the drinks association | January 2017
Happy New Year from the drinks association!
the drinks association wishes all its members and associate members a Happy New Year. Our 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. (Picture courtesy of talented drinks staffer Lisa Chanell.)
A
ll the latest drinks data on cider, spirits, wine and RTD on page 27.
M
eet the diversity& inclusion@drinks council on page 14.
W
hat Wine Australia can do for your business, page 4. Page 1
the drinks association | January 2017
How Wine Australia can help your business thrive Wine Australia CEO Andreas Clark explains the role the organisation plays as the single Australian Government statutory service group for the Australian grape and wine community. In the 12 months to September 30, Australia exported $2.17billion in wine to more than 122 destinations around the world. Over that year, the value of exports grew by 10%, with growth primarily being driven by bottled exports, particularly at higher price points. More than half of the total value growth was in wines priced at $10 or more per litre FOB. The value of these wines was up 28% to a record $547million. Bottled exports grew by 14% to $1.8billion and the average value of bottled exports increased by 9% to $5.47 per litre free on board (FOB), a 13-year high. Wine Australia’s role Approving exports and providing support to our 1743 active wine exporters to understand market requirements is one of Wine Australia’s key roles. Wine Australia is the Australian Government statutory authority responsible for marketing wine, investing in research, development and extension (RD&E), and regulating exports. We are funded by grapegrowers and winemakers through levies and user-pays charges, and by the
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Australian Government, which provides matching funding for RD&E investments. Our goal is for a prosperous Australian grape and wine community and we strive to support our community’s success through global marketing campaigns and events, research initiatives, market insights and regulatory assistance. Contributing to the Australian economy The wine sector is an important and valuable contributor to Australia. Wine is a unique, premium product created in Australia’s 65 regions by highly skilled winegrape producers and winemakers. The wine sector brings together agriculture, sophisticated production and tourism, and the sector’s benefits extend well beyond direct economics by contributing to the enhancement of our global reputation as both a tourism destination and fine wine producer. Independent economic research shows the Australian wine sector contributes $40.2billion to the national economy and supports 172,736 full- and part-time jobs, most of which are located in regional Australia. An integral part of Australia’s tourism offering, wine-related tourism contributes $9.2billion to the economy; accounts for 15.8 million domestic visitor nights and 44.2 million international visitor nights. Growing exports We are an export-focused country and, in partnership with the sector, we work to build
the drinks association | January 2017
interest and enthusiasm for our wines around the globe.
wine companies wishing to develop new markets and build existing markets for their wine.
We share with the international trade, media and consumers the stories about the natural advantages of the unique and diverse grapegrowing attributes of Australia – its terroirs – that are brought to life by its people.
We also provide guidance to companies wishing to export wine, with Export Market Guides explaining the export regulations and requirements in 33 markets, and we help companies comply with international wine composition and labelling requirements.
Our marketing and promotional initiatives are supported by staff in Australia, China, the US and the United Kingdom and, last year, we conducted more than 120 marketing activities and events. Our Australian and in-market teams also provide knowledge, insights and assistance to Australian
We regularly share information with the grape and wine sector through the Wine Australia e-newsletter, a dedicated RD&E e-newsletter, a weekly market bulletin, and articles and editorials. You can subscribe through our website www.wineaustralia.com
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the drinks association | January 2017
Gordon Broderick honoured at gala dinner Gordon Broderick’s illustrious 30-year drinks industry career was honoured on November 30 with a gala dinner in Canberra. Ian Atherton, CEO of the Spirits Platform and a DSCIA member for more than 25 years and Treasurer for 10 of those years, spoke on the night about Broderick’s approachability and leadership in an industry of fierce rivalry. “Managing to lead and corral members who, after all, are very strong characters and fierce competitors, into a coherent body with a solid agenda, is no easy feat considering there have been 8 chairmen over that time,” Atherton said. “Gordon’s ability to be very open and approachable to all our colleagues’ irrespective of their position or influence is testament to his genuine interest in people and passion for new and interesting developments in the spirits industry. Page 4
Atherton went on to credit Broderick’s efforts in creating a safer drinking culture and his ongoing support of the industry’s commercial interests through DSICA. “In Canberra, Gordon has been at the pinnacle of the Alcohol debate, and through DSICA has been instrumental in so many programs and initiatives that have supported responsible consumption and social awareness of alcohol in society, especially through the establishment of Drinkwise,” Atherton said. “Gordon’s absolute commitment to defend “our right to do business” and supporting our commercial interests has always been the foundation of his work in Canberra, and as a recent start-up business owner, I am encouraged by the tremendous support for Gordon and DSICA in Canberra as we strive for a level playing field in a very competitive and complex landscape.”
the drinks association | January 2017
Kylie McPherson, Corporate Relations and Legal Director at Diageo Australia, as well as the representative for Bundaberg Distilling Company on the DSICA Governing Executive, also spoke. McPherson recalled being the newest member of the Governing Executive. “Gordon immediately took me under his wing, taking me to lunch at his beloved Union Club in Sydney to get me up to speed on the issues facing the spirits industry and how DSICA was tackling them,” she said. “Gordon and I soon became a traveling duo, attending meetings across the country together and hosting and sponsoring events to showcase the wonderful industry we work in and the products we’re famous for. “During these events, I don’t think I have ever sat down for more than 20 minutes at a time. Gordon always has me by the elbow, walking the room, introducing me to everyone – and I mean everyone. During these conversations, I am always struck by the affection with which Gordon is greeted. And that is the mark of the man. Gordon has time for everyone, from the newest members of parliament to the most senior Ministers, he knows their story, their history.” There is no doubt Gordon is a very unique individual and he will be sorely missed by the drinks industry. drinks association CEO Sandra Przibilla was honoured to attend the dinner. “The evening was unique in many ways and a rare occasion for our industry as there are very few among us who have contributed at Gordon’s level over such a long period,” she said. Post dinner, many guests adjourned to QT Hotel to share a celebratory Chartreuse, a tipple that’s synonymous with Gordon.
StayinFront awarded “Best in Class” the drinks’ association congratulates its corporate partner StayinFront on being awarded three best-in-class distinctions by the Promotion Optimization Institute (POI). POI recognised StayinFront in its Retail Execution Vendor Panorama 2016 for excellence in Analytical Insights, Guided Selling and Mobile UX. Among the features highlighted were StayinFront’s “novel profit calculator,” which simulates potential product performance; dashboards with pre-configured KPIs; and in-store selling tools such as StayinFront PitchBook®. POI also singled out StayinFront’s solutions as among the most configurable reviewed and for having the “proven ability to scale up to 15,000+ users at a single company and on a global basis.” “We are impressed by StayinFront’s global reach and superior user experience,” said Dale Hagemeyer, Partner and Advisory Board Member of POI and the author of the report. “StayinFront has established itself as a valued player in a field of heavy hitters and is creating simple, innovative and effective ways to help the consumer goods industry sell more in store.” “POI is a trusted leader in the consumer goods industry and it’s a great honor to be recognised as best-in-class in three categories,” said Thomas Buckley, StayinFront CEO. “StayinFront is committed to delivering the most innovative technology and the best experience, and to helping our customers do more, know more, and sell more in the field.” Click here to find out more about StayinFront.
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the drinks association | January 2017
Celebrating Thanksgiving with Jack Daniel’s
Brown-Forman hosted a Jack Daniel’s Thanksgiving celebration in late November, and the drinks association’s Kathy Sloan was lucky enough to score an invite. In the spirit of giving thanks for good times, the Jack Daniel’s crew served up a taste of Southern hospitality with Nashville eats - including a 24-hour hickory-smoked hog, crab bake, fried chicken and an array of Jack Daniel’s mixed drinks. “As always, another fabulous event by Brown Forman with a great atmosphere ... and bourbon!” said Kathy.
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the drinks association | January 2017
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the drinks association | January 2017
National Credit Managers Survey results revealed at credit forum The Credit Managers’ Forum convenes regularly throughout the year at selected venues in Adelaide, Melbourne and Sydney, as well as via webinar. It’s attended by CFO’s and Credit Managers from member and subscriber companies. Besides gaining valuable account information, the forums are an excellent opportunity for networking and discussing industry matters. The Credit Managers’ Forum is provided to member companies and subscribers only and, as such, the information obtained via the forum may not be shared. Sharing of information extended to the forum is governed by ACCC guidelines and the drinks association’s membership rules and conditions The latest credit forum was held at Samuel Smith & Sons in late November. Cathy Mills and Casey Millar, from Woolworths’ Transaction Processing Unit gave a presentation on how its transactional processing services operate for for over 2300 stores and distribution centres. Handy information was relayed on the vendor, rebate and unpaid invoice query process.
economic conditions has increased, reversing a long trend of improving confidence and leading 34% of businesses to expect to be negatively affected. Many participants have translated these concerns into tightening credit policies in the last six months.
Ian Hadwen and David Jovanov also presented the Veda National Credit Managers Survey results.
The next credit forum will be held at William Grant & Sons, North Sydney, on February 2. Presenters will include Daniel Turk from Turks Legal, and Leela Hanson, director, SME – Alliances & Advisors.
Among the insights was that concern regarding general
Email kathys@drinks.asn.au for further details.
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the drinks association | January 2017
news WID International Women’s Day event IT’S A SELLOUT! Tickets to the WID International Women’s Day event have sold out three months in advance. All 450 tickets - at $260 a seat - were snapped up in less than four weeks. “It’s a fantastic result,” said the drinks association CEO Sandra Przibilla. “There’s been a huge level of interest around the event. The response shows how much momentum there is around diversity and inclusion in the drinks industry.” “This is a great vote of industry confidence in the event and also reflects the passion for the topic,” added WID’s Jen Collins. The event, on March 8, 2017, will focus on ‘Building a diversity mindset in the drinks industry’. The keynote speaker will be 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 day will include lunch, Freedman’s address, an industry panel discussion on ‘Bringing diversity and inclusion to life’ and a networking event. $15 from each ticket will be donated to WID’s charity partner, the Australia New Zealand Gynaecological Oncology Group.
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the drinks association | January 2017
The woman turning around Diageo North America A year into being tapped as president of Diageo’s North American operations, Deidre Mahlan is riding high. Mahlan was CFO for Diageo North America before working in London from 2007-15 as head of tax and treasury of the company. She became deputy CFO, then CFO.PLC, before returning to the US to arrest flagging sales in the region. In the six months to December 31, 2014, Diageo North America recorded flat sales down from 5% growth for the comparable six months in 2013. According to The Wall Street Journal, analysts questioned whether Mahlan was is equipped to lead North America out of its malaise. “I’d have some questions on her ability to make a major difference in reversing the performance of some of Diageo’s brands in the US,” said BNP Paribas analyst Eamonn Ferry. “It’s an extraordinarily difficult task.” Another anonymous analyst said Diageo’s main problem in North America was sluggish revenue and Mahlan “has no experience in customer facing roles.” But Mahlan proved them wrong. In the financial year ending in June, 2016, Diageo North America sales were up 3% from a year earlier to $4.5billion. Among Mahlan’s innovations has been to focus on millennials - aged 21 to 34 - who have become the biggest consumers of spirits in the US and are more open to experiment with new labels. The fortunes of Diageo’s Smirnoff vodka, for example, have been turned around through the revival of its signature Moscow Mule cocktail and the introduction of limited runs of flavours such as “Peppermint Twist.” “(Millennials) interchange between brands depending on their mood, on the occasion, and the company they are in,” Mahlan told the Stamford Advocate. “Gone are the days of consumers who are single category or brand drinkers.” Mahlan has introduced an “Activation Army” program targetting around 6000 millennial-favoured establishments in the US, with representatives setting up
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tastings, ramping up social media acitivity and focussing on getting Diageo brands onto bar and restaurant menus. “The initial results are strong, with Activation Army accounts growing faster than the general market accounts — in 2016, accounts ‘activated’ by the Activation Army grew 12% and the rest of market would have grown 2%, so it was a significant uplift,” Mahlan said. “We’re going to continue to optimise this program in 2017.” Mahlan has also furthered Diageo North America’s reputation for diversity. This month, she proudly announced that the company had earned a perfect score of 100 percent on the 2017 Corporate Equality Index (CEI), a US benchmarking survey and report on corporate policies and practices related to lesbian, gay, bisexual and transgender (LGBT) workplace equality, administered by the Human Rights Campaign (HRC) Foundation. It’s the ninth consecutive year Diageo has earned a perfect score on this index. “At Diageo we value the diverse experiences and talents all of our employees bring to the table, and we strive to make our practices and policies reflect this commitment,” said Mahlan. “We are honored to again receive this designation from the Human Rights Campaign recognising our dedication to the LGBT community.”
the drinks association | January 2017
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the drinks association | January 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 12
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 | January 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 | January 2017
Diversity council’s Xmas Christmas catch-up The diversity&inclusion@drinks council held a pre-Christmas catch-up at the Bacardi-Martini head office in mid-November. The council sipped mojitos as they discussed their plans for 2017. The next diversity&inclusion@drinks council meeting will be held on March 21, 2017.
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the drinks association | January 2017
New HR challenges for an evolving salesforce Do you remember a time when photography involved Kodak film instead of a smartphone? Or when buying second-hand goods involved an ad in the newspaper, instead of eBay? In today’s rapidly moving global and technological marketplace, disruption can create significant opportunities. But it also greatly influences the way our people practices need to evolve in order to support the salesforce. For HR professionals, this means being aware of the business model changes impacting your viability or creating opportunity and anticipating the people implications for your teams. The information age – and now the social age – has seen the role of the sales person evolve dramatically. This has a number of impacts on how we organise, optimise and motivate the salesforce. The sales person isn’t necessarily the main (or even the first) point of contact Customers are no longer as reliant on a company representative to obtain product/service/pricing information and are generally further down the purchasing funnel before they make contact with your company than they have been in the past. How do you make sure you have the right sales organisational structure to ensure the investments are only made where they align with customer need and result in a competitive cost of sales? The internet has opened up new and highly efficient distribution channels A customer can be standing in your store comparing
stock availability and price with other retailers through their phone. Your store has become an expensive showroom and customer service centre rather than the primary distribution engine and it’s getting harder to track the direct impact of an individual employees sales efforts in this omnichannel world. The sales skillset has evolved Sales and supply chain processes have become so sophisticated and specialised that the skills and competencies required of enterprise account managers have transformed. Critical thinking and solutions focus are required, beyond the traditional technical and sales capabilities. How do you confidently assess and hire for this type of selling? Consumption-based pricing affects how we reward our sales team With many companies moving to consumptionbased economics (such as charging monthly access fees instead of an upfront annual fee), profit can be affected as selling the new services lines often have a slower revenue lead time. Download AON-Hewitt’s white paper to see how HR is helping deal with disruption to sales models in two large industries. For more information get in touch with an Aon Hewitt consultant today. Article by Jairus Ashworth, a Partner at Aon Hewitt, a reward expert who leads the Asia Pacific Salesforce Effectiveness practice.
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the drinks association | January 2017
the drinks association team’s cruisy Chrissy celebration the drinks association team celebrated Christmas with a barbecue aboard Catalpa, one of the Sydney Catamaran Cruises’ fleet. It was a sweltering 38C day when the drinks team boarded Catalpa. But once the catamaran got moving it became a breezy, gorgeous spot to relax and toast a great year for the association. Many new faces have joined the association in the last 12 months and the afternoon was a lovely chance to bond over a glass of champagne. A few of the team even took a dip in the brisk water at Clifton’s Beach before climbing aboard for a Kris Kringle gift-giving game. “I’m thrilled with the team we’ve created and the collaborative spirit in the office,” CEO Sandra said.
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the drinks association | January 2017
Discovering the power of your voice the drinks association associate member Mondo Search recently hosted an inspiring breakfast with Australia’s most in-demand female speaker, Robyn Moore, on “The Power of Your Word.” According to Mondo, your voice is one of the most powerful tools you have in your career and Robyn Moore is an expert in harnessing its potential. Robyn - who has spent 44 years as a voice-over artist - focusses on what you can achieve with your words and delivery. She helps recognise old habits and behaviours and take responsibility for choices, which create the outcomes they want in their lives. Her presentations are designed to: >> Re-engage you with your job, purpose, family, relationships and community. >> Reinvent attitudes and behaviours. >> Regenerate passion, energy, productivity, laughter and work/home balance. >> Restore confidence, hope and resilience in challenging times. The breakfast event was held at the Affectors Academy, in Barangaroo, Sydney. “What a fabulous start to the morning,” said our Member Liaison, Kathy Sloan, who was invited to attend, along with drinks trade’s Hannah Sparks. “Robyn truly has a gift – she was so inspiring. Many of her stories will stay with me for a very long time.”
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the drinks association | January 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 | January 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 | January 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, 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. 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 | January 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. 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. 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.
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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. Thank you to all our associate members for another productive year together. We appreciate the support you offer to the drinks association and its members. We look forward to working with you again in 2017. 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
Selfie time with the famous Diageo bear the drinks association’s Member Liasion Kathy Sloan and General Manager Hope McMurdy visited the Diageo headquarters in McMahon’s Point, Sydney, to run the team through the associations services. The meeting was targetted at active and potential users of services such as Licences, Banners, and drinks Adwatch. Kathy and Hope also got the chance to pose for a happy snap with Bundy R. Bear. The iconic Bundy bear is making a comeback this summer with his own signature drink, Lazy Bear RTD. If you would like your team updated on our services, contact Kathy Sloan on kathys@drinks.asn.au to arrange a session.
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Below is an excerpt from our November monthly report; to access more information like this, contact us on 02 9415 1199.
RTD SALES FOR NOVEMBER 2016 14 DECEMBER 2016
MAT Sales in RTD Rise
MAT sales in the domestic RTD market were slightly higher in November 2016 than in November 2015 with 24,675,855 cases sold for the former compared to 24,652,281 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)
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
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 27.15% and 23.48% of the market respectively. Bourbon Standard Bourbon Premium Rum Dark Vodka Other Distilled Scotch
Market Share 27.15% 23.48% 14.72% 16.76% 9.75% 5.40%
MAT Change % -6.00 6.80 0.90 1.40 12.60 -12.80
Liqueur Gin Rum Light Ouzo Brandy Tequila
Market Share 1.74% 0.61% 0.36% 0.00% 0.00% 0.03%
MAT Change % -19.10 12.80 6.80 -100.00 0.00 -8.90
Figure 2: MAT sales of RTD in the domestic market by market share and MAT change
02 9415 1199
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the drinks association | January 2017
Below is an excerpt from our November monthly report; to access more information like this, contact us on 02 9415 1199. SPIRITS SALES FOR NOVEMBER 2016 14 DECEMBER 2016
MAT Sales in Spirit Rise
MAT sales in the domestic Spirit market were significantly higher in November 2016 than in November 2015 with 7,661,508 cases sold for the former compared to 7,379,641 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)
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
Figure 1: Moving Annual Total ('MAT') sales of Spirits in the domestic market
Scotch, Bourbon and Vodka continue to dominate domestic Spirits sales with 22.63%, 18.83% and 16.78% control of the market respectively Scotch Bourbon Vodka Rum Liqueurs Gin
Market Share 22.63% 18.83% 16.78% 13.17% 10.94% 5.39%
MAT Change % 0.30 2.10 -1.00 4.80 5.00 22.30
Whiskey Apertifs Tequila Cognac Sambuca Schnapps
Figure 2: MAT sales of Spirits in the domestic market by market share and MAT change
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Market Share 3.98% 2.22% 2.36% 1.18% 0.44% 0.34%
MAT Change % 4.40 42.20 29.00 -13.90 6.20 -4.90
the drinks association | January 2017
Below is an excerpt from our November monthly report; to access more information like this, contact us on 02 9415 1199. WINE SALES FOR NOVEMBER 2016
14 DECEMBER 2016
MAT Sales in Australian Wine Rise and Imported Wine Fall
MAT sales in the Australian wine market were notionally higher in November 2016 than in November 2015 with 373,515,457 litres sold for the former compared to 372,940,189 for the latter. Meanwhile Imported wines recorded 17,404,359 sales in November 2016 compared to 18,840,448 in November 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 Dec
Jan
Feb
Mar
Apr May
Jun
Jul
Aug Sep
Oct
Nov
Figure 1: Moving Annual Total ('MAT') Sales of Imported Wine
360,000
in '000L Dec
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov
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
58.65%
-3.2
White
47.48%
Champagne
21.40%
1.8
Red
38.86%
1.7
Sparkling
9.40%
-23.5
Sparkling
9.08%
1.4
-1.2
Red Table
7.87%
-35.8
Fortified
4.25%
-0.2
Rose Table
2.63%
30.1
Others NES
0.32%
-6.2
Fortified
0.04%
-50.0
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
24.30%
Shiraz
23.19%
Port
79.46%
Chardonnay
18.29%
Cabernet/Merlot
13.03%
Sherry
14.36%
Sauvignon Blanc
15.20%
Cabernet Sauvignon
13.51%
Dessert
2.70%
Semillon/Sauv Blanc
12.66%
Shiraz Carbernet
11.68%
Muscat
Pinot Grigio/Pinot Gris
2.43%
Dry Red
9.89%
Australian Sparkling
3.49% Market Share
Riesling
1.91%
Lambrusco
6.47%
Methode Champ
53.55%
Classic Dry White
2.12%
All Others
12.29%
Fermented
31.14%
Verdelho
0.82%
Merlot
6.22%
Carbonated
15.31%
Semillon/Chardonnay
0.60%
Pinot Noir
2.54%
Semillon
0.11%
Cabernet/Shiraz
0.96%
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 25
the drinks association | January 2017
Below is an excerpt from our November monthly report; to access more information like this, contact us on 02 9415 1199. CIDER SALES FOR NOVEMBER 2016 14 DECEMBER 2016 MAT Sales in Cider Rise MAT sales in the domestic Cider market were significantly higher in November 2016 than in November 2015 with 10,988,342 cases sold for the former compared to 10,115,564 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)
Dec
Jan
Feb
Mar
Apr
May
June
July
August
Sept
Oct
Nov
Figure 1: Moving Annual Total ('MAT') sales of Cider in the domestic market
Victoria is the leader in the domestic Cider market with 30.15% of the market share compared to 21.80% and 20.83% 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 30.15% 21.80% 20.83% 13.24% 10.22% 2.52% 1.24%
MAT Change % 24.60 10.60 5.10 -5.00 -0.80 -6.30 -10.90
TAS Figure 3: Breakdown of Cider MAT market share and MAT change Figure 2: Breakdown of Cider MAT sales by State
Page 26
the drinks association | January 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 December 2016
Top 10 banner groups percentage share of outlets Australian liquor retail market - November 2016
Page 27
the drinks association | January 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.
Page 28
the drinks association | January 2017
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 13, 2017
D&I@drinks meetings March 21, 2017 May 16, 2017 August 8, 2017 October 25, 2017
Page 29