1953-2020), a late employee of Bundaberg Rum Distillery, was posthumously inducted by Queensland Distillers Association president Dave Ridden.

Guests heard that Golchert, who became known to his peers as ‘Mr Bundy’, began his career as a chemist in the sugar mills surrounding Bundaberg, while helping out on the family cane farm in his spare time.

“In 1975, Graham came across a special place where he commenced a new job, or actually a journey, that would well and truly cement his identity in the Australian distilling industry,” Ridden told guests.

“Graham spent 42 fulfilling years working at Bundy. It was quite obvious that to him, this was more than a job, and the distillery in fact became part of Graham.”

Graham Golchert’s award was accepted on the night by his daughter Katrina Golchert.

Lorrelle Warren, co-founder of Bellarine Distillery in Victoria, was inducted by Sebastian Reaburn of Anther Distillery, who said Warren had been an invaluable friend and mentor to many of her industry colleagues over the years.

Warren’s induction also recognised her pivotal work in securing $20 million in Victorian Government funding for state’s distillers, provided through the groundbreaking Distillery Door Program.

And Four Pillars Gin co-founder Cameron Mackenzie was inducted by his best friend and former business partner, Stuart Gregor, himself a 2023 inductee.

Mackenzie’s award reflected the generosity of his knowledge sharing with his fellow distillers, and the multitude of accolades won by Four Pillars Gin, a three-time winner of IWSC International Gin Producer Of The Year.

“When we first started out, there were a handful of people making gin in Australia and we were just a few blokes in the back of a winery with a single copper still,” Mackenzie said.

“Now I’m standing in a room alongside hundreds of innovators and leaders in the craft industry… it’s an incredible decade to celebrate.”

Australian Distillers Association chief executive Paul McLeay said the inductions have become a highlight of the conference since the Hall Of Fame was introduced in 2022.

“I am delighted to welcome these three outstanding individuals to the Hall Of Fame in the Australian Distillers Association’s 20th anniversary year,” he said.

“Graham, Lorelle and Cameron have made a significant contribution to the industry beyond their own businesses. Their effective advocacy and knowledge sharing has built a stronger distilling industry in Australia.

“They rightfully take their place in the Hall Of Fame alongside their fellow industry legends and pioneers.”

McLeay said the Gala Dinner ceremony was a fitting end to the conference, which attracted record attendance of over 500 distillers and exhibitors.

“Having such a great turnout, in spite of the difficult economic circumstances we are all facing, clearly demonstrates the strength and resilience of the Australian distilling industry,” he said.

We are looking forward to seeing you at the Conference.

The weather for Brisbane is forecast to be sunny!

Please make sure you download the app. No app – no entry!

Be prepared for professional development. The schedule is all thriller – no filler!

An important part of the conference is for you to showcase your product to your colleagues. When you register, you will be able to drop off a bottle or two of your latest or most interesting product. Bring a bottle!

Dress code: Feel free to wear your livery. If you have a distillery shirt or clothing, you should wear this to the conference sessions. Just don’t forget to pack something fancy for the gala dinner. The gala dinner is a dress up affair so please pack your best “after five” frock or suit for a fantastic evening of cocktails and spirits.

See you in Brisbane,

Paul McLeay
Chief Executive

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