The Growing Market for US Craft Beer in Australia
By James Smith Founder of The Crafty Pint & Festival Director, Good Beer Week Overview
✤ Why am I here?
✤ Beer in Australia - the past, present and future
✤ Opportunities for US craft beer in Australia
✤ Q&A
Brief History of Beer in Australia
Year Breweries ✤ Early beginnings 1800 1 1830 30 ✤ Growth to peak number of breweries in late 19th Century 1860 178 1890 294 ✤ Homogenisation of the 1910 157 20th Century 1920 77 1950 26 ✤ A new explosion 1980 20 Today c. 150 The Birth of Craft Beer
✤ The Sail & Anchor & Matilda Bay
✤ The Rise & Fall of Craft Beer
✤ The Second Wave - late 1990s onwards Craft Beer in Australia Today
✤ Rapid growth – both local and imports – yet still small
✤ Improving quality and innovation
✤ The Third Wave
Facts & Figures
✤ Total Australian beer market is ~AUD$10bn per annum
✤ Craft beer sector makes up just 3%
✤ Major brands are experiencing falling sales
✤ Per capita beer consumption hit 65 year low in 2012
✤ BUT craft sector is booming Craft Sales - Nielsen stats Craft Beer’s 3%
✤ Independent craft breweries responsible for less than 1%
✤ Remainder brewed by Lion (Little Creatures & Malt Shovel) and SABMiller (Matilda Bay)
✤ Only ~10 of the smaller, independent breweries currently operate on a scale where they can significantly expand the sector
✤ Two national associations launched in 2011
✤ Larger one - Craft Beer IndustryAssociation - aims to “Protect, Promote & Grow” craft beer in Australia Retail Reality
✤ Like brewing, the market is dominated by two major players: Coles & Woolworths - between 70-80% total liquor sales
✤ Both have growing range of Australian & International craft beer
✤ Both have launched their own “craft” ranges in recent months: brewed under license and given prominence in their stores
✤ Growing number of small bottle stores with wide ranges and knowledgeable staff. Market share small but punch well above their weight in terms of craft beer sales Imports
✤ Quality imports played a key role in the early awakening of Australian palates
✤ Initially Belgian, German, British, etc
✤ US craft beer a more recent phenomenon, alongside Kiwi, Japanese, Scandinavian, Italian
✤ Much early US craft beer arrived via grey / parallel importing Getting Beer Into Australia
✤ Two main routes
✤ Direct to the major chains
✤ Via a beer importer & distributor
✤ Labelling, tax, transport costs?
✤ Keg versus bottle in Australia
✤ Case studies
Finding an audience
✤ Festivals
✤ Australian International Beer Awards
✤ Key craft venues - most favour kegged product
✤ Collaborations / partnerships
✤ Key media contacts The View from Down Under
✤ Drinkers: growing numbers excited about craft beer. Many proud of local scene but chasing top US, Kiwi, European too.
✤ Venues: quality imports encourage local industry to raise their game. But price point of some US beers makes it tough for locals to compete
✤ Brewers: some opposition to rise in imports, including elements within national associations. Part of protecting local industry
✤ Environmental concerns / respect for US brewers resisting approaches from importers The “Risk”
✤ “The biggest risk for Australian craft is US beer” - Ian Kingham, ALH (Woolworths)
✤ Many US brewers more established, commercial, organised, financed and with capacity to spare
✤ Australian craft beer market is still in its infancy - many breweries still finding their feet Wrap Up
✤ Craft sector will continue to grow - and fast
✤ The revolution is yet young
✤ Untapped potential remains for quality craft beer in Australia
✤ For longevity, the local industry must be strong too
✤ How do you want to be viewed?
Cheers!
✤ Any questions? Contact details
✤ James Smith
✤ e: [email protected]
✤ p: +61 450 369 718
✤ w: craftypint.com
✤ t: twitter.com/TheCraftyPint
✤ f: facebook.com/TheCraftyPint