Top Ten in Ten - trending industry news stories for the quarter

T P TEN

IN TEN

HERE’S A QUICK TEN-MINUTE READ OF THE TOP TEN TRENDING ONLINE DRINKS TRADE STORIES FOR THE PAST QUARTER

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Words Ioni Doherty

1. CUB CEO RETIRES AFTER 25 YEARS

Posted 27 July 2021 Asahi Beverages has announced that Peter Filipovic will retire from his position as CEO of Carlton & United Breweries (CUB), with new leadership of the division announced later this quarter. By the time he retires, Mr Filipovic will have worked with the business for 25 years, successfully integrating CUB into Asahi Beverages in June 2020. Mr Robert Iervasi, Group CEO of Asahi Beverages, said, “Peter has played an important role in the smooth integration of CUB and the continued growth of our business. He has given great service to CUB and Asahi Beverages.”

2. DIAGEO WINS SUPPLIER OF THE YEAR

Posted 5 August 2021 Diageo has been named Supplier of the Year at the annual 2021 Australian Drinks Awards. It was also awarded the Category Management Award. Impressively, it is the second year in a row in which Diageo has received both awards. The Supplier of the Year Award means that Diageo has the highest “Net Favourable” result from the combined total retail/ wholesale network across all the important aspects of business engagement. A high Net Favourable result means the supplier has the biggest difference between having “Promoters” in the industry, or those retailers who rate the supplier as best or better than average, less the “Detractors”, those retailers who rate the supplier as worst or worse than average.

3. KEG CREDITS FROM CUB

Posted 9 August 2021 As lockdowns persist and COVID case numbers grow, CUB has announced a ‘keg for credit’ return scheme in Greater Sydney, while the ATO has lifted excises on takeaway beer and cocktails for venues facing difficulties due to COVID-19 restrictions until 31 October. Good news for locked-down pubs and patrons supporting their local venues.

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4. LION’S $6 MILLION INVESTMENT KEY TO SUCCESS IN NON-ALC CATEGORY

Posted 18 August 2021 James Squire has entered the alcohol-free market launching James Squire Zero as an addition to its core range. Lion installed a $6 million de-alcoholising plant at Toohey’s Brewery in Lidcombe last year to realise this ambition. Imported from Germany, it uses thermal distillation to remove alcohol post brewing to maintain flavour and body. Anubha Sahasrabuddhe, Lion Marketing Director, says, “James Squire is expanding its offering with bold innovation, using really advanced technologies to brew quality, fullflavoured non-alcoholic beer.

5. LION’S FREEDOM DAY BEER

Posted 29 July 2021 Leading brewer Lion will join forces with Marrickville craft brewer Batch Brewing Co to produce a special limited-edition beer to mark Freedom Day – an initiative launched by the clubs’ industry to celebrate the day NSW meets the vaccine threshold. Earlier this month by Josh Landis, CEO of Clubs NSW and Australia, called on the NSW Government to name the percentage of vaccinations needed across the state that would enable life to return to normal. He pledged that Clubs NSW would serve up a free beer for anybody fully vaccinated on the day that percentage is reached.

6. TWE RETURNS TO PROFIT

Posted 19 August 2021 Treasury Wine Estates has reported an EBIT of $510.3m, returning to profit even with the $77.3m decline from losing China. Reflecting growth of 3 per cent, it seems this is thanks to TWE taking immediate action. The company changed its strategic direction as soon as the MOFCOM investigation was launched in China a year ago and shifted to a brand portfolio divisional operating model, significantly reducing overheads for the business across all markets. And the aggressive pursuit of new market opportunities, particularly in America. TWE’s new operating model came into effect on 1 July with Penfolds, Treasury Premium Brands and Treasury Americas, each charged with the ambition of making TWE the most admired wine brand in the world.

7. CONTRACT LAW RULES SUPREME

Posted 5 August 2021 The High Court has overturned the Federal Court ruling in the WorkPac Vs Rossato case in a unanimous decision which will serve as a great relief to employers who now have a solid definition of what it is to be a ‘casual worker’. The High Court ruled that a casual is ‘an employee who has no firm advance commitment from the employer as to the duration of the employee’s employment or the days (or hours) the employee will work and provides no reciprocal commitment to the employer’. Previously, the Federal Court had ruled that as mine worker Mr Robert Rossato was given regular, ongoing shifts up to a year in advance, he should have been classified as a permanent worker and awarded the associated benefits like annual leave and sick pay.

8. SEPPELTSFIELD CELEBRATES 170 YEARS WITH LUXURY COLLECTION RELEASE

Posted 30 July 2021 Seppeltsfield is internationally renowned for its fortified wines, highlighted by the Centennial Collection – the world’s only unbroken lineage of single vintage Tawny dating back to 1878. However, since gaining full ownership of its trademark in 2017, Seppeltsfield has moved towards this new chapter, expanding its range of still wines. Today, Seppeltsfield celebrate the unveiling of their annual luxury collection of wines with the launch of a special 170th Anniversary release from the Barossa estate’s icon vineyard – 2020 Great Terraced Vineyard Barossa Grenache. The release aligns with the winery’s strategy towards premiumisation and expanding its distribution reach globally.

9. SYDNEY BREWER OFFERS SLAB FOR JAB

Posted 3 August 2021 As Sydney barrels into its seventh week of lockdown, and with vaccination rates below target, Hawke’s Brewing Co has put aside 250 cartons as an incentive to Sydneysiders to ‘get the jab’. The initiative comes after NSW Premier, Gladys Berejiklian, called for August to “be the month we break records and vaccinations”. On Tuesday, Ms Berejikilian said that she wants 6 million jabs administered across New South Wales by the end of August.

10. DISTILLERS’ INSIGHTS INVITED INTO EXCISE REFORMS

Posted 5 August 2021 Distillers have welcomed the invitation from the Australian Government for the industry to contribute ideas on how to streamline excise for beer and spirits. Since the Government’s Deregulation Taskforce’s participated in initial consultations with more than 40 businesses and industry leaders to gain a ‘factory floor’ perspective of their day-to-day operations, they have identified common concerns and time consuming and complex regulatory requirements.

Australia’s Top 25 Bartenders 2021

Australia’s Top 25 (T25) Bartenders 2021 has been announced, with the winners publishing the ultimate ‘how to make cocktails like the pros’ book.

The T25 Bartenders represent some of the most iconic venues in the country, many unfortunately in lockdown. The publication not only showcases our Top 25 and their immense talent but supports them and their community with 100% profit from book sales going directly to bartenders.

Keep an eye out this November for the bartenders showcasing their creative talents behind the bar (lockdowns permitting); you can try their delicious drinks and buy a copy of their book to show your support.

THE TOP 25 (BY STATE)

NEW SOUTH WALES • Evan Stroeve: RE • Natalie Ng: Door Knock • Alex Gilmour:

Cantina OK! • Sarah Mycock: Old

Mate’s Place • Adam Dow: The Ivy • Chau Tran: Burrow Bar • Antonello Arzedi: Coogee

Pavilion / Wills

QUEENSLAND • Zach Mynott: La Costa • Millie Tang: The Gresham

SOUTH AUSTRALIA • Grace Rawlins: Memphis

Slims House of Blues

WESTERN AUSTRALIA • Dean Buchanan:

Long Chim/Clarences • Emma Crisp: El Grotto • Shirley Yeung:

Foxtrot Unicorn VICTORIA • Darren Leaney: Aru • Nick Tesar: Bar Liberty • Alex Boon: Pearl Diver • Kayla Saito: Capitano • Emma Cookson: Whisky and Alement • Indra Saryani: 18th

Amendment Bar • Kayla Reid: Nick & Nora’s • Hayden Lambert:

Above Board • Cara Devine: Bomba

AUSTRALIAN CAPITAL TERRITORY • Olivia Kelly: Bar Rochford

NORTHERN TERRITORY • Anneliese Grazioli: Hanky

Panky Lounge • Alex Johnston: Smoke & Oak

SUPPORT THE INDUSTRY PRE-ORDER YOUR COPY AT WWW.EXPLOREDRINKS.COM EMAIL: ORDERS@EXPLOREDRINKS.COM

Off-Premise Sales Soar To Meet ‘At Home’ Cocktail Demand

IRI Australia’s new research has revealed that shoppers have turned to indulge at home with off-premise liquor spending soaring. Alistair Leathwood, Chief Commercial Officer, Asia Pacific, IRI®, recently released research that identified key trends in shopper behaviour during the pandemic. Particularly the link between off-premise liquor purchasing and indulgence in grocery purchasing habits.

“Our research shows that the COVID-19 pandemic initially prompted an increased focus on self-care, but as always, all is never quite what it seems in the world of wellbeing. Instead, we saw a fine line between self-care and indulgence, with off-premise liquor spending surging by $3.2 billion in the past 12 months,” Leathwood said.

“Shoppers used their time during the pandemic to create aspirational and memorable moments at home. If they were not able to get on a plane and travel to the Bahamas and sit by the pool indulging in Pina Coladas, or pop out to a fancy new cocktail bar in town to sip on a mixologist’s latest creation, they devised those experiences in their living room instead.

“As a result, we saw a clear increase in the volume of alcohol consumed at home. In fact, in the last 52 weeks, an additional 190 million litres of alcohol beverages were purchased by shoppers in Australia. This isn’t an existential threat to the health and wellness industry but something brands should undoubtedly be aware of.

“The increase in alcohol consumption manifested in different ways. Many shoppers used funds otherwise spent on outside-thehome indulgences to purchase more expensive brands of alcohol. They bought up, putting their money towards higher-priced options. They also experimented more with different brands and types of mixes and cocktails.

“Not only did shoppers consume more, they spent more. They added more options to their shopping basket, different flavours and varietals. While alcohol is linked to socialisation, relaxation and stress relief, shoppers used more of their time at home to bring the benefits of the outside world in – they wanted to continue to access everyday experiences even if they had to create them themselves. This also reflects the closure of bars and pubs throughout lockdowns; literally forcing drinking to occur within the home.

The total Australian Retail Liquor industry is worth $21.9 billion in 2021. The annual dollar growth is recorded at 17.3 percent, and annual volume growth as 11.2 percent.

“Retailers play an important role in supporting people through COVID. So, ensuring indulgent items, such as alcohol and nonalcoholic alternatives, are available and in plentiful supply for consumers is key,” Leathwood added.

eBev helps with reopening ‘Credit Crunch’

The direct impact of COVID on the profitability and sustainability of the industry has been discussed. yet the challenges of re-opening have not been fully considered.

In 2021, both NSW and VIC went into lockdown in the quietest time of the year: winter. According to eBev’s 6-year historical trade data June is an 80% month, (100% being average across the year), however 2021 June was only at 60% across both the on and off premise. Both states expect to come out of lockdown at the busiest time of year, in addition to the expected pent up in demand, this could become the perfect storm generating a capital crunch. Venues without stock and cashflow need to fill their cellars. Suppliers with little or no income for 45 days or longer, with a reduced confidence that venues will be able to pay, yet wanting to supply their venues with more stock, all generate a squeezing of the market and working capital.

For the on-premise, the first three months of re-opening look daunting: 1. Most venues will have some cashflow issues, which will mean little money to restock in addition to backdated bills 2. Additional venue reopening costs, cleaning of lines, venue cleaning, rostering of staff all add additional cash flow burden 3. Suppliers held stock will likely to go quickly, but will then have to pay for more stock to supply venues before the cash arrives from the initial orders

Founded in 2015, eBev has facilitated over 90,000 orders through the platform and facilitates over $150 million of annual orders. The new eBev Trade service guarantees payment to suppliers within three days and aims to reduce credit risk whilst enabling beverage businesses to grow as beverage ordering, invoicing, and payments are consolidated into the platform.

Ian Harris, CEO of eBev, said, “the huge hit by COVID to the on-premise beverage market on both the venue and supplier side cannot be understated. eBev Trade will assist businesses to get back on their feet quicker with improved cash flow and limited risk in selling to venues that are themselves struggling to get back to normal trading.”

The eBev platform aims to be the go-to ordering beverage tool, while also supporting the supplier and venue relationship. Ian Harris, “eBev looks to strengthen the Supplier/Venue relationship with all ordering, invoicing, financed payment options and data entry reduction through accounting and beverage systems integration. The platform aims to make business easier for both sides.” eBev Trade has recorded a robust growth in 2021 despite COVID headwinds, onboarding over 1,500 venues nationwide with over 150 brands now selling via eBev Trade.

LIMITED EDITION RELEASE

WHY STOCK POOLSIDE?

No-low beer forecast +16% vol GAGR 2020-2024.

76% of consumers intend to maintain or increase consumption of no-low alc

65% of consumers want to discover new no-low alc offerings Poolside is a hop-fest of a beer that fuses tropical flavours to bring that wave of intensity you get from a double dry-hopped IPA. It’s truly a summer thirst quencher of a beer.

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