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Economic Impact Study of the Spirits Industry in Australia
Work has commenced on an industry-first economic impact study to map the contribution of the Australian spirits industry to the broader economy.
Economic impact studies are used by industry associations around the world to demonstrate the significant upstream and downstream benefits of various sectors, providing a powerful tool for use in government and industry engagement. At such a pivotal time in our industry’s development, it is essential we have such a tool to professionalise our engagement and build our credibility with state and federal governments, media and industry stakeholders.
The study has been commissioned by Spirits & Cocktails Australia, who has engaged Deloitte Access Economics – one of Australia’s most trusted economic and policy advisories. All Members of Spirits & Cocktails, which includes the ADA, will have the opportunity to contribute to this landmark study, and will be provided access to the final report.
How will the study be developed?
The study will capture a holistic view of economic contributions across the entire Australian spirits industry – from large importers such as Diageo, right through to emerging distillers in their first few years of operation.
Deloitte will use a number of existing industry reports to inform their analysis, but will also require Members to participate in a confidential survey to collate more granular information about the industry’s contribution.
The Member survey will be hosted by Deloitte and any raw data collected will not be shared with Spirits & Cocktails Australia or the ADA. The information received will remain confidential and will only be used to aggregate contributions from across the industry.
The survey will encompass areas including:
- Employment (full-time, part-time, casual)
- Financial performance (revenue, EBITA, payments to parent companies, etc)
- Expenditure by category (marketing and advertising, COGS, packaging, distribution, agricultural inputs, etc.) Exports (value and volume of Australian manufactured products exported/ by product type)
- Investment activity (foreign direct investment, capital investment, ownership of distilling equipment, distillery door – revenue and visitor numbers)
- Industry outlook (anticipated growth in revenue, jobs growth, capital investment plans)
How will the study be used?
The study will be used to support advocacy to encourage and promote the growth and development of the Australian spirits industry. This will include in face-to-face meetings with state and federal politicians, in media stories, in industry submissions and grant applications. The level of information provided in this report will be essential to showcasing the potential of the industry, which will help to promote both Government and private investment in the industry.
Importantly, this study will create a baseline from which to measure the continued growth of the industry over time.
What happens next?
Next week, you will receive a link to complete the survey, and you will have until 6 August to submit your responses.
It is extremely important all ADA Members take the time to complete the survey. The survey will require some considerable effort.
You may not have all of the information required at your fingertips. You will need to print the questionnaire out and gather the information before you enter it into the system.
Thank you in advice for taking the time to provide this important information.
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Industry Position On Energy Labelling
Alcohol Beverages Australia, the pan-industry body for policy issues for the whole alcohol sector, has developed a working group on energy labelling. The ADA is represented on this body by President, Stu Gregor, and Paul McLeay provides advice and involvement through its Government & Corporate Affairs Committee.
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In addition to the items referred to in the previous newsletter, there are two remaining issues that require feedback from industry. In particular, the ABA would like our feedback on the options for:
- How to display the energy labels; and
- How to calculate/value the energy labels.
Contact me directly if you have any thoughts or concerns about the impact on your labeling and packaging.
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Australian Distilled Spirits Awards
Established in 2015, the Australian Distilled Spirits Awards (ADSA) is the first and only national awards program recognising excellence in Australian distilled spirits and liqueurs.
There are many reasons to enter your products into the Australian Distilled Spirits Awards (ADSA), including:
- The ADSA is Australia’s leading national spirits awards, offering exhibitors both small and large the opportunity to benchmark their products against industry standards.
- Exhibit scores are represented on distribution graphs, where there is sufficient data to do so, enabling exhibitors to see how their products rank against those of their peers.
- Award-winning distillers will be provided with the ADSA Marketing & PR Kit to assist with promoting their win and marketing their spirits, liqueurs, aromatics and vermouths with a seal of quality.
- Exhibitors can promote and position their products through the RASV associated events.
Entries have now opened, and you have until 13 August to register. Visit the RASV website for more information.
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FSANZ Act Review
A review of Food Standards Australia and New Zealand Act 1991 (FSANZ Act) is currently being undertaken by the Department of Health (“the review”).
The review of the FSANZ Act has been welcomed by industry, and provides an important opportunity to ensure FSANZ’s work can be streamlined to focus on core food safety issues, while being agile enough to respond to innovation.
The industry’s engagement in the review is being led by the ABA, and through their analysis, it has become clear the review has strayed from its original intent. Rather than simply focusing on opportunities for streamlining existing processes and improving the food safety framework, the Department had proposed that FSANZ’s remit be expanded. The proposed expanded remit would include issues like public health, including the impact of food and beverages in contributing to chronic disease and obesity, and food and farm sustainability. Additionally, the Department is seeking to change approval processes to reduce Ministerial oversight and input by delegating decision-making to Department officials.
There is a risk that these changes could have detrimental flow-on effects for consumers and the food and beverage industry. This could be through bans or restrictions on certain food types, packaging and retail displays, or through sugar/ fast food taxes or other levies.
The ADA has joined the ABA’s campaign and engagement on this important issue. Please contact me if you would like more information, a summary of the key issues, or a copy of the review’s draft Regulatory Impact Statement.
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ADA 2021 Annual Conference and AGM
Later this week we will be sending a prospectus to potential sponsors for the ADA Annual Conference. The Conference will be held in Melbourne on 14–16 November 2021.
We encourage Members who are thinking of supporting the ADA through sponsorship of this event to contact me to discuss opportunities for your involvement.
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