Reporting by Naomi Kaplan
Giuseppe Minissale, president of the Australian Liquor Stores Association (ASLA) kicked off The Drinks Industry Show today with some significant insights into the current state of the Australian beverage market.
Minissale has over 35 years experience in the drinks industry, is the chair of Alcohol Beverages Australia, the national president of Australian Liquor Stores Association, general manager of Porters Liquor Group, board member of Drink Wise Australia and has seven liquor stores and three distribution companies.
ASLA partnered with IRI to discover some interesting insights into Australian drinking trends.
The most recent March 2017 findings from the IRI indicate that the total alcohol beverage sector sales are up $27 billion, generating $8.5 billion in tax and $2.5 billion in GST.
Minissale says the drinks industry has a huge impact and contribution to the Australian economy, with the off-premise sector being bigger than coal mining.
“Australia’s near 17 billion retail liquor market grew by 3.3% in 2016, led by the great state of New South Wales, with all states in growth except for Western Australia due to the impact of mining”, Minissale said at The Drinks Industry Show.
Alcohol categories and how they grew:
As you can see, cider and wine were the fastest growing categories in 2016. Beer had the most sales in 2016 with $6.3 billion and a growth value of 3.4%. Wine had $4.4 billion in sales with a value growth of 4.4%. Spirits had $3.5 billion in sales with a value growth of 4.2% and cider had $0.5 billion in sales with a 6.5% value growth.
However, interestingly alcohol consumption is slightly decreasing, with Australian’s drinking less alcohol per capita than in the past 50 years.
Shifting attitudes towards alcohol and health are contributing to changes in the relationship that we have as a nation with alcohol.
The overall alcohol per-capita consumption dropped by 26% from 13.1 litres in 1975 to 9.7 litres in 2014.
“Alcohol consumption is decreasing in all categories. Our forecast is that Australia’s alcohol consumption will continue to fall in most products”, said Minissale.
But with this negative, there are also opportunities.
Minissale said these opportunities include: continuing change in drinking habits to preferences for more premium products, consumers searching for better quality and brand and far more health conscious consumers than their parents and grandparents.
“There is an influence of health, drinking less and embracing specific product attributes.”
The Drinks Industry Show continues tomorrow at Sydney's Luna Park with exciting stalls, discussions, masterclasses and tastings offering insights into the latest industry trends. You can register here for free.