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REALISING OUR POTENTIAL 2 potential for the Realising our Realising Alcohol

Industry

Beverages 2030 2030 Vision REALISING OUR POTENTIAL 2 Chair Bryan Fry Bryan Alcohol Beverages Australia Beverages Alcohol Our has developed into premium, of as leader a producer a world distinguished , around coveted the globe. the craftNow taking placein our distilleries and is breweries also attracting the attention globalof enthusiasts, as they wininternational awards recognising their distinctive prestige, Aussie-inspired tastes and the ingenuity of creators. their theAt heart the of industry are its people: creativepassionate, and entrepreneurial winemakers, distillers working and brewers across the country exceptional produce to our local by beverages. produced The revenue beveragealcohol industry delivers benefits right along chain, the supply bringing and jobs our communities, into includingmoney those in rural and regional Australia. Our producers international and domestic are for destinations touristsseeking visit to cellar doorsand tasting unique, first-class for rooms and authentically Australian experiences. Through measures such as improving market access exporters, for and reducing red tape and unnecessary regulation small enable to reinvest in to producers their operations and increase this sets a employment, statement out vision which maximise would comprehensive the opportunity local for businesses bottle to the best Australia of and share with it the world. n times crisis, of Australians together come give each other as We a community. strength and rise supportto the to challenges have we face aswe a nation. recently, Most been the tested by coronavirus pandemic, ones, which us loved of of has some robbed placed strain our physical on and mental well-being and significantly impacted our been have fortunate avoid to We economy. the devastation thevirus has many had on countries and as around the a nation world, arewe coming back than stronger ever. particular pay need we to But attention to those industries and individuals have who severely affected.been more Australians want returnto life: our previous of to way spend to time with family and friends, celebrate, to collaborateto and connect. many to For Australians, these experiences are often shared a drink. forward look havingover to a We with colleagues after a glass ; a day’s wineof a family at dinner; a or with friends a special on night Social out. distancing has hampered this, are Aussies now but reconnecting from as the emerge shadow we of the virus. The fact that lockdowns result did not in increased across consumption alcohol Australia underscores the more responsible, mature relationship our country has withdeveloped alcoholic beverages over the past 20 years. Harmful drinking and underage drinking fall, to rates continue with Australians choosing drink to lesser quantities, higher qualitybut , wines, and spirits — often Australian–made. I

1 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BEVERAGES ALCOHOL THE FOR VISION 2030 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY 3 T believe that with concerted action from action concerted with that believe we positive, and outlook our remains this, Despite most. more than suffered has industry our and of COVID restrictions, legacy the lost livelihoods and shuttered businesses with decade, to the start easiest It hasn’t the been way of life. Australian our and of celebration heart at the are and wellness, and contribute to products sociability Our systems. self-regulatory and education of public pioneering introduction to the thanks of misuse, more impacts negative of aware the becoming are Australians because part in a point new where norm, the moderation is to changed has culture drinking Australia's . and R&D sustainability, environmental in heavily invest and communities, regional many underpin We add. value $3.6bn of product, total export and future opportunities, Deloitte Access Economics (2021) Economics Access Deloitte contribution opportunities, future and Economic Industry: Beverages Alcohol Australia: Beverages Alcohol for by Economics conducted Access research Deloitte from sourced are projections and figures facts, industry all noted, otherwise Unless sommeliers; and reps countless and other roles. managers, brewers distillers; and bottle makers, drivers, truck chain supply workforce –farmers, orchardists vignerons; and winemakers, your the stands person glass a passionate filling Behind than you realise your favourite drink There’s more to 485,000 jobs contribute $52bn and 485,000 in together,aken support businesses our deliver on our potential for the country and and for country the on potential our deliver of levels government we to ensure all with broader economy. We to ready work stand the and for industry our growth sustainable to drive policies strong with expansion, We for primed open for and are business 47,700 by 2030. employ additional an Australians directly us see could industry an as ambitions growth our that For we example, estimate decade. over next the communities our in of economy our job and creation growth to the to contribute enormous offers potential sector government, and alcohol beverage the industry the communities we live in. in. we live communities the Alcohol Beverages Australia Chief Executive OfficerChief Executive Andrew Wilsmore Andrew

4 REALISING OUR POTENTIAL OUR REALISING 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY 5 Table of contents Our commitments Our better outcomes Opportunities for growth Key drivers to realise our potential Unleashedeconomiccontribution Currenteconomic contribution connections Our 30 39 13 15 18 11 9

6 REALISING OUR POTENTIAL OUR REALISING 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY 7 national pride. national source of arecider a and spirits beer, , award-winning globally Our

potential to realise. expect, and have so much more thanindustry many people might We already achieve more as an and bringing people together. enhancing life’s special moments world –and the in role they play Australiain and around the themand serving –both here We take delight making in them

8 REALISING OUR POTENTIAL OUR REALISING 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY 9 and mentaland wellbeing, range of benefits for social with associated been has consumption alcohol Moderate mortality, lower as well all-cause as that special occasion. special that to beverage perfect the match helping and education providing are story-tellers at heart, who sell and serve them The people anniversaries. and birthdays weddings, as such key life’s milestones, role in playcountry, a products our At abstinence. and consumption alcohol heavy to both celebrations 2 when compared when compared Enjoyed responsibly, people products our bring help Our connections Our together, facilitating connections part and across the the across 1

a of national our culture identity. and

the craft behind the industry. industry. the behind craft the to of open minds our food and enjoyment our enhance week, along work- after unwind discovery. and pleasure relaxation, venues of aplace are hospitality and drinks Our and get together. get and to connect for aplace as locals hub the community, of the used or often club is local the communities, regional our In

They help us us help They

brand’. brand’. to the premium ‘Australia –contributingfood pairings often enjoyed with high-end for their quality high and internationally recognised source of national pride, a are products Our of sharing a drink. adrink. of sharing ritual the through colleagues and families friends, our with socialisation. are are people together and bring drinks culture, Australian In often at the heart of

We connect 4 3 2 1 point of the community. itslosing meeting only as place afocal to prevent effort an pub in the town from bought of its Nandaly community own 2018,In the north-west Victorian driving jobs in urban and regional communities. regional and urban jobs in driving to enterprises are small medium of businesses these majority vast The of Australia. corners all throughout clubs sporting , bars, many all and of almost profitability heavily contribute to beer, ciders Our and the spirits wines, A ‘true local’ example of Sheffield (2019) Mortality and morbidity risks from alcohol consumption in Australia: Analyses using an Australian an using Analyses Australia: in consumption alcohol from risks morbidity and Mortality (2019) Sheffield of University Wine Australia (2020), Wine Snapshot 2018-19 Snapshot Tourism Wine (2020), Australia Wine Australian Export Grains Innovation Centre (2018), Barley, Australian Grain Note Grain Australian Barley, (2018), Centre Innovation Grains Export Australian adaptation of the Sheffield Alcohol Policy Model (v2.7) to inform the development of new alcohol guidelines. alcohol new of development the inform to (v2.7) Model Policy Alcohol Sheffield the of adaptation $3.2bn over the period. same region the to Visitors 2018-19, one just example. as in River Margaret in wineries than 600,000 regional tourism, with more Our industry powers Peele, S., & Brodsky, A. (2000). Exploring psychological benefits associated with moderate alcohol use: A necessary corrective to to corrective Anecessary use: alcohol moderate with associated benefits psychological Exploring (2000). A. &Brodsky, S., Peele, assessments of drinking outcomes? Drug and Alcohol Dependence, 60, 221-247. 60, Dependence, Alcohol and Drug outcomes? drinking of assessments

tourists visiting visiting tourists

spent 3

wine, spirits and . and spirits wine, beer, in wins yearly amongst Award one -just example World at the twice Malt” Single Cask Single “Best to have won distillery only the Tasmania’s Cove is Sullivan’s class and award-winning. world- are products Our malt barley trade. barley malt export global of the for 30-40% now purity, and and accounts world-wideafter for quality sought become highly has barley malt it world. to the Australian take and Australian in innovation and growth helped foster has farmers and producers beverage alcohol between relationship strong Australian farmers. Our industry supports 4

The The

10 REALISING OUR POTENTIAL OUR REALISING 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY 11 contribution Current economic of 2.5% per year over the same period. period. over same of the year per 2.5% growth expenditure capital non- total Australia’s to compared years, five by over last 6.7% the year per grown has investment This expenditure. capital in $465m invested industry 2019-2020,In our &$2.4bn +WET GST).Excise ($6.9bnrevenue, for $9.3bn accounting taxation total in contributor to government asignificant is industry Our experiences. drink food and with travel their associating Australia to of 50% visitors with international, and domestic both tourism, We Australian role in integral play an economic development regional in Australia: We actively contribute to job creation and world. the around and Australia in consumers We businesses. beverage food and and proudly serve retailers operators, tourism wholesalers, operators, supply chain manufacturers, We primary farmers, are today industry 2019/20 –Our with broader economic benefits. broader economic benefits. with communities local regions, supplying to the tourists breweries attract and distilleries wineries, Our community. the jobs high-value to providing Australia, regional operate outSome of of organisations biggest our 35% regions. the of in workforce our located is 6 5 direct and indirect jobs indirect and direct Australian Institute of Health and Welfare, ‘Alcohol, tobacco & other drugs in Australia’, Australia’, in drugs &other tobacco ‘Alcohol, Welfare, and Health of Institute Australian 4307.0.55.001 - Apparent Consumption of Alcohol, Australia 2017-18, Australian Bureau of Statistics of Bureau 2017-18, Australian Australia Alcohol, of Consumption -Apparent 4307.0.55.001 Social responsibilitySocial Workplace What we bring https://www.aihw.gov.au/reports/alcohol/alcohol-tobacco-other-drugs-australia/contents/introduction, December 2020 (Full-time, part-time and casual) and part-time (Full-time, (18+ drinkers, 2013 -2019) 2013 (18+ drinkers, 12.98L risky drinking risky $52bn in economic in consumers 485k 9.7% workforce 48% in lifetime is female is 16m value adult 5 capita consumption per Average alcohol 6 (1977 -1978) (1977 (incl. excise, WET, and GST) WET, and excise, (incl. regional Australia regional $465m $9.3bn 29.8% workforce in workforce expenditure in underage in workforce 55% 35% drinking under 35 under (2013 -2019) (2013 in taxesin capital (2020) 5 9.51L in alcohol-related alcohol beverage capita consumption per Average alcohol $29.2bn tourist spend on spend tourist physical abuse $3.6bn food &drinks 18.6% 68.6k businesses in exports in licences 76k 6 (2018) (2017 -2018) (2017 5

12 REALISING OUR POTENTIAL OUR REALISING REALISING OUR POTENTIAL 14 (Based on 2020 modelling) More than than More doubling An additional $35minvestment skills in An additional An additional direct$3.7bn indirect $8.3bn 4.7k Anadditional directly employed the for year each tennext years directly economy employed in exports 286k Australians in technical, in the Australian $64bn vocational and vocational $100m contributionto $8.6bn By 2030 Skills Total value add value Total Jobs Exports

2030 – Our potential With optimal policy settings and the investment, alcohol beverage sector can realise substantial opportunities for growth the next over decade,increasing our contribution whilst theto economy providing our for better outcomes environment and our communities. identified have we publication, Throughout our Vision significant impediments our future to growth scenario, with Australia's internationally comparative high taxes significant a source alcohol of on frustration. A reduction in tax and other costs doing business to will make our industry attractive more and investors to capitalimprove flows the to sector support a thriving to industry moving forward.

contribution economic Unleashed

2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BEVERAGES ALCOHOL THE FOR VISION 2030 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BEVERAGES ALCOHOL THE FOR VISION 2030 1313 Key drivers to realise our potential

Opportunities for growth

1 POTENTIAL OUR REALISING Future job creation

2 New markets for Building better outcomes Australian products

3 6 Enriching the Safe and sociable 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY tourism experience communities

4 7 Making it easier Stronger to do business regions

5 8 Driving Positive impact on and innovation the environment

15 16 REALISING OUR POTENTIAL 18 jobs for for jobs creating Australians income and and income for growth Opportunities

17 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BEVERAGES ALCOHOL THE FOR VISION 2030 19 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY employed person. another supports industry beverages alcohol Australian employed person Every the in multiplier job Positive regions with levels higher of under- unemployment. or young adults, workers semi-skilled and as well as unskilled in professional employer roles, a significant is also the of industry Australian workers. many Whilst of these are skilled highly amillion almost half beverageThe alcohol supports industry job creation Future OPPORTUNITIES FOR GROWTH OPPORTUNITIES 1 creating new own. jobs of their creating start and businesses small options to establish including paths, career of fulfilling wealth a are there industry the with For who to stay choose those careers. for other attribute abeneficial culture, haveroles astrong often hospitality in who have served For staff example, industries. or ours other in continued career a for opportunities development and roles provide training These vines. or pruning even abar,job behind arestaurant in first their find Australians Many careers adult young Building hospitality and tourism. and hospitality to through supplyand chain agriculture, manufacturing widely, from roles vary These regions. the in young adults jobs to providing in part vital we play a means which cities, outside major the based is 35% as well of workforce, our as of industry, our heart The the regions Protecting “Since the first program first the “Since on the Future Leaders Program Leaders Future on the Chair, Australia Wine Former WALSHBRIAN boards and in research.” in and boards committees, company own companies, sector sector, their through to the contributions making significant many already alumni, 100 are there over 2006, in INDUSTRY DYNAMIC INDUSTRY Policy priorities Our goals Our in thein regions for Australians: opportunities within the industry and Provide quality and clear career roles in the alcoholic beverages beverages alcoholic the rolesmanagement in We number of the women in to need increase Greater management diversity roles: in new adoption . and of these growth to the support required skills the in specialised become more highly will industry our chain, supply the throughout and manufacturing in robotics and services, and agriculture in view: Invest development skills in with afuture supply entire chain. the across professional careers to $100m for by to promote 2030 opportunities education tertiary and vocational technical, in present $65m investment grow industry’s our investment and job creation. creation. job and investment reduced of terms in price the pay employees and suppliers our but taxed, highly is industry Our businesses. regional in SMEs in workers on relies industry our of success The ideas. of exchange and expertise international on value significant place we and seasonal, highly are industry our of Parts staff. on to take employers for easier it to make seek should laws labour Australia’s workers, of rights the respecting Whilst crisis. COVID-19 by the impacted especially been have tourism and hospitality in Workers With investment in data scientists, AI AI scientists, data in investment With We to aim

people to help grow the economy. the grow help to people our and capital in invest can we that so nations, OECD other with competitive be to taxes company and payroll, alcohol, reducing We support Australia. regional in work to Australians underrepresented and unemployed young, for pathways and visas work regional including initiatives, employment regional We support countries. between technologies new of adoption and innovation drive and shortages, labour meet to talent of movement freer the for allow to visas working to reforms We support customers. our of expectations service and growers our of needs the meet to staff on take to employers for easier it make to need the account into take should laws labour Australia’s workers, of rights the respecting Whilst retention. with aid and hirings new incentivise to system the of simplification and harmonisation further We support again. feet own their on stand can they until industries these in staff retain employers help to assistance government continued We support REALISING OUR POTENTIAL OUR REALISING meet the needs of high innovation industries. innovation of high needs the meet to designed are that qualifications and courses of demands make we will future, the In at 60%. share highest the having sector manufacturing the with holds apost-school qualification, 45% sciences. and of industry our hospitality management, and business general including of careers range awide supports already employment: of Diversity awhole as (48%). industry employees the in of proportion female the with equivalence to positions management in rate of females to improve workforce. the We aim will the within experience and of talent range full on the capitalise and to reflect industry The industry industry The

20 REALISING OUR POTENTIAL OUR REALISING 21 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY distilleries 300 nearly had Australia 2020 in Given that exported. are 1% of we produce beer than less and 7%only of spirits Meanwhile, United Kingdom. the United and States the exported is Australia produced in wine around 5% in 2009 to 14% 5%around 2009 2019. in in from surged has exports total of share 1970s. the from Spirits’ growth its in experienced wine Australian that growth successful of hallmarks the shows all sector spirits burgeoning The growth. forbasis export 2010)in arich provides this More than half (62%) half More than 1% and cider. and beer spirits 85% is contribution 14% wine, the category, product by Broken down exports. account forand 1% of total $3.6bn, worth are beverages alcohol of Australian Exports contributor astrong Already for provenance, quality, innovation natural bold and beauty. aspirations of Australia overseas, reflecting today reputation our For decades they have represented face the and changing Australian beer, are renowned. spirits and wine globally Australian products New markets for and 700 breweries 700 and OPPORTUNITIES FOR GROWTH OPPORTUNITIES 2 7 , primarily to China, to China, , primarily 8 (versus 30 in 2010), (versus in 30 9 (versus 70 70 (versus

of all all of reputation overseas. reputation helps products our grow our of awareness and quality the people. our Investment in and land our of climate, our story a on show tells drop -each is character of national our on holiday,Australia alittle homeland or here their in in one of either products, our of someone enjoys aglass time Every consumers. of international millions for of life part becoming are beverages Australian character Australian the Bottling market by 2025. by market US$1.1bn estimated an global into industry domestic largely a from transformed decades, two over past market the Japanese of the growth of consider rapid example, the By way categories. other with into new markets this replicate we should look and to extend for country,story our and success astounding an is century half over last the exports wine of Australian prestige volume in and growth The potential our Discovering 10 10 9 8 7 https://www.wineaustralia.com/news/media-releases/australian-wine-exports-slow-due-to-china-tariffs, February 2021 February https://www.wineaustralia.com/news/media-releases/australian-wine-exports-slow-due-to-china-tariffs, Australian wine exports slow down due to China tariffs, tariffs, China to due down slow exports wine Australian The Whisky List, https://thewhiskylist.com.au/distilleries/australia https://thewhiskylist.com.au/distilleries/australia List, Whisky The Independent Brewers Association Brewers Independent Policy priorities Our goals Our international markets. markets. international to access gain barriers’, and ‘non-tariff navigate agreements, trade free leverage how to understand capability, export their producers grow help smaller will categories for other similar) something (or establishing bodies: Establish export capability building for sector. the provide opportunities broader trade also offerings packaging product and markets, or zero low alcohol, diversifying including and new products 1970s. , in the in started that growth export to wine trajectory asimilar to create potential the has particular, in market, distillery the growing on focus continue to lead, but aspecific will additionalan $5bn to $8.6bn. More double than our export portfolio by Grand View Research (2020), Market Worth $1.1 Billion By 2025, CAGR 9.4% CAGR 2025, By Billion $1.1 Worth Market Whisky Japanese (2020), Research View Grand strongest intangible assets. intangible strongest our of one is drink and food our of quality The markets. world in strongly compete will and community our benefits quantity over consumption of quality on focuses which industry An sector. wine Australia’s of success export the on building spirits, and beers wines, Australia’s of exports build to further together to work government and industry the for opportunity a significant is There INDUSTRY DYNAMIC INDUSTRY Expanding the Rural RDC model model RDC Rural the Expanding Wine exports exports Wine lot codes or other traceability measures. traceability other or codes lot including information, trace and track of removal illegal for penalties implement and strengthen to and counterfeiting target enforcement, improve to governments with work We will brewers. and distilleries craft including awhole, as industry alcohol the of capability export of development the in investment private and public both for need the We support negotiations. trade in wine, just not sector, beverage alcohol total the of prioritisation and inclusion the We support REALISING OUR POTENTIAL OUR REALISING connections for the smaller players. for smaller the connections shows facilitate at and trade collectively to represent should created categories be all across for exporters Opportunities Work together industry: an as “There’s no doubt the free trade free the “There’s trade doubt no agreements trade free Japan and China on the , at Hellyers Distiller Master and Manager General MARK LITTLER enquiries from Asia”.enquiries of number increased the have agreements facilitated

22 REALISING OUR POTENTIAL OUR REALISING 23 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY welcome to country. our visitors we which way in to the central are products our , aseaside in white or acrisp fireplace, alpine beside an outback pub, an in awhisky beer it’s acold Whether country. great of this diversity regional of the example agreat as serve also products Our tourists. international and domestic for experience apositive driving in critical venues are nationwide and hospitality Our hospitality for A reputation breweries doors are cellar and set to of offering. form our acore part international tourism, the experiences provided at bars, our restaurants, beforelong visitors shores. our on arrive As Australia to re-opens advertisementan for country, our secure helping the tourist dollar travellers around the world, with every overseas bottle sold as serving largest is the driver fourth of destination industry Our choice for OPPORTUNITIES FOR GROWTH OPPORTUNITIES tourism experience Enriching the 3 income and build their brands. their build and income to supplementon tourism their rely which enterprises small of astate’s heritage, to part aparochial are breweries that large from range destinations These to awinery. a visit 5.4m and involved a distillery, to avisit included trips 480,000 to abrewery,involved avisit Australia in trips overnight 2019, In increasing. is 1.5m of and themselves, in to visit, places as distilleries and wineries of breweries, profile The aday trip just Not right own their icons in or cultural Royal (e.g.for beverage food and become famous destinations pubsour and have also anumber regions, of and the to portals stores are retail Our regional. and urban both Australia, around settings and of locations range to awider tourism additional brought breweries has and emergence of micro-distilleries The country. the across right experiences drink and increasingly finding food world, the in but are visitors mostthe desirable destinations some of are regions iconic wine Today,tourism. Australia’s wine by linked commonly were most alcohol beverages and travel past, the In community of every heart the at is drink and Food

(e.g. the (e.g. Silverton Hotel Silverton in Dunkeld), Dunkeld), in The The ). 11 Policy priorities Our goals Our ‘5 ways to be like these wine businesses crushing social media ’, Moritz, D, Socially Sorted, April 2018 April Sorted, D, Socially Moritz, marketing’, media social crushing businesses wine these like be to ways ‘5 to emerging trends and demand. and trends to emerging quickly adapt and tourists international and by urban expected of sophistication levels the match that services to deliver Wecountry. on experience our build can the across efforts our region should inform regional tourism bodies: Collaborate more closely with state and 2019in by 2030. to $40bn $29.2bn from drinks on food and tourists by spending international and domestic Increase foot traffic: Business events and corporate travel can be fickle. be can travel corporate and events Business economies. local into money inject to interstate, from particularly tourism, domestic to prioritise we need that us taught has COVID share on their social media pages. media social their on share to or self-satisfying immediately is that experience an wanting consumers of trend growing is There wine. for accounts only or beverages, alcohol for account always not –does Australia Research by Tourism conducted Survey Visitor National the example – for research and policy Tourism experience. visitor the in role integral an play wineries and distilleries breweries, and venues hospitality our Australia, of parts many In INDUSTRY DYNAMIC INDUSTRY We to boost aim Success in one one in Success destination for domestic and inbound events. inbound and domestic for destination acompelling remains Australia ensure to events class improved conference facilities and facilitate world- or new in invest continually must Governments Australia. within travel to Australians for importance of sense the grow help to governments We need from and scale up for the industry. the for up scale and from inspiration take to example excellent an is Sorted’ ‘Socially alone. product than area an visiting of out more gets customer the where approach experiential amore adopt to essential are regions within collaboration drive to programs Specific work. such in wine’ and ‘food to opposed as drink’, and ‘food terminology the of use the and research, and policy tourism in industry our to relating issues of consideration consistent more and broader We support campaigns. tourism funded government- in beverages alcohol and hospitality for profile prominent amore from benefit would communities driver, akey tourism As REALISING OUR POTENTIAL OUR REALISING of Australia as a destination. adestination. as of Australia profile the tocontribution enhancing astrong make we can we believe domestically, and internationally of tourism akey driver As Partner with Tourism Australia: “The great Aussie pub is an an is pub great Aussie “The them as well as in them”. in as well as them songs composed about –we’ve icon famous had Australian GeographicAustralian pubs, Aussie Great HALABI, KAREN 11

24 REALISING OUR POTENTIAL OUR REALISING 25 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY to do business Making iteasier solutions. effective and most targeted implement and the to identify to work together willing are government and producers if industry the growing and communities our protecting between have to atrade-off be world.the But doesn’t there in markets taxed highly one most in ofcontext the by its more the significant all economy made is Australian $52bn to contribution the industry’s beverage alcohol The adversity amongst Growing environment create and positive conditions for investment. value, more work needs to to done be streamline the regulatory order for these businesses to continue creating jobs economic and which are disproportionately affected by burdensome regulation. In of are enterprises, medium or operations small the in industry overseastheir peers. it’s But easy to forget that the vast majority beverage Australia'salcohol amongst biggest tall stand companies OPPORTUNITIES FOR GROWTH OPPORTUNITIES 4 contributor to overall CPIcontributor growth. to overall aleading being perversely and virtuous compounding effect anon- year, per creating twice by CPI increases automatically spirits and on beer levied Excise country. the across Schemes Deposit Container different including packaging, around requirements of additional anumber hoursand operating licensing, on restrictions liquor taxes, alcohol-specific including sectors, other in businesses by borne not costs many face Producers Key costs “One of the major keys to supporting the Australian Australian the keys of major the “One to supporting CEO, APRA AMCOS CEO, APRA ORMSTON DEAN unnecessary and complex regulations on live music.” on regulations complex and unnecessary removal for is the of success global industry’s music years-long process. process. years-long simple into application a licence a turn can applications licence of Appellations categories. licensing different between them move that changes structural undergoing businesses for especially uncertainty, and costs compliance substantial creates complexity This government level. local the at requirements additional as well as liquor licences, for system classification own its has Australia in territory and state Each complexity Licensing February 2020. (AUD, beer assumed to be typical 4.4% ABV for comparison purposes) comparison for ABV 4.4% typical be to assumed beer (AUD, 2020. February 14 13 12 Trends and Policy Issues’, OECD , Paris, p. 141 p. Paris, Publishing, OECD Issues’, Policy and Trends Policy priorities Our goals Our Ibis World, Online Beer, Wine and Liquor Sales in Australia industry trends (2015-2020) (2015-2020) trends industry Australia in Sales Liquor and Wine Beer, Online World, Ibis supply and responsibly. to sell freedom the with expectations and needs community align that measures regulatory and policies targeted including and evidence; of the appraisal government revenue; on balanced a based to provide substantial continuing regulation: model and for liquor licensing a ‘best-in-class’ is that liquor regulation and foradvocate policy and outline we will communities, local and consumers retailers, with consultation In Best-in-class liquor licensing: Prof Kym Anderson, Excise Duties on Beer: Australia in International Perspective, School of Economics, University of Adelaide, of University Economics, of School Perspective, International in Australia Beer: on Duties Excise Kym Anderson, Prof OECD 2019, ‘Selected Excise Duties in OECD Countries, in Consumption Tax Trends 2018: VAT/GST and Excise Rates, VAT/GST Tax Excise 2018: Trends and Consumption in Countries, OECD in Duties Excise ‘Selected 2019, OECD moderation in alcohol consumption. and to quality example for trends, societal and change technological with pace keep also must Regulation to investment. adisincentive as act and industry the on costs additional impose councils) local between even and states, between (especially country the across approaches regulatory Inconsistent capital. working valuable up seize taxation alcohol for periods remittance around conditions Onerous alcohol-specific taxes every year. every taxes alcohol-specific from raised $6.9bn of –atotal world developed spirits tax, spirits We pay the 4th highest beer tax, beer highest 4th the We pay enterprises. medium and small in so especially and businesses, our in creation job and innovation stifles tape Red INDUSTRY DYNAMIC INDUSTRY 14 and 7th highest wine tax in the the in tax wine highest 7th and 13 3rd highest evidence around consumption impacts. consumption around evidence the and industry the of nature changing the with pace keep to Reviews Act Liquor of part as models best-practice of adoption the We support Service of Alcohol certification. Responsible national asingle with beginning regulation, industry to approach government awhole-of- support we appropriate, Where producers. for cashflow improve and terms supplier standard with align better to timeframes ATO of remittance review the We support businesses. our for compliance of burden the reduce and industry the in investment foreign and national for certainty provide and competitive internationally are they so alcohol on taxes onerous Australia's reducing We support existing businesses and new entrants. new and businesses existing both for friction and costs lower and distortions market reduce to reform regulatory We support REALISING OUR POTENTIAL OUR REALISING jurisdictions in promoting self regulation. regulation. promoting self in jurisdictions all presents aconsistent across and framework ofupholds responsible principles retailing, the of Conduct Code The government regulation. over the past five years five over past the rate of 16.7% annual by an have increased Australia in alcohol sales Online alcohol. of delivery and sale responsible online the in compliance improve to governments for of apathway provides Conduct Code Delivery & Alcohol Sale Online Drinks Retail The Online Alcohol Sale and Delivery: 12 – arguably outpacing outpacing –arguably

26 REALISING OUR POTENTIAL OUR REALISING 27 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY innovation. helps foster agricultural RDCs modelThe by provided Rural sites. distilling and brewing winery, of our number agrowing in place in already experience. solutions AI are customer the enhance and strategies marketing their to personalise data using also venues are hospitality and Retailers fertiliser. and water as of such inputs use our optimise and efficient more vineyards and orchards farms, our puthave to been make to use analytics Data expenditure. capital $465m in invested manufacturing industry alcohol the 2019–2020, In development and Research advanced (AI) Intelligence and blockchain applications. Artificial reshape sector, our from automation of manufacturing through to We have arange of innovation at fingertips our with the potential to overand the next ten years the rate accelerate. only of will change 2010,Since technology has shifted data seismically, and accessibility and innovation Driving technology OPPORTUNITIES FOR GROWTH OPPORTUNITIES 5 in Australia being 3.5% ABV. being Australia in beers selling highest two the with changes, lifestyle and demand to consumer response innovative an been no has alcohol beer of mid, low and growth The behaviour. consumer in trends emerging as well as technologies, to and new products exposed sector, are businesses as alcohol beverage Australian the within growth productivity and innovation driven has world on the stage Competing innovation of benefits The retailing and delivery. and retailing online as such services in and orzero low alcohol, seltzers; wines, natural as such products new with place to take starting already is Innovation retailers. for producers our change and about profound lasting and to bring expected are particular in sustainability and wellbeing to megatrends The needs. on customer focussed keenly is which industry, the in changes significant generating are trends consumer A number of these Customer-led focus Policy priorities Our goals Our and metrics. metrics. and standards and frameworks, reporting terms, providecommunity, common, which defined investment global to the aligned metrics, sustainability options for establishing existing pre- would include investigating This industry. the across data environmental monitoring and collecting way in to the lead aim producers Our reporting: and Monitoring by 2030. move technology to adopt blockchain we will provide justification case business should the and world chain, value to map the the in alcohol industry We first to the be aim chain. value the through right transparency and provide accountability to used be can blockchain point of transaction, at the Once provenance verified is ingredients. and aproduct’s origin to establish critical technology: Map the value chain and adopt blockchain expected over the coming two decades. two coming the over expected chains supply automated to completely autonomous from technologies awave new of with industry, our transform will & robotics AI Automation, DNA fingerprinting. verification technologies such as blockchain and industry-led emerging in interest avested has Australia products, our of sustainability and quality the on reputation its stakes which acountry For export opportunities. providing also while quality, and cost on world the in best the with competing industry, our of forefront global to the rise producers beverage alcohol Australian helped has R&D Government-supported INDUSTRY DYNAMIC INDUSTRY In few other industries is it so it so is industries few other In Australia’s competitive advantage. competitive Australia’s improve and developments these of forefront the at be businesses local help to assistance appropriate provide must Governments accountability. and verification for standards own their establish to wishing industries to assistance and programs pilot through area, vital this in lead the taking government We support beer. and spirits including sectors, value-added other to broaden to options exploring justifies innovation agricultural fostering in model RDCs Rural bythe provided benefits The research. collaborative and grants incentives, tax including broadly, more economy the across and sector our in innovation genuine stimulate to bygovernment efforts continued We support REALISING OUR POTENTIAL OUR REALISING and (R&D)research needs. future of to its meet avehicle establishment the investigate will industry the objectives of these of pursuit our part As demand. consumer changing with line in products evolve one and our from another to learn collaboration industry for channels establish Industry collaboration: “It’s a pretty huge pilot pilot huge apretty “It’s is tois distillers”. as us innovation of how important reflective it’s but program, R&D for an distillery Archie Rose Distilling Co. Rose Distilling Archie Founder, WILL EDWARDS We continue to will

28 REALISING OUR POTENTIAL OUR REALISING REALISING OUR POTENTIAL 30 we touch we and places and for the people the for better Building

outcomes 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BEVERAGES ALCOHOL THE FOR VISION 2030 29 31 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY campaigns, behaviour-changing its of for success the globally DrinkWise. Recognised organisation, change social not-for-profit and independent provide to contributions the retailers and producers industry market-leading Fifteen change social led industry- DrinkWise: drinking culture in Australia. healthier and asafer to create communities Safe and sociable BUILDING BETTER OUTCOMES BETTER BUILDING majority of Australians moderation. in majority who drink respectful and need of the choices made by the overwhelming which are proven to effective, be targeted to the areas of greatest responsibly moderation. in and government We support interventions tocampaigns encourage those who choose to to alcohol do so drink educationhas information and taken role aleadership supporting in the potential for if they harm are misused, which is why the industry lives of customers our communities. their and We’re acutely aware of the way we them. We serve want them to positive be features of the As industry, an we take great craft, our in products our pride and 6 15 DrinkWise aims aims DrinkWise sale to help deter alcohol misuse. to help deter alcoholsale misuse. point of at the campaigns of visual on anumber venues retailers and worked has with DrinkWise of Conduct’. Code ‘Online an through services delivery and for Them’, improve and online 18s ‘ID25’ ‘Don’t and including Buy to under to deter sales initiatives developed anumber of world first have retailers our years, the Over of sale point Targeting atthe misuse has therapeutic benefits. therapeutic has alcohol suggest or consumption, excessive encourage minors, to to appeal have strong at or likely is targeted is which alcoholany advertising to prohibit serves objectives, other amongst which, Government Federal and industry of the a joint initiative (ABAC), Code Advertising Alcohol Beverages the through administered advertising alcohol for standards high recognised globally We the support strongly ABAC code Policy priorities Our goals Our while also partnering with DrinkWise in in DrinkWise with partnering also while ‘ID25’ ‘Don’t and including Buy It For Them', initiatives implemented of retail-led arange have and of products, alcohol beverage responsible promotion,the supply and sale We to commitment have ademonstrated Promotion, sale and supply initiatives: alcohol-related reduce harm. actively come together to can community and industry to provide of aworld-leading how example organisations not-for-profit and government with continueWe’ll to work constructively initiatives to drive harm minimisation: world-leading support to Continue by the World Health . Health World by the including recognised, widely are formulation policy health in consultation private-sector of benefits the and harm, of risk the to mitigate approach acombined of potential the demonstrates ABAC or underage drinking. over-consumption of form the in whether drinking, harmful promote not does marketing that ensuring in effective to be proven has industry and government from advertising to alcohol approach joint The social changes, rather than just raising awareness. raising just than rather changes, social and cultural lasting and real on focus campaigns evidence-based Their governments. and industry to partner effective an proven has DrinkWise temperance groups. to links and campaigning anti-alcohol of history apublic with members included which committees by formulated been have Guidelines, Alcohol Australian the including initiatives, policy Recent risk. see Australians which way in nuanced the recognised have misuse around attitudes changing in successful been have which campaigns Government INDUSTRY DYNAMIC INDUSTRY 17,18

16

regulatory model. regulatory quasi- world-leading Australia’s as ABAC endorse to continue to government of levels all from commitment long-term welcome would and ABAC of continuation the support We strongly harms. harms. alcohol-related reduce and culture drinking healthier and asafer create that collaborations with DrinkWise, of work the in investment government and industry continued We support industry. alcohol the against or for either bias from free conducted and transparent are decisions policy critical that ensure consultation, broad After lower-risk behaviour. around attitudes changing to approach realistic and ameasured adopting whilst driving, drink as such others, endangers which behaviour risk high- of elimination the prioritises that education health public to approach an We support caused by alcohol consumption. harms minimise to seeks transparently that data, accessible and reputable in grounded regulation, and programs government in consultation and involvement industry We support supporting drink-driving initiatives. to governments continueand in to work with low alcohol options, zero and with consumers to providing we commit industry, an As Safety and wellbeing of our customers: effectiveness. continued its to ensure channels media emerging pace with keeps Code the that ensure and to minors alcohol marketing to prevent protections existing to enhance government ABACsupport with working We'll campaign. to ‘Choose DrinkWise’ their REALISING OUR POTENTIAL OUR REALISING Continues on page 33 33 page on Continues →

32 REALISING OUR POTENTIAL OUR REALISING 33 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY BUILDING BETTER OUTCOMES BETTER BUILDING 20 19 18 17 16 15 Policy priorities Aston J. (2019), Canberra's new drinking guidelines set for whitewash, Australian Financial Review Dec 13 2019. Dec Review Financial Australian whitewash, for set guidelines drinking new Canberra's (2019), J. Aston Drinking: Do it Properly, https://drinkwise.org.au/our-work/drinking-do-it-properly Properly, it Do Drinking: Snowdon C (2017), The new drinking guidelines are based on massaged evidence, Spectator 30 Oct 2017 Oct 30 Spectator evidence, massaged on based are guidelines drinking new The C(2017), Snowdon Paul Nelson et al, National Drug & Alcohol Research Centre, The University of Sydney, Burnet Institute Burnet Sydney, of University The Centre, Research &Alcohol Drug National al, et Nelson Paul World Health Organization, (2016) Framework of Engagement with Non-State Actors. Sixty-ninth World Health Assembly WHA69.10 Assembly Health World Sixty-ninth Actors. Non-State with Engagement of Framework (2016) Organization, Health World Lily Trimboli and Nadine Smith (2009), Drink-driving and recidivism in NSW, NSW Bureau of Crime Statistics and Research and Statistics Crime of Bureau NSW NSW, in recidivism and Drink-driving (2009), Smith Nadine and Trimboli Lily crime and harms. and crime alcohol-related surrounding context the of possible as apicture complete as to obtain important is It challenging. cycle the breaking make addictions other and homelessness, health, mental as such factors violence and harms alcohol-related of proportion A large misuse. of risk at those to directed are which those are harm related alcohol to address measures effective most the of Some INDUSTRY DYNAMIC INDUSTRY “The campaign strongly resonated 18 with to strongly 24 year-olds campaign “The drinking less on a night out after seeing the campaign.” the seeing after out a night on less drinking worked, over with approach audience of target the one-third the research demonstrated Campaign peers. their amongst shared and embraced being campaign the tone resulted in and preferred language their in to young adults Speaking overtones. lecturing avoiding parental, by purposely on the on the of DrinkWise CEO STRAHAN, SIMON 19 is committed by repeat offenders by repeat committed is How to Drink Properly Drink How to Campaign 20 and and are based on the best possible evidence. evidence. possible best the on based are interventions ensure to as so admissions, and attendance ambulance assaults, related alcohol- around methodology and collection data in consistency and improvement continual a with availability, and consistency national provide to BOCSAR NSW of level the to collection data their improving jurisdictions all We support support. intervention and minimisation harm targeted more develop to harms, and misuse alcohol between relationship the into research more We support continue to drink in moderation. moderation. in drink to continue that population the of majority the penalising not while responsibility, personal encourage and harms address that interventions targeted highly support we government, with conjunction In REALISING OUR POTENTIAL OUR REALISING Our goals Our

34 REALISING OUR POTENTIAL OUR REALISING 35 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY pubs where clubs and we come together. economies woven and into of the fabric communities our through the thein lives livelihoods and of regional Australians:local supporting The Australian beverage alcohol plays part industry enormous an Stronger regions moments of lives. our for big backdrop the the form and endeavours, cultural and clubs sporting local support town, they of country any cornerstone A community. room’ of the ‘living the often pub or so club is local the communities, regional In room meeting local The BUILDING BETTER OUTCOMES BETTER BUILDING 7 beer orbeer spirits, up ends in to barley annually sown hectares four million of proportion the significant of wine grape vineyards. grape of wine hectares 146,000 with planted regions, 65 wine-growing more has than Australia born. about where they’re it’s also – served are where drinks places It’s the about more than supply chain the throughout Benefits somewhere benefits. somewhere sold, afarmer bottle every For country. our practically of corners own to their claim lay hops apples cider and all 22 and cane spirit, spirit, cane and 21 21 A management. and to manufacturing through hospitality, and retail viticulture, from of careers, range awide workforce across a economy, supporting whilst more regional into the broadly suppliers and into local directly money inject operations These licences. for manufacturing to 61% rises that afigure areas, held those in are liquor licences regions, 43% the operate in of 33% just of businesses While Direct contributions 23 22 21 Policy priorities Our goals Our Milton A., Wong S. & Gatt A. (2019), National Vineyard Scan 2019: summary report, Gaia Agricultural Intelligence CT-TR-2019-00037 Intelligence Agricultural Gaia report, summary 2019: Scan Vineyard National (2019), A. &Gatt S. Wong A., Milton use of technology.use greater through practices farming efficient more drive and change, to adapt climate and address businesses regional to helpplant their and R&D in investment their increasing are producers Our (R&D): development Greater investment in research and regions. to contribution agreater the make it to would allow for that reforms advocating while Australia, it to provides regional benefits look to promote the will industry to the 2030, forward employment. and operations Looking regional our in growth means sector beverage alcohol the in growth industry, regional-facing Promote our presence the in regions: Australian Export Grains Innovation Centre (2018), Barley, Australian Grain Note Grain Australian Barley, (2018), Centre Innovation Grains Export Australian National Farmers Federation (2019), 2030 Roadmap: Australian Agriculture’s Plan for a $100 Billion Industry Billion a$100 for Plan Agriculture’s Australian Roadmap: 2030 (2019), Federation Farmers National government programs due to their postcode. postcode. to their due programs government to access or support vital on out miss often yet cities, major the of outskirts to the up right exist do and can businesses regional and Agricultural cities. the in expected standards the below falls infrastructure social critical when difficult more made is enterprises to regional workers skilled retaining and Attracting available. currently is than connectivity better require will manufacturing regional and agriculture Smart investors. to certainty provide and influence political limit to government, of levels by all upon agreed and formulated be should agriculture in Investment regions. the of life-blood the is Agriculture businesses. regional medium and small in workers on relies industry our of success The INDUSTRY DYNAMIC INDUSTRY As a a As funding or visa programs. visa or funding grant of purposes the for businesses such defining to approach expansive an We support growth. continued for needs industry our workforce the attract and liveability improve to services community and education health, regional in investment continued We support businesses. regional for rates competitive at speeds and infrastructure metro-comparative of provision the permits, demand where and Australia, regional in coverage mobile and satellite current of improvement and extension We support Agriculture Deals policy. Regional Federation’s Farmers National the in proposed as agriculture, in development policy and investment infrastructure physical for frameworks multi-government We support Australia. regional in work to Australians underrepresented and unemployed young, for pathways and visas work regional including initiatives, employment regional We support REALISING OUR POTENTIAL OUR REALISING new spending into the local community. local into the new spending of injection an through to flourish . local community and or rise fall on local hospitality venues are integral to the pubs,Our clubs, restaurants, retail and field. the in application to practical R&D lab-based from insights other educational to institutions transfer and with working members are Applying cutting edge innovation: Our Attracting visitors to a region allows to aregion allows visitors Attracting 23

36 REALISING OUR POTENTIAL OUR REALISING 37 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY paddock to palate. paddock –from waste toways manage innovative and sustainability renewable to packaging energy practices,sustainable from on focused are strategies investment industry, the Across to sustainability commitment A binding international customers, as well as current potential and investors. This is acommitment reinforced by the increased expectations of our contributes so to character much and the of quality products. our to care taking of the environment operations our that and supports rawour ingredients. As industry, an we share commitment acommon we and chain, supply have a close connection to where the land we grow beverageAlcohol companies are invested deeply the in end-to-end on the environment Positive impact BUILDING BETTER OUTCOMES BETTER BUILDING 8 the world. world. the around of beverages alcoholic producers and by growers after sought increasingly becoming countries, our assistance is other in increases risk climate as and mitigation, fire and water management resilience, drought in for expertise our known we are Internationally, water management and drought in Experts “By resetting our emissions to zero, net emissions our we’re resetting “By and reduce our emissions.” our reduce and to measure, manage responsibility collective our we that are deepening chain supply our and to people our message astrong sending CEO, CEO, STUART IRVINE Lion towards carbon neutrality. working or are have achieved sectors industry and businesses alcohol beverage many and grid, to the export as well as not needs, own their meet only to renewableenough energy able to capture already are leaders less intensive solutions. Industry developing in responsibility asocial and interest commercial a both members our see so users, energy heavy typically Manufacturing industries are energy in Leaders 24 24 * Policy priorities Defined as developing ways to continually re-acquire and reintroduce product cycle assets to market to assets cycle product reintroduce and re-acquire continually to ways developing as Defined Our goals Our increasing social equity with our customers. our with equity social increasing reputation and our enhancing and waste food with improvements dealing in further drive post-COVID will on profitability focus venue. Astronger hospitality of for every life afact is food waste supplies to leftover meals, surplus to peelings, vegetable grounds coffee Improve food waste hospitality: in innovation. support to industry into the returns re-investscheme the and offsets carbon Australian an support we will term, short the in neutrality carbon achieve we may not industry an as Acknowledging Australian-based carbon offsets framework: Support the development of acompetitive targets. global its achieve to help Australia footprint carbon to overall reduce our we aim practices agricultural sustainable and energy renewable in investment our By continuing Reduce our overall carbon footprint: against anticipated climate change impacts. impacts. change climate anticipated against mitigate to best institutions research with collaborate and impacts, weather extreme frequent to combat more resilience plant into and crop scarcity: Planning for climate change and water transparency around carbon offsets in Australia. Australia. in offsets carbon around transparency and certainty greater for aneed also is There industry. of building capacity and regulation of harmonisation in to play, particularly government for arole is there however industry, with lies waste packaging reducing for onus the We recognise INDUSTRY DYNAMIC INDUSTRY White, M (2020), "Waste Away", Restaurant and Catering Assn Magazine, February 2020 2020 February Magazine, Assn Catering and Restaurant Away", "Waste M(2020), White, As an industry we will prioritise research research prioritise we will industry an As From From 24

can have confidence in the impacts of their choices. choices. their of impacts the in confidence have can consumers so monitoring, and compliance to relating issues on industry with closely work to governments urge and Standard Offset Carbon National the of development the in involved being industry We support economy. acircular* towards aroadmap develop and recyclability of state current the determine to audits led and industry-initiated for funding including packaging, of recyclability the improving and waste reducing in effective be to proven are that industry with partner and incentivise to initiatives We support REALISING OUR POTENTIAL OUR REALISING economy by 2030. by economy to model acircular go beyondthat practices packaging and packaging sustainable development the of investigating already Sustainable packaging: economy. to acircular path efficient atruly towards achieving practices their for members share forum to compare and provide a and action foradvocate collective We continue to effect. to that will programs or have implemented internal progressive waste to reduce packaging commitments and to initiatives signatories membersour are Improve the recycling process: to follow suit. businesses other encouraging and resources, and knowledge to sharing sector, aview with manufacturing food and agriculture the across put place in members our have practices sustainability the demonstrate continue and to publicise We will sustainability. roleleadership in should play a We industry that believe practices: Demonstrate sustainability our our members are members our are Many of of Many

38 REALISING OUR POTENTIAL OUR REALISING 39 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY To the future! the production, marketing of sale alcohol. and at timesAnd to all in responsibility champion us. around communities of thethe environment sustainability and To positive, be contributors leading to markets.and expand suite our of into offerings new products exportswine across other categories and To replicate the success of world-leading our to meaning lives. our bring occasions the and that friendships supporting To continue to Australians bring together, internationaland profile. contribution to nation’s our economy, culture To maximise grow and our industry our commitment: This is our

40 REALISING OUR POTENTIAL OUR REALISING 41 2030 VISION FOR THE ALCOHOL BEVERAGES INDUSTRY

42 REALISING OUR POTENTIAL OUR REALISING