Australian Spirits
UNLEASH THE POTENTIAL AUSTRALIAN DISTILLERS ASSOCIATION
Conference 2022 Review
IN APRIL THIS YEAR, THE AUSTRALIAN DISTILLING ASSOCIATION (ADA) HELD ITS ANNUAL CONFERENCE AT THE PULLMAN IN MELBOURNE. THE SPECTRE OF COVID DIDN’T DETER THE RECORD-BREAKING 400 PLUS DELEGATES ATTENDING, UP FROM 18 AT THE FIRST ADA CONFERENCE SEVEN YEARS AGO. HOW FAR THE INDUSTRY HAS COME IN LESS THAN A DECADE. LOCAL CRAFT DISTILLERS HAVE IRREVERSIBLY CHANGED THE LANDSCAPE OF SPIRITS IN AUSTRALIA, AND THE WAVE CONTINUES TO BUILD. THE CONFERENCE’S OVERARCHING THEME WAS APPROPRIATELY NAMED “UNLEASH THE POTENTIAL.” MELISSA PARKER REPORTS. The Australian distilling industry is experiencing unprecedented growth. Over the past ten years, it has grown from 28 distillers in 2014 to over 400 distillers today, producing everything from gin and vodka to rum and liqueurs. That’s three times the number in Scotland The Executive Summary Report in the ADAs 2022 Pre-Budget Submission states the economic contribution of the spirits industry in Australia in 2018-19 was $11.6 billion in total value add. It supports 52,900 jobs directly and 51,600 indirectly, and 65% is operational in regional Australia. The tourism dollar is also a significant factor. Almost 121,000 international tourists visited a distillery in 2019, while domestically, that figure was 500,000. Australian spirits are doing well in export. From 2011-12 to 2018-9, the value of local spirit exports rose 284% to $267
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million, equivalent to the average annual growth of 21%. Australian spirit exports represent 9.5 times the value of beer exports. But the real boom is waiting to happen because the industry is hamstrung by the disproportionate tax, the third-highest spirit tax in the world. The annual excise paid by the industry is $3.6 billion per year. The ADA is calling on a fair and sustainable tax to unleash the industry’s full potential, creating jobs, stimulating investment, and increasing exports. The atmosphere at the conference was one of palpable collegiality. The support for each other and the collective commitment to the local spirit industry will prove a strong foundation for its future success. The themes were safety, new releases, innovations in market, professional and trade development and industry insights. It also proved a welcomed opportunity after two years of
harsh pandemic restrictions to meet with other members of the industry and exchange ideas and build relationships. After welcomes from President Stuart Gregor and Chief Executive ADA, Paul McLeay, delegates heard from the first speaker Adam Pinkard. Pinkard, owner and founder of Adam’s Distillery, gave a moving presentation on the lessons learned from fire that engulfed his distillery and almost claimed the life of one of his workers. It was an avoidable mistake that ended in tragedy and highlighted the importance of staff training and understanding the risks. Thankfully investors have enabled Pinkard to rebuild his distillery and keep the brand alive, but the journey for this distiller has been extremely tough. The Adam’s Distillery tragedy led headline sponsor BECA to develop the BECA Safety Toolkit for Australian
