the drinks association | December 2016
Merry Christmas from the drinks association! the drinks association wishes all its members and associate members a very merry Christmas. We hope you have a wonderful break with loved ones and we look forward to helping make 2017 another great one for the drinks industry. “It’s been an exciting year for the drinks association and our members,” says CEO Sandra Przibilla. “The year has brought many changes to the landscape of our industry and 2017 promises to be a dynamic one. “Among the developments you can expect from the drinks association are a new-look Australian drinks Awards, an even more cohesive industry thanks to the newly formed diversity&inclusion@drinks council and an evergrowing array of member services designed to make your working life easier.” The drinks association offices will be closed from December 21 to January 3. The first drinks banners for 2017 will arrive January 16, drinks data will arrive January 23 and drinks licences daily updates will resume on January 3.
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ll the latest drinks data on cider, spirits, wine and RTD on page 27.
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enis Brown chairs the new diversity&inclusion@ drinks council, page 11.
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hat our associate members can do for you, page 22. Page 1
the drinks association | December 2016
the drinks association holds AGM and Chairman’s Drinks the drinks association board held its Annual General Meeting, followed by Chairman’s Drinks, on October 26 at the Sydney Cricket Ground. “We have had a really strong year and we’re looking forward to a very robust year going forward in terms of what we want to deliver to our members,” Chairman Ralph Dunning told board members and guests at the Chairman’s Drinks. “This is a business that’s all about looking at what value we can add to our members and our challenge every year is to deliver at least four times that value back to them. Currently, the drinks association is providing six and a half times that value and that is where we want to try and stay.”
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Ralph thanked the Board of Directors for their contributions over the year to help the association deliver its dynamic program of services and highlight future opportunities. “What we have is a very committed Board of Directors who understand our business and are part of our decision-making processes. “The team at the drinks association has done a fantastic job over the last year and our CEO has done a remarkable job in a very challenging time. “We also couldn’t do it without our partners from the industry. We are a member organisation and our members contribute significantly to our business. We thank them for all their loyalty and effort.”
the drinks association | December 2016
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the drinks association | December 2016
Our CEO’s Chairman’s Drinks address the drinks association CEO Sandra Przibilla had a speech prepared for the Chairman’s Drinks, but missed her first-ever AGM due to illness. Here’s what she planned to say: In what was another challenging year, the drinks association delivered sound financial results. We increased our focus on our Category 1 members and their needs, building stronger relationships and engaging more broadly. Throughout the year, we stayed close to our members and consulted widely, discussing needs.
ensure that the drinks association is properly aligned to capture growth opportunities, we continued to develop our technology capabilities and our platforms provide members with significantly improved delivery, across all core services.
Our successes in FY 15/16 • Signed a new Category 1 member • Increased Associate Membership by 5 • Signed 2 new Corporate Partners • Signed 2 new subscribers to the Premium service Shopper Tracker • Signed 3 new subscribers to drinks Express • Signed 1 new subscriber to National Credit Forum • Signed 2 new subscribers to National Licence database; • Increased attendance at board meetings by 7%; We now have a documented strategy to take the • Increased attendance at Network Breakfasts business forward over the next three years. across the year by 12%; • Held a very successful International Women’s In addition to managing our business well through Day Luncheon; FY 15/16 we took steps to position the drinks • Held a very successful Australian drinks Awards; association in important ways for the future by • Hosted 20 forums across HRD, CFO, Credit, enhancing our core business and continuing to invest Supply Chain and Women in drinks; in existing services, introducing new services and • Hosted 15 workgroups across Ad Watch, investigating future options. Licences, Data, Shopper Tracker and Trade Survey; Launched daily drinks In our core business, we revitalised our offerings and • • Increased our contact across all category made great strides in reducing our delivery costs. To From a board perspective, our most important achievement in FY 15/16 was the governance evaluation of the board which we undertook with Aon Hewitt. This exercise identified several areas requiring improvement and the board embraced this enthusiastically. It’s a great result and one we continue to focus on. From a business perspective the strategy sessions resulted in a 10-point strategy to be executed by the business commencing July 2016 and extending to June 2019.
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the drinks association | December 2016
member companies by 35 additional engagements; • Increased our contact across all associate members by 22 additional engagements.
My thanks go to the team at the drinks association for their hard work ensuring we continue to deliver a high level of customer service to members and subscribers.
To ensure the drinks association has the necessary skills to serve our members at the highest level, we invest in our staff’s training and professional development, and focus on our core values of member value creation, integrity, best people, respect and tolerance.
We have consistently engaged members and the wider industry for feedback on our products and services, with a goal to increase membership and subscribers.
Our organisational structure changed significantly in FY 15/16. We appointed a General Manager - Hope McMurdy; a Member Liaison Officer - Kathy Sloan; and a Communications Manager - Alana House.
The board of directors underwent a 16% change during this period and engagement from all directors has increased. I thank all directors for their contribution, assistance and commitment to the association. The diversity of the Executive committee ensures a dynamic committee.
The new appointments reflect the ever-changing needs of the association as we continue to build on the successes of the past few years.
Finally, I would like to thank the members for your contributions, which ensure we are a cohesive, strong and highly respected association.
As the CEO I’m proud of what we achieved in FY 15/16 and look forward to bringing the strategy to life over the next 12 months and beyond.
the drinks association has established itself as a progressive body, delivering services of value. The challenge is to maintain relevance and build value.
the drinks association team at the annual Chairman’s Drinks.
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the drinks association | December 2016
Inside the drinks association’s Luna Park expo
the drinks association hosted a two-day event at Sydney’s Luna Park in early November targeting its four pillars: strengthen, inform, promote and connect. The series of events launched with a HRD forum featuring AON-Hewitt discussing “The State of the Nation” renumeration, followed by Women in drinks hosting a networking function “What is diversity and the benefits to the industry?” On day two, The Brand Guy, Richard Sauerman, spoke at our Network Breakfast; Ebiquity debuted a new digital monitoring solution for brand activity; SMI presented a brand spend proposal covering traditional and digital media; and Metcash discussed its new supply chain solution at a CFO Forum. Here’s a brief rundown on each event (turn to page 12 to see details from the WID networking function). Picture courtesy of talented the drinks association staffer Lisa Channell.
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the drinks association | December 2016
AON-Hewitt gives outlook on drinks industry renumeration Jean Hanna, Senior Consultant, Talent, Rewards & Performance at AON-Hewitt, gave her market insights on remuneration at the HRD Forum. Among take outs from the event were that 3% is the new 4% for salary increases, with the big question for HR being what to do with the more limited pool. “Don’t wait around for that to improve. Ask the difficult questions, work out your priorities, innovate and adapt your remuneration preview process to execute your plan with excellence.” She suggested that while it might seem easier to reward everyone at a similar rate, it was more beneficial to ensure that outstanding performers were given incentives that match their achievements and staff who are just “meeting expectations” are rewarded at a lower rate. Jean also noted that 10% of benefits spend is wasted on benefits that employees don’t value and that it was important to create bespoke benefits that match your company’s values. She recommended: “Ensure your managers are fully skilled up so they feel confident in making authentic, fact-based decisions about reward and explaining them to employees.” Contact Jean at jean.hanna@aonhewitt.com
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the drinks association | December 2016
Richard Sauerman’s tips for being a 10 in the workplace Richard Sauerman - The Brand Guy - is a bloke who uses brand to help companies and people create the world they want to succeed in. He was guest speaker at the drinks association’s latest Network Breakfast on November 8. “‘Brand you’ is the most important brand,” Richard told guests at the drinks association’s Network Breakfast. This, he said, “is the real, authentic you.” So what’s holding you back from reaching your full potential? This was Richard’s question to the room as he prepared everyone for a session that would get them to step out of their comfort zones to reevaluate and discover their personal brands. Richard specialises in using ‘brand’ to help companies and people create the world they want to succeed in. After working in the ad industry for 20 years, he pioneered a new way to use brands and do branding. He believes that brand is a management issue, not a marketing concept, and everything can and must be driven by and aligned to your brand strategy – your business strategy, your products and services, your culture and people, your customer service and trade relationships, your marketplace positioning as well as (and not just) your marketing communications. If you weren’t able to attend the Network Breakfast,
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Above: Richard explains “brand you” to the audience. we’ve broken down the seminar below to help you to also discover your brand. Richard says: “Ask yourself: ‘What is my greatness’ and ‘What do I stand for?’ All brands stand for something, so what do you stand for?” We all have needs, Richard explained, from safety and esteem to love, physiological needs and finally, selfactualisation, which represents everything you are capable of becoming and the desire to achieve that. Realising your self-actualisation is the first step to discovering brand you. Richard then asks you to score yourself from 1-10 on how good you think you are at your job. The average, according to Richard, and the result based
the drinks association | December 2016
Above: Ralph Dunning introduces Richard; Richard on stage, breakfast guests, and wise words from Dr Seuss. on answers from the room is seven. “Seven is okay,” Richard says. “But if we’re looking at working on your brand, we want to be working towards a ten. Seven is the comfort zone – your business won’t fail on a seven, but it’s not a ten.” Next, Richard asks – what are the key attributes of a peak performer? Among answers from members of the drinks association were confidence, focus, passion, consistency, high productivity and determination. Richard says, “this is the language of brand you. So when you are creating your CV, why aren’t you putting those on there?” This is where Richard coins the concept that you are more than your CV and says that we need to start using the descriptors that we consider to represent high-performing in the language we use to think about and describe ourselves.
“We all have fear, even the people that we think don’t, but they have fear too, they just don’t let it stop them.” So Richard asks you to make an agreement with yourself, to ask those two questions from the beginning and to start living a life that represents 10/10 to you. Richard said, “Everyone has greatness in them. You are in charge of your reality; you are responsible as well – is your glass half full or half empty?” To achieve this, Richard suggests taking two actions. Firstly, evaluate your ‘have to do list’ versus your ‘like to do list’. Richard says, “there’s always stuff that we have to do, but if your ‘have to do list’ is longer than your ‘like to do list’, there’s a problem because that’s not a good way to live.” “Do you want to survive or thrive?” Richard asks.
“Brand you is about standing for something,” Richard The second, is to do three actions a day that went on. “So, what do you want to stand for?” represent what you stand for. Richard told the room his include sending smiley faces to people, Once you have an idea, Richard says you then need talking to strangers in elevators and sending personalised postcards. to look at what’s holding you back.
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the drinks association | December 2016
Ebiquity presents digital monitoring solution After two years of consultation with the drinks industry, Ebiquity debuted Portfolio Digital, the most comprehensive and accurate way to monitor your competitors’ online advertising. Portfolio Digital will explore 5000+ URLs 5+ times a day. It will provide a unique comparison with all media covered under Ebiquity’s current media coverage - television, radio, press and outdoor - in one single platform. Contact Mungo McCall on (02) 9099 4010. SMI presents Ad Spend Data proposal SMI is now offering harmonised and aggregated real ad spend data from more than 90% of Australian advertising agencies. The company also offers the market’s only outdoor spend section ad spend data. the drinks association is looking for expressions of interest from members in receiving the data in order to secure the best deal on this new service. Metcash reveals supply chain solution Jude McEvoy, Head of Data Solutions for Metcash, presented an overview of the eData program, with reference to the recent implementation of this program within the ALM division and its relevance to the Supply Chain Collaboration model. The changes Metcash/ALM are in the process of implementing will have an impact on all drinks companies. Contact Jude at jude.mcevoy@metcash.com
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the drinks association | December 2016
news Denis Brown chairs first diversity&inclusion@ drinks council meeting the diversity&inclusion@drinks council held its inaugural meeting at Sydney Cricket Ground on October 26. The council is chaired by Denis Brown, from BacardiMartini Australia; with Moet Hennessy Australia’s Ashley Powell and Lion’s Lucy Nandi as co-chairs. They are supported by 22 volunteers from member companies of the drinks association. Among the principles that will guide the council are the celebration of diversity of age, gender, culture, ethnicity, roles and levels in the drinks industry; a desire to build awareness and move beyond “lip service”; and a shared philosophy that diversity is not a special project, but central to how we work every day, the responsibility of all leaders and every executive team. The council noted that diversity means understanding that each individual is unique and recognising our individual differences. Inclusion goes beyond diversity to recognise differences as an asset by creating an environment of involvement, respect and connection. Denis said the council would work towards making the drinks industry an even more attractive and inclusive industry to work in.
Above: Denis Brown, Lucy Nandi and Ashley Powell.
“I believe that the right small behaviours at the top of organisations can make a difference over time,” he noted. “My aim is to work as an association to develop and share a playbook that helps all member companies and leaders convert their commitment into a truly inclusive work environment.”
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the drinks association | December 2016
WID hosts diversity networking event Sydney’s Luna Park was the gorgeous backdrop in early November for a Women in drinks networking event and 2017 program launch. The sold-out event attracted 100 men and women from the industry. Deputy chair of WID Lucy Nandi, from Lion (right), opened the event, noting that it was designed to improve networking for women in our industry. She also made the announcement that the drinks association led by Women in drinks will work with Serendis within a commercial partnership to create a professional development program for women within the drinks industry. “Our first program will be a pilot and will deliver a mentoring programme to 15 mentees and 15 mentors from across the industry,” she said. “The program will launch in May 2017 and run for a sixmonth period during which time Serendis will lead the program and work with the participants to deliver on the stated objectives and outcomes.“ Lucy added: “Our hope is that you each take at least one gem from today to start to do something differently when you return to your business. Inclusive leadership really does start with you, me and all of us here today. “Whether you are a leader who can influence change in your organisation or a team member who can start a conversation back in the office to keep the discussion live we would like you to help drive awareness of the need for change and the benefits it can bring to all.”
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Above: Maud Lindley from Serendis with Women in drinks deputy chair Lucy Nandi.
the drinks association | December 2016
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the drinks association | December 2016
WID launches Victorian chapter Women in drinks launched its Victorian chapter with an inspiring networking breakfast. More than 50 women and men from CUB, Brown Brothers, TWE, Dan Murphy’s, BWS, Australian Vintage, De Bortoli and Thirsty Camel gathered at Dan Murphy’s Alphington headquarters on November 10. Dan Murphy’s GM Campbell Stott opened the meeting, saying he was “thrilled and honoured” to host the event as the company believes diversity is key to its future success. Women in drinks council member Angela Burgum (TWE) then addressed the gathering saying: “Women in drinks was established in 2014 because the drinks association saw a real need to focus on how we attract, retain and develop females in our industry. “We commissioned research by AON Hewitt to help us understand the facts and the numbers, and that research revealed that when you compare the drinks industry to all other industries in Australia, female representation is lower in the drinks industry – from senior execs to senior management, and more generally in workforce participation. So there are fewer women in our industry than other industries in Australia. “So one has to ask, if female participation is only 30% in the drinks industry, and 80% of all consumer purchases are made by females, are we really in the best position to understand and meet the needs of all of our shoppers, consumers and customers. And do we really have enough diversity of perspectives in our organisations to do that? Based on these numbers, there’s a fair chance we are less diverse than other industries competing for the same shopper. “How else do women make a difference? We know that companies with more women on their boards and more women in senior leadership have been found to financially outperform those with fewer women. Most of us are already well aware of that. “To put it simply, our vision is to create a diverse and inclusive drinks industry and our objective is to educate, inspire and support the industry to achieve that.
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Above: WID council member Angela Burgum with guest speaker Christine Khor. “To give you an idea of how this fits together, the drinks association is an industry body that exists for the benefit of the Australian drinks industry, and it has the flexibility to evolve to meet the changing needs of our industry, which it’s doing. “To support an over-arching diversity and inclusion goal a diversity&inclusion@drinks council formed last month. Over time it will take a broader lens to diversity, but in the short term it will work closely with women in drinks on achieving gender diversity outcomes. “And Women in drinks chapter committees will form in states around Australia, which is why we are here today, at the inaugural event for the Victorian chapter. And it’s through these chapters that we hope to engage with our local industry and continue to have the important conversations that will hopefully develop into actionable outcomes so that each of us can play a part in driving meaningful change in our industry.”
the drinks association | December 2016
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the drinks association | December 2016
Recruitment specialist Christine Khor gives personal branding tips for women Guest speaker at the Women in drinks Victoria launch was Christine Khor, managing director of Chorus Executive. Christine gave a fascinating presentation focussing on how women can maximise their LinkedIn profiles and personal branding.
Christine’s components of a strong personal brand >> Fully optimise your LinkedIn profile >> Personalise your LinkedIn URL >> Use a professional photo >> Keyword optimise your biography, work history and tagline - tell a story not just facts >> Be authentic and share something about you the person, not just what you have done >> Encourage thought leadership via blog or website >> Engage with your industry & offer your opinion >> Showcase your work via videos, articles or presentations >> Use endorsements and recommendations >> Set your privacy settings on social media >> Ensure clear contact details - you want to be found >> Profile yourself - speaking, attending networking events
And in the real world ...
>> Nurture your relationships - near and far
>> Create a plan
>> Find great mentors
>> Drive your career and life, don’t let it happen to you
>> Invest in a coach
>> Make time for yourself
>> Back yourself
>> Invest in yourself
>> Back others
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the drinks association | December 2016
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the drinks association | December 2016
Women in drinks celebrates International Women’s Day Join us to explore Building a diversity mindset in the drinks industry Our keynote speaker is Mamamia founder Mia Freedman. After lunch, an industry panel will discuss “Bringing Diversity & Inclusion to Life”, followed by a networking event. Date: March 8, 2017 Time: 11.30am-5pm Where: Doltone House, Darling Island, Pyrmont, Sydney. Tickets are priced (ex GST) at $260 per seat, table of 10 $2500, multi tables of 10 $2250.
Our charity partner is The Australia New Zealand Gynaecological Oncology Group, the national peak organisation for gynaecological cancer clinical trials in Australia and New Zealand. $15 from each ticket price will be donated to ANZGOG to support ongoing research.
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the drinks association | December 2016
drinks duo’s Spring Racing adventures
Kathy & Hope with the 2014 Melbourne Cup; bonding with CCA & ALM; Jean & Rachel from AON-Hewitt. the drinks association’s General Manager Hope McMurdy and Member Liaison Kathy Sloan were lucky enough to attend the Melbourne Cup and Oaks Day in Melbourne. Melbourne Cup highlights included visiting the James Boag marquee, lunch in the Committee Room and watching the big race from the Members’ Grandstand.
On Oaks Day, Hope and Kathy were invited to the Mumm marquee, which was crammed with celebrities including Rob Mills and Em Rusciano. “Being in Melbourne for Cup Week has always been on my bucket list,” said Kathy. “The buzz in the city was incredible. Getting the chance to be in The Birdcage was a once-in-a-lifetime experience I’ll never forget.”
Meeting Rob Mills; the view from the Committee Room; sabering a bottle of Mumm on Oaks Day. Page 19
the drinks association | December 2016
A winning night at the 2016 WCA Awards the drinks association was on hand to celebrate the 2016 Wine Communicator Awards, which were held on November 8 at The Four Seasons Hotel in Sydney. Guests at the awards ceremony included Rob Hirst, Rob Geddes and Angus Barnes. The awards were created by the Wine Communicators of Australia to acknowledge outstanding contribution to, and excellence in, wine communication in all its forms. They recognise and promote quality wine content while also rewarding individuals who lead by example and demonstrate respect for the wine industry and its consumers. the drinks association is a proud supporter of the Awards, with our CEO, Sandra Przibilla being one of the judges and the association sponsoring the award for Digital Communicator of the Year. This year, the award was presented by the drinks association’s Kathy Sloan to the winner, Jane Thomson from The Fabulous Ladies’ Wine Society. The top award of Wine Communicator of the Year went to Gourmet Traveller Wine, accepted by longtime editor Judy Sarris. The magazine also took out Best Wine Publication of the Year and Best Wine Website. Tipsy, by Claire Burder, won Best Wine Book. Best Wine Educator went to Scarf’s wine trainer Jenny Polack. New Wine Writer of the Year went to Josh Martin, while Ben Canaider at Restaurant & Catering won Best Published Feature Articles or Wine Column.
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the drinks association’s Kathy Sloan presents Jane Thomson with her award.
the drinks association | December 2016
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the drinks association | December 2016
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 | December 2016
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 | December 2016
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, First Aid Course Training 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. iCandy Creative iCandy Creative is part of the SPOS Group. SPOS has been developing retail solutions since 1981 and is one of Australia and NZ’s leading retail marketing agencies. iCandy is a leader in design and execution and has won more
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the drinks association | December 2016
than 16 POPAI awards in the past three years. iCandy sees the ever changing retail landscape as an opportunity to convert insights to action, which leads to outstanding shopper experiences. iCandy is in the unique position of working with both retailers and brand owners across many channels, and is well placed to help deliver and exceed your marketing goals. 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 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. Red Bull In 1987 Red Bull not only launched a completely new product, it created a whole new product category - the Energy Drink. Today, Red Bull employs more than 10,400 people, is available in more than 167 countries, and around 44 billion cans of Red Bull have been consumed. Red Bull has been giving wings to people and ideas for more than 27 years. 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.
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the drinks association | December 2016
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. 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.
WFA ANNOUNCES SANDY CLARKE AS PRESIDENT Sandy Clark, former Chairman of Brown Brothers, has been appointed as the new President of Winemakers’ Federation of Australia. Clark succeeds Tony D’Aloisio who said: “I am delighted that such a qualified and experienced individual as Mr Clark is taking over as President. He brings an extraordinary wealth of business acumen spanning various sectors. I wish him well.” In accepting the role, Clark said: “I am delighted to be WFA’s next President, and I am looking forward to working with the Board and the WFA Executive team and representatives of the industry more generally on the key issues and challenges confronting Australian winemakers and the wider industry.” Tony Battaglene has been appointed CEO of the WFA. Battaglene has been acting in the Chief Executive role after Paul Evans’ resignation in April 2016.
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the drinks association | December 2016
Below is an excerpt from our October monthly report; to access more information like this, contact us on 02 9415 1199.
SPIRITS SALES FOR OCTOBER 2016 11 NOVEMBER 2016
MAT Sales in Spirit Rise
MAT sales in the domestic Spirit market were significantly higher in October 2016 than in October 2015 with 6,935,430 cases sold for the former compared to 6,727,107 for the latter.
MAT 2015/16
7,000,000
MAT 2014/15
6,900,000 6,800,000 6,700,000 6,600,000 6,500,000 6,400,000 6,300,000
(9L cases)
Nov
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Figure 1: Moving Annual Total ('MAT') sales of Spirits in the domestic market
Scotch, Bourbon and Vodka continue to dominate domestic Spirits sales with 22.41%, 19.18% and 17.10% control of the market respectively Scotch Bourbon Vodka Rum Liqueurs Gin
Market Share 22.41% 19.18% 17.10% 13.53% 10.80% 4.75%
MAT Change % -0.90 1.20 0.00 4.40 1.70 22.90
Whiskey Apertifs Tequila Cognac Sambuca Schnapps
Market Share 4.00% 2.27% 2.47% 0.81% 0.43% 0.37%
MAT Change % 4.60 38.30 26.40 -1.30 -1.90 -8.30
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 | December 2016
Below is an excerpt from our October monthly report; to access more information like this, contact us on 02 9415 1199. RTD SALES FOR OCTOBER 2016 11 NOVEMBER 2016
MAT Sales in RTD fall
MAT sales in the domestic RTD market were slightly lower in October 2016 than in October 2015 with 22,704,351 cases sold for the former compared to 22,883,009 for the latter.
MAT 2015/16
23,400,000
MAT 2014/15
23,200,000 23,000,000
22,800,000 22,600,000
22,400,000 22,200,000 (9L cases)
Nov
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
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 24.91% and 25.23% of the market respectively. Bourbon Standard Bourbon Premium Rum Dark Vodka Other Distilled Scotch
Market Share 24.91% 25.23% 15.74% 15.40% 10.40% 5.39%
MAT Change % -6.60 5.40 1.30 -1.40 9.50 -13.80
Liqueur Gin Rum Light Ouzo Brandy Tequila
Figure 2: MAT sales of RTD in the domestic market by market share and MAT change
02 9415 1199
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Market Share 1.85% 0.65% 0.39% 0.00% 0.00% 0.04%
MAT Change % -18.80 5.30 11.30 -100.00 0.00 -7.30
the drinks association | December 2016
Below is an excerpt from our October monthly report; to access more information like this, contact us on 02 9415 1199. WINE SALES FOR OCTOBER 2016
11 NOVEMBER 2016
MAT Sales in Australian Wine and Imported Wine Fall
MAT sales in the Australian wine market were notionally higher in September 2016 than in September 2015 with 387,940,117 litres sold for the former compared to 391,676,709 for the latter. Meanwhile Imported wines recorded 17,546,257 sales in October 2016 compared to 19,006,889 in October 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 Nov
Dec
Jan
Feb
Mar
Apr May
Jun
Jul
Aug Sep
Oct
Figure 1: Moving Annual Total ('MAT') Sales of Imported Wine
360,000
in '000L Nov Dec
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct
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
Australian
Market Share
Change
White Table
58.28%
-5.7
White
47.45%
Champagne
21.16%
3.5
Red
38.82%
1.1
Sparkling
9.19%
-28.8
Sparkling
9.20%
2.6
-2.4
Red Table
8.89%
-20.3
Fortified
4.21%
-2.5
Rose Table
2.44%
24.7
Others NES
0.32%
-7.6
Fortified
0.05%
-33.3
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
24.57%
Shiraz
23.11%
Port
79.78%
Chardonnay
18.31%
Cabernet/Merlot
13.12%
Sherry
14.11%
Sauvignon Blanc
15.18%
Cabernet Sauvignon
13.37%
Dessert
2.59%
Semillon/Sauv Blanc
12.19%
Shiraz Carbernet
11.67%
Muscat
Pinot Grigio/Pinot Gris
2.39%
Dry Red
9.91%
Australian Sparkling
3.52% Market Share
Riesling
1.90%
Lambrusco
6.51%
Methode Champ
52.68%
Classic Dry White
2.13%
All Others
12.31%
Fermented
32.04%
Verdelho
0.84%
Merlot
6.24%
Carbonated
15.27%
Semillon/Chardonnay
0.63%
Pinot Noir
2.50%
Semillon
0.12%
Cabernet/Shiraz
1.04%
Viognier
0.09%
Classic Dry Red
0.22%
Figure 6: MAT Sales of Australian Wine in Sparkling and Fortified
Figure 5: MAT Sales of Australian Wine in White and Red
02 9415 1199
Page 29
the drinks association | December 2016
Below is an excerpt from our October monthly report; to access more information like this, contact us on 02 9415 1199. CIDER SALES FOR OCTOBER 2016 11 NOVEMBER 2016 MAT Sales in Cider Rise MAT sales in the domestic Cider market were significantly higher in October 2016 than in October 2015 with 10,834,674 cases sold for the former compared to 10,075,947 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)
Nov
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Figure 1: Moving Annual Total ('MAT') sales of Cider in the domestic market
Victoria is the leader in the domestic Cider market with 30.08% of the market share compared to 21.56% and 20.78% for close contenders NSW/ACT and QLD respectively. NSW/ACT VIC QLD SA WA NT TAS
VIC NSW/ACT QLD WA SA TAS NT
Market Share 30.08% 21.56% 20.78% 13.51% 10.25% 2.55% 1.27%
MAT Change % 24.80 7.90 2.60 -4.00 -1.70 -6.80 -10.70
Figure 3: Breakdown of Cider MAT market share and MAT change Figure 2: Breakdown of Cider MAT sales by State
Page 30
the drinks association | December 2016
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 November 2016
Top 10 banner groups percentage share of outlets Australian liquor retail market - October 2016
Page 31
the drinks association | December 2016
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.
Page 32
the drinks association | December 2016
Upcoming drinks events WID council meetings February 1, 2017 March 21, 2017 May 16, 2017 August 8, 2017 October 25, 2017
Supply chain logistics forum March 15, 2017 August 16, 2017
WID events March 8, 2017: International Women’s Day lunch
AdWatch workgroup March 17, 2017 August 3, 2017
Gen/legal counsel November 14, 2016
Credit forums February 15, 2017 March 15, 2017 April 19, 2017 May 17, 2017 June 15, 2017
drinks board meetings March 21, 2017 May 16, 2017 August 8, 2017 October 25, 2017
CFO forums March 29, 2017 August 23, 2017 November 11, 2017
Survey workgroup April 19, 2017 October 18, 2017
DBC reporting November 8, 2017
Executive meetings November 30, 2016 March 21, 2017 May 16, 2017 August 8, 2017 September 20, 2017 October 25, 2017 November 29, 2017
Network breakfasts March 22, 2017 May 17, 2017
HRD forums March 15, 2017 August 23, 2017 November 7, 2017
drinks Awards September 6, 2017
D&I@drinks meetings March 21, 2017 May 16, 2017 August 8, 2017 October 25, 2017
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