the drinks association | February 2017
Wishing everyone a Happy Australia Day! We hope you enjoy a relaxed celebration with family, friends and a glass of your favourite Aussie beverage. We’re also looking forward to hearing the results of the Hottest 100 Aussie Craft Beers for 2016 poll, which will count down on January 26. Echoing Triple J’s Hottest 100, the countdown started in 2008, and is now a fully-fledged, publicly voted celebration of Australian craft beer. Run by the GABS Beer, Cider & Food Festival, and supported by The Local Taphouse, Crafty Pint, Australian Brews News and Dan Murphy’s, the poll attracts thousands of beer fans who vote for their five favourite Australian craft beers of the year. According to Brews News: “Every year on Australia Day, the results never fail to delight, shock and even outrage people, from the casual beer quaffer to the geekiest beer-spreadsheet keeper.” Voting in the Hottest 100 closes today and the results will be displayed via a web feed on Australia Day from 12.30pm. Good luck to all our members!
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ll the latest drinks data on cider, spirits, wine and RTD on page 28.
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Oh, and here’s a tip for thirsty readers in the Hunter Valley: Murray’s Brewery will be celebrating Australia Day with an “Australiana” long weekend from January 26 to 29, with a special lamington beer being brewed for the occasion!
hopper Tracker presents its State of the Nation report at Network Brekkie, page 7.
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ate change for the 2017 Australian drinks Awards, page 10. Page 1
the drinks association | February 2017
Calls for global ban on alcohol advertising Science journal Addicition has called for a global ban on alcohol advertising during live sports, saying it’s damaging young people.
industry self-regulation programs.”
A supplement funded by Alcohol Research UK and the Institute of Alcohol Studies contains 14 new reports that suggest current controls “appear ineffective” in blocking the association between youth exposure and subsequent drinking.
Alcohol Beverages Australia executive director Fergus Taylor hit back in a statement issued to AdNews: “Anti-alcohol activists have been trying for years to blame alcohol advertising as the cause of underage drinking, but the inconvenient truth for them is this claim is simply not supported by official data.”
AdNews notes: “Australia operates a strict selfregulation environment for alcohol advertising, which all major advertisers sign up to, however this is being called into question. Australian advertisers are governed by the The Alcohol Beverages Advertising Code (ABAC) Responsible Alcohol Marketing Code, which complements Australian legislation, the AANA Code of Ethics and media-specific codes relevant to the placement of marketing.
“The suggestion current controls in place are ineffective and that further regulation is needed in Australia to curb underage drinking are wrong. Current regulations to protect children are highly effective, and there is compelling data to support this. Underage drinking is in steady decline across the country and has been for some time. The fact that this decline has occurred during a period of increased alcohol advertising is a clear indication that regulations in place work, and work well.”
“The ABAC code has specific terms relating to responsibility towards minors, and ads may not appeal to minors; depict a minor or an adult under 25.
He outlined the “vigorous and successful” regulation of alcohol advertising in Australia, including robust guidelines, codes of ethics, state and territories licensing as well as a responsible drinking initiative DrinkWise which the industry fully supports.
“The reports call for governments around the world to strengthen alcohol advertising regulations and believes alcohol advertising should be statutory and enforced by a public health agency.” Chris Brookes of the UK Health Forum, says: “Governments have previously approved selfregulatory measures on alcohol advertising; however, we can no longer say that they might work to protect our young people – they don’t. In a literature review of more than 100 studies, none were identified that supported the effectiveness of
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“Without question, continuing downward trends in underage drinking is an important national responsibility, requiring a combination of education and strict enforcement on underage sales, and the alcohol industry is committed to ensuring this continues to occur.” A spokesperson for the AANA agreed, saying: “All the available evidence shows that responsible advertising neither causes people to drink to excess nor does it contribute to the problem of underage
the drinks association | February 2017
drinking. In both cases, peer norms and parental example are by far the greatest influences on when and how young people drink.” There have been recent moves to curtail alcohol advertising in Australia.
because after alcohol, it will go after sugar and fatty foods. Then it will move from outdoor, to radio to TV. “What’s concerning about the decision by the SA government is it seems to be based on flimsy information from the Alcohol Review Board, which was created by the anti-alcohol movement.
Fears were expressed in August that a ban on alcohol advertising on public transport in South Australia “They aren’t supported by the government and they aren’t transparent. They try to demonise alcohol as a would extend nationwide. product and make responsible drinkers ashamed.” Fergus Taylor told AdNews he was concerned the vilification of alcohol ads had begun. Outdoor Media Association CEO Charmaine Moldrich said: “The proposed ban is very disappointing as “The health advocacy industry needs a dragon to slay there has been no consultation with the industry or their money dries up,” he said. “It’s concerning on the issue and the decision to ban is based on the Page 3
the drinks association | February 2017
recommendations of the Alcohol Advertising Review Board (AARB), which is a self-appointed group against all alcohol advertising. “This ban has been proposed without providing research to demonstrate that it will be of benefit to the community and without consultation with the industries that will be impacted.” A Diageo spokesperson added: “Instead of banning advertising on buses, the SA government should instead look at education and awareness of the risks associated with underage drinking. These are proven measures which have led to a significant decline in underage drinking over the last 15 years.” The move in South Australia follows the ACT government announcing in 2015 that it planned to stop alcohol, junk food, gambling and weapons being advertised on Canberra’s ACTION buses. Minister for Territory and Municipal Services Shane Rattenbury said the ban was prompted because a significant number of passengers on the buses were school children. Rattenbury told The Canberra Times he had taken the decision to restrict advertising for products or industries that are “either damaging to the health of the population or environment or that promote weapons.” The ban has yet to proceed.
Pictured left (from top): Alcohol Beverages Australia executive director Fergus Taylor; an Absolut Vodka ad on the side of a bus; Outdoor Media Association CEO.
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the drinks association | February 2017
Supporting the Australian Open 2017 Tennis Australia CEO and tournament director Craig Tiley welcomed the drinks industry’s support for the Australian Open Tennis Championships 2017, held in Melbourne from January 16-29. Jacob’s Creek has been a partner of the Australian Open since 2006, and has returned with its atmospheric Jacob’s Creek Wine Garden. Club Aperol (top), the Canadian Club Racquet Club and Coopers Beer Garden are also refreshing spectators. Coopers became the first Australian beer to sponsor the Australian Open this year. Tiley said the brewery was “a perfect fit for the Australian summer of tennis”. “We’re delighted to welcome Coopers, an iconic and much-loved Australian brand, to the Australian Open family,” he noted. “The Australian Open is not just about world-class tennis, it’s a fantastic social event … and Coopers is a great match for the relaxed Aussie atmosphere our fans love.” Campari Australia’s Managing Director, David Halliday, said the tennis was a great fit for his brand too: “The Australian Open is one of the most watched tennis events in the world and one of the country’s social events par excellence, whilst Aperol is a brand that also embodies freshness, celebration, and sociability.” Kristy Rathborne, Canadian Club brand manager, said: “Historically, when the Australian Open kicks off in January it always turns out to be a couple of the hottest weeks of the year - the perfect time for Aussies to enjoy a refreshing CC.”
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the drinks association | February 2017
Have you subscribed to the Brand Quarterly Spend Snaphot reports? These one-page executive summaries are tailored to help you stay up to date on your drinks category across beer, cider, RTDs, spirits and wine. They include multi-year trends on category ad spend; top 5 spending brands by media type including TV, radio and print; ad spend at campaign level to understand the multiple messages currently in market; and the top 10 products by spend for the given quarter. the drinks association initially provided the quarterly reports as a 12-month trial as a provided service to members. However, like all businesses, we are facing increasing costs and to continue providing the reports we’ve implemented a fee-based structure. The yearly cost is just $475 + GST. We’ve included a sample of the latest total alcohol category snapshot below to give you a taste of what they offer. Interested? Contact Kathy Sloan on (02) 9415 1199 or kathys@drinks.asn.au Category Snapshot – Q4 2016
Total Alcohol Category Q4 – $16M Beer accounted for 52% category spend in Q4, as lead advertiser CUB holds 30% of top 15 brands Top 15 Alcohol Brands (Q4 2016)
$000’s
FTA TV* , Press, Radio
RADIO
$4
$3
PRESS
$3.0m
$2
TV
$1.6m
$1.5m
$1.3m
$1.3m $715k
$1
$711k
$609k
$570k
$388k
$362k
$340k
$221k
$257k
$216k
$0 Q4 saw significant growth within Cider and RTDs categories, with Cider spend reaching it’s highest point in 4 years
$MM
Total Alcohol category (Q4 2016)
$25
Beer
Spirits
Wine
RTDs
Cider
2016 Q3
2016 Q4
$20
$15 $10 $5 $0
2013 Q1
2013 Q2
* FTA Only includes all major metro channels.
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2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
2015 Q4
2016 Q1
2016 Q2
the drinks association | February 2017
Network breakfast The State of the Nation 2017
Shopper Tracker managing director Simon Ford will present the 2017 State of the Nation report at the drinks association’s Network Breakfast on March 22. Shopper Tracker provides independent and objective metrics of shopper behaviour and needs/perceptions in the off premise. It covers occasion and mission, category role, path to purchase, point of purchase, decision hierarchy, consumption metrics and shopper profiling. Each year, 17,100 shoppers are interviewed, with a “State of the Nation” report produced at the end of each period. It’s designed to help you understand who your shopper is, what’s important in their choice of product and retailer and where to invest to maximise engagement in your brands. DATE: Wednesday, March 22, 2017 TIME: 7.15am-9.15am LOCATION: Crystal Ballroom, Luna Park, Sydney
Click here to book Page 7
the drinks association | February 2017
Australia’s top drinks companies for 2016 It’s great to see four of the drinks association members were among Australia’s top 10 food and drink companies for 2016.
1. Fonterra remained No.1 - $10b ahead of its nearest rival - on the list of top food and beverage companies by revenue generated ($16.58b)
Australia’s Top 100 Australian Food & Drink Companies 2016 report, produced by Food & Drink Business in collaboration with IBISWorld, provides an up-to-the-minute snapshot of the fortunes of the nation’s largest food and beverage companies.
2. Coca-Cola Amatil moved up the list from No.3 ($5.2b)
It revaled the top performer in the drinks industry was Coca-Cola Amatil, followed by Lion Nathan, TWE and CUB.
4. JBS Australia - the country’s largest meat processing company - remained steady at No.4 ($4.6b)
Here’s a quick look at the companies that made the top 10 in 2016 and how that compares to the 2015 results:
5. Distributor Bidvest rose from No.7 ($3.1b)
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3. Lion Nathan moved down the list from No.2 ($4.8b)
6. Australia’s second largest meat processing
the drinks association | February 2017
company, Teys, remained steady at No.6 ($2.9b) 7. Murray Goulburn fell from No.5 position ($2.8b) 8. Ingham’s remained steady at No.8 ($2.5b) 9. Treasury Wine Estates moved up from No.13, to replace George Weston Foods in No.9 ($2.4b) 10. Carlton & United Breweries moved up from No.12, to replace Nestle in No.10 ($2.3b) However, The Sydney Morning Herald notes there is supplier apprehension about the Australian supermarket industry which, according to Morgan Stanley, is one of the most concentrated in the developed world. The top two chains hold more than 60% market share, and the top three almost 80%. “It estimated last year that Woolworths had the highest food and liquor market share (above 30%), followed by Coles (below 30%), and then IGA (below 15%), Aldi (about 10%) and Costco (less than 5%).” The profitability of Woolworths and Coles peaked in the 2015 financial year, but rising competition and deflation have since dented the profitability of the big two chains. “Suppliers are concerned about the potential consequences of a December court ruling that Woolworths did not act unconscionably by demanding as much as $60 million from suppliers to plug a profit shortfall.” Gary Dawson, chief executive of the Australian Food and Grocery Council, which represents packaged food, drink and grocery manufacturers, said then that it would be “pretty appalling if it [the ruling] were seen as a green light to do the same thing again.”
Applications open for WID mentoring program The inaugural Women in drinks Mentoring Program 2017 kicks off on February 14 with the opening of the application process. Additionally, HR representatives of participating companies will meet for an information session. The program, in association with Serendis, is a structured mentoring program for the Australian drinks industry, specifically women who are looking to progress their careers to leadership level. The six-month experience will include interactive workshops, facilitated group discussions with mentors, and a matching process with mentees and mentors that will result in 6-8 subsequent meeetings for participants To register your organisation’s interest and received detailed information about the program and application process contact Bianca Havas on (02) 9371 2910 or at bianca@serendis.com.au. Among the other diary dates for February ... Women in drinks council meeting on February 1, in the Sonar Room, Luna Park, Sydney. HRD forum on February 14, in the Sonar Room, Luna Park, Sydney. Credit forum on February 15, at William Grant and Sons, North Sydney. General Counsel/Legal Forum, February 22, at CCA
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the drinks association | February 2017
How trade credit insurance helps businesses grow the drinks association’s corporate partner, NCI, has created a new Trade Credit Insurance video that explains how trade credit insurance works and the benefits it provides to businesses. “Most businesses in the drinks industry would insure their buildings and equipment, but wouldn’t consider protecting one of their largest assets, the debtors ledger,” says NCI’s Daniel Mackintosh. “Even the most rigorous and disciplined credit management cannot prevent bad debts.
“Naturally, there is increased risk when exporting goods overseas. NCI specialises in finding solutions to ensure all businesses are best covered from export and political risk.” View the video by clicking here.
Date change for the Australian drinks Awards Due to a conflict of industry events, the drinks association has changed the date of its annual Australian drinks Awards ceremony to Thursday, September 7, 2017. The Awards were initially scheduled for Wednesday, September 13, 2017. However, the annual IBA conference is being held the week beginning September 11, 2017. “In the interest of industry collaboration and to ensure both events receive maximum attendance, the drinks association has amended the date for the 2017 Australian drinks Awards,” said the drinks association CEO Sandra Przibilla. Please be sure to note the new date in your diaries. Exciting details about the AdAs will be revealed soon.
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the drinks association | February 2017
news Brown-Forman’s amazing 5-year ANZGOG partnership Women in drinks isn’t the only industry supporter of Australia New Zealand Gynaecological Oncology Group (ANZGOG). While ANZGOG was recently announced as WID’s charity partner for 2017, Brown-Forman’s resource group GROW (Growing Remarkable and Outstanding Women) has been a long-time fundraiser for the organisation. GROW is dedicated to providing tools, education, and a clear perspective for women as they work to achieve their desired potential within Brown-Forman. Through skill building, mentoring, and information sharing workshops, GROW leverages opportunities to showcase Brown-Forman as a desirable place for women to work. “ANZGOG improves the outcomes and quality of life for women with gynecological cancers and we felt this was a perfect fit for GROW,” says Shelly Silberman, Commercial Insights Manager, Brown-Forman Australia. “We considered a wide range of organisations to support and put the decision in the hands of all of our employees. The vote was overwhelmingly in support of ANZGOG from women and men across our business. When the GROW team unanimously voted ANZGOG our charity of choice back in 2012, we held a golf day engaging our sales team, customers and suppliers, raising $15,000 in one day ... mostly blokes opening their wallets and hearts for the women in their lives.” GROW has supported ANZGOG for the past five years and raised more than $41,000 for the organisation. Fundraising initiatives have included colour runs, ANZGOG’s GO Step for Gynae campaign and Comedy for Cancer Downunder.
Leading female staff members also participate in ANZGOG’s Women of the Roundtable and many volunteer at major events. “Recently we supported the Save the Box campaign, where our team participated in the installation of boxes in Martin Place,” says Shelly. “Each of the 1750 boxes represented a woman who had died of a gynaecological cancer within the last year. The fact that $1500 puts a woman with a gynae cancer on a clinical trial for a year is very tangible for our employees. We challenge ourselves at each event to see how many women we can put on a trial. It’s very satisfying and rewarding.” According to ANZGOG’s Julijana Trifunovic the partnership is very important to ANZGOG and the members. “We are very thankful for their commitment and interest in helping women with a gynaecological cancer. ANZGOG also provide a presentation to the staff annually about gynaecological cancer and the research they are doing.”
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the drinks association | February 2017
WID brings diversity & inclusion to life
Women in drinks has announced details of the panel discussion to be held at its International Women’s Day event on March 8, at Doltone House, Pyrmont. The discussion - ‘Bringing diversity and inclusion to life’ - will follow the keynote speech of Mia Freedman, a journalist, author, activist and co-founder of Mamamia, the largest independent women’s website in Australia. Mia was named one of Australia’s 100 Most Influential Women by the Financial Review and is a former chair of the federal government’s Body Image Advisory Board. She remains a passionate campaigner for more diversity in the way the media portrays women. the drinks association Chairman Ralph Dunning will moderate the discussion, while the panellists will be Michael East, Deputy CEO of Accolade Wines; Martin Smith, Managing Director of Endeavour Drinks Group; Jane Hill, Talent and Change Director at Lion; Denis Brown, Managing Director of Bacardi Martini and Chair of the Diversity & Inclusion @ Drinks Council; Jennifer Collins, Global Marketing Activation Director of Pernod Ricard Winemakers and WID councillor; and Kylie Fraser, CEO of Bevchain. Among the topics the panel will be covering are where responsibility lies for promoting greater gender diversity in leadership roles, cultural barriers to diversity in the drinks industry, and how companies can empower women to lead. The discussion will kick off at 3pm and will be followed by networking at 4pm.
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the drinks association | February 2017
Kylie Fraser, CEO, Bevchain With a life-long career in freight and logistics, and the last 20 years in key management roles, Kylie joined BevChain in 2011 as the CEO. Kylie’s passion as a leader has seen her transform the business - increasing bottom line by almost 40%, and growing BevChain to twice its size in her first four years as the CEO. Kylie takes pride in finding new talent who she can grow and develop into future leaders in the industry. Michael East, Deputy CEO, Accolade Wines Michael joined Accolade Wines in 2012. His experiences in the industry have included Global Sales and Marketing Director at Lion Wine; Managing Director, Southcorp Wines; and Sales Director, Pernod Ricard. Before being appointed Deputy CEO in 2016, Michael was the General Manager, Australia, NZ and The Pacific of Accolade Wines. He has worked in Australia, Europe, North America, Asia and New Zealand. Martin Smith, Managing Director, Endeavour Drinks Group Martin Smith has more than 45 years experience in retail, with his most recent appointment to Managing Director of Endeavour Drinks Group – formerly Woolworths Liquor Group in March 2015. Martin was Dan Murphy’s General Manager from 2008 to 2015 and has brought his experience and operational excellence to senior roles with FAL, Wesfarmers and an independent supermarket chain. He is also a board member of ALH Group. Jane Hill, Talent and Change Director, Lion Jane joined Lion in 2003 as Global Marketing Director for its wine business. With over 20 years’ experience in marketing, sales and HR; Jane has built brands in Australia, the UK, the US and New Zealand in businesses including KFC, Pfizer Pharmaceuticals, SchweppesCottee’s, Southcorp Wines and Lion. In her current role, Jane is responsible for ensuring Lion continues to lead the way on talent, attracting and retaining a diverse workforce. Denis Brown, Managing Director, Bacardi Martini; Chair, Diversity & Inclusion @ drinks Denis Brown has more than 20 years of liquor industry experience. He spent eight years working overseas - in London as Global Brand Director RTD at Smirnoff, in the Czech Republic as Country Manager, and in Malaysia as GM Marketing with the Diageo/Heineken joint venture Guinness Anchor Berhad. He returned to the Australian drinks industry in 2006, where he is currently Vice Chair of DISCA, and Chair of Diversity & Inclusion @ drinks. Jennifer Collins, Global Marketing Activation Director, Pernod Ricard; Councillor, WID Jennifer Collins drives market activation of a global portfolio of Pernod Ricard Winemakers’ premium wine brands across 75 markets. She brings to her role more than 20 years experience across the FMCG, pharmaceutical and liquor industries, working in senior sales, marketing, trade development and strategy roles. Jennifer has been an Alternate Director of the drinks association since 2013. She is passionate about the industry and the opportunities we have to advance in the areas of diversity and inclusion.
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the drinks association | February 2017
The woman leading China’s winemaking revolution
Chinese wine is finally gaining traction with critics around the world and one of the most revered winemakers is Emma Gao, from Silver Heights in the Ningxia province. Gao, 40, is a certified oenologist whose father urged her to travel abroad and study winemaking at Bordeaux University. She later worked at Château Calon-Ségur, where she met her husband Thierry Courtade, who was winemaker at the estate. She returned to China in 2004 to work at several industrial wineries, but became frustrated by how hard it was to produce quality wine. Her father suggested she return to her home town of Yinchuan, the capital of Ningxia, and begin winemaking at the small vineyard he’d planted 20 years ago in the shadow of the city’s apartment blocks. Her first vintage was released in 2007 and praised by both domestic and international wine experts. Jancis Robinson recalled on her website: “It seemed so much
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better, more concentrated but gentle in texture, than any other Chinese wine I had tasted before.” Robinson was also impressed to meet Gao in 2012, noting “I travel widely around the world of wine but I honestly think that Emma Gao, despite the obvious paucity of financial backing, is the most naturally vivacious wine producer I have ever met.” However, making wine in Ningxia can be incredibly challenging. In 2014, Gao explained to Drinks Business: “While we’re on the same latitude as Bordeaux, the climate here is continental. We are in a very dry desert region with annual rainfall of just 200mm, compared to evaporation of 1600 mm! A real problem that requires us to drip irrigate. “The advantage of such an environment is that none of the vine diseases can develop there; we therefore don’t use any pesticide. The temperature difference is great between summer and winter: 37°C to -25°C.
the drinks association | February 2017 It is therefore necessary to bury the vines in winter, which has the effect of reducing the growth cycle.” Despite its harsh climate, there are hopes Ningxia will become the region that comes to mind as making the best Chinese wines, in the same way people know the Napa Valley makes the best wines in the United States and Bordeaux makes the best wines in France. There are now 207 registered wineries in Ningxia compared with just one in 1983. And Gao is the region’s jewel in the crown. “She’s considered the best winemaker, with practically the best wine, in all of China,” Gérard Colin, a French consultant who helped Château Lafite Rothschild develop a winery in China, tells The New York Times. “Emma put Ningxia on the map.” Silver Heights receives regular orders from the local government, which is proud to serve wine produced a world-class vineyard in its own province, as well as top hotels and restaurants throughout China. Gao’s initial urban vineyard had trouble keeping up with demand, so a second property was purchased and planted near Helan Mountain in 2012. It’s become the place that Gao feels happiest. She explains her idea of bliss as “a beautiful clear summer day, when you can smell the scent of the pagoda trees and see the magnificent Helan Mountain rising over the surrounding green fields.” While Gao initially focussed her attention on producing reds - her ‘Emma’s Reserve’ Cabernet Sauvignon and Bordeaux blend ‘The Summit’ are among the most prized Chinaproduced reds - the winery recently expanded its range to include a Chardonnay. The first vintage of the Family Reserve Chardonnay was an instant success and even received 91 points from famed wine critic Robert Parker. As for the future, Gao tells Drinks Business: “We are on the verge of a big launch in Hong Kong (more news to come soon!), and it seems that the world is finally catching on to the great wines that are being produced in China. “We’re finding our terroir and our place in the world, and that is very exciting and invigorating for me.”
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the drinks association | February 2017
Meet the diversity&inclusion@drinks council
Chairman Denis Brown (Bacardi-Martini) and co-chairs Lucy Nandi (Lion) and Ashley Powell (Moet Hennessy).
Hamza Jinwala (Taylors Wines)
Adam Trewin (Spirits Platform) Page 16
Sarah Nichols Cathi Scarce (Coles (McWiliams Wines) Liquor Group)
Jeff McKenzie (Pernod Ricard)
Angela Burgum (TWE)
Rod Pritchard (ALM)
Georgia Lennon (Accolade Wines)
Sally Byrne (CocaCola Amatil)
the drinks association | February 2017
Michelle Phipps (Brown Forman)
Matthew Taylor (Yalumba)
Bradley Madigan (Campari)
Shane Bulluss (Brown Brothers)
David Segreto (McWilliams Wines)
Scott Burton Jennifer Collins (Australian Vintage) (Pernod Ricard)
Geraldine Joanes (Diageo)
Derek Raney (Taylors Wines)
Melanie Cooper (Coopers Brewery)
Prue Andrews (Bacardi-Martini)
Leila Watts (Beam Suntory)
David Stingl (CUB)
Andrew McNamara Cynthia Fernandez (Brown-Forman) (ALM)
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the drinks association | February 2017
Managing religious diversity in the workplace Does your workplace have a policy in place for religious diversity? Here are some tips to consider. Encouraging religious diversity enriches a company by bringing different viewpoints to the workplace. It’s also an increasingly practical consideration for employers. The most recent census data shows increasing religious diversity in Australia with the number of people reporting a non-Christian faith now accounting for 7.2%, up from 4.9% in 2001. The Human Rights Commission also notes: “It is against the law to discriminate against anyone in the workplace because of their actual or assumed religious belief or activity. “Employees are protected from discrimination at all stages of employment including recruitment, workplace terms and conditions and dismissal.
under annual leave, carer’s leave or other types of personal paid or unpaid leave for religious holidays.
“Religious belief means holding, or not holding, a religious belief or view that is not against the law. Religious activity means taking part, not taking part or refusing to take part in a religious activity that is not against the law.”
Include major religious and cultural holidays on a calendar to help set work schedules.
Tolerance and acceptance of religious views is worth the effort it takes to create an inclusive environment. Here are four ways to ensure your company is accepting of religious preferences.
Encourage employees to accept differences and be open to finding common ground. Also encourage parties with religious differences to discuss their faith and problems in a safe environment, away from other workers, so that they may come to a better understanding of one another. Avoid overreacting to simple issues that may arise, but adopt a zero-tolerance policy for severe issues. Employees need to know what kinds of behavior will not be tolerated and that action will be taken immediately if problems between employees occur. If they have been properly trained and educated on company policies, there is no excuse for severe religious issues between employees.
1. Offer training to employees on religious diversity It’s important all staff are aware of what is acceptable in terms of discussing and accepting differences of faith in the workplace. 2. Provide time off for religious reasons Be flexible with religions that require worship to be offered at specific times, even though it may interfere with a work day or year. Be mindful that Christian religious holidays, such as Christmas and Easter, are offered as paid holidays, while those for other religions are not. Leading practice employers usually allow staff to apply
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3. Adopt a zero-tolerance policy for religion-based bullying
4. Build an inclusive environment Consider creating a “quiet room” or “reflection room” in the workplace. Make sure to describe it in those terms, rather than a “prayer room”, as it’s more inclusive for nonreligious people who may meditate or need a space for private reflection. Having a quiet room on-site also has the advantage of minimising time away from the workplace.
the drinks association | February 2017
3 easy ways to learn more about the drinks association’s services the drinks association has created a series of videos and infographics highlighting how we can help you. the drinks association Learn more about the drinks association and the services it offers. Click here to view the infographic.
drinks bulletin Keep you finger on the pulse of the whole industry with our weekly drinks bulletin. Click here to view the infographic.
drinks trade Want to know what the drinks trade magazine can do for you and your business? Click here to view the infographic.
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the drinks association | February 2017
Meet the drinks staff’s in-house baker - Alison Herring When Alison joined the drinks association last year, we had no idea she was a passionate baker. She even has her own Facebook page, The Cakes Woman’s Weekly Rejected, to showcase her talents. Her baking career was born in 2001 when she started working for an organisation that was going through a cultural change as it transitioned from being government-funded. “In an effort to build team morale, a colleague and I were given the responsibility of being ‘Monthly Birthday Morning Tea’ coordinators, with the strict instructions to keep costs down. So we decided we’d make the cakes ourselves,” Alison recalls. “Keen to impress, my first few cakes looked like average homemade cakes, but as I became more comfortable in my role, I ignored basic baking principles and the presentation of my cakes descended into what can at best be described as culinary mishaps. “As I presented the cakes to my co-workers, there was an air of anticipation and wonderment, ‘could it really be as bad as last month?’ We’d all have a chuckle and my fellow coordinator and I would laugh as we cleaned up, as there were never any leftovers. “Then motherhood hit and I was exposed to the world of competitive cake making, where a weary mother living on three hours sleep and icing mixture presents a glorious theme-appropriate construction, only for it to be destroyed in a matter of minutes.” Her first effort was the pink elephant cake from The Woman’s Weekly Birthday Cake Book for her
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daughter’s 3rd birthday party, “I pulled the cake out of the oven just as the first guest arrived, and went straight into icing it. What resulted can only be described as a runny mess. I thought it was funny until audible gasps reverberated around the room when I put it on the table. “A day later, when I picked Camille up from preschool, my embarrassment cleared when the teacher told me Camille had a great party and could not stop talking about the pink elephant
the drinks association | February 2017
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the drinks association | February 2017
Left: Noxi shows off her birthday creation - we’ll let you off the hook, it’s a sink full of soapy water ... because Noxi is very strict about plates being rinsed before they go in the dishwasher. Right: Alison models the T-shirt that inspired another of her kids’ birthday cakes.
cake. Ever since, my focus has been on the intention rather than the execution. This has the added fun of people having to guess what the cake is, not to mention the fact I’m really not interested in being pedantic about its presentation.” Alison also puts a lot of thought into theming her cakes with something that resonates for the birthday boy or girl. “I have learnt from my early basic baking mistakes, sticking to packet mix cakes and outsourcing decoration to my seven-year-old twins. I consider myself to be the creative director and try to steer clear of the icing as much as possible.” (She does admit her efforts have made one of her
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daughters cry two years running when she’s seen her birthday cake.) So it was only natural that Alison would become the drinks association’s official staff birthday cake creator. Her first effort was to celebrate member liaison officer Kathy Sloan and general manager Hope McMurdy’s joint birthdays last November. Kathy and Hope had just been to the Melbourne Cup, so Alison decided to whip up a “birdcage” themed cake. Since then, birthdays are always eagerly anticipated in the office because they will involve another of Alison’s unique creations. We’ve pictured some of her most obscure cakes on page 21. Can you guess what they are? (Answers on page 27.)
the drinks association | February 2017
What our associate members can do for you ... A guide to the services provided by the drinks association’s associate members. AMA AMA Commercial Collections is an Australian owned and operated enterprise that has served credit managers since 1977. It provides a full range of services and products including debt recovery, trade bureaus, credit consulting, credit insurance and information services. Click here to learn more. BevChain BevChain provides national tailored supply chain solutions for the beverage industry across Australia with ‘best-in-class’ warehouse and distribution services. Click here to learn more. Brand Promotions Brand Promotions is the biggest, best and most cost-effective supplier of almost any promotional product you can think of. It also specialises in designing an entire campaign to help build your brand and dominate your market through gift with purchase, custom made products and high volume orders. Click here to learn more. Core Element Core Element is a specialist boutique FMCG recruitment and careers business that recruits sales, marketing and general management roles across the grocery, liquor, foodservice and pharmaceutical sectors. The company combines contemporary functional and organisational credentials and the ability to engage a rich, diverse network. Click here to learn more. Fix Convenience Fix offers tailored solutions for system management, processes and efficiencies, category management, promotional program management, marketing programs & collateral management, retail support and merchandising, space planning, pricing, audit program management, data collection and analysis & reporting, product advice and product to market advice. Click here to learn more. Hip Media Hip Media is a specialist, mid-sized publisher dedicated to meeting your marketing and corporative objectives. Hip creates publications that communicate with customers, members or stakeholders in an informative, entertaining and inspirational voice; specialising in print and digital content in the B2C and B2B sectors. Click here to learn more.
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the drinks association | February 2017
IRI IRI has the world’s largest set of consumer, purchase, media, social and mobile data, igniting growth for clients in the FMCG, retail and health sector. Whether it’s analyzing how to make your assortment, pricing and promotions more profitable, tailoring media strategies, or guiding you through new product or market planning, IRI helps grow your business. Click here to learn more. Kegstar Kegstar is an asset pooling business specialising in stainless steel kegs used to transport beverages. It collects empty kegs from venues and then redeploys them to other customers in the pool. Each keg is uniquely identified and tracked as it moves through the supply chain. Click here to learn more. Mondo Search Mondo Search provides executive search and recruitment services across a range of industries in Australia, including direct selling, digital/ direct marketing, drinks, FMCG, franchising/retail and hospitality. Mondo offers tailored recruitment services through its Sydney and Melbourne consultancies, and has national and international affiliates through The Worldwide Recruiting Network. Click here to learn more. Powerforce Powerforce is part of the Blueprint Group, which works with retailers and manufacturers to help unlock value for them through its integrated range of data, sales and marketing solutions. Powerforce and Blueprint’s CCS offer a full range of sales and marketing solutions through brand names such as Extravert, Retail facts! and Ausrep; and Retail Insight. Click here to learn more. The Advantage Group Advantage is the industry leader in B2B performance benchmarking. The success of its performance benchmarking program - Advantage Report - has expanded to over 39 countries. Clients look to Advantage for insights into strengthening their business relationships within channels including Ecommerce, grocery, pharmacy, food and healthcare. Click here to learn more. tic technologies tic technologies provides custom internet & CMS solutions. tic’s team is available at all times, providing ongoing complimentary support. Its powerful, yet easy to use CMS can be extended to multiple, independent web sites. When you need quality web technology, strategic marketing and support; think tic technologies. Click here to learn more.
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the drinks association | February 2017
Veritas Events Established in 1992, Veritas Events is a Sydney-based group of event planners specialising in creative solutions for corporate functions, conferences, incentive programs, team building and special programs. Veritas Events’ constant innovation creates unique experiences that both your business and your clients will always remember. Click here to learn more. BARSCAN BARSCAN delivers insights into the on-premise liquor trade. BARSCAN for Venues takes the hassle out of retrieving data from your POS, delivering a simple way to understand and analyse sales, margins & profit performance. BARSCAN delivers insights into trends, trading dynamics, occasion dynamics and promotions in the on-premise liquor trade. Click here to learn more. Coffee School Coffee School offers Australia’s best hospitality training courses, including Barista Coffee Art Courses, Bar & Cocktail Courses, RSG/RCG Courses, & RSA Courses, White Card Courses and First Aid Course Training in Sydney, Melbourne, Brisbane & Perth. Click here to learn more. Ebiquity Ebiquity helps brands exploit the evolving marketing landscape to achieve business success. The company provides customised data analytics, online tools and consultancy services. It recommends optimisation strategies to improve clients’ performance throughout the consumer path to purchase, drawing on its unique expertise and objective data insights. Click here to learn more. GS1 Australia GS1 is a leading global organisation dedicated to the design and implementation of global standards and solutions to improve the efficiency and visibility of supply and demand chains. The GS1 system of standards is the most widely used supply chain standards system in the world. The company’s specialties are barcodes, EPC, GDSN, eCom, MobileCom, AIDC, traceability and supply chain standards. Click here to learn more. JEM Computer Systems JEM provides Information Communication Technology (ICT) management and support for small to medium organisations. It offers 24-hour, 7-day-a-week remote support, ICT Project Management, software auditing and licensing
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the drinks association | February 2017
compliance, regular system health reporting and proactive monitoring, disaster recovery planning and data back-up services, domain and DNS management, system integration, service and virtualisation, and hardware. Click here to learn more. Mainfreight As a global supply chain business with over 240 branches around the world, Mainfreight offers sophisticated logistics solutions in and out of the most dynamic economies. The company also offers specialised warehousing and distribution solutions. Click here to learn more. NCI Established in 1985 as a specialist trade credit insurance broker, NCI has grown to become the leading trade credit insurance broker throughout Australia, New Zealand and Asia. NCI focusses on protecting its client’s profitability - while credit insurance is the ultimate safeguard against bad debts, better business practices in trade credit management can also help to improve profitability on a day to day basis. Click here to learn more. StayinFront StayinFront provides complete, mobile, cloud-based sales force automation (SFA) and customer relationship management (CRM) solutions that empower its customers to work more efficiently, know more about their business and performance and sell more effectively. Click here to learn more. Nielsen Nielsen helps companies understand what consumers watch and buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across video, audio and text. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Click here to learn more. Blue Star Blue Star is Australia’s leading provider of integrated print, display, personalised communications, promotional products, warehousing and logistics services. The company partners with customers to deliver on their communication needs, ranging from a specific product or service through to a seamless integrated solution. Click here to learn more.
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the drinks association | February 2017
Touchstone Executive Search Touchstone has been helping clients secure the best senior executive talent since 2003. The company advises major Australian and multinational companies on senior appointments across the Asia Pacific region. Through research and global network relationships Touchstone builds deep industry background and behavioural knowledge, which allows it to deliver high caliber shortlists quickly and efficiently. Click here to learn more.
Let us know what you’re up to in 2017 We look forward to another productive year with our associate members. We appreciate the support you offer to the drinks association and its members. We’re thrilled to be working with you in 2017. Please touch base with Sarah Fairburn at sarahf@drinks.asn.au if you have any news to share about your business with our members. Do you know a company that would make a great associate member of the association? Tell them to call our Member Liaison Kathy Sloan on (02) 9415 1199 or email on kathys@drinks.asn.au
Did you guess the cakes? Just in case you were having trouble guessing the inspiration for drinks staffer Alison Herring’s cakes on page 21, here’s her rundown ... Top left to right: slingshot, hairbrush, rice paper roll Middle left to right:elephant, bubble bath, salsa (the birthday person liked to salsa dance. As you can see there are corn chips around the edge …) Bottom left to right: Birdcage, chicken tikka masala (no one wanted to eat that cake. I think they thought there might have been some sort of curry flavour involved), pot of moisturiser Don’t forget to check out her Facebook page, click here.
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the drinks association | February 2017
Below is an excerpt from our December monthly report; to access more information like this, contact us on 02 9415 1199.
RTD SALES FOR DECEMBER 2016 18 JANUARY 2017
MAT Sales in RTD Rise
MAT sales in the domestic RTD market were slightly higher in December 2016 than in December 2015 with 22,643,603 cases sold for the former compared to 22,598,810 for the latter.
MAT 2015/16
25,000,000
MAT 2014/15
24,500,000 24,000,000 23,500,000 23,000,000 22,500,000 22,000,000
21,500,000 (9L cases)
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
Dec
Figure 1: Moving Annual Total ('MAT') sales of RTD in the domestic market
Bourbon Standard and Bourbon Premium continue to dominate domestic RTD sales with 24.24% and 25.55% of the market respectively. Bourbon Standard Bourbon Premium Rum Dark Vodka Other Distilled Scotch
Market Share 24.24% 25.55% 16.05% 15.33% 10.80% 5.23%
MAT Change % -5.00 6.70 2.10 -4.40 16.10 -14.40
Liqueur Gin Rum Light Ouzo Brandy Tequila
Figure 2: MAT sales of RTD in the domestic market by market share and MAT change
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02 9415 1199
Market Share 1.69% 0.67% 0.40% 0.00% 0.00% 0.04%
MAT Change % -23.30 11.20 21.50 0.00 0.00 -11.70
the drinks association | February 2017
Below is an excerpt from our December monthly report; to access more information like this, contact us on 02 9415 1199. SPIRITS SALES FOR DECEMBER 2016 18 JANUARY 2017
MAT Sales in Spirit Rise
MAT sales in the domestic Spirit market were significantly higher in December 2016 than in December 2015 with 7,008,120 cases sold for the former compared to 6,808,608 for the latter.
MAT 2015/16
7,900,000
MAT 2014/15
7,700,000 7,500,000 7,300,000 7,100,000 6,900,000 6,700,000 6,500,000 6,300,000
(9L cases)
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
Dec
Figure 1: Moving Annual Total ('MAT') sales of Spirits in the domestic market
Scotch, Bourbon and Vodka continue to dominate domestic Spirits sales with 22.32%, 18.90% and 16.81% control of the market respectively Scotch Bourbon Vodka Rum Liqueurs Gin
Market Share 22.32% 18.90% 16.81% 13.70% 10.56% 5.04%
MAT Change % -0.40 1.70 -3.00 4.50 -2.60 26.80
Whiskey Apertifs Tequila Cognac Sambuca Schnapps
Market Share 4.07% 2.55% 2.50% 0.79% 0.44% 0.39%
MAT Change % 8.60 42.40 23.00 4.30 11.40 8.90
Figure 2: MAT sales of Spirits in the domestic market by market share and MAT change
02 9415 1199
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the drinks association | February 2017
Below is an excerpt from our December monthly report; to access more information like this, contact us on 02 9415 1199. WINE SALES FOR DECEMBER 2016
18 JANUARY 2017
MAT Sales in Australian Wine and Imported Wine Fall
MAT sales in the Australian wine market were notionally lower in December 2016 than in December 2015 with 368,710,867 litres sold for the former compared to 376,071,317 for the latter. Meanwhile Imported wines recorded 16,979,158 sales in December 2016 compared to 18,940,206 in December 2015. MAT 2015/2016
20,000
MAT 2014/2015
MAT 2015/2016
400,000
MAT 2014/2015
395,000
19,000
390,000
18,000
385,000
17,000
380,000
16,000
375,000 370,000
15,000
365,000
14,000
in '000L Jan
Feb
Mar
Apr May
Jun
Jul
Aug Sep
Oct
Nov Dec
Figure 1: Moving Annual Total ('MAT') Sales of Imported Wine
360,000
in '000L Jan
Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Figure 2: MAT Sales of Australian Wine
MAT sales were down in Fortified, Other NES and White wine, while Red wine and Sparkling were up in the Australian market. Meanwhile sales in the Imported market grew in Champagne and Rose Table.
Imported
Market Share
MAT Change
Market Share
Change
58.74%
-7.3
White
47.13%
Champagne
21.86%
3.6
Red
39.03%
0.1
Sparkling
9.27%
-21.2
Sparkling
9.29%
1.0
-4.0
Red Table
7.34%
-44.0
Fortified
4.23%
-3.0
Rose Table
2.78%
28.6
Others NES
0.33%
-5.1
Fortified
0.02%
-78.2
Figure 3: MAT Sales of Imported Wine
Australian White
Market Share
Australian Red
Market Share
Figure 4: MAT Sales of Australian Wine Australian Fortified
Market Share
Dry White
24.34%
Shiraz
23.45%
Port
79.52%
Chardonnay
18.42%
Cabernet/Merlot
12.99%
Sherry
14.12%
Sauvignon Blanc
15.24%
Cabernet Sauvignon
13.47%
Dessert
2.86%
Semillon/Sauv Blanc
12.34%
Shiraz Carbernet
11.74%
Muscat
Pinot Grigio/Pinot Gris
2.51%
Dry Red
9.84%
Australian Sparkling
3.50% Market Share
Riesling
1.93%
Lambrusco
6.30%
Methode Champ
52.91%
Classic Dry White
2.15%
All Others
12.32%
Fermented
32.17%
Verdelho
0.83%
Merlot
6.19%
Carbonated
14.91%
Semillon/Chardonnay
0.59%
Pinot Noir
2.56%
Semillon
0.10%
Cabernet/Shiraz
0.92%
Viognier
0.09%
Classic Dry Red
0.22%
Figure 5: MAT Sales of Australian Wine in White and Red
02 9415 1199
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Australian
White Table
Figure 6: MAT Sales of Australian Wine in Sparkling and Fortified
the drinks association | February 2017
Below is an excerpt from our December monthly report; to access more information like this, contact us on 02 9415 1199. CIDER SALES FOR DECEMBER 2016 18 JANUARY 2017
MAT Sales in Cider Rise
MAT sales in the domestic Cider market were significantly higher in December 2016 than in December 2015 with 10,923,881 cases sold for the former compared to 10,369,094 for the latter.
2015/2016
11,500,000
2014/2015
11,000,000 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 7,500,000
7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 (9L Cases)
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
Dec
Figure 1: Moving Annual Total ('MAT') sales of Cider in the domestic market
Victoria is the leader in the domestic Cider market with 29.85% of the market share compared to 21.94% and 21.25% for close contenders NSW/ACT and QLD respectively. NSW/ACT VIC QLD SA WA NT
VIC NSW/ACT QLD WA SA TAS NT
Market Share 29.85% 21.94% 21.25% 13.34% 9.84% 2.54% 1.24%
MAT Change % 15.20 8.20 5.80 -5.90 -5.50 -5.90 -8.10
TAS Figure 3: Breakdown of Cider MAT market share and MAT change Figure 2: Breakdown of Cider MAT sales by State
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the drinks association | February 2017
Need information on liquor licences and banners fast? the drinks association can help. Providing access to the only centralised national liquor licence database in Australia, you’ll never miss out on all the latest licensing and banner group news.
Active liquor licences as at January 2016
Top 10 banner groups percentage share of outlets Australian liquor retail market - December 2016
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the drinks association | February 2017
Upcoming drinks events WID council meetings February 1, 2017 March 21, 2017 May 23, 2017 June 27, 2017 August 15, 2017 October 25, 2017 November 13, 2017
Supply chain logistics forum
Credit forums February 15, 2017 March 15, 2017 April 19, 2017 May 17, 2017 June 14, 2017 July 19, 2017 August 16, 2017
drinks board meetings
March 15, 2017 June 27, 2017 August 15, 2017 October 25, 2017
March 21, 2017 May 23, 2017 August 15, 2017 September 20, 2017
WID events
CFO forums
March 8, 2017: International Women’s Day
AdWatch workgroup March 16, 2017 August 3, 2017
Gen/legal counsel February 22, 2017 April 26, 2017 August 3, 2017
March 29, 2017 June 27, 2017 November 7, 2017
Survey workgroup April 19, 2017 October 18, 2017
DBC reporting November 8, 2017
Executive meetings March 21, 2017 May 23, 2017 August 15, 2017 October 25, 2017 November 29, 2017
Network breakfasts March 22, 2017 June 27, 2017
HRD forums February 14, 2017 June 27, 2017 November 7, 2017
drinks Awards September 9, 2017
D&I@drinks meetings March 21, 2017 May 23, 2017 June 27, 2017 August 8, 2017 October 25, 2017
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