APISWA have shared with us information about concerning regulatory developments for the alcohol industry in Thailand.

The Office of the Alcoholic Beverage Control Committee (OABCC) has opened up public consultations for a draft Announcement on packaging and labelling, which foresees the introduction of graphic health warning labels (GHWLs) for alcoholic beverages. The OABCC had proposed this twice before (in 2009 and 2014), with the objective for Thailand to be the first in the world to implement such requirements. If enacted, the measure would be a world first for GHWLs for alcoholic beverages, and may spillover to other jurisdictions.

The Association has a made appropriate submissions and supported a similar campaign by SCA to oppose the GHWLs.

Australian spirits manufacturers are celebrating a bumper night at the World Whiskies Awards in London, with global honours awarded to several of our distilleries and their personnel.

The Whisky Magazine awards ceremony on Wednesday night featured the announcement of the World’s Best whiskies in the World Whiskies Awards and the Icons of Whisky global winners.

Australia shone in the 2024 Icons of Whisky Awards, with Tasmania’s Sullivans Cove Distillery – a three-time winner of World’s Best Single Malt – claiming four of the 27 Icons awards available on the night.

Sullivans Cove’s Heather Tillott and Ally Bhana respectively won the prizes for Distillery Manager and World Whisky Brand Ambassador, while the distillery also picked up the Sales Team and Brand Innovator gongs.

Fellow Tasmanians Callington Mill Distillery won the award for Visitor Attraction, while Seamus Carroll of The Whisky Club took home the prize for Scotch Whisky Brand Ambassador.

Australian Distillers Association chief executive Paul McLeay said it was yet another remarkable showing by the industry in a prestigious global event.

“For Australians to take out six of an available 27 Icons of Whisky awards demonstrates once again that our industry is world class,” he said.

“I would like to congratulate all the winners of these global awards, as well as our distillers who were named Country Winners on the night.”

McLeay said the awards cap off a momentous week for Australian spirits manufacturers, who are relishing the opportunity to participate in the Federal Government’s Inquiry into Food and Beverage Manufacturing in Australia, announced on Thursday.

“These latest global accolades certainly bolster our case for policy initiatives that will support our industry in its quest to grow exports of our premium spirits, which speak proudly of their Australian provenance,” he said.

Icons of Whisky 2024 – Global Winners

Distillery Manager
Heather Tillott, Sullivans Cove Distillery

Visitor Attraction
Callington Mill Distillery

Brand Innovator
Sullivans Cove Distillery

Scotch Whisky Brand Ambassador
Seamus Carroll, The Whisky Club

World Whisky Brand Ambassador
Ally Bhana, Sullivans Cove Distillery

Sales Team
The Team, Sullivans Cove Distillery

World Whiskies Awards 2024 – Global Winners

Best Label Design
Callington Mill Distillery – Blue Lake Lodge

World Whiskies Awards 2024 – Country Winners

Best Australian Blended
Coastal Stone – Xplore

Best Australian Blended Limited Release
Hellyers Road – Dark Harmony

Best Australian Blended Malt
Lark – Symphony No. 1

Best Australian Pot Still
Transportation Whiskey – The Journey Single Cask Cask Strength

Best Australian Rye
Backwoods Distilling Co. – Shiraz Cask

Best Australian Single Cask Single Malt
Hellyers Road – American Oak 16 Years Old

Best Australian Single Cask Single Rye
Whipper Snapper ­– Rye

Best Australian Single Malt
Lark – Fresh IPA Cask

Best Australian Small Batch Single Malt
Hellyers Road – Voyager Cask

Australia’s spirits industry has the potential to follow the wine industry and become a $1 billion export powerhouse by 2035 under the right policy settings, according to new economic modelling released today.

The Spirits Industry Competitiveness Plan prepared by research firm Mandala, and commissioned by the Australian Distillers Association and Diageo Australia, reveals policy and regulatory barriers, such as Australia’s high excise tax, are thwarting the potential of Australia’s spirits industry.

Australia’s emerging spirits industry currently supports 5,700 jobs in manufacturing, with almost half of the country’s 701 distillers located in regional areas. The spirits industry attracts 631,000 visitors annually, with distillery visits now the fastest growing tourist activity for overnight domestic visitors in Australia.

Despite this, the industry is still growing with 88 per cent of all distillers having fewer than 20 employees and more than half of distilleries less than five years old. Australian spirits exports also remain small when compared to the wine industry and international competitors, demonstrating an enormous opportunity for growth.

“While there has been an overall increase in the number of distillers in Australia, the average size of distilleries is declining, and many are not scaling as it is either too challenging or not worthwhile. This is primarily driven by the high excise tax, which is restricting businesses' ability to reinvest in their company and attract investment,” the report says.

The report states the federal Government can play a key role in helping to unlock the potential of the Australian spirits industry and simultaneously meet some of its own policy goals, including to grow Australian manufacturing and support regional jobs.

By taking key steps, including freezing twice-yearly increases to Australia’s spirits tax and establishing a ‘Spirits Australia’ body to support the industry’s growth, Australian spirits can go from being a $210 million export market in 2022 to a $1 billion export market by 2035.

This would create an additional $111 million in direct economic contribution and support almost 878 new FTE jobs, many in regional areas.

Australian Distillers Association chief executive Paul McLeay said: “This report proves what distillers right around this country already know, that Australia’s spirits tax has significant implications for the competitiveness of the spirits industry and the ability for distilleries to scale and attract investment.

“We welcome the federal Government’s move to set up a parliamentary inquiry into expanding innovation and value addition in food and beverage manufacturing, and we look forward to lending our expertise to those discussions.

“However, we already know the current spirits excise regime is limiting the opportunity Australian distillers have to expand and grow their businesses, and that by freezing it, we can grow regional jobs, tourism and manufacturing.”

Diageo Australia Managing Director Dan Hamilton said: “Australia’s spirits industry has enormous promise and Diageo has a strong track record in investing in great Australian spirits brands, but this report clearly demonstrates current policy settings are limiting the industry’s growth.

“Our consumers, who are having to pay $38 in tax for every 1 litre bottle of Bundaberg Rum, know this tax is not sustainable. Now, this report makes it clear that it’s also limiting the foreign direct investment which could drive industry and export growth.

“Having seen first hand the way Japan cultivated and grew its spirits export industry, I am confident Australia has all the hallmarks of being able to do the same, however, that cannot begin to occur until the government freeze’s the tax on spirits.”

Mandala Managing Partner Amit Singh said: “Our analysis shows that while Australia is 6th in the world in wine exports, we’re 29th in the world in spirits exports. Even though we perform better than the global average for spirits exports potential, we’re significantly behind the global lead pack.

“If Australia exports at its full trade potential, performing as efficiently as the UK, France, Singapore, Ireland, Mexico, we could export $1 billion of spirits annually by 2035 at our current rates of growth.”

The National Distilling Institute launched its first course in Certificate IV in Artisan Fermented Products (Distilling) yesterday. Local member for Albert Park Nina Taylor and Australian Distillers Association CEO Paul McLeay joined the Spirits Victoria Infrastructure and Safety Chair Sam Slaney and Victorian Industry Development Officer Seb Costello to get the first intake of students underway with their studies.

The initial intake of students will spend the next year studying a range of nationally accredited subjects as they develop significant skills in the theory and practice of operating a distillery.

The National Distilling Institute expects to have a second intake of students in June 2024, so if you are interested in developing the skills of yourself or an employee, check out the Australian Distillers page for the Certificate IV as well as the updated Training & Education pages of the Australian Distillers.

This initiative has been proudly developed by the National Distilling Institute, Spirits Victoria and Australian Distillers Association.

Aspiring Victorian distillers now have the opportunity to benefit from a new pilot training program focused on cutting edge distillation techniques and industry safety as part of the $20 million Distillery Door Program.

The $1.2 million pilot education pathway for distillers is being delivered by the National Distilling Institute in collaboration with the Spirits Victoria Association and the Australian Distillers Association. The initial courses will be a Certificate IV in Artisan Fermented Products and micro-credential courses for safety in distilleries.

The first session was held at Starward Distillery in Port Melbourne today and will be followed by sessions at regional distilleries in Geelong, Ballarat, Mornington and the High Country throughout April.

Over the next 18-months, the first round of students will complete up to 22 different subjects where they will gain expertise in areas ranging from how to blend spirits and filter fermented beverages, to how to perform basic safety tests and control food contamination and spoilage.

Further development will involve a Certificate III in Food Processing (Distilling) and funding of up to $2000 per distillery for staff to attend other micro-credential courses.

Victoria is the distillery capital of the nation with more than 180 distillers that employ over 9,000 people in rewarding jobs across regional and metropolitan Victoria.

This program is part of the $20 million Distillery Door Program which promotes Victoria’s world-class distilling industry through supporting skills development, boosting visitor economy, improving infrastructure and safety, and increasing export capability.

Quote attributable to Minister for Agriculture Ros Spence

“We’re investing in the future of distilling and we are thrilled to be partnering with industry leaders to deliver this new course that will set Victorian distillers apart from the rest.”

Quote attributable to Member for Albert Park Nina Taylor

“It’s great to see top industry bodies coming together to nurture and empower the next generation of distillers.”

Quote attributable to Spirits Victoria Association President David Irwin

“Victorian spirits are already globally renowned for the awards they have won on the world stage, but we believe further skills development is vital to safeguarding our industry‘s future.”

First published by the website of the Premier of Victoria, Hon Jacinta Allan MP.

The Queensland Distillers' Association Inc. in conjunction with WSET (Wine & Spirit Education Trust) are very pleased to announce the inaugural 2024 Royal Queensland Awards - Distilled Spirits and encourage ALL Australian Distillers to enter.

These awards leverage off the incredible success of the prestigious Royal Queensland Awards including competitions for Wine and Beer and importantly address frustrations and concerns held by many distillers in respect of the myriad of Australian and international spirits competitions. Namely:

ENTRIES ARE NOW OPEN

EARLY BIRD SAVINGS END Friday 8th March 2024
Cost – $95 per early bird entry.

ENTRIES CLOSE Wednesday 29 May
Value – one 700ml bottle or equivalent.

JUDGING COMMENCES Monday 8 July

AWARDS PRESENTATION Friday 12 July

ENTER HERE 

MESSAGE FROM QUEENSLAND DISTILLERS’ ASSOCIATION

Queensland distillers are at the cusp of being to Queensland what wine is to South Australia, an export and job creation powerhouse producing and exporting Queensland spirits, liqueurs, aromatics, and vermouths that are equal to the very best in the World.

We welcome our interstate colleagues, their excellent spirits, and the opportunity for Queensland Spirits to be judged by world class judges in world class competition.

David Ridden
President
Queensland Distillers’ Association Inc.

With an increase of mergers and acquisitions in the alcohol industry, the ATO (and specifically the Alcohol Stakeholder Group) are reminding businesses of the implications such activities may have on the eligibility of entities to apply the Excise remission scheme for manufacturers of alcoholic beverages (Remission Scheme).

The following two Remission Scheme eligibility criteria should be considered closely when undertaking mergers and acquisitions:

• Meaning of ‘alcohol manufacturer’
• • An entity will not be considered to have manufactured an alcoholic beverage where it acquires alcoholic beverages from another manufacturer or acquires the business of another manufacturer, including the trading stock on hand.
  • To qualify as an ‘alcohol manufacturer’ in these situations, the entity would need to undertake further manufacture in respect of the product. The remaining eligibility criteria would also need to be considered to ensure eligibility to the Remission Scheme (i.e. the 70% fermentation/distillation requirement).
• Legal and economic independence
• • Where two or more alcohol manufacturers are not ‘legally and economically independent’ only one alcohol manufacturer in that group is entitled to a remission of excise duty for the financial year.
  • Once an entity has applied the remission under the Remission Scheme, any other entity that is not legally and economically independent of the first will not be entitled to apply the remission.
  • Legal independence and economic independence must be considered individually, as well as collectively and requires a balanced analysis of relevant factors.

The full eligibility criteria and supporting guidance can be found in Section 7.3.3 of the Excise guidelines for the alcohol industry , with additional information on legal and economic independence included in Excise Ruling ER 2023/1 Excise: the meaning of ‘legally and economically independent’.

Australia’s alcohol taxation system is illogical, incoherent, and discriminatory regarding spirits.

The policy settings for the Australian spirits industry have only been tinkered with by successive governments.

It is now time for the Government to act. We need your support.

This latest increase to the world’s third highest spirits tax is unconscionable under the current economic conditions confronting Australian spirits manufacturers. The entire industry must work together to raise awareness among politicians, customers, communities and staff of the impact that high spirits excise has on the growth and sustainability of the Australian spirits industry.

The automatic indexation of spirits tax every six months is now under unprecedented scrutiny as a cost of living issue. The media and the public have cottoned on to the fact that alcohol tax increases are contributing to inflation and eroding their discretionary income, because income tax is not indexed to inflation.

We must seize this opportunity and maintain pressure on the Government to take action on spirits tax.

I draw your attention to page 9 of the Members Handbook which has a draft letter for you to send your local MP requesting they visit your distillery, support our call to freeze the excise increases and support our call for a Parliamentary Inquiry. Feel free to amend the letter, but please send it today!

Download the Handbook for all of the tools you need to assist in the campaign to make our industry stronger, fairer and more sustainable.

HANDBOOK AVAILABLE HERE

Australian spirits manufacturers are this week confronting the grim reality of yet another increase to the world’s third highest spirits tax.

The new rate of $101.85 per litre follows a series of especially punishing increases powered by automatic six-monthly indexation to CPI.

Australian Distillers Association chief executive Paul McLeay said the country’s craft spirits industry is united in calling for urgent tax reform.

“There are now more than 600 distilleries across Australia, half of which are located in regional areas,” he said.

“Their future is increasingly being jeopardised by these relentless six-monthly tax increases.

“We say to the Government: enough is enough. Freeze spirits tax at its current rate for two years so that we can work together on developing sustainable policy settings for our industry.”

Spirits & Cocktails Australia chief executive Greg Holland said the latest hike means spirits tax has increased by 16 per cent during the inflationary environment of the last three years.

“This tax is clearly unsustainable for spirits manufacturers, their trade customers, and consumers who are already struggling with the cost of living,” he said.

“We call on the Government once again to freeze this tax at its current rate for two years.

“This temporary measure will take the pressure off our industry and help the Government accomplish its mission of bringing inflation back under control.”

Industry under stress: Cape Byron Distillery

Cape Byron Distillery founder Eddie Brook said small distilleries are unable to pass the tax hikes on to trade and consumers in the current economic environment.

“And we don't have the economies of scale, nor are we growing quick enough to absorb these ongoing costs,” he said.

“As a result, these six-monthly increases really do have the effect of reducing margin in our business at a time when we are already experiencing cost increases across the board, and economic conditions are impacting consumer demand and spend choices.

“It's getting to the point that it is putting such stress on the industry.”

A hostile market for spirits: Starward Whisky

Starward Whisky founder David Vitale said the tax rate was around $64 per litre when his distillery was conceived in 2007.

“Here we are 17 years later and we’ll be paying $101.85,” he said.

“Start-up businesses have a fixed amount of capital available to scale and grow, and every six months that’s compromised by the government giving themselves a pay rise.

“Every dollar increase in excise is a dollar less that we have to invest in scaling our businesses.

“Our sights have to be set on export markets because it’s simply uncompetitive to operate here in Australia.”

Jobs on the line: Never Never Distilling

Never Never Distilling co-founder George Georgiadis said the latest increase is very hard to stomach under the economic conditions confronting distillers in 2024.

“Our margins are already being squeezed as input costs are going up across the board,” he said.

“Meanwhile, revenue is down because consumers have cut their spending on premium Australian spirits.

“We’re already struggling to make that work and then we get slugged every six months with tax increases that are not only swallowing up more margin, but making our products proportionately more expensive to beer and wine again.”

Georgiadis said the latest increase puts Never Never under pressure to further reduce its workforce, having been forced to retrench several employees last year.

Callington Mill Distillery are seeking expressions of interest from those wishing to purchase premium quality, freshly decanted 30L casks. These casks have been maturing Callington Mill Distillery Single Malt Whisky.

The casks available are as follows:

30L Second Fill Casks at $300 each plus GST plus freight. These exceptional casks have cradled our Single Malt for over four years, and we're open to negotiating prices for bulk purchases.

These casks are capsules of time and history, having previously housed exquisite Sherry from Spain's renowned Sherry Triangle and Port from the picturesque Douro Valley in Porto, Portugal

30L Oak types are:

They have a limited number of casks for sale now.

To purchase, or if you have any questions please email the distillery.

EMAIL