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Australian Distillers Association
UNLEASH THE POTENTIAL
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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 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
Gala Dinner MCs Hamish Blake and Wippa with Stu Gregor-Australian Distillers President
Distillers’ members. Senior Process Associate at BECA, James Ludford-Brookes, presented the ins and out of the Toolkit and how it teaches distillers to avoid mishaps working with highly flammable liquids while giving them peace of mind.
The line-up of experienced and knowledgeable industry leaders offering advice and opening discussion on the future of the Australian distilling industry and its potential included the CEO of Pernod Ricard Australia, Bryan Fry, Simon Jones and Adem Karafili from Top Shelf and Simon Jones, director of Canterbury Partners.
Delegates also heard from Greg Holland, chief executive of Spirits and Cocktails Australia, and the Keynote Speaker was the effervescent multi award-winning motivational speaker and author Holly Ransom.
Bryan Fry said the whisky maturing in barrels waiting for release will be critical for increased recognition of the Australian spirits industry globally. Where Australia is going to live and die, he said, is through the whisky market. “Gin is great, vodka is great, and rum, but great distilling nations are all known for their whiskey, such as Scotland, US, the Japanese, so whisky will be important.”
He also advised distillers not to underestimate the power of taste. “Taste is everything and what you do collectively as an industry: how you work the barrels, the stills, and the grain. The second is packaging and people.”
Fry referenced Malfy Gin from Italy as flying off the shelves “because it sold the Italian Mediterranean lifestyle with awesome packaging.” He encouraged distillers to stand out from competitors with packaging and taste.
Simon Jones advised on setting up a business from the outset with a vision for realising financial gains for the future and thinking about the exit strategy before you start. He was instrumental in delivering advice to Four Pillars on the partial sale to
Lion, of which co-founder Stuart Gregor thanked him publicly for his invaluable guidance.
Adem Karafili discussed his experiences as Chairman of publicly listed business Top Shelf International Holdings Ltd and his wealth of business experience, including seven years establishing Swisse Wellness before it was sold in 2015 to H&H Group for just under US$1.7 billion.
Karafili talked about the trajectory of Top Shelf International (TSI), an Australian
premium spirits company with brands Ned Whisky, Grainshaker Vodka, and in the pipeline, Australian Agave Spirit. TSI began in 2015 with the idea to create a spirit to compete with the American Jim Beam and Jack Daniels, and by 2021 it was listed on the ASX. During that time, the founders raised $122 million of capital, $83 million deployed and $112 million in assets.
His advice to new spirit businesses is to participate in spirit categories that deliver scale and opportunity, build brands that own a distinctive position in the category and invest in growth before revenue and in assets that allow you to compete on quality, scale and efficiency. He also stressed the importance of building your brand, referencing strong sponsorships and partnerships with events to create awareness.
Peter Campbell, director of Export Vision, spoke about the potential for export and how to apply for government grants to be at a competitive advantage. He referenced the UK’s position on spirit exports being worth US$100 billion. Campbell said the industry offers huge potential for exports. He has assisted exporters for 35 years, and the blue sky for the Australian distilling industry in export is just ready for mining.
Finally, Tim Carroll, GM Merchandising at Endeavour Group, John Ross-Jones, Beverage Operations Manager at The Lucas Group and Mairead Jarrett, Category Manager, Boozebud, spoke on navigating the retail channels of off-premise, onpremise and online, respectively.
The event’s highlight was inducting legends of the Australian spirits industry into the new Hall of Fame at the Gala Dinner hosted by Hamish Blake and Michael ‘Wippa’ Wipfli. Delegates toasted 30 years of Australian craft whisky with a collaborative blend of whisky sourced from 36 of Australia’s leading whisky distillers and blended by Bill Lark.
The first inductee was the late great Raymond ‘Spike’ Dessert the Third, owner of Hoochery Distillery and founding member of the Australian Distiller’s Association.
Tasmanian whisky legend Bill Lark was second. He established Lark Distillery with his wife Lyn in 1992 and is also a founding member of the Australian Distiller’s Association. Bill is fondly known as the ‘Godfather of Australian Whisky’.
The third inductee was former co-owner, manager and head-distiller of Sullivan’s Cove and whisky legend Patrick Maguire. He raised this brand from obscurity and turned it into an internationally recognised award-winning whisky. He recently launched Maguire and Co. Bottlers and Distillers.
Lastly, the fourth recipient was Cameron Syme, the owner of three of Western Australia’s most internationally acclaimed distilleries, the Great Southern Distilling Company in Albany, Giniversity in Margaret River, and Tiger Snake Distiller Porongurup. His spirits have been awarded over 150 medals and trophies in international competitions over the past 14 years.
Announcing the inductees, Stuart Gregor said, “The industry is now at a point where we can replicate the remarkable wine boom of the 1980 and 90s when Australian winemakers began to win global acclaim and created an exporting powerhouse.
‘We think it is time to acknowledge and celebrate the significant contributions of the members who were there at the beginning of the revitalisation, who can take so much credit for what the Australian spirits industry is today.”
Paul McLeay said, “It was fantastic to come together as an industry after two years of COVID disruptions, to celebrate how far we have come and to contemplate our future and opportunities to grow.
“The enthusiasm to ‘unleash the potential’ from the 400 distillers who attended the conference was nothing short of spectacular. The professional development and networking opportunities provided through the conference have laid strong foundations to continue work to ensure the safety, sustainability and growth of our industry throughout 2022 and beyond.”
As part of the conference schedule, Victoria’s recently awakened hospitality was on show, with an energetic opening reception at Starward Distillery and informative regional tours to the Bellarine Peninsula, Yarra Valley, Mornington Peninsula and Macedon Ranges.MP
Gin is great, vodka is great, and rum, but great distilling nations are all known for their whisky, so whisky will be important
- Bryan Fry, Pernod Ricard Australia.
EXPLORE THE DARK SIDE OF CIDER
SOMETHING IS WAITING IN THE DARK, A WORLD FULL OF UNKNOWN ADVENTURES READY TO BE EXPLORED. THE ONLY WAY TO DISCOVER IS TO FIND OUT FOR YOURSELF.
