A message from our conference 2023 Sponsor Fermentis.

There are some interesting trends happening today in the world of fermented beverages that are affecting the world of spirits. Consumers are choosing spirits and cocktails over other beverages, and they are choosing more premium brands and specialty options. This trend is motivating producers to innovate in all categories of spirits, at both the industrial and artisan level.

Consumers are demanding continual innovation, creativity and "out of the box" thinking. This provides Master Distillers with both a challenge and a huge opportunity - innovate now to appeal to a broader market. In this context, we believe that yeasts can provide an exceptional advantage.

At Fermentis, we invest considerable resources in R&D to develop new products, generate new applications, improve processes, and of course, to continuously improve quality. With yeast, it's possible to explore new aromatic profile and flavours, and generate a diversity of congeners never seen before. For this reason, we have created this Yeast and Fermentation Guide specifically focused on the production of distilled beverages. We hope this guide becomes a useful and dynamic tool for you to create the spirits of your dreams.

To access the guide, please click on the link below.

Yeast and Fermentation Guide

Lock in a two (2) year fixed electricity rate with Blue NRG, only available to members of the Australian Distillers Association

Blue NRG, an Australian owned energy retailer based in Melbourne, recently formed a partnership with the Australian Distillers Association, enabling Australian Distillers Association members to secure an exclusive electricity deal with Blue NRG. This deal is specifically tailored to meet the unique energy needs for businesses of the Australian Distillers Association.

What is the energy deal?

As a business owner, improving efficiencies and boosting productivity is likely top of mind, especially given the current volatile market conditions. We understand that saving on operating costs is crucial for your business, and as part of our newly formed partnership, all Australian Distillers Association businesses have the opportunity to lock in a two (2) year fixed rate for electricity supply for their business.* This offer is valid until 21/07/2023 and is non-binding until an agreement is finalised.

What are the benefits of switching to Blue NRG?

If you are interested in taking up this exclusive electricity offer, please call Blue NRG on 1300 599 888 or email a copy of your most recent bill along with your contact details to indirectsales@bluenrg.com.au and one of our dedicated Business Relationship Managers will contact you to discuss your electricity requirement. Don’t forget to quote: ADA23 to access this exclusive energy deal. Should you not have your bill on hand and would like to talk to us about your electricity requirement, please email us on the above-mentioned email.

ACCESS YOUR OFFER

*This offer is not available to businesses who are located within embedded networks, such as shopping centres who manage their own private network. This offer is only available to members of the Australian Distillers Association with supply addresses located in NSW, QLD, VIC or SA only. This offer cannot be combined with other codes or offers. Blue NRG reserves the right to withdraw the offer before validity date subject to market conditions.

Members would be aware of two recent articles in the paper that discussed the issues around technical standards. The Technical Standards Project Group met during the Annual Conference.

We are aware of two producers in the market that used the term “Single Malt” to describe their product. We are pleased to advise that both of the producers have agreed to cease using the term to describe, market and promote their products that do not meet the definition of whisky. They have both indicated their desire to be a part of the ongoing discussion regarding technical standards.

The Board of Australian Distillers have agreed upon and provided the following Terms of Reference for Naming, definition & classification of spirits.

Support for the Project Group will also be provided by Spirits and Cocktails Australia. We thank them for their assistance. As previously advised, technical support and advice will also be provided by the Scotch Whisky Association and process advice will be provided by the Irish Whiskey Association in relation to Geographic Indicators.

The Technical Standards Project Group will be hosting two webinars in the coming weeks, details will be posted separately. The Project Group will then meet again to discuss the issues raised.

Updates can also be found on the Technical Standards Project Group page in the members portal.

The Australian Taxation Office have recently published Excise Ruling ER 2023/1 – Excise: the meaning of ‘legally and economically independent’ on their webpage. A Ruling Compendium has also been published and is available at this link.

The Ruling sets out the Commissioner’s view of the meaning of ‘legally and economically independent’ for the purposes of the ‘excise remission scheme for manufacturers of alcoholic beverages’ (Remission Scheme) and the ‘excise refund scheme for alcohol manufacturers’ (Refund Scheme). The Remission Scheme replaced the Refund Scheme for eligible alcoholic beverages that entered home consumption on or after 1 July 2021.

The requirement to be ‘legally and economically independent’ is one of the eligibility criteria to receive a remission under the excise remission scheme for manufacturers of alcoholic beverages, or a refund under the former excise refund scheme for alcohol manufacturers.

For an entity to be able to apply the Remission scheme for alcohol manufacturers (AMR), they need to meet all aspects of the eligibility criteria. Eligibility arises as a result of meeting the criteria, and cannot simply be traded.

To be eligible to apply the AMR, an entity must:

• Hold a manufacturer licence authorising them to manufacture alcoholic beverages at the premises specified in their licence

• Have manufactured an alcoholic beverage and entered it into the Australian domestic market

• Have fermented or distilled at least 70% of the alcohol content by volume of the alcoholic beverage

• Be legally and economically independent of any other entity that has received the AMR in the financial year (or, in certain circumstances, a refund)

• For distilled alcoholic beverages, satisfy the still ownership test where required

Where an member/distiller that has not exceeded the $350K annual threshold is approached by an entity that has, with a view to manufacturing additional product for them, eligibility for the AMR ultimately depends on the specific facts and the arrangement between the parties.

It is likely that the requirement to be legally and economically independent (particularly economically independent) of any other entity that has received the AMR would be a key consideration. Further information (including examples) is available in the following ATO View documents.

Excise guidelines for the alcohol industry - Chapter 7 – refer to section 7.3.3

Excise Ruling 2023/1

Members should be aware that you can not trade away your threshold. Members should err on the side of caution and seek advice from the ATO before agreeing to any undertakings.

Members are reminded they must agree to comply with the Australian Distillers Code of Conduct, including complying with applicable laws and codes.

National Distilling Institute (NDI) seeks Australian-qualified Trainers and Assessors who want to work with the NDI to teach Certificate IV in Artisan Fermented Products (Distilling).

Since the Australian Distillers Conference, where we announced the new NDI and development of a Certificate III in food processing, the NDI has had a deep dive into the learning outcomes. It believes we will get better educational outcomes for the industry by delivering, Micro-Credentials and short courses in the coming months and then developing a Certificate IV in Artisan Fermented Products (Distilling). We will not develop a Certificate III in Food Processing (Distilling) at the moment, as discussed at the conference.

Certificate IV in Artisan Fermented Products (Distilling) qualification reflects the role of those using artisanal methods to produce fermented food and/or beverage products specialising in distilled spirits.

Individuals with this qualification apply a broad range of specialised skills and knowledge in varied contexts that involve selecting and operating equipment, coordinating resources and finding solutions to routine and non-routine problems as they arise.

As part of the development process, The NDI seeks Australian-qualified Trainers and Assessors who want to work with the National Distilling Institute to teach Certificate IV in Artisan Fermented Products (Distilling).

We are looking for trainers or Subject matter experts with relevant experience in Distilling or a specific area associated with distilling.

We would like to hear if you are ready to help build the industry through structured, accredited education.

CONTACT US HERE

Many members would be aware of the success of many Australian Distillers receiving awards at the recent San Francisco World Spirits Competition. This is the largest and most prestigious spirits competition in the world. It is built on a solid reputation they have developed over 43 years.

The President and the Chief Executive have been in discussions with the organisers of the competition. They have raised concerns that several Australian Distillers have contacted them, in some cases, in threatening terms. We would like to remind all members of the important partnerships that are created by organisations who promote and expand spirit confidence to consumers. We see the SFWSC, along with many other competitions, as allies and supporters of our industry.

This year, the SFWSC created a new category of Australian Single Malt Whisky and many of our distillers received acclaim. Congratulations to those members who received medals.

Members are encouraged to conduct their own due diligence and understanding of rules and categories, prior to entering any competition. Rules of entry are different for each competition. In the case of SFWSC they have assured us that anyone can enter a product in their competition, at any stage of the commercialisation process. This year they received more than 6,000 entrants. Each entry is judged on the information provided and it is a blind testing.

Members are reminded that they should not invoke or suggest any association or claim to speak on behalf of the Australian Distillers Association or body associated with the Association, when making requests or claims to any organisation.

Members will be reminded that the only competition we officially endorse is the Australian Distilled Spirits Awards, that is hosted by Melbourne Royal. In the case of ADSA the following terms must be met:

• Exhibitors must be registered with the Australian Taxation Office (ATO) as a licensed distiller or manufacturer and must provide a copy of their ATO Excise Manufacturer Licence (EML) during the entry process. If the exhibitor is not the manufacturer (distiller) of the product entered, the exhibitor warrants that they have the relevant permits and/or licences to enter the product.
• Entries must be manufactured (distilled) and packaged in Australia.
• Entries must comply with Australia New Zealand Food Standards Code – Standard 2.7.5 – Spirits and must not contain any illegal additives.
• Entries must comply with the Australian regulatory requirements that apply in relation to product, labelling and excise (including the Excise Act 1901).
• Entries must be of sound, marketable quality from a commercial production or batch, finished and sealed in their final container with Batch / Barrel / Cask / Bottle Numbers.
• Entries must be commercially available in the precise composition and in the same packaging, including the labels, in which it is submitted for judging. Tank samples and especially bottled batches will not be accepted as entries into the competition.
• An exhibit can be entered only once into the Australian Distilled Spirits Awards, however an exhibitor can enter multiple exhibits into a class so long as they can demonstrate a technical difference between the exhibits.

Holly Klintworth
President

Cam Syme
Vice President

Some tips and an offer from one of our 2023 Conference sponsors Midland Insurance.

Midland Insurance are pleased to provide this distillery insurance fact sheet to Australian Distillers Members. This fact sheet provides some simple facts about insurance for distilleries, things to think about when starting a new distillery and how they’ll impact your insurance premium.

Insurance Fact Sheet

In addition to this, Midland Insurance will waive their broker fee for Australian Distillers members who take out a new insurance policy with Midland.

To claim, make a note of this offer in the last field of our ‘Get In Touch’ form. Alternatively, give one of our offices a call and just mention the offer.

Value of the broker fee is at least $80 and applies to the first year of cover only. New customers only. Offer valid in Australia only.

Today, Australian Distillers CEO, President, Vice President, and Chair of the Technical Standards Committee, held a meeting with a member who has been using the term “Single Malt” to describe a product.

The member has agreed to stop using the term “Single Malt” to describe the product.

They will use the term “Malt Spirit”, which is a long held industry standard which is appropriate for product less than two years of age that are 100% malted barley.

The member has agreed to change all future labelling and marketing. They have agreed to re-label existing product in accordance with this agreement.

The Australian Distillers Association maintains that all products that are sold or marketed as Whisky, including use of the term “Single Malt”, as well other dark spirits being Rum and Brandy, must comply with the definitions found in the excise Act that can be summarised as the product must be matured in wood for at least two years, and have the flavour, aroma and characteristics of the product it represents.

Australian Distillers Association will continue to maintain the integrity of the industry and will work with members, the industry, retailers, Government and others to ensure legal definitions and requirements, including those referenced in the Australian distillers Association Code of Conduct, are adhered to.

Holly Klintworth
President

Cam Syme
Vice President

A message from one of our 2023 Conference sponsors FIVE x 5 Solutions.

It was such a treat to meet you at the ADA Conference this year! We're already planning our next visit and are so excited for the opportunity to support Australian distilleries during such an electric time in the industry.

One of the things we hear most often from distillery owners across Australia is the need for a software solution built specifically for distilleries to do more than just track bottled spirit stock. That’s exactly what we do. Our comprehensive distillery management software was built by distillers for distillers – it manages and streamlines your distillery operations, inventory control, and ethanol tracking so you can get out of Excel and back to doing what you love.

Learn more in this video about how Fx5 helps Leigh Attwood over at Backwoods Distilling Co. do just that.

Click the link to schedule your demo with us today!

We also partner with Ian Senior with Refresh Accounting. Thoughtful and solutions-oriented, Ian provides advice as well as accounting services, taking a practical approach that leads to improved financial control and better profits. To learn more about Ian’s services, visit here or to get in touch you can email him here, or call him at 0480 230 534.

Cheers,

FIVE x 5 Solutions

www.fx5.au 

A letter to the Department of Foreign Affairs and Trade...

On behalf of the Members of Spirits and Cocktails Australia and the Australian Distillers Association, we register our appreciation at the ongoing engagement by Departmental officials regarding Australia’s Free Trade agenda. We receive useful and timely advice about the status of negotiations, and a receptive audience to the key priorities for our industry, as Australian-made spirits and pre-mixed spirits beverages look to expand their exports into new and emerging markets.

We are aware that the Government of Ireland has notified the WTO’s Technical Barriers to Trade Committee of its intention to mandate changes to the labelling of alcohol beverages, including distilled spirits and pre-mixed spirits-based beverages (also known as RTDs – “Ready to Drink”). Section 12 of the Public Health (Alcohol) Bill in Ireland contains the obligation to provide health information and health warnings on beverage containers. These include warnings around the link between alcohol and pregnancy, cancers, and other disease, as well as calorie information and the number of grams of alcohol per container.

READ THE FULL LETTER