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2030 Vision for the Alcohol Beverages Industry

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2030 Vision for the Alcohol Beverages Industry for the Alcohol Beverages REALISING POTENTIAL OUR Industry Vision Realising our potential 2030 2030 2 n times of crisis, Australians come together Our viticulture industry has developed into Ias a community. We give each other a world leader as a producer of premium, strength and support to rise to the challenges distinguished wines, coveted around the globe. we face as a nation. Most recently, we have Now the craft taking place in our distilleries been tested by the coronavirus pandemic, and breweries is also attracting the attention which has robbed some of us of loved ones, of global enthusiasts, as they win international placed strain on our physical and mental awards recognising their prestige, distinctive well-being and significantly impacted our Aussie-inspired tastes and the ingenuity of economy. We have been fortunate to avoid their creators. the devastation the virus has had on many countries around the world, and as a nation At the heart of the industry are its people: we are coming back stronger than ever. passionate, creative and entrepreneurial winemakers, distillers and brewers working But we need to pay particular attention to across the country to produce exceptional those industries and individuals who have beverages. The revenue produced by our local been more severely affected. Australians want alcohol beverage industry delivers benefits REALISING OUR POTENTIAL to return to our previous way of life: to spend right along the supply chain, bringing jobs and time with family and friends, to celebrate, money into our communities, including those to collaborate and to connect. For many in rural and regional Australia. Our producers Australians, these experiences are often shared are destinations for domestic and international over a drink. We look forward to having a tourists seeking to visit cellar doors and tasting beer with colleagues after a day’s work; a glass rooms for unique, first-class and authentically of wine at a family dinner; or a cocktail with Australian experiences. friends on a special night out. Social distancing has hampered this, but Aussies are now Through measures such as improving market reconnecting as we emerge from the shadow access for exporters, and reducing red tape of the virus. and unnecessary regulation to enable small producers to reinvest in their operations and 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY The fact that lockdowns did not result increase employment, this statement sets out a in increased alcohol consumption across comprehensive vision which would maximise Australia underscores the more responsible, the opportunity for local businesses to bottle mature relationship our country has the best of Australia and share it with the developed with alcoholic beverages over world. the past 20 years. Harmful drinking and underage drinking rates continue to fall, with Australians choosing to drink lesser quantities, Bryan Fry but higher quality beers, wines, ciders and Chair spirits — often Australian–made. Alcohol Beverages Australia 1 2 There’s more to your favourite drink than you realise Behind the person filling your glass stands a passionate workforce – farmers, orchardists and vignerons; winemakers, brewers and distillers; bottle makers, truck drivers, supply chain managers, sales reps and sommeliers; and countless other roles. aken together, our businesses support industry and government, the alcohol beverage REALISING OUR POTENTIAL T485,000 jobs and contribute $52bn in sector offers enormous potential to contribute total value add. We export $3.6bn of product, to the growth of our economy and job creation underpin many regional communities, and in our communities over the next decade. invest heavily in environmental sustainability, R&D and innovation. For example, we estimate that our growth ambitions as an industry could see us directly Australia's drinking culture has changed to employ an additional 47,700 Australians by 2030. a point where moderation is the new norm, in part because Australians are becoming We are open for business and primed for more aware of the negative impacts of misuse, expansion, with strong policies to drive thanks to the introduction of pioneering public sustainable growth for our industry and the education and self-regulatory systems. broader economy. We stand ready to work 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY with all levels of government to ensure we Our products contribute to sociability and deliver on our potential for the country and wellness, and are at the heart of celebration the communities we live in. and our Australian way of life. It hasn’t been the easiest start to the decade, with shuttered businesses and lost livelihoods the legacy of COVID restrictions, and our industry has suffered more than most. Despite Andrew Wilsmore this, our outlook remains positive, and we Chief Executive Officer believe that with concerted action from Alcohol Beverages Australia Unless otherwise noted, all industry facts, figures and projections are sourced from research conducted by Deloitte Access Economics for Alcohol Beverages Australia: Alcohol Beverages Industry: Economic contribution and future opportunities, Deloitte Access Economics (2021) 3 4 REALISING OUR POTENTIAL Table of contents Our connections 9 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY Current economic contribution 11 Unleashed economic contribution 13 Key drivers to realise our potential 15 Opportunities for growth 18 Building better outcomes 30 Our commitments 39 5 6 Our globally award-winning beer, wine, spirits and REALISING OUR POTENTIAL We take delight in making them cider are a and serving them – both here in Australia and around the world – and in the role they play 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY source of enhancing life’s special moments national pride. and bringing people together. We already achieve more as an industry than many people might expect, and have so much more potential to realise. 7 8 Our connections Enjoyed responsibly, our products help bring people together, facilitating connections and forming part of our national culture and identity. Our industry powers Our products are world- Our industry supports regional tourism, with more class and award-winning. Australian farmers. The than 600,000 tourists visiting Tasmania’s Sullivan’s Cove is strong relationship between wineries in Margaret River in the only distillery to have won alcohol beverage producers 2018-19, as just one example.3 “Best Single Cask Single Malt” and farmers has helped foster Visitors to the region spent twice at the World Whiskies growth and innovation in $3.2bn over the same period. Award - just one example Australian agriculture and take amongst yearly wins in beer, it to the world. Australian malt REALISING OUR POTENTIAL Moderate alcohol consumption In our In Australian culture, drinks wine, spirits and cider. barley has become highly sought regional communities, after world-wide for quality has been associated with a the local pub or club is often bring people together and the hub of the community, used are and purity, and now accounts range of benefits for social often at the heart of for 30-40% of the global export 1 as a place for locals to connect We connect and mental wellbeing, socialisation. 4 as well as lower all-cause and get together. with our friends, families and malt barley trade. mortality,2 when compared colleagues through the ritual to both heavy alcohol of sharing a drink. Our beer, wines, spirits and ciders contribute heavily to the consumption and abstinence. profitability of almost all pubs, bars, restaurants and many sporting clubs throughout all corners of Australia. The vast majority of these businesses are small to medium enterprises driving jobs in urban and regional communities. 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY A ‘true local’ example In 2018, the north-west Victorian community of Nandaly bought its own At celebrations across the Our drinks and hospitality Our products are a country, our products play a venues are a place of source of national pride, pub in an effort to prevent the town from role in life’s key milestones, relaxation, pleasure and internationally recognised losing its only meeting place as a focal such as weddings, birthdays discovery. They help us for their high quality and point of the community. and anniversaries. The people unwind after a long work- often enjoyed with high-end who sell and serve them week, enhance our enjoyment food pairings – contributing are story-tellers at heart, of food and open our minds to to the premium ‘Australia providing education and helping the craft behind the industry. 1 brand’. Peele, S., & Brodsky, A. (2000). Exploring psychological benefits associated with moderate alcohol use: A necessary corrective to match the perfect beverage to assessments of drinking outcomes? Drug and Alcohol Dependence, 60, 221-247. 2 University of Sheffield (2019) Mortality and morbidity risks from alcohol consumption in Australia: Analyses using an Australian that special occasion. adaptation of the Sheffield Alcohol Policy Model (v2.7) to inform the development of new alcohol guidelines. 3 Wine Australia (2020), Wine Tourism Snapshot 2018-19 4 Australian Export Grains Innovation Centre (2018), Barley, Australian Grain Note 9 10 Current economic What we bring $52bn $9.3bn $3.6bn in economic in taxes in exports contribution (incl. excise, WET, and GST) value 2019/20 – Our industry today 16m $465m $29.2bn We are farmers, primary manufacturers, supply chain adult capital tourist
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