Distilled 13 | March 2024

The evolution of Craft Beer

How to grow with Marketplace

Welcome back to our Supplier Magazine, Distilled!

For anyone new here, this is our regular deep dive into the world of on and off premise drinks, packed with market insights to help you navigate partnering with Endeavour to bring our customers the most exciting and innovative products.

We’ve just wrapped our latest Supplier Forum, which I hope many of you were able to tune in for, where we shared the news that we will be hosting our BIGGEST ever supplier event later this year. For the first time, we will be combining our Supplier Forum and Supplier of the Year Awards into one awesome in-person event at Sydney’s Accor Stadium. So, mark your calendars for 12 September and watch out for invitations and nominations soon. We are absolutely

thrilled and cannot wait to bring this event to life.

But back to this edition. The articles here are must reads! From how to get the most out of Marketplace to taking a behind the scenes look at the Premix Range Review, as well as supplier spotlights from Zonzo Estate and Moët Hennessy - you will not want to put it down.

As always, we also have our Insights Report on page 53 where we dive into Christmas trade and gifting, as well as a deep dive into the evolution of Craft Beer.

Happy reading, and please let me know what you think!

Cheers,

Karly Georgiou

General Manager Merchandise Transformation, Range and Customer Value

Contents

04 Ask Tim

Tim provides us with an update on how the new Supplier e2e Dashboard has landed and any learnings we’ve seen so far.

08 A conversation with Gourie Fordyce

G shares her insights on optimising supply chain performance and sustaining momentum.

14 Unlocking growth with Marketplace

How to drive brand expansion through our eCommerce platform built with a purpose of connecting our suppliers with our customers.

20 Supplier Spotlight: Zonzo Estate

We take a look at the remarkable story of Zoncello’s innovative entry to the market.

26 ALH’s digital Cocktail bible

How Hotels is redefining on-premise Cocktail culture through an exciting new digital journey to enhance and revitalise their offering.

30 Supplier Spotlight: Moët Hennessy

We speak to the team about how they are leveraging retail media and MixIn to connect directly with customers and drive impactful results.

36 Enhancing the Premix range

Everything you need to know about the most uptrending drinks category and what it takes to land a Range Review.

42 An unforgettable Christmas in Hotels

We take a look at our venues over the Christmas period and how our teams created magical moments for our guests.

46 DrinkWise: Shifting trends

Simon Strahan, DrinkWise CEO reflects on the positive changes in Schoolies’ and young adult attitudes towards alcohol.

51 Special: Insights Report

54 Unwrapping the holiday spirit An analysis of Christmas trends and market dynamics.

62 Crafty customers The evolution of Craft Beer.

78 Unlocking the art of gifting Liquor’s versatile role in celebrations.

Streamlining supplier collaboration

A progress update on our new Dashboard

Ask Tim

In our previous edition, we introduced you to our latest innovation: the Supplier Dashboard. This dynamic tool represents our ongoing commitment to enhancing processes and fostering seamless collaboration with you, our valued partners.

As we continue forward on our journey towards efficiency and transparency, we're excited to share the strides we've made and the feedback we've received.

Since its launch, the Dashboard has facilitated a significant transformation in our operations. Here's a snapshot of our progress:

Engagement metrics:

• Conducted over 40 supplier training sessions, engaging with over 60 partners.

• Received over 900 product submissions through the platform.

• Currently managing 14 concurrent Range Reviews.

Tim Carroll Director, Merchandise and Buying

Feedback highlights:

Throughout our training sessions, your invaluable feedback has steered our course and affirmed our efforts. Here's what we've heard:

• Praise for the intuitive layout of the Dashboard, facilitating seamless navigation through the review process.

• Appreciation for the enhanced Range Review calendar, offering greater visibility and detail.

• Anticipation for forthcoming improvements, including streamlined communication channels and accessibility enhancements.

Enhancements implemented:

Responding to your needs, we swiftly introduced a mass submission template, now accounting for 21% of all product submissions. Your early adoption and feedback have been instrumental in its success.

Looking ahead:

Our primary focus is streamlining the login process to ensure seamless access, addressing the challenges some users have faced. Meanwhile, we have developed troubleshooting guides available upon request via range.communication@edg.com.au

Your input matters:

Your ongoing feedback fuels our progress. We invite you to continue sharing your insights and suggestions. Reach out to us at range.communication@edg.com.au or sign up for a training session via the Dashboard.

As we navigate this journey together, your partnership remains invaluable. Thank you for your continued support and collaboration.

Got a question for Tim?

Email your query to distilled@edg.com.au

Achieving supply chain excellence

A conversation with Gourie Fordyce

Gourie Fordyce,

Head of

Network and Replenishment, shares insights on optimising supply chain performance and sustaining momentum.

It's been six months since my last appearance at the September Supplier Forum, and since then, we've accomplished our most successful Christmas season to date. Drawing from the lessons learned during our incredibly successful supply chain peak, we're now ready to strengthen our operations for what lies ahead.

I'm delighted to announce that we've executed the best peak performance in our supply chain in years. The plans implemented with our Replenishment team in the lead up to the period were a key part of this success, and I want to extend a huge thank you to all of our suppliers for their collaboration and support.

Gourie Fordyce, Head of Network and Replenishment

Some key achievements include:

• Outbound Service Levels: Throughout December, our supply to stores maintained an impressive 94% OBSL, marking a 14% increase from the previous year.

• Store Service Level: Reaching an apex at 97.7%, a 2% surge from last year, underscores the remarkable collaborative efforts of our suppliers network-wide, ensuring unparalleled in-store availability for our customers.

• NSW warehouse triumph: Our new warehouse in Kemps Creek, NSW, had a stellar inaugural Christmas, dispatching a staggering 970k cartons during Christmas week, nearly double their standard volume. Their on-time delivery soared to an outstanding 95%, a remarkable feat.

Reflecting on the past year, we've also achieved notable improvements in Fulfilled By Endeavour (fbe) performance:

• On-time delivery: Surging an impressive 16% compared to last year, our on-time delivery reached 85%.

• Increased cartons: We moved 22% more fbe cartons compared to the previous year, reaching 24k.

• Efficiency through collaboration: Collaborating closely with suppliers, we optimised bulk collections,

expediting the delivery process to stores, and coordinated extended roster outages, facilitating earlier stock build into stores for optimal in-store availability.

• Forecast reporting implementation: To enhance logistics capacity planning, we implemented forecast reporting for our logistics team, facilitating more efficient operations.

Yatala DC Transition

Our transition to the new Yatala DC in Queensland is progressing seamlessly, made possible by the support of our suppliers during this critical phase.

The Yatala DC is a dedicated liquor DC, 1.5 times the size of our current BLDC facility, offering 23 docks and over 28,000 pallet spaces, bolstering our capacity to manage stock and uphold in-store availability.

Inventory holdings, capital management and reporting updates

Looking ahead, one of our key focus areas over the next 12 months is inventory holdings and capital management. We really appreciate the ongoing support and collaboration from our suppliers in optimising inventory levels while maintaining the strong service levels we've achieved over the past year.

You may recall during the September Supplier Forum, Tim and I announced some exciting reporting tools and a dashboard under development for our suppliers. Although we’ve encountered a slight delay in their release due to ongoing improvements in data speed and validation, we eagerly anticipate updating our suppliers as soon as these resources are available.

As we celebrate our recent achievements, I am really excited about the continued success that our collaboration and innovation will bring in the future. On behalf of the supply chain team, thank you again to all of our suppliers for your ongoing support in achieving one of our best peak performances in years, and here’s cheers to even greater successes in the year ahead!

Top tips for 2024

1 2 3

Collaboration and communication

Aligning on demand and sales forecasts for key events and promotional activities will ensure availability and execution in store.

Communication of risks to your forward planned orders into DC’s is always crucial to enable this.

Continued network optimisation

With the focus on inventory, let’s work together on stock management into the network. Our Replenishment team will be working closely to make sure we are seeing benefit and optimisation across both our supplier and Endeavour networks.

Strategic partnership alignment

Let’s work together to align and achieve our supplier partnership priorities. We're looking forward to seeing new products come to life.

Unlocking Growth:

Driving brand expansion through Marketplace

In a world built on connection, the importance of eCommerce is crucial to products being scrolled, seen and sold.

No longer restricted to a physical location alone, the modern marketplace offers far greater accessibility for buying and selling. Delivering national retail reach so local small businesses can thrive, Endeavour’s Marketplace allows suppliers

access to millions of customers, so your brand can really make its mark.

“For many shoppers, online channels are used first when researching products - in fact one in three,” explains Dan Murphy's eCommerce Manager for Marketplace,

eCommerce

Ashlee Rischitelli. “By leveraging the reach of Marketplace, suppliers can showcase their complete range of products, not only those in our stores, gaining more brand awareness and opportunities to get in front of customers.”

A thriving business relies on engagement and connection with its target market to stay relevant. A digital aisle allows a unique approach to bolster products beyond the realm of traditional bricksand-mortar for the best cut-through and the right eyes on the prize.

David Bruce

Dan Murphy's Associate eCommerce Manager

“Dan’s is such a huge and trusted brand with consumers, there's immense value in adding products to Dan’s online specifically due to the trust our customers have,” Ashlee continues. “The scale of the project is impressive, with Marketplace allowing national coverage for both suppliers and the millions of MyDan’s members and customers.”

This model allows the expansion of the Dan Murphy’s catalogue beyond traditional physical stores and allows greater and more diverse product access for consumers. Working via a dropshipping business model, Ashlee explains, “The products are shipped directly from the supplier

“For many shoppers, online channels are used first when researching products - in

fact one in three.”

straight to the customer. The supplier is able to manage inventory of their listed products on Marketplace as well as track demand via the portal.”

“Customers are becoming more savvy, and above all, are seeking convenience over hassle,” Dan Murphy's Associate eCommerce Manager, David Bruce explains. “Online shopping allows customers to control how and when

they shop. Marketplace allows for not just a convenient and user -friendly experience for customers, it simplifies the overheads and the processes for suppliers who no longer need to set up their own websites and infrastructure, delivering greater engagement, brand expansion and ultimately, business growth.”

Innovating the platform

At the forefront of consumer-facing retail technology, Marketplace now also features a new specialty technology that allows for products that have a current in-store offering, to be activated as a Marketplace product in states where they may not feature in a store. “The technology was designed in-house by Dan Murphy’s for Dan Murphy’s! Our team of in-house developers and eCommerce teams identified there was an opportunity to give our customers more of what they wanted while assisting suppliers with locally ranged products.” Ashlee says. With fewer outgoings, new technology, a trusted brand and a large established customer base, it sounds like a no-brainer for suppliers seeking more cut-through. “Plus, easy product setup, access to quick platforms that can reflect your stock in close to real-time, engaging with costeffective advertising and marketing and the ability to react faster to market and customer demands…” adds David “...there’s also the Endeavour Marketplace Portal which is not only your one-stop shop

Getting the most out of Marketplace

Been thinking about taking your brand online? Here are some tips to ease you through the process: Have professional highquality images of your products so they stand out Ensure you have thorough, unique and SEO-rich information about your products

• Provide a value-driven offering to your customer

• Keep an eye on invitations to partake in campaign activity

for order processing and product management; you’ll find many features to enrich your experience, including a finance tab which allows you to generate reports around your sales on the platform, state sales breakdowns and a support tab which features many helpful articles and videos to assist with your Endeavour Marketplace journey.”

“The supplier is able to manage inventory of their Marketplace products as well as track demand via the portal.”

“We also suggest that suppliers learn from the examples provided by other brands on the website,” says David. “If you’re unsure how to present your product on-site, looking into your product category on Dan’s online and seeing how others have published their products is a great place to start.” Ashlee adds, “While some suppliers are traditional in their knowledge of technology, we have a whole supplier support team here to assist throughout the entire journey with any issues and pain points suppliers may encounter. We're here to ensure the experience for suppliers is seamless, as well as for our customers.”

And suppliers are loving the ease of getting started!

"Endeavour Marketplace has been a fantastic partner for the online sales efforts of SOFI Spritz. We expected to benefit from the scale and efficiencies of Endeavour Marketplace but have also been pleasantly surprised by the service levels and support offered to a relatively small Australian start-up. We look forward to more years of working together with the Endeavour Marketplace team.”

Tom Maclean, SOFI Spritz.

"We have been working with Endeavour Marketplace for eight years. The team has been consistently helpful and supportive. Their dedication has helped us grow our company and achieve national distribution. We've also had great success introducing our products to the physical shelves of Dan Murphy's stores, thanks to their support and we can't recommend them enough."

Jeff Pang, Casapania Group.

A twist on tradition

Zoncello takes the market by storm

Rod Micallef, Director of Zonzo Estate, reflects on the remarkable success story of Zoncello’s innovative entry to market - from the initial concept to navigating speed to market challenges and scaling distribution.

Q. Zoncello has experienced considerable success since its introduction into our stores. Did you anticipate such rapid success, and what do you believe contributed to this achievement?

Limoncello and Limoncello Spritz are such popular drinks, particularly around Europe, so initially we felt we had a potential success on our hands. Having said that, our experience is making Wine in the Yarra Valley, and while we already had a similar product to the Spritz on the market and had seen success with it, we did have a number of reservations about taking an entirely

new product to market (the Spritz), and questioned how it might land. We put a lot of time, energy and passion into hand making the Limoncello, and once we tasted both the finished products we became increasingly confident we had a hit on our hands.

Q. What inspired the concept behind this innovation, and how does it integrate with the rest of your portfolio?

Limoncello was on my radar for quite some time. I have been making it for years to share with family and friends and I knew I wanted to create it in large quantities to sell. It is

incredibly delicious and has a huge popularity. One night, after hours and hours of peeling thousands of locally grown lemons to go into the Limoncello, I had the idea to take some of the Limoncello Liqueur and make a pre-made bottled Limoncello Spritz. I wasn't aware if any one in the market was doing this, so researched it, and found we would be the first. After further research, working on the recipe, and aligning our packaging, I was confident it would be a success.

Both the Limoncello and Spritz are products that fit well with our brand and portfolio, being that Zonzo has Italian

“We have a really great relationship with Rob from Endeavour, who we often email about ideas or changes to branding.” origins, and we already had a number of Italian Wine varietals and a Bellini in our portfolio, I knew the Limoncello and Spritz would be the perfect addition.

Q. Given our long standing collaboration, how did you introduce the new concept to Endeavour?

We are lucky enough to have a really great relationship with Rob from Endeavour, who we often email about ideas or changes to branding. Rob has been an amazing sounding board in assisting us with growth. When we approached Rob, he was excited and helped push these products through for us.

Q. Since the initial launch occurred outside of major review timings, could you elaborate on how you and Endeavour navigated the initial speedto-market process through local ranging and subsequently expanded to higher levels of distribution?

We worked really closely with Rob, who went above and beyond with us on getting this on the market as quickly as we could get it bottled. We tested the market through local ranging to see how it would go, with

the plan of going to DC by Spring. Since September, the product has been moving extremely well and we haven't looked back!

Q. Did the staggered launch provide any insights that helped optimise the national rollout for a smoother transition?

The staggered launch was a great way to kick things off. It allows you to test the local market, where your product should really sell best as the public are familiar with your brand. This is a great example of taking it slow, rather than going all in!

We would recommend attacking the market this way, so you don't over invest in a product that may not be successful.

“I wasn't aware if anyone in the market was doing this, so researched it, and found we would be the first.”

Q. What key insights can you offer to other suppliers based on the Zoncello innovation and your ongoing collaboration, and how do you plan to apply these lessons moving forward?

Zoncello has grown at a rapid pace, which has been absolutely incredible to witness. However, with fast growth comes a number of hurdles that need to be navigated and quickly. Examples of this are getting product bottled in time and working around packaging lead times, in order to keep up with the demand. It is important to have great relationships with our suppliers to ensure they can assist you with the growth.

There have been a lot of unexpected hurdles, however communication has always been the key - whether that is with suppliers, or with Endeavour.

“Zoncello has grown at a rapid pace, which has been absolutely incredible to witness.”

REDEFINING COCKTAIL CULTURE

INTRODUCING ALH’S DIGITAL COCKTAIL BIBLE

At ALH, we're embarking on an exciting journey to enhance and revitalise our Cocktail offerings. Recognising the need to modernise and improve, we introduced a significant step in this direction in November: our new digital 'Cocktail Bible'. This initiative is a foundational move to bring our Cocktail program up to speed with current trends and customer expectations.

our extensive Cocktail selection - which boasts over 1,600 recipes accumulated over decades of trade, proved challenging due to its complexity and scope. To address this, we adopted a more streamlined approach.

“In 2023 alone, Hotels sold almost two million Cocktails!”

In order to 'Simplify and Fly', our new Cocktail Bible narrows down the selection for our team to 70 core-range recipes, chosen in collaboration with ALH bartenders for their popularity, alignment with the operational needs, and guest appeal.

KEY FEATURES OF THIS INNOVATIVE DIGITAL PLATFORM INCLUDE:

• Focused recipe collection: A curated range of 70 Cocktails, searchable by style, spirit, and ingredient, ensuring ease of use for our staff and consistent quality for our guests.

• Immediately available recipes: All recipes are accessible with just a few clicks at each of our venues, eliminating the need for recipes to undergo an approval process.

• Integration with Small Batch Learning: Hosted on the Small Batch Learning platform, the Cocktail Bible provides detailed knowledge on every ingredient with a single click, catering to team members of all skill levels.

• Custom pricing framework: Each recipe is accompanied by a new tiered Cocktail pricing framework, allowing for tailored pricing to suit the unique clientele and product offering of each venue.

“By rationalising and centralising our recipe base, we’re creating exciting opportunities for supplier involvement.”

This transformation marks a pivotal step in redefining our Cocktail service at ALH. It presents an opportunity for us to align with industry standards and set our own trends. We're not just simplifying our menu; we're laying down the groundwork to elevate the entire Cocktail experience at ALH. However, this is just the beginning of ALH's journey in refining our Cocktail program. We're committed to continuous improvement and are excited to explore future initiatives. These include expanding our Cocktail range, enhancing staff training and guest engagement through online how-to videos and tailored content from Small Batch Learning. Additionally, we plan to introduce more drink formats, such as jugs, shooters, nonalcoholic Cocktails and punch bowls.

By rationalising and centralising our recipe base, we’re creating exciting opportunities for supplier involvement, such as introducing Cocktail batching and group wide, team-driven initiatives such as Cocktail competitions. We’re excited to collaborate further to make this venture a success, and look forward to continued growth in the Cocktail sub-category through F24 and F25.

Unveiling the potential of Retail Media

Global insights and successful strategies

Head of eBusiness, Caroline Ianniello and Marketing Director, Julien Marteau of Moët Hennessy talk to us about how they are leveraging Retail Media and MixIn to connect directly with customers and drive impactful results.

Q. Retail Media is a $101B global opportunity; can you talk to us about some of the global insights your business is seeing in this space?

We have been seeing significant developments in the Retail Media space globally, with it being referred to as ‘digital advertising’s third big wave after search and social – and it’s destined to eventually be the biggest’.

From what we have seen, this absolutely hits the nail on the head as suppliers and retailers have been able to leverage Retail Media to drive a truly through-the-line method of communicating directly with the right customers, at the moment of truth.

We’ve seen the continued growth in the importance of the omnichannel journey, as we know that almost 20% of customers are purchasing both online and in-store,

and the majority of customers are researching online before purchasing (regardless of whether the sale is online or in-store). This perfectly highlights the new intersection of the online and in-store experience.

Additionally, it has been evident that search engines are no longer the exclusive domain when it comes to customer research, with Dan Murphy’s

“Due to the breadth of inventory offered by MixIn, we were able to test out new approaches at this key moment.”

in particular leading the online traffic within the Australian Liquor industry. This is the same trend that has been seen in the UK market, as more customers are looking for information and recommendations on retailer websites.

Q. Over the Christmas period you ran a number of very successful campaigns with MixIn, can you tell us about those? What customer insights were driving those campaigns?

We know that our categories over-index in performance during the end of year period; this is an important strategic time for many of Moët Hennessy’s brands as we play in key occasions of Gifting (Family & Friends, and Corporate), Corporate Entertaining, Christmas and New Year’s Eve celebrations, and Summer Drinks.

We wanted to build and deliver throughthe-line campaigns as we know the customer journey is multi-faceted and we aimed to be visible at multiple touchpoints throughout the journey.

To achieve this, we ran MixIn campaigns across the Sparkling Wine and Spirits Categories. The offering from MixIn allowed us to place assets throughout the shopping journey and ensured we maximised our performance against our visibility and conversion objectives.

Q. In terms of the MixIn inventory used throughout those, can you talk to the mix and what you found worked for you?

We utilised several of the MixIn offerings across both the digital and in-store options, including Web Banners and In-store Tastings.

Due to the breadth of inventory offered by MixIn, we were able to test out new approaches at this key moment. We found it very beneficial to be able to create a consistent message for our customers through

“The MixIn team were very focused on ensuring we delivered positive campaign results, and their suggestions on where we should invest to maximise our return on investment were very much appreciated.”

a variety of different touchpoints across online and in-store.

Q. Did you see an uplift in sales in advertising with MixIn versus last year? Are you able to share some highlights here?

Although it is difficult to link with certainty the sales results and isolate impact of price vs. display vs. visibility, we did see a strong Christmas period both online and in-store. Over this period, some of the highlights we saw were the results for Moët & Chandon, Chandon and Hennessy, brands on which we used multiple MixIn activity types. We were able to leverage the mixture of digital and physical assets to maximise our results at this key time of year.

Q. The MixIn team has gone through an exciting period of recruitment recently. How did you find working with the team and their ability to be proactive and tailor campaigns?

We have been very impressed by how easy it has been to work with Steve Jones and the team at MixIn – we came to them with a few ideas, and they were able to help us build out a fully formed plan. It was particularly helpful to have MixIn’s support to ensure that we had a seamless consumer journey for our brands. We have also been working with Alyssa Surry who recently joined the MixIn team, and she has been

fantastic in jumping straight in to work with us on our plans moving forward. It really is a testament to the business that they have been able to ensure such a positive partnership between our organisations.

Q. How did you find the collaboration process in determining the best channels to showcase your campaigns and allocate your budget effectively?

The process was very easy in being able to partner with MixIn – we were able to share our objectives up front and received clear and concise feedback from the team regarding where and when they recommended we prioritise our investment.

We valued their inputs and took their feedback into consideration when making the final investment decisions, and we were very pleased with the final outcomes. The MixIn team were very focused on ensuring we delivered positive campaign results, and their suggestions on where we should invest to maximise our return on investment were very much appreciated.

Behind the scenes

Enhancing the Premix Range

Everything you need to know about the most uptrending drinks category and what it takes to land a Range Review.

It’s all about space. Sharing space, spare space and creating space. As popularity of Premix continues to soar, the range

The ‘Range Review’

A Category’s in-store performance is constantly being reviewed. How well are the products selling, who is buying them, and how is this selling pace evolving? But it’s the yearly analysis, or the ‘Range Review’, when products are even more intricately evaluated by the Category Managers – it’s when the big change happens.

“Once a year we reset the drinks range completely to really deliver on what the customer wants and expects,” explains

Stephanie Petracca, Category Manager Premix Range at Endeavour.

“It’s a complete stop, reflect and reshape moment, where we review 52 weeks of data to see what is working, what isn’t and growth opportunities.”

Stephanie Petracca, Category Manager Premix Range

Always keeping the customer perspective and expectations front of mind, the review acknowledges the constant evolution of a shoppers’ behaviour as a result of societal and economic change. Supporting the team by informing on Premix trends and examining how Premix consumption changes is Mitch Thompson, Category Strategy Specialist at Endeavour. “We give the team a tailored customer lens and support them with

“Suppliers should be ahead of the curve. Look for the white space and utilise your global insights.”

customer insights on both a macro and micro level”, says Mitch. This data can range from the overarching Light Premix leaders of the summer, to which products and sub-categories are trending for a Friday night footy-led experience.

It’s important to note that the Category Managers still curate the Premix range at least four times a year to keep it fresh, but it’s the annual assessment that has proved to be a focal success point.

With the latest Range Review landing in early September 2023, stores have responded to the most trending drinks category with a new range that embraces the purchasing pivot. “It’s been amazing,” says Fahime Durbali, Category Manager Glass and Premix BWS at Endeavour.

“There's been a lot of interesting changes that have come out of this range, one of the biggest being new customers deviating from their go-to brands. As the stores constantly morph to meet and anticipate a change in customer

demand, they are welcoming innovation now more than ever.” As Stephanie emphasises; “customers don’t stay the same, so we need to make sure we’re constantly updating and refreshing what we’re doing to remain relevant,” which the Range Review ensures.

Entering and exiting in the Premix range

According to Stephanie and Fahime, “the Range Review never really ends”, and fortunately in that same way, it is always starting, too. “We are constantly on the lookout for newness to satisfy our customers and will review all available innovations at multiple critical times throughout the year,” says Stephanie.

In the lead-up to a review, the Category Managers will invite suppliers to submit product ideas and outline the timelines to work with. Once the proposals are submitted, everything is reviewed. From packaging to ABV, and even to which store’s demographic the line would best

Fahime Durbali, Category Manager Glass and Premix BWS

appeal to. “The biggest and most exciting opportunities will be brought to life in stores following each review of new and existing products,” says Stephanie. But that’s not to say it’s the end of the road for any new lines that haven’t struck mass appeal. “If the line isn’t right for us right now, we might do something on a smaller, more local scale.”

If the product has managed to secure some store space, the aptly named Range and Space Team will work with the Category Managers to review the current layout. “This all depends on what we’re looking to grow versus decline, store demographic, and even how we want things arranged on shelves,” says Stephanie.

Quick to receive its first review, a new product’s performance is accessed 12 weeks

after arriving in-store. “We tell our suppliers, we need to fail fast,” says Stephanie. “We are willing to try new things but if it doesn't resonate with customers we both need to move quickly to pivot strategy or exit the range.” Discussions with suppliers will then help decide what direction to take the product, whether flagging the line, conducting tastings, wider review research or deletion. On the other hand, new products can also morph a market entirely, as the 2023 Range Review proved.

What’s trending for Premix?

Premix is a key trending category at Dan Murphy’s and BWS, with sales almost doubling in eight years at BWS. Reflecting the increasing demand for convenient products that equally deliver value and flavour, customers are speaking with their wallets and Range Reviews provide the perfect time to respond.

“In the 2023 Range Review, we saw a massive change. It was a complete reset

Mitch Thompson, Category Strategy Specialist

for us,” says Fahime. “Customers are now more keen on nostalgic flavours, with some shoppers even switching Premix preference from Dark to Light.” Take the significant amount of customers trading their loyalty for the newer Lighter (and lemony) Premix products.

In the same way, big flavours are big. “We went from Seltzers, where the taste was stripped to now full-flavoured drinks unafraid of sugar,” says Mitch. With customers now preferring taste to take priority, Premixes are becoming bolder, and it makes sense that Vodka has risen in popularity as the Premix Spirit of choice for its neutral and adaptable taste.

The 2023 Range Review showed a strong preference for citrus drinks, notably lemon as well as citrus adjacent flavours, including passionfruit and yuzu.

What’s next for Premix?

As the Range Review proves, what’s taking up space in the Premix market now, will continue to shift. As the Category Managers start to prepare for the 2024 appraisal, there’s plenty of excitement as to how Premix will evolve, with a steady focus on what’s next as opposed to what is already available.

“Lemon is going great, so now we’re looking for things that aren't currently in the Category that are going to keep customers interested, something new,” says Stephanie. “Suppliers should be ahead of the curve. Look for the white space and utilise your global insights.”

On an uptrend trajectory, Mitch affirms: “Premix is in a great space right now

– full of innovation, the fun stuff!”

new range is vibing with Zillennials in Dan's: Proportion of $ Spend by Generation

Generation Z

Younger Millennials

Existing Range

Older Millennials

Generation X

Traditionalists Baby Boomers

The

ALH SERVES UP AN UNFORGETTABLE CHRISTMAS

At ALH, our purpose is creating pub experiences locals love. And that was especially evident during Christmas 2023. It’s safe to say that an Aussie Christmas isn’t complete without a buffet lunch, and our venues certainly delivered. Across our pubs and hotels, we served an impressive 1.6km of buffet delights and delectable desserts on Christmas Day.

Reflecting on the lead-up to Christmas, Lukas McKay, General Manager of Operations at ALH, remarked, “After a great Spring Carnival period, the festive season started with some fantastic Christmas functions then moved into some big entertainment gigs like Lime Cordiale and then finished off with an amazing Christmas Day lunch where we hosted a record number of guests”. And he wasn’t wrong - on Christmas Day we served over 43,000 guests, enough to fill Rod Laver Arena three times over!

"From sourcing to serving, our team members' dedication and our Commercial Team's facilitation ensured our Christmas

Day events were a true celebration,” Lukas said. “And of course our Venue Teams were amazing; their dedication is a true testament to their passion and professionalism. I am so grateful."

Discussion about Christmas planning often rivals conversations about the holiday itself. This year, our Marketing team launched a campaign with the tagline, "Do lunch at your local," making it effortless for our guests to choose their Christmas lunch venue. Recognising our guests' preference for local and authentic experiences, over 40% of Christmas Day bookings were made in-venue rather than online, a testament to the enduring appeal of our venues and the loyalty of our patrons.

DID YOU KNOW?

11.1 tonnes of cooked prawns were served.

Throughout the country, our venues showcased how they brought the Christmas spirit to life for their teams and guests:

Greenwood Hotel | Perth, WA

Affectionately dubbed 'The Best Local Pub in Perth,' Greenwood truly lived up to its reputation during the Christmas season.

Beginning recruitment and training early in September and October ensured the entire team was well-prepared for the busy season. Clear communication and expectations from venue management ensured guests received top-notch experiences. The team embraced the festive cheer, with many sporting Christmas attire throughout December, ensuring there were no Grinches in sight!

In line with our commitment to local communities, the Greenwood team organised donation drives for pre-loved toys and clothing for Fostering Hope, a local group aiding disadvantaged youths, and a food drive for The Greenwood Pantry, a community food pantry. On Christmas Day, the Greenwood team went above and beyond, treating guests to special take-home gifts like Christmas glasses and individual presents for children, leaving a lasting impression of excellence.

The North Gong Hotel | Wollongong, NSW

Over on the East Coast, the North Gong Hotel was the starting point for the annual Wollongong SantaFest Pub Crawl for Charity, which is officially recognised as the longest continually run Santa pub crawl in the world. Celebrating its 30th anniversary, the event raises funds through admission ticket sales, donations and merchandise for Salvation Army Illawara, Disabled Surfers Association, KidsWish, The Disability Trust and EscaBags.

The team at North Gong sold 4,500 tickets in the lead up to the event, with funds supporting the Salvation Army’s Jayne Wilson Foundation’s First Floor Restoration Program, which provides counselling for and support to alcohol and drug-affected families, the Disabled Surfers Association, which provides surf experiences to for the disability affected, and KidsWish and The Disability Trust, which provides free group programs to sick, disabled and disadvantaged children in the Illawarra.

Buderim Tavern | Buderim, QLD

At Buderim Tavern on the Sunshine Coast in Queensland, Venue Manager Jason Hickmott vision was for the venue to: “feel like Christmas as soon as you entered”. So the team got to work, extensively decorating the venue from midNovember. Their hard work impressed their guests, with some likening it to Myer’s Christmas displays.

“On Christmas Day we served over 43,000 guests, enough to fill Rod Laver Arena three times over.”

They also made sure to bring the Christmas magic to their younger guests, who might not have had as much of an appreciation for Christmas decor. In the lead up to Christmas and on Christmas Day itself, Santa Claus visited the venue, delivering personalised gifts to each child. How did he know what was on their wish list, you ask? The Buderim Tavern team called each guest ahead of Christmas Day to brief them on how the day would look as part of their booking confirmation process, taking the opportunity to also capture any names and age of any children also attending. One boy, who did not receive his much yearned-for gift of a yoyo from his parents was over the moon when Santa proceeded to gift him one at the venue. In the spirit of creating an environment for an empowered team to live our purpose, the team at Buderim Tavern also hosted a breakfast early in December, where team members from each department leaned in and donated their time to set up, cook up and clean up. Another quote from Jason, “The real difference at the Tavern is its people, I honestly believe we have some of the best hospitalians in the business working here, and for that I could not be prouder.”

Shifting trends:

Positive changes in Schoolies’ attitudes towards alcohol

DrinkWise Chief Executive Officer, Simon Strahan explores the influences driving these positive changes and the ongoing initiatives - including partnering with Endeavouraimed at fostering healthier attitudes towards alcohol.

It was over a decade ago that DrinkWise launched an ambitious campaign dedicated to curbing the problematic issue of binge drinking amongst young Australian adults. This traditionally difficultto-reach audience of 18-24 year olds was targeted in a very different manner, utilising a range of social media channels and venue message placement to ensure this audience could make smarter and safer choices about alcohol.

A key component of this How to Drink

Properly campaign was making moderation cool and classy as opposed to any perceived rite-of-passage expectation to binge drink. Both government and DrinkWise research highlights the positive change that has taken place amongst this age group in recent years, with results showing a distinct shift towards staying in control, being more mindful and, importantly, less inclined to be pressured by their peers to consume alcohol. Some of this change can be attributed to better parental role modelling. Research shows that if underage teenagers abstain from alcohol, then they are less likely to experience alcohol-related harms in their later adolescent years and have more moderate attitudes towards consumption once they reach legal drinking age and into their adult years. Parents setting strong

boundaries in the home and not supplying their underage teens with alcohol has resulted in nearly three-quarters of 14-17 year olds declining to partake. Importantly, relatively new research highlights that today’s young adults are less likely to be influenced by peers, instead making individual choices about whether to –or when not to – consume alcohol.

At this point, a recap on the most recent Schoolies period is worth discussing. For many school-leavers having recently turned 18, this is the first time travelling away without their parents and the chance to let off steam after a stressful year 12. However, as opposed to the concerning stories of the past, the media stories are now covering these high school graduates seeking experience-driven

“DrinkWise research highlights the positive change that has taken place amongst this age group in recent years.”

holidays, creating lifelong memories and celebrating mindfully with friends. These changes align to DrinkWise research conducted in 2023 amongst Australians aged 18-24 years old, in which 76% of young adults reported liking to socialise in ways that do not involve drinking alcohol. In addition, 67% said they don’t like

ruining the next day because they had too much to drink the night before. However, while statistics are trending in the right direction, these improved attitudes and behaviours aren’t universal amongst young adults, with 22% still considered single occasion risky drinkers (those who drink more than four standard drinks a day).

Knowing that some will seek to let off steam in a potentially risky manner by consuming excessively, DrinkWise once again partnered with Endeavour Group and other retailers to remind school leavers of tips to help them moderate. The DrinkWise Schoolies

“DrinkWise once again partnered with Endeavour Group and other retailers to remind school leavers of tips to help them moderate.”

Survival Tips campaign featured in more than 600 retail stores in popular Schoolies locations around Australia. The support from Dan Murphy’s and BWS, as well as ALH, to strategically place the campaign messages within stores allowed a multi-pronged approach to reaching this audience.

In addition to this point-of-purchase placement, DrinkWise also reached

Schoolies attendees through geotargeted social posts on Snapchat and through audio with Spotify. This was also supported with a media campaign that saw DrinkWise research quoted in television news, radio and print/digital stories with a cumulative campaign reach of almost 84 million.

Knowing that Schoolies then turns into summer and university orientation weeks, DrinkWise has continued to target excessive consumption. We will reach over 500,000 university students during their commencement weeks. The social media geo-targeted

decision to abstain without judgement. We do know, from DrinkWise research, that 1844 year olds are twice as likely to try zero and lower-strength products compared to those aged 45 and over. The availability of no and low alcohol alternatives provide both young adults and the broader adult population with choice which helps lead to more responsible decision-making and the chance for risky drinkers to cut back on their alcohol consumption.

campaign will feature on Snapchat, Instagram and Facebook platforms.

DrinkWise will also once again partner with an education supplier to deliver alcohol education sessions to students. Specifically tailored for university students living on campus, these sessions use DrinkWise's How to Drink Properly materials and campaign messaging to set behavioural expectations when it comes to alcohol consumption at university.

Education for young adults is critically important because it can result in generational healthier attitudes towards alcohol – or for some it can support their

DrinkWise is seeking new contributors to support its programs, so if you are interested in helping to create a safer and healthier drinking culture in Australia, please don’t hesitate to contact DrinkWise via info@drinkwise.org.au or (03) 9682 8641.

Insights Report

Crafty Customers: The evolution of Craft Beer

Unlocking the art of gifting: Liquor’s versatile role in celebrations

Unwrapping the holiday spirit: An analysis of Christmas trends and market dynamics

James Marinelli, Head of Category Strategy and Insights

Insights Report

Welcome to our first edition of the year! It’s been a busy start to the year already but before we look ahead, we wanted to spend the time reflecting on the past few months and of course, a huge shout out to all of our trade partners for all of the support as we closed out 2023.

So first up, we look back on the holiday trade and what was an amazing execution from all of our suppliers. From Cyber Week's reshaping of shopping habits to the surprising rise of old favourites, we uncover what these trends could mean for the year ahead.

Next, we dive into the vibrant scene of Craft Beer in Australia. It's a tale of transformation, tracing the path from the pioneers to today's innovators. This story isn't just about Beer; it's about culture, change, and what 'Craft' means in a rapidly evolving market.

And finally, we unwrap the art of gifting. Here, we look beyond the ribbon to understand how gifting reflects our times. We'll explore how economic changes and customer habits are reshaping what it means to give, highlighting the role of Liquor in celebrating life's moments, big and small.

This edition of Distilled, like all those before it, is about bringing you closer to the insights behind your categories. We hope these articles spark curiosity, conversation, and maybe even a bit of inspiration.

- James

54 Unwrapping Xmas: An analysis of Christmas trends and market dynamics

62 Crafty customers: The evolution of Craft Beer

78 Unlocking the art of gifting: Liquor’s versatile role in celebrations

*References to 'younger' customers indicate those in our Gen Z and Millennial cohorts (18+)

An analysis of Christmas trends and market dynamics

Amidst the complexities of a shifting economic landscape and evolving customer behaviours, the holiday season stood as a pivotal moment for retailers, offering a glimpse into the pulse of consumer sentiment and spending habits. As the curtains draw on another Christmas season, it’s time to assess the outcomes and glean insights from the data.

Overall performance

Across the demographics, it was evident that all generations, save for the Traditionalists, played a role in driving growth. However, the spectre of cost-of-living pressures cast a shadow over the spending patterns of Younger Millennials, with their yearon-year expenditure notably subdued compared to other age cohorts.

Category trends

Amidst this dynamic backdrop, all Categories, barring Cider, witnessed growth compared to the previous year. Notably, Wine emerged as a beacon of success, bucking a recent trend of decline and buoyed the Category with its robust performance, especially among younger demographics.

Generation Z

Beer

Generation X

Premix

Baby Boomers

Traditionalists Younger Millennials Cider $ %

Older Millennials Spirits

Top sub-categories contributing growth

A closer inspection reveals a medley of sub-categories that fueled growth, including the surge in demand for Light Premix, the rise of Midstrength and Low-carb Beers, and the enduring popularity of White and Sparkling Wines. This diverse array underscores the evolving palate of customers and the nuanced preferences driving market dynamics.

Key themes unveiled

1. Cyber Week brought sales forward

Despite soft consumer confidence, Endeavour outpaced Australian retail over the period, however followed the same shape with November outperforming December versus year ago - highlighting Cyber Weekend is officially becoming the kick-off to Christmas spending. This is further highlighted by the fact that the highest over-trading sub-categories during Cyber Week correspond with the highest over-trading subcategories during December.

Sales growth

Top over-indexing Categories during Christmas

Christmas Cyber Week

Ginger Beer

Gin

Premix Drinks - Vodka

Whisky

Aperitifs & Digestifs

Agave

Sparkling Wine

LiqueursMiniatures

Champagne Liqueurs

2. Social in house occasions dominated

Last Christmas was once again filled with social gatherings, with 60% of people claiming to have visited family or friends, whilst 46% had family or friends over to their house for a gettogether. Visiting or hosting family and friends popularised occasions with 1 in 5 customers frequenting a restaurant and/or pub.

3. Bubbles and beyond

The effervescent charm of bubbly resonated strongly with customers, with the Sparkling Wine sub-category witnessing an upswing in both volume and value, offsetting the impact of economic constraints on Champagne sales. Prosecco, in particular, emerged as a frontrunner, captivating audiences with its versatility and value proposition.

Q. What did you do over the Christmas period?

GenZ/Millennials (64%)

Females (56%)

GenZ/Millennials (64%)

GenZ/Millennials (42%)

GenZ/Millennials (23%)

Went

Source: Endeavour Christmas and New Year’s Gather Panel Survey January 2024

4. Shifting preferences of younger generations

An intriguing revelation surfaced in the realm of customer preferences, as Gen Z allocated more spend to Wine, while Millennials displayed a penchant for Premix offerings. This divergence underscores the evolving tastes and lifestyle choices prevalent among younger demographics, reshaping the narrative of Christmas.

Category Share & Share Change by Generation 6w to 26.12.23

Vodka Premix, Ginger Beer, Mid-strenth & Low Carb Beer common sub-cats gaining share across most generations.

Wine still dominating older and maintaining share

Positive signs of Gen Z recruitment into White and Sparkling Wine

Christmas Fast Facts

• Ginger Beer was the sub-category with the fastest growth rate over Christmas week growing at +40% slightly outpacing Premix Vodka (37%). This was driven by new customer growth.

• Spirits continues to be the destination Category for Christmas shoppers in December with sales double that of an average month in Dan Murphy’s and 1.5 times an average month in BWS. Christmas week was the biggest sales week in history for Spirits.

Spotlight: Limoncello

In a delightful twist, the zesty allure of Limoncello stole the spotlight, witnessing a meteoric rise in sales - almost doubling its sales over the Christmas period versus last year. Now, almost half the size of Aperitivo, it’s signalled a burgeoning trend towards citrus-infused alcoholic beverages and offers a refreshing alternative to traditional favourites.

• December 2023 was the highest ever month for Wine sales with Prosecco the fastest growing segment overall. Sweet wine was the fastest growing Wine segment across the Xmas / NYE period +16%.

Crafty customers

The evolution of Craft Beer

Craft Beer has undergone a remarkable evolution in Australia since its inception in the 1980s, when breweries in Fremantle kick started a movement that has since reverberated across the nation.

From the pioneering efforts of establishments like Little Creatures and James Squire to the recent surge of contemporary breweries, the Craft Beer sub-category has witnessed unprecedented growth, boasting double-digit expansion year after year for nearly a decade. This movement has empowered consumers to explore a myriad of flavour profiles within

the realm of Beer while embracing fresh, modern brands that often offer immersive on-premise experiences. Australian Craft Beer has not only redefined notions of quality and premium within the industry, but has also successfully carved out a significant share from international competitors. The onset

of the Pandemic further catalysed this growth trajectory, as consumers found themselves with more time and resources to invest in the discovery of new Beers.

Fast forward to the present day, and the Craft Beer sub-category has doubled in size since 2015. And although sales have tempered in the aftermath of COVID-19, they remain ahead of pre pandemic levels from 2019.

However, as the sub-category matures and grapples with ongoing cost-of-living pressures, some brands are exploring strategies to tap into the mainstream lager market as a means of sustaining growth. This begs the question: what truly defines a Beer as "Craft"?

Australian Craft Beer Sales EDG

Deciphering the Craft customer: the Millennial influence

The quintessential Craft shopper emerges as a demographic anchored within the Millennial cohort, a generation deeply intertwined with the rise of Craft culture. Coming of age during the zenith of the Craft Beer movement, Millennials have played a pivotal role in shaping the landscape of modern Beer consumption. This demographic segment tends to exhibit affluence, residing predominantly in urban centres such as Perth, Fremantle, Sydney's Inner West, or the northern precincts of Melbourne.

Western Australia stands as the base of the Craft Beer renaissance, boasting the highest proportion of Australian Craft Beer sales within the broader Beer market.

Notably, New South Wales also emerges as a significant contender, punching above its weight in terms of Craft Beer consumption and appreciation. This regional variance underscores the diverse and dynamic nature of the Craft Beer phenomenon, illustrating its resonance across varied geographic and cultural contexts.

Distribution Australian Craft Beer Sales by Generation

Customer Penetration of Australian Craft Beer by Generation

Deciphering the Craft customer

Key

State Index to Beer Channels

Exploring state flavour preferences

One of the most frequently asked questions we hear is how our customers’ taste preferences vary across different regions of the country. In response to this curiosity, we are thrilled to be able to share Beer style indexes categorised by state, shedding light on the nuanced palate preferences we’ve observed throughout the nation.

What we have seen is that state-specific flavour inclinations often reflect the influence of dominant local brands and their signature styles. For instance, the popularity of Summer Ale in Western Australia is intricately tied to the success of Gage Roads' Single Fin, showcasing the profound

impact that a brand can have in shaping and popularising particular Beer styles. Despite the diversity in taste preferences, Lager continues to maintain its reign as the preferred choice across all states, capturing the lion's share of Beer sales. However, South Australians and Western Australians exhibit a greater propensity for venturing into alternative Beer styles, signalling a burgeoning curiosity and openness to explore a wider spectrum of flavours beyond the traditional Lager. This evolving landscape underscores the dynamic interplay between regional influences and customer preferences within the Australian Beer market.

Lager

Pale Ale

Ginger Porter & Stout

Pacific Ale

XPA

IPA

Pilsner

Kolsch & Steam Ale

Sparkling Ale

Hazy Pale Ale & NEPA

Hazy IPA & NEIPA

Summer Ale

Mild Ale

Dark Ale

Amber & Red Ale

Wheat

Fruit Ale

Sour Ale

Tropical Pale Ale

Fruit Lager

Session Ale

Golden Ale

Belgian Ale

Brown Ale

Other Ale

ESB & Best Bitter

DIPA

Hazy DIPA

Total Beer - Style State Index

Understanding the Craft shopper repertoire

Craft Beer enthusiasts exhibit a multifaceted spending pattern, directing a significant portion of their budget towards various other Beer sub-categories.

Highly engaged Craft consumers, comprising the top 20% of customers, allocate approximately four times more spend towards Craft Beer compared to their more lightly engaged counterparts, presenting a substantial opportunity for premiumisation by encouraging increased involvement among less engaged Craft shoppers.

Style preferences among highly engaged Craft shoppers reveal a noteworthy deviation from conventional Lager-centric choices, with a deeper exploration across a diverse array of styles such as Pale Ale, Stout, and IPA. Conversely, lightly engaged Craft shoppers, representing the bottom 50% of customers, demonstrate a heightened preference for Lager and Ginger Beer, illustrating a distinct divergence in taste preferences. Moderately engaged Craft shoppers exhibit a particular affinity towards Stout, Pacific Ale, and Hazy IPA, showcasing a unique pattern of engagement within the Craft Beer landscape. This intricate interplay of spending habits and style preferences underscores the rich tapestry of the Craft Beer market, offering valuable insights into the nuanced behaviour of Craft Beer consumers across different segments.

Craft Shopper Share of Beer Spend

Highly Engaged Craft Shoppers

Other Beer

Moderately Engaged Craft Shoppers

Lightly Engaged Craft Shoppers

Australian Craft Beer

Australian Craft Shopper Sub-category Indexes

Over Indexing Categories

• Premium International Beer

• Premium Australian Beer

• Craft International Beer

• Stout

• Aperitifs

• Agave

• Champagne

• Red Wine

Under Indexing Categories

• Cask Wine

• Brandy

• Premix Rum

• Premix Bourbon

• Vodka Premix

• Mid-strength Beer

• Liquor Miniatures

• Fortified Wine

Australian Craft Shopper Beer Style Index

Lager

Pale Ale

Ginger Porter & Stout

Pacific Ale

XPA

IPA

Kolsh & Steam Ale

Pilsner

Sparkling Ale

Hazy Pale Ale & NEPA

Hazy IPA & NEIPA

Mild Ale

Summer Ale

Dark Ale

Amber/Red Ale

Wheat

Fruit Ale/Lager

Sour Ale

Tropical Pale Ale

Belgian Ale

Session Ale

Brown Ale

Other Ale

ESB & Best Bitter

Golden Ale

DIPA

Lemonade/Radler

Hazy DIPA

Highly Engaged Craft Shoppers Moderately Engaged Craft Shoppers Lightly Engaged Craft Shoppers

Embracing Lagerisation and the Hazy Pale trend continues

Over the past 26 weeks, the growth trajectory of Craft Beer has been significantly influenced by the popularity of Hazy Pale Ales and Lagers from Craft brands. Hazy Pale Ales, in particular, have demonstrated robust growth, maintaining momentum even within established product lines. Concurrently, Lagers have witnessed success as Craft brands delve into internationally beloved styles like Cerveza and Japanese Lager. A common thread between these styles is their placement within the accessible spectrum of bitterness, a pivotal characteristic that serves to broaden the appeal of Craft Beer and cater to a diverse range of occasions.

Balter Cerveza, spotlighted in the previous edition of Distilled, stands as a testament to this

trend, continuing to soar in popularity and inch closer to the stature of the current XPA signature product. This lighter, refreshing style of Beer adeptly leverages the semiotics of the beloved Mexican Lager, effectively attracting a new audience to the brand fold. Not only has it unlocked a fresh customer base, but it has also introduced a contemporary, sessionable product to the market, thereby driving premiumisation within the Category.

As suppliers navigate the landscape of evolving consumer preferences, the importance of offering accessible gateway products cannot be overstated. These products serve as vital conduits for onboarding the next generation of Beer enthusiasts while expanding the footprint of Craft brands within the vast segment of the market that currently favours Lager.

Pale Ale

Lager Pacific Ale

XPA IPA

Hazy Pale Ale & NEPA

Hazy IPA & NEIPA

Summer Ale

Tropical Pale Ale

Sour Ale

Wheat

Amber & Red Ale

Kolsch & Steam Ale

Porter and Stout

Session Ale

Golden Ale

Brown Ale

Australian Craft Beer Style % Growth, Last 26 Weeks

The power of local resonance

Local brand hotspots

In the realm of Craft Beer, specific locales have emerged as vibrant hotspots where local brands have made a significant impact within their communities, commanding between 10-40% of total Craft Beer sales. These hotspots typically encompass Local Government Areas (LGAs) characterised by affluent holiday destinations or bustling metropolitan regions, where the enthusiasm for Craft Beer is palpable.

In these areas, it's not uncommon to find multiple local brands vying for prominence within the top five Craft Beer brands, underscoring the depth of local engagement and support. The cooperative relationship between these brands and their communities fosters a sense of pride and connection, contributing to their collective success in the competitive Craft landscape.

Optimising local market potential

Given the paramount significance of locality and provenance in the Craft Beer industry, it's hardly surprising that 80% of sales stem from their

top 30% of stores, particularly for our top-performing hyperlocal brands. A recurring trend we observe is the diminishing performance of brands as they venture beyond their immediate local districts. This underscores the critical importance of adopting a sustainable distribution strategy. We advocate for our hyperlocal brands to prioritise their respective catchment areas, thereby ensuring maximum sales in regions where local resonance is most pronounced.

By concentrating efforts on nurturing, and leveraging local connections, these brands can capitalise on the robust support and affinity within their communities, fostering sustainable growth and lasting success.

Unlocking the art of Gifting: Liquor’s versatile role in celebrations

Gifting is an integral mission within Liquor, serving as a catalyst for premium experiences and broader customer engagement. During pivotal events in the calendar, such as Father's Day and Christmas, the significance of gifting amplifies, contributing to a substantial share of missions, reaching over 10%.

Liquor, across all categories, offers a versatile and thoughtful avenue for expressing gratitude and marking significant occasions. Whether it's conveying appreciation for hosting a dinner, acknowledging support, celebrating a promotion, or commemorating a milestone or birthday, a carefully selected bottle embodies sentiments worth cherishing.

Moreover, Liquor caters to a wide range of price points, ensuring accessibility for customers with various preferences and budgets. From a modest yet heartfelt Wine gesture to an exquisitely

aged Whisky for a cherished father figure, there's a product to suit every sentiment and occasion.

Throughout the year, gifting remains a consistent endeavour, comprising at least 6% of total missions on average. However, its momentum surges during key event periods, notably Father's Day and Christmas, with supplementary upticks during Valentine's Day and Mother's Day. This surge in gifting coincides with heightened sales in Dan Murphy's, attributed to the extensive product offerings and customer service.

In recent times, amidst economic pressures and evolving consumer behaviours, a shift towards experiential gifting has emerged - seen during Father’s Day 2023, emphasising meaningful connections over material possessions. While this shift presents challenges, it also underscores a distinctive opportunity for the Liquor industry to facilitate memorable experiences.

Major gifting occasions

Father’s Day

Father’s Day is a key occasion that marks the calendar for families across the country with 77% of Australians celebrating the day. Of those who celebrated in 2023, 74% went out for an activity compared 63% the year prior. Most commonly in the form of a casual meal with their family either in someone’s home or at a restaurant, both of which increased vs 2022.

As is typically the case, Red Wine, Whisky, Bourbon, Rum and Craft Beer were the sub-categories to most significantly over-index throughout the week and the greatest uplift came from our younger generations; Gen Z and Millennials.

While we saw week on week uplift, the Liquor market was not immune to physical gifting, leading to gifting missions dropping slightly, representing 6% of missions in September 2023 vs 7% LY. The aforementioned key subcategories also felt this softening, down on the prior year over this period.

Father’s Day over-indexing sub-categories

Index Sub-category

Fortified Wines

Whisky

Brandy

Bourbon

Stout

Craft Beer International

World Spirits

Rum

Red Wine

comprising at least 6% of total missions on average.”

to gift solution, only available at Christmas. Premium gifting segments like >$50 Whisky, >$75 Agave and >$35 Sparkling Wine were the best performers, while both Champagne and >$50 Gin fell short of last year, signalling a shift in customer preferences.

Christmas

Christmas is always a critical season for Liquor retail across the market as friends and families come together to celebrate and give gifts. Despite low consumer confidence and a reduction in discretionary spending in the broader economy, Christmas at Endeavour was hugely successful with Category growth across the board, and gifting holding flat vs LY.

Limited edition gifting lines performed particularly well, providing customers with a specially packed, ready

Christmas (6w) overindexing sub-categories

Index Sub-category

Champagne

Liqueurs

Liquor - Miniatures

Aperitifs & Digestifs

Sparkling Wine

Agave

Giner Beer

Premix Drinks - Vodka

Gin

Gifting Share of Total ED Missions

Cyber Week

Cyber Week has fundamentally altered the landscape of Christmas shopping, reshaping the way customers approach the festive season. With online shopping and the proliferation of enticing deals, Cyber Week has become a pivotal moment for consumers to commence their holiday shopping. This shift has ushered in a new era of convenience and accessibility, allowing customers to browse and purchase gifts from the comfort of their own homes.

The allure of exclusive discounts and promotions during Cyber Week has prompted customers to plan and strategise their purchasing well in advance, leading to a more organised and streamlined experience. As a result, Cyber Week has emerged as a cornerstone of the Christmas

calendar, exerting a significant influence on customer behaviour and retail trends.

In 2023, we saw customers, taking advantage of great deals on premium products, predominantly within Spirits and Wine. This surge in activity reflected a notable shift: while gifting missions accounted for only 7% of Endeavour shopping missions in 2022, this figure surged to 10% in 2023. This trend mirrors broader retail patterns and is expected to recur in the coming years.

Mother’s Day & Valentine’s Day

While both Mother’s Day and Valentine’s Day are secondary to Christmas and Father’s Day in terms of Liquor gifting, each of these occasions see a small uptick of key sub-categories with Brandy, Red Wine and Sparkling Wine all spiking. Valentine’s Day also saw Pre-Batched Cocktails, Rosé and Champagne all over-index. Further opportunity exists to build these events as truly additional alcohol gifting occasions to rival key weeks.

Becoming the home of gifting: What are the takeouts?

Wine

• Premium Red and Champagne will always be the cornerstone of Gifting

• Opportunities for Lighter styles as customer preferences shift

• Let’s look to broaden the occasion set for gifting across the year

Spirits

Everyday gifting

As liquor continues to intertwine with life's celebratory moments, the scope for gifting extends beyond traditional holidays, presenting a year-round opportunity for thoughtful expressions and shared experiences. In embracing this ethos, we pave the way for a more sociable future, where every toast becomes a testament to friendship and connection.

• Every product is a gift - let’s look at how we shape marketing around this

• Nailing customers’ perceived value in our gift packs and aligning to bottle price

Everyday is an opportunity to gift. Let's excite our customers and become the home of everyday gifting.

In the News

Partnered with Pride

Sydney’s Gay and Lesbian Mardi Gras events attract thousands of people from across the globe, celebrating all LGBTQ+ individuals, espousing freedom, harmony and connection bolstered by the support of their allies.

It also shines a light on some of the issues faced by LGBTQ+ people and presents practical ways to help those who need it most.

This year, Endeavour Group partnered with Squealing Pig wines, Little Creatures Brewery and Absolut Vodka where each $1 from every product sold across their selected range in March was donated to the Pride Foundation Australia (PFA).

The donation will be used to fund PFA programs that assist vulnerable LGBTQ+ people, who are refugees, facing issues of mental health and homelessness as well as those experiencing a level of disability.

Achieving Equity

Achieving equity in the workplace is something we strive for, and we are proud to have been recognised in the inaugural Workplace Gender Equality Agency (WGEA) Employer Gender Pay Gaps Snapshot. The report looks to publish median gaps for base pay and total remuneration, for more than 5,000 companies with more than 100 employees.

We are proud to say that our median total remuneration pay gap is 0.7%, which places us within the top 5 ASX-listed companies to fall close to gender pay parity.

“We are a business that thrives on inclusion, and this recognition provides a wonderful opportunity to celebrate the energy, ideas and drive that talented women bring to our business at all levels,” said Endeavour Group Chief People Officer, Alison Merner.

“Gender balance in leadership roles is also one of our priorities. In F23, we became a signatory to the 40:40 Vision, an initiative led by HESTA and supported by industry partners that strive for diversity in executive leadership in ASX 300 companies.

“Women hold 43.5% of senior management positions at Endeavour, up 2.5% since our full-year results report six months ago as a reflection of our focus on our female talent pipeline.”

What a nomination!

The Dan Murphy's MyDan’s program has been named as a finalist in the Australian Loyalty Association's Asia Pacific Loyalty Awards for best loyalty program in the grocery and beverage category.

The program has 5.2 million active members and offers a range of benefits including exclusive member offers, inviteonly events and first to know access to the latest drops. Unlocking great value, all from the palm of your hand!

Dan’s Diner

We’re giddy with excitement to have partnered with Australia’s biggest and best food and drinks festival in 2024. The world-renowned Melbourne Food & Wine Festival is a program of 200+ events that tell the story of Melbourne and Victoria as a global food and drink capital.

With so many Victorian drinks suppliers lining our shelves, Dan Murphy's is a proud champion of the local industry and serious about showcasing our brilliant producers.

Enter Dan’s Diner: a 1950s-style diner with a hefty 2024 twist, that popped up

in Federation Square during March. This full-service restaurant and bar served up an exclusive menu from four of Australia’s leading culinary talents – all named Dan. Expect show-stopping food from chefs Dan Hunter (Brae), Dan Puskas (Sixpenny) and Daniel Wilson (Yakimono), and inventive cocktails from bar legend Dan Docherty (Commis). And, of course, a drinks list by yours truly featuring Dan Murphy’s best and buzziest independent Victorian producers. Plus, every afternoon from 3pm the Dan’s Diner bar transformed into a Discovery Zone. Customers could also find local suppliers chatting from behind the bar, telling their stories and sharing their tasty drinks.

Engagement Windows: Getting your products in

front of our teams

Engagement Windows are a time that our Category Managers have set aside to review product submissions. During the submission review, they will work with you on the correct instore date based on product availability. You can review Engagement Window timings at any time within the Supplier Dashboard.

Please note, with our agile review process, and to enable speed to market on the most exciting products, the in-store dates are not necessarily tied to the Engagement Window dates.

We also encourage you to continue to share any of your most exciting and innovative products with your Category Managers as they are developed, even if outside of a published Engagement Window. To submit these products please complete the New Product Submission form.

Please note that Engagement Window timings may change based on alterations to our ranging plans.

When are the Engagement Windows for my Category?

Find out when to submit your products by viewing the Engagement Windows on our Supplier Dashboard.

How do I submit products outside of these Windows?

To submit a product outside of our Engagement Windows please fill out our New Product Submission form.

Directory

Leadership Team

Beer & Cider

Name Position Email

Tim Carroll Director - Merchandise & Buying tim.carroll@edg.com.au

Karly Georgiou General Manager - Merchandise Transformation, Range & Customer Value karly.georgiou@edg.com.au

Gill Webb Head of Beer & Cider gill.webb@edg.com.au

Georgia Stott Category Manager, Trading - Beer & Cider (BWS) georgia.stott@bws.com.au

Darren McKenzie Category Manager, Trading - Beer & Cider (Dan Murphy’s) darren.mckenzie@edg.com.au

Billy Ryan Category Manager, Customer Discovery billy.ryan@edg.com.au

Jody Liddle Category Manager, Range - Commercial, Craft, Local & Cider jody.liddle@edg.com.au

Hugh Smith Assistant Category Manager, Range - Local Craft Beer & Cider (EG) hugh.smith@edg.com.au

Nerissa Budynek Category Manager Strategy and Commercial Beer & Cider nerissa.budynek@edg.com.au

Spirits & Premix

Name

Sarah Hall Head of Spirits & Premix sarah.hall3@edg.com.au

Michael Vagli Category Manager, Trading - Glass & Premix (Dan Murphy’s) michael.vagli@edg.com.au

Fahime Durbali Category Manager, Trading - Glass & Premix (BWS) fahime.durbali@edg.com.au

Hamish Fyfe Category Manager, Range - Dark Spirits (EG) hamish.fyfe@edg.com.au

Finlay Gustus Category Manager, Range - Light Spirits (EG) finlay.gustus@edg.com.au

Stephanie Petracca Category Manager, Range - Premix (EG) stephanie.petracca@edg.com.au

Chris Schepers

Complementary Categories

Wine Commercial

Assistant Category Manager, Range - Local Spirits & Premix (EG) christopher.schepers@edg.com.au

Lance Friedman Category Manager, Complementary Categories (EG) lance.friedman@edg.com.au

Leigh Firkin Head of Commercial Wine leigh.firkin@edg.com.au

Mathew Young Category Manager, Trade - Wine (BWS) mathew.young@edg.com.au

Kristina Poljak Category Manager, Range - Wine (BWS) kristina.poljak@edg.com.au

Ben Lafford Category Manager, Red Wine & Cellar (Dan Murphy’s) ben.lafford@edg.com.au

Darren Leivers Category Manager, White, Rose, Zero Alc & Cask (Dan Murphy’s) darren.leivers@edg.com.au

Tim Yu Category Manager, Champagne, Sparkling & Fortified Wine (Dan Murphy’s) tim.yu@edg.com.au

Jonathan Froggatt

Wine Fine Wine

Assistant Category Manager, Range - Local Wine (EG) jonathan.froggatt@edg.com.au

Andrew Shedden Head of Fine Wine andrew.shedden@edg.com.au

Ian Wolfe Category Manager (EG) - WA & SA ian.wolfe@edg.com.au

Tim Merrett Category Manager (EG)NSW, VIC, QLD & TAS tim.merrett@edg.com.au

Nicholas Rose Category Manager (EG) - Imported Wine nick.rose@edg.com.au

Ramon Gunasekara Senior Category ManagerLangton's ramon.gunasekara@langtons.com.au

eCommerce Team

MixIn by Endeavour

Name Position Email

Eleni Hatzigrigoriou Category Manager, eCommerce (DM’s) eleni.hatzigrigoriou@edg.com.au

Camille Singh Category Manager, eCommerce (BWS) camille.singh@edg.com.au

Sarah Linhart Category Manager, Subscriptions (EG) sarah.linhart@edg.com.au

Martyn Raab General Manager - Retail Media martyn.raab@edg.com.au

Rhiannon Hart Production & Compliance Manager rhiannon.hart@danmurphys.com.au

Steve Jones Supplier Partnerships Manager steve.jones@edg.com.au

Liz Toohey Supplier Partnerships Manager liz.toohey@edg.com.au

Jarrod Holt General Manager, Commercial jarrod.holt@edg.com.au

Harriet Wischer Head of Beverages harriet.wischer@edg.com.au

ALH Hotels

Sam Stroud Category Manager, Trade samuel.stroud@edg.com.au

Ryan Kimball Category Manager, Range ryan.kimball@edg.com.au

ALH Merchandise Team merchandisingteam@alhgroup.com.au

Merchandise Assistants - Merchandise Assistants egmerchassist@edg.com.au

Marketplace - Marketplace Team partner@endeavourmarketplace.com. au

Product Data & Content - Product Data Team product.data@edg.com.au

Back Issues

EDITION 1

MARCH 2021

Feature articles

• It’s a generational thing

Read Now

EDITION 3

OCTOBER 2021

Feature articles

• Peek into the future with leading trends

• Interview with Claire Smith, Director endeavourX

Read Now

EDITION 5

MARCH 2022

Feature articles

• A Christmas retrospective

• Innovation within industry

EDITION 2

JULY 2021

Feature articles

• Get to know our premium customers

• Low and no goes mainstream

Read Now

EDITION 4

DECEMBER 2021

Feature articles

• Making magic with Marketplace

• Building social brands

Read Now

EDITION 6

JUNE 2022

Read Now

Feature articles

• Supplier of the Year Award winners and finalists

• Insights Report: Moderation

Read Now

EDITION 7

SEPTEMBER 2022

Feature articles

• MixIn: Our retail media business

• Christmas F22: Predictions

Read Now

EDITION 9

MARCH 2023

Feature articles

• Rethinking retail through design

• Investing in our hotels

Read Now

EDITION 11

SEPTEMBER 2023

Feature articles

• Find out how our categories scored in F23

• How to prepare for Xmas

Read Now

EDITION 13

MARCH 2024

Feature articles

• The evolution of Craft Beer

• Behind the scenes of our Premix Range Review

Read Now

EDITION 8

DECEMBER 2022

Feature articles

• Introducing Dan’s Daily

• Why sustainability matters more than ever

Read Now

EDITION 10

JUNE 2023

Feature articles

• Celebrating our Suppliers of the year

• Importance of media

Read Now

EDITION 12

DECEMBER 2023

Feature articles

• BWS delivers on Ultra Convenience

• Key to Dan’s ecommerce strategy

Read Now