AUSTRALIA’S LEADING LIQUOR INDUSTRY MAGAZINE
vol. 37 no. 3 - APRIL 2018
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EDITOR’S NOTE
Editor’s Note
W
elcome to the April issue of National Liquor News. There have been some pretty significant changes within the industry over the past month, none more so than Wesfarmers’ plans to demerge Coles. If the demerger goes ahead, it would incorporate Coles supermarkets, liquor and convenience and Wesfarmers said it anticipates it would see the creation of a new top 30 company listed on the ASX. There have also been some pretty significant changes within the senior management of both Metcash and Coles. At Metcash Steven Cain stepped down as the CEO of IGA and has taken up the position as Managing Director of Coles. Scott Marshall, the former CEO of ALM will take up his role and Rod Pritchard will act as the interim CEO of ALM. You can read all about these changes on our news pages. Last month also saw the launch of the annual ALSA-IRI State of the Industry Report. We will be bringing you a full report of the launch in the May issue, but in the meantime this is a snapshot of the state of the retail liquor industry. The report specifies what has been happening in Australia’s off-premise industry over the last 12 months highlighting the value of the market, the jobs the industry supports, the number of packaged liquor licences and the taxes that the industry generates. According to the report the annual retail liquor sales in Australia total $17.5bn, which generates indirect Commonwealth alcohol excise and WET taxes of $6.2bn, before GST revenue, company taxes and personal income taxes and before State and Territory Payroll Tax or Liquor Licence fees. The retail liquor industry also provides flexible employment options for 48,000 people who are employed directly across Australia. Further the 6553 packaged liquor licences underpin an industry which generates employment for 166,000 Australians when the additional indirect jobs are factored in. The overall $17.5bn retail liquor market grew by 3.4 per cent in 2017, versus 2.7 per cent growth in 2016 with Australian produced products at the core of this growth. The increased sales in 2017 amounted to an additional $570m in value, up from a $452m increase in 2016. That growth was underpinned by increases in virtually all categories with beer, wine, spirits and RTDs all showing value growth. The only category to see a value decline was cider, which was down by 0.8 per cent, although it did show some positive signs with 0.4 volume growth. The standout category was beer; the $6.5bn category saw value growth of 4.1 per cent and volume growth of 1.4 per cent, which was primarily influenced by the success seen by Great Northern.
Food and Beverage Media Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419
PUBLISHER: James Wells
james@intermedia.com.au
EDITOR: Deborah Jackson
djackson@intermedia.com.au
ASSISTANT EDITOR: Tam Allenby tallenby@intermedia.com.au GENERAL MANAGER SALES – LIQUOR & HOSPITALITY GROUP:
Shane T Williams and Deb Jackson. The glass spirits category also volume and value growth with the $3.7bn category up by 3.7 per cent and 1.7 per cent respectively. That value increase amounted to an extra $119m in additional revenue for the category. That growth has been driven by on-going double-digit gains in malt Scotch, Irish whiskey and spiced rum. There was also solid singledigit growth in vodka and Canadian whiskey. The RTD recovery has continued, with the report highlighting 2017 as a “standout year for the $2.4bn retail RTD market”. The dollar growth of 4.1 per cent in 2017 amounted to $94m in added value, the most significant expansion in the category in around a decade. The category has been driven by five consecutive quarters of quarter on quarter growth. Overall the wine category slowed to levels below the total industry average with the $4.5bn retail wine market saw 2.4 per cent dollar growth which was worth $104m, down from $146m in 2016. The report details that 2017 was the year of rose, with the segment significantly over-indexing by generating $12m more than any other wine varietal. The 0.8 per cent volume decline recorded by the cider category was worth $4m in lost value and it is the only category where value growth has consistently lagged behind volume growth in recent years. Domestic cider has been a bright spot for the category having recorded double-digit in both 2016 and 2017. In this issue we have got some valuable features covering Premium Australian Beer, RTDs and our annual Hunter Valley report that will hopefully help you to turn a profit in your stores. As always, keep your feedback flowing (djackson@ intermedia.com.au). This is your industry magazine, so make sure that it works for you! Happy reading! Deb
Deborah Jackson, Editor 02 8586 6206 | djackson@intermedia.com.au
NATIONAL LIQUOR NEWS IS THE OFFICIAL TRADE PUBLICATION OF THE AUSTRALIAN LIQUOR STORES ASSOCIATION (ALSA).
6 | APRIL 2018 NATIONAL LIQUOR NEWS
PUBLISHED BY:
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CONTENTS
48 32
36
27
16
18
Contents April Wine 20 22 36 44 45
42 Champagne Lanson: We chat with Managing Director Paul Beavis Wine News: All the latest releases and wine news Hunter Valley: The Hunter has plenty to smile about New Releases: The latest release wines to hit bottle shop shelves Wine Tasting Review: All the results from our Semillon and Blends tastin
Spirits 21 24
27
Brews 25 32
Brewing: What’s new in the world of beer? Premium Australian Beer: Nowhere is premiumisation rifer than the beer fridge
8 | APRIL 2018 NATIONAL LIQUOR NEWS
Beer Tasting Panel: Our panel of experts reviews the latest release beers
New Product: Grinders launches Coffee X-tract into the off-premise Spirits News: The latest releases, news and promotions from the spirits category RTD: Breaking down how retailers can get the most out of this growing category
Retail Focus 16
Shopper Insights: Norrelle Goldring discusses how to up-sell around Mother’s Day
18 26 50
ALSA Study Tour: The learnings from the 2018 Study Tour to NYC Retailer Profile: We catch up with Sharni Wise from Vantage Group Shop Talk: Shop Talk chats with the ILG and Mollymook Fine Wines & Ales
Regulars 10 12 14 17 48
News: The latest liquor industry news for retailers around the country Contributors: We share insights from the experts IRI: The latest industry insights from IRI People: All the latest industry appointments Events: An exclusive peek at last month’s launches and events
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NEWS
WESFARMERS REVEALS PLANS TO DEMERGE COLES MAL HIGGS PROJECT MANAGER ALSA RETAIL INSIGHTS
WHAT IS OUR GREATEST THREAT? When ALSA Retail Insights was launched, we were facing a growing trend that looked like many of our product categories were becoming ‘commoditised’. Back then, it seemed like price was being used by many retailers as their only tool. As a result, consumers seemed to be reacting to this and only buying products that were on special. Of course, as a retailer, it was easy to succumb to this supposed trend and ‘follow the pack’, as price is the easiest lever to use when you think about how to increase sales. The reality was that in fact, overall volume did not increase and we all ended up selling the same volume – but for less money and therefore less margin. Many retailers said that this trend was the greatest threat to our future viability. Fast forward two years and we have a very different scenario. Consumers are telling us that they want to drink a bit better, even if a bit less. We have seen significant growth in categories like craft beer – read ‘consumer interest’ and more GP for the retailer. In spirits – Australian gin, whisky likewise and in several other categories as well we are seeing healthy value growth. It seems that in a very short space of time, our fortunes have changed. So, does this mean we have a bright and rosy future full of higher GPs and less competition? Highly unlikely. However, the other major threat we see on the horizon is the threat around our right to trade. In recent times, there has been a real ramping up of regulatory pressure around alcohol in almost every state jurisdiction. Very recently, we have seen calls for a minimum unit price of alcohol, restrictions, on places that alcohol can be advertised, and more and more regulatory imposts being introduced – from local councils to state governments. This growing pressure on our right to trade is arguably now the most significant threat we all face – retailer and supplier. ALSA identified these dynamics some years ago and has been undertaking a strategy of engagement with all stakeholders, ensuring we have a seat at the table wherever alcohol regulations are being discussed. It is only with this level of professional representation that our sector and indeed the entire industry, can speak up for itself and do everything it can to hold off any unreasonable restrictions on our right to trade. Of course, this level of representation is only possible if each and every liquor store joins its State Association and we enjoy the level of support we currently receive from our supplier partners. I wonder when the last time you checked the ALSA website to see who those partners are – and made sure you acknowledge their support next time you are thinking about who you deal with? The ALSA Retail Insights website – www.alsaretailinsights.com.au – has plenty of worthwhile information on helping deal with all the latest trends – from Pricing Strategy tips, to Category Management principles and Retail Calculator tools. Many retailers report that they are getting their staff to use the website as a form of training and have been getting very positive feedback as a result. One of ALSA’s important roles is to promote professional development within the retail industry and initiatives like ALSA Retail Insights, with the support of many of our suppliers, are a good example of how this can be done successfully. If you have any comments or questions of the ALSA Retail Insights program, please feel free to contact Mal Higgs at mal@alsaretailinsights. com.au or from the website itself, feedback@alsaretailinsights.com.au.
10 | APRIL 2018 NATIONAL LIQUOR NEWS
Wesfarmers has revealed its intention to demerge its Coles division, with the move subject to shareholder and other approvals. If the demerger goes ahead, it would incorporate Coles supermarkets, liquor Cathi Scarce Greg Davis and convenience, and Wesfarmers said it anticipates it would see the creation of a new top 30 company listed on the ASX. “Wesfarmers acquired Coles as part of Coles Group in 2007 and since then has successfully turned around the business and restored its position as a leading Australian retailer,” Wesfarmers’ Managing Director Rob Scott said. “We believe Coles has developed strong investment fundamentals and is of a scale where it should be operated and owned separately. It is now a mature and cash generative business, which is expected to have a strong balance sheet and dividend paying capacity. Coles will be well positioned to continue to deliver long-term earnings growth, with an earnings profile that is expected to be resilient through economic cycles.” Businesses to be included in the proposed demerger would include a national network of 806 supermarkets as well as Coles Online; 894 liquor stores nationally through Liquorland, Vintage Cellars and First Choice Liquor; Coles Express which operates 712 fuel and convenience store outlets under an alliance with Viva Energy; Coles Financial Services, which offers general insurance and credit cards; and Spirit Hotels, a chain of 88 hotels predominantly in Queensland. Wesfarmers also announced that Coles’ Managing Director, John Durkan, would be stepping down after 10 years in senior leadership positions at Coles, including four as MD. His replacement was revealed to be Steven Cain, who moves into the role after leaving his role as CEO of Supermarkets and Convenience at Metcash. Metcash revealed that Scott Marshall will step into the gap left by Cain and that Rod Pritchard would step up into Marshall’s role as Chief Executive of ALM. The changes will also see Greg Davis move on from Coles Liquor Director after four years, with Cathi Scarce appointed as Acting Liquor Director. “It has been a privilege to work with the Coles Liquor team. The turnaround is on track, we have built solid foundations and have the right people and plan to deliver great results,” Davis said.
NT TO INTRODUCE MINIMUM UNIT PRICING The Northern Territory Government has announced that it plans to introduce minimum unit pricing (MUP) on 1 July, as part of the Northern Territory Alcohol Harm Minimisation Plan 2018-19, coming from last year’s Riley Review. The announced measure will see a MUP of $1.30, meaning that a bottle of white wine at 12.5 per cent ABV, which contains 7.4 standard drinks will cost a minimum of $9.62, while a bottle of red at 14 per cent ABV and with 8.3 standard drinks will cost at least $10.79. Fergus Taylor, Executive Director of Alcohol Beverages Australia (ABA), said that the industry supports the majority of recommendations made to the NT Government as part of its Riley Review, but added that MUP does not change habits of harmful drinkers and unfairly punishes responsible drinkers. “Broad based consumption measures like minimum unit pricing punish responsible drinkers with big price increases but do not effectively target harmful drinkers because they are the least responsive to price rises,” Taylor said. “The industry acknowledges the complex issues underlying alcohol abuse in the NT, and already imposes voluntary restrictions on prices and products as part of local liquor accords. It is very important any trial is carefully evaluated to see exactly what impact the new minimum price has on alcohol misuse. “The industry supports the majority of recommendations in the Riley Review and will continue to work with Government to engage local stakeholders in tailored solutions that target alcohol harm where it exists, and leave responsible drinkers alone.” The move will also see significant changes to the pricing of cask wine, with a twolitre cask soon to cost a minimum of $27.30.
NEWS
WA LIQUOR REFORMS ATTACKED AS ‘COSTING JOBS’
THIRSTY CAMEL DELIVERS EXCEPTIONAL SUMMER TRADING Thirsty Camel in Victoria delivered exceptional summer trading results, finishing the November 2017 to January 2018 period up 3.1 per cent in volume – three times the Victorian Liquor Weighted Market growth. Strong summer trading saw a six per cent growth in value and five per cent in volume, meanwhile the overall Victorian market grew 3.2 per cent in value and 0.5 per cent in volume in comparison. While beer was the strongest performing category within Thirsty Camel growing at 6.5 per cent on a MAT volume basis, the business also outperformed the growth of wine and spirits on a volume and value basis versus the Victorian and Australian Liquor Weighted Markets. Thirsty Camel attributes this success to its integrated marketing and promotional program, strategically designed with a clear understanding of what shoppers want and how to target them in order to maximise success for the retail membership. In mid-2017 Thirsty Camel bottle shops undertook a critical piece of customer segmentation research, which has delivered a true understanding of its target consumer segments, their needs, motivations and purchasing influences. This knowledge formed the development of a summer marketing solution with highly visual static and digital large format outdoor advertising, combined with digital and social advertising, effectively targeting the different customer segments. This was combined with a competitive promotional program, geared behind winning brands and strong exposure at retail level of Thirsty Camel’s loyalty program the Hump Club, which delivered incremental footfall, customer traffic and increased weight of purchase for Thirsty Camel retailers. “Our FY18 summer marketing and promotional strategy was instrumental to the significant growth Thirsty Camel Victoria has seen through the critical November to January trading period,” said United Inn-keeper Association General Manager Mia Lloyd. “This result sets us up for an exceptional 2018 of accelerated growth. We will continue to focus on our key strategic imperatives of our members winning in market, and convenience shoppers choosing Thirsty Camel across all occasions.”
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The Chamber of Commerce and Industry (CCI) has hit out at the Western Australian Government’s proposed restrictions on liquor outlets, saying they are anti-competitive, will cost jobs and that they have no evidence of health-related harm to support them. The CCI’s move comes as Endeavour Drinks Group (EDG) has said it will shelve plans to invest $85m across more than 35 store developments in the state over the next 10 years. The State Government proposes restricting the floor space of new bottle shops in areas where there are already a number of liquor stores. CCI’s CEO, Chris Rodwell, said: “To date, no evidence has been provided by the State Government to support claims that restricting the size of a liquor outlet or the number of outlets in one location reduces alcohol-related harm in the community. “You don’t see Harvey Norman or the Good Guys being told to restrict their store size. There’s no justifiable reason why the liquor retail industry should be singled out when smart regulation for the responsible service of alcohol is already in place. “The retail sector is already facing extraordinary disruption, which for those with a model based around physical site presence, often requires that they can achieve greater scale. “The State Government has claimed that they want to boost local jobs, but all they are doing is encouraging businesses that want to invest in our state and our communities to go east or online.” EDG said that if the legislation goes ahead that it would shelve its investment plans, which the group said would have supported more than 600 ongoing jobs in the new store, hundreds more during construction and many more indirectly. Shane Tremble, General Manager, Corporate Services EDG, said: “We appreciate the Government has a genuine desire to reduce the harm caused by excessive alcohol consumption, but blocking new liquor licences based on arbitrary size and location restrictions won’t help achieve this.”
CHECK OUT THESHOUT.COM.AU NATIONAL LIQUOR NEWS APRIL 2018 | 11
CONTRIBUTORS
ALSA-IRI STATE OF THE INDUSTRY REPORT 2018 LAUNCHES
FARE ALCOHOL ‘POLL’ ECLIPSED BY REALITY
ALSA and IRI have launched the third ALSA-IRI State of the Industry (SOI) Report in Parliament House Canberra. The 76 page report is crammed with valuable alcohol beverage category analysis to assist retailers to understand and leverage their marketplace. The report confirms the Australian retail liquor sector contributes significantly and positively to Australia’s economy, jobs and social fabric. Australia’s retail liquor market continues the positive trend towards demand for more premium products, while consuming less overall alcohol. Australian consumers are more discerning, health conscious and moderate and drinkers are ‘trading up’ to upscale and specialty options. The report provides an important update on craft beer, pale ales, the wine sector, developments in ciders and spirits. The Australian retail liquor sector generated sales of $17.5 billion in 2017 and $6.2 billion in Commonwealth Government revenues, collected from indirect alcohol taxes and GST revenues. Retail liquor provides a broad range of flexible employment opportunities with more than 48,000 people directly employed across Australia and the 6,553 packaged liquor licences underpin employment of 166,000 Australians, when also factoring in the additional indirect jobs. The retail liquor sector is proactively committed to responsibly enabling the safe and social enjoyment of alcohol beverages, by providing a wide choice of premium beverages at competitive prices, for people to share with friends and family in the safety and comfort of their homes. The retail liquor sector collaboratively tackles alcohol misuse and discourages underage/secondary supply of alcohol beverages by adopting voluntary and targeted measures, including the education campaigns ‘ID-25’, ‘Don’t Buy It For Them’ and ALSA Product Ranging Guidelines to assist our retailer members when making product ranging choices (www.alsa.com.au). The community supports and ALSA advocates for evidence based, effective and well-targeted policy approaches to encourage the safe and social enjoyment of alcohol beverages among Australia’s 15.7 million legal drinking age consumers. The overwhelming majority of consumers are already making informed and sensible choices about their drinking behaviour as demonstrated by the long term decline in per capita alcohol consumption, with continuing decline in measures of harm and the increase in demand for more premium products. The ALSA-IRI SOI Report is available free to ALSA and LSA members across Australia.
You may not have noticed, but the annual FARE anti-alcohol ‘poll’ came and went late last month with barely a ripple of attention from mainstream media, which in previous years had accepted its grave pronouncements, in good faith, in a genuine attempt to inform an important national discussion. But media is increasingly ignoring the FARE ‘poll’ as it faces growing criticism for alarmist claims about attitudes and behaviours around alcohol consumption, the growing chasm between these claims and evidence from the trusted Australian Institute of Health and Welfare (AIHW), and the repeated refusal of the FARE group to disclose the questions and data around which these claims are created. In this years’ tired version another grab bag of antialcohol and anti-industry claims were made without a shred of credible evidence to support them. The increasing failure of the annual poll to attract media coverage and government attention reflects a desire from the public, from governments and media for a more credible and evidence based discussion about the reality of the drinking behaviours of Australians. The reality is most Australians drink responsibly. The AIHW National Drug Strategy Household Survey provides strong evidence to support this. This study of nearly 24,000 Australians reflects the positive trends in Australia’s drinking behaviours. Conducted in late 2016, it shows: • Fewer Australians are drinking to excess than in 2013, with 83 per cent of people drinking moderately or abstaining. • Since 2010, the proportion of people aged 18-29 years drinking at risky levels has declined significantly. • Fewer people aged 12-17 years old are drinking – with 82 per cent of this age group not drinking at all. • People aged 14-24 continue to delay starting drinking – from 14.7 years old in 2001 to 16.1 years in 2016. • Young adults are drinking less – a significantly lower proportion of 18-24 year olds consumed five or more standard drinks on a monthly basis (42 per cent in 2016, down from 47 per cent in 2013). • Since 2013 the number of Australians drinking alcohol daily and weekly has fallen. Talk to your local MPs about the reality of Australia’s alcohol consumption and encourage them to speak up in caucus and cabinet to show their support for the hundreds of thousands of Australians that work in our industry, and the 15.5 million that regularly enjoy our great products.
TERRY MOTT
FERGUS TAYLOR
CEO ALSA
EXECUTIVE DIRECTOR ABA
12 | APRIL 2018 NATIONAL LIQUOR NEWS
CONTRIBUTORS
GIS AND THE BENEFITS FOR AUSTRALIAN WINE
CELEBRATING INDEPENDENT BEER IN AUSTRALIA
Australian laws relating to the use of Geographical Indications (GI), and the regulations that apply to using terms such as Champagne, Burgundy, Sherry and Port often seem restrictive – so why did Australia agree to these rules? The legal framework for Australia’s GI system has its origins in the wine trade agreement between Australia and the European Union (EU) that came into force 22 years ago. The negotiation of the EU Wine Agreement was, of course, a quid pro quo negotiation. In return for Australia agreeing to a high level of protection of registered GIs (both Australian and European), the EU agreed to apply a raft of exemptions to European wine law for Australian wine. The removal of these non-tariff trade barriers continues to facilitate the export of Australian wine to the EU, giving Australian exporters significant competitive advantage. The Bill implementing the agreement described its purpose as: ‘…to prevent the use of a registered geographical indication, either Australian or European, to describe a wine not originating within the boundaries of the geographical indication in question. The restrictions will apply to all description and presentation of wine including advertising…’ As a result, under the Wine Australia Act and Wine Australia Regulations, it is an offence to sell, import or export a wine with a false description and presentation, or with a misleading description and presentation. This extends to advertising and to text on websites. The Act clearly states that the description and presentation of wine is false or misleading if it includes a registered geographical indication, and the wine did not originate in the country, region or locality in relation to which the geographical indication is registered. Wine Australia is not the only body that can take action for misuse of GIs. Legal action and criminal sanctions can be sought by any interested party. The most recent example of this was action taken by a consortium of Emilia-Romagna winemakers against the producers of ‘Emilia’ wines in Tasmania. The action resulted in the ‘Emilia’ brand having to be completely reworked within a short period of time and at great cost to the brand owners. The regulations mean that a wine cannot be described in a way that links it to a GI that it is not entitled to use. For example, unless it originates from the GI, a wine cannot be described as a Bordeaux-style blend or Rhone-like, or reminiscent of a Chianti. Ensuring compliance as an Australian wine business, wholesaler or retailer is important. Flouting the regulations could open you up to unnecessary legal risks and high costs.
As 2018 kicks into gear there is much to celebrate in the world of independent brewing in Australia. The results of the GABS Hottest 100 indicated that ownership is becoming a more important factor to a lot of beer drinkers. Seventy-one per cent of the beers that appeared on the list are from breweries that meet the IBA’s definition of independence and a number of beers from breweries that have been recently purchased slid down in the rankings. One off reaction or trend? Time will tell. At last things are looking up if you take to the nation’s skies. The Stomping Ground brewery pop-up at Melbourne Airport has been a hit and that follows on from last year’s announcement by Singapore Airlines that they would feature Australian independent beers on certain flights. Small steps. And is that holy grail of many Australian beer drinkers, good beer at the footy and cricket, almost within reach? Well it certainly is for those in the west with the new Perth Stadium pouring independent beer in the form of Gage Roads. Imagine that, good beer at a major sporting event. So, all in all things are looking quite rosy for good beer in Australia. Well, yes, but in the broader alcohol industry there is a worrying trend and that is the rise of anti-alcohol lobbyists. The new temperance movement. The neo-wowsers. We, in our good beer bubble, cannot ignore their increasing voice. Led by the Foundation for Alcohol Research and Education (FARE), a body set up with $115 million of public money, and its associate organisations such as the Centre for Alcohol Policy Research and the self-appointed Alcohol Advertising Review Board, the purpose of these organisations is quite simply to restrict the ability of Australian’s to access alcohol. They do this in a number of ways such as lobbying to increase the price of alcohol, limiting its availability by supporting lockout laws, opposing new licences and attempting to limit the industry’s ability to advertise its products. Let’s get this out there from the beginning. Some in our community do have a problem with misusing alcohol. As an industry we cannot ignore that and we are supportive of initiatives such as DrinkWise but that does not mean that the majority of consumers who drink responsibly should be targeted by the scatter gun approach of groups like FARE. In a recent Budget submission the group advocated that the excise rate on draught beer should be increased to equal that of packaged beer. It is well documented that Australia is already one of the heaviest taxed brewing industries with rates around double that found in countries such as New Zealand and the US. In 2018 surely we can find a more nuanced way of helping Australian’s who have issues with alcohol that doesn’t penalise the vast majority who consume it responsibly.
RACHEL TRIGGS
CHRIS MCNAMARA
GENERAL COUNSEL WINE AUSTRALIA
ACTING CEO IBA
NATIONAL LIQUOR NEWS APRIL 2018 | 13
IRI INSIGHTS
IRI LIQUOR KNOWLEDGE IRI PROVIDES INSIGHTS INTO THE PERFORMANCE OF THE LIQUOR INDUSTRY TO FEBRUARY (04/02/18).
TOTAL OFF-PREMISE LIQUOR
TOP GROWTH SEGMENTS *DOLLARS GROWTH % YA
• Beer saw the largest level of innovation and range expansion, with 11 per cent more products now ranged in off-premise retailers than the previous year. • Four of the five major categories measured by IRI are in growth, with cider being the exception. • Eight of the top 10 growth driving brands and nine of the top 10 growth driving items in ‘Total Liquor’ are in the beer category, highlighting again how critical this category is to the current growth in the off-premise market.
1. Total Beer Mid-Strength (+19%)
MARKET VALUE
3. Total Beer Craft Australian (12%)
$17.6bn (+3.5%)
4. Total Red Bottled (3%) 5. Total Rosé Bottled (59%)
MARKET VOLUME
208m* (+0.9%)
CATEGORY BREAKDOWN BEER (37%)
WINE (25%)
SPIRITS (21%)
RTD (14%)
*9 Litre Equiv (000)
BEER CATEGORY OVERVIEW • Beer remains the largest category in the off-premise liquor market, with 37 per cent dollar share, and 40 per cent share of growth. • Mid-strength beer continues to be the largest growth driving segment, accounting for 67 per cent of all growth in the category (off the back of a 16 per cent dollar share of beer). • Great Northern is the key driver of the growth in the mid-strength segment, but the launch of Iron Jack by Lion has cemented this segment as crucial to overall offpremise liquor growth.
2. Total RTD Dark Spirits (+5%)
TOP
CATEGORY VALUE
$6.5bn (+3.8%)
CATEGORY VOLUME
14 | APRIL 2018 NATIONAL LIQUOR NEWS
128m* (+1.0%)
*9 Litre Equiv (000)
GROWTH MANUFACTURERS *DOLLARS GROWTH % YA 1. 2. 3. 4. 5.
CUB (+6%) Asahi Premium Beverages (+13%) Other Manufacturers (+44%) Coopers/Premium Beverages (+3%) Private Label (+5%)
TOP GROWTH BRANDS *DOLLARS GROWTH % YA 1. 2. 3. 4. 5.
G reat Northern Super Crisp (+84%) G reat Northern Original (+63%) Iron Jack (NEW) Furphy (+246%) W ild Yak Pacific Ale (+149%)
CIDER (3%)
IRI INSIGHTS
SPIRITS CATEGORY OVERVIEW • The glass spirits category saw slight price inflation and a reduction in promotional levels, indicating that retailers are moving away from deep promotions to consistent prices. • Campari is the largest growth contributor in the last year. This is driven by the success of its Aperol and Wild Turkey brands, which are both in the top 10 growth driving brands. • Clear spirits like gin and vodka continue to dominate growth, accounting for 23 per cent share of the category but 44 per cent of the category growth.
CATEGORY VALUE
$3.7bn (+3.9%)
CATEGORY VOLUME
7m* (+2.1%)
CATEGORY VALUE
$4.5bn (+2.8%)
CATEGORY VOLUME
41m* (-0.1%)
*DOLLARS GROWTH % YA
1. Bundaberg UP Rum 700ml (+18%) 2. Haig Dimple Scotch 12yo 700ml (+42%) 3. Russian Standard Original Vodka 700ml (+55%) 4. Jameson Irish Whiskey (+15%) 5. Bundaberg UP Rum 1L (+11%)
TOP TOP 5 GROWTH SEGMENTS *DOLLARS GROWTH % YA 1. 2. 3. 4. 5.
*9 Litre Equiv (000)
WINE CATEGORY OVERVIEW • Wine is the only category to see a range reduction in the last year, with two per cent fewer SKUs on sale than the previous year. • Smaller manufacturers are worth 10 per cent of the total wine category but are in growth of 60 per cent vs. the previous year. • Rosé, sparkling, and Champagne are still the trending styles, with a combined dollar share of 22 per cent vs. share of growth of 58 per cent.
TOP
TOP 5 GROWTH SKUS
TOP
Gin (+18%) Vodka (+4%) Other Whisk(e)y (+20%) Scotch (+2%) Bourbon (+2%)
GROWTH BRANDS *DOLLARS GROWTH % YA
1. Squealing Pig (+54%) 2. Wolf Blass Red Label (+17%) 3. Kim Crawford Regional Reserve (+100%) 4. Colonel and The Merchant (NEW) 5. Jacob’s Creek Le Petit (+164%) 6. Pepperjack (+8%) 7. Mumm Cordon Rouge NV (+10%) 8. Devil’s Corner (+34%) 9. Crafters Union (+365%) 10. Tempus Two (+50%)
*9 Litre Equiv (000)
RTD CATEGORY OVERVIEW • Volume has slipped into decline in the quarter and month to 04/02/18, while dollar growth is still strong, meaning that customers are buying smaller pack formats, albeit at a higher price. • Brands that made a significant contribution to growth off a relatively low dollar share of category include Smirnoff Pure, Canadian Club Premium, and Jack Daniel’s American Serve, which collectively have two per cent share but brought in 26 per cent of category growth. • The top 10 growth SKUs are worth less than eight per cent of the category but contributed over half (53 per cent) of RTD growth in the last year.
CATEGORY VALUE
$2.4bn (+4.1%)
CATEGORY VOLUME
24m* (+2.4%)
*9 Litre Equiv (000)
TOP GROWTH BRANDS *DOLLARS GROWTH % YA
1. Canadian Club (+15%) 2. Bundaberg UP (+7%) 3. Cruiser (+10%) 4. Smirnoff Pure (+129%) 5. Canadian Club Premium (+116%)
TOP GROWTH MANUFACTURERS *DOLLARS GROWTH % YA
1. Beam Suntory (+6%) 2. Brown-Forman (+6%) 3. Asahi Premium Beverages (+7%) 4. Diageo (+3%) 5. Private Label (+21%)
NATIONAL LIQUOR NEWS APRIL 2018 | 15
SHOPPER INSIGHTS
MOTHER’S DAY: NOT JUST CHAMPAGNE AND FLOWERS NORRELLE GOLDRING LOOKS AT THE MULTIPLE OPPORTUNITIES MOTHER’S DAY PRESENTS TO LIQUOR RETAILERS.
S
o here we are again with Mother’s Day only a month away. Sure, you can do the usual displays of French Champagne and upmarket Australian sparkling, and Baileys two glass gift packs. But is that really all there is to it? A study I ran a couple of years ago to understand Father’s Day gifting indicated that shoppers (more likely to be women) were buying gifts for up to five different ‘dads’. These included their own father, their partner’s father, their partner from the kids, their partner from themselves, and occasionally their ex-partner from the kids (interestingly, not for grandfathers from the kids). And what they bought depended on the quality of their relationship with each ‘dad’… what they were ‘worth’, and how well they knew their likes and dislikes. Automatically this yielded an AWOP (Average Weight of Purchase) opportunity for liquor, if women were buying for multiple dads at the same time (and typically last minute, in the week prior to Father’s Day). So let’s think about how this might apply to mums. How many mums might shoppers be buying for, and how does Mother’s Day differ to Father’s Day? In theory they could be buying for their own mum, their partner’s mum, their partner from themselves, their partner from the kids, and maybe even grandma from the kids. So there’s an AWOP occasion for liquor there, and not all mums are necessarily going to be Champagne drinkers. Some may like gin, or Pinot Grigio. Or even if the mums are all sparkling drinkers, you could sell a variety four-pack or six-pack of sparkling (so that not all the mums in the family receive the same thing) and throw in some gift bags and boxes. Either way, it’s a spend increase opportunity, since the expectation is that the liquor gift is more special than what she would buy herself normally. So, if mum is normally a vodka drinker, you might promote a more premium vodka like Grey Goose, Belvedere, or Cîroc (and put some upmarket tonic mixers with it). Shoppers have indicated in other studies we have run that they like to see dedicated gifting bays. Theoretically you would change out what’s in this depending on the time of year and occasion, so for Mother’s Day
16 | APRIL 2018 NATIONAL LIQUOR NEWS
you could range a selection of sparkling, high-end vodka and gin, some boutique still wines, and the obligatory Baileys in it. One of the chief differences between Mother’s Day and Father’s Day is the nature of the occasion. Father’s Day tends to be more about gifting, with some at home lunches. Although we are starting to see an increase in the ‘lunch out’ occasion for Father’s Day. Where for Mother’s Day it’s almost the reverse – it’s mostly about lunch out (or lunch in), and multigenerational. Gifts are likely to be flowers, or beauty and pampering related. This means you can tap into the lunch occasion. Where buying gift boxed sparkling or Baileys may be for ‘her, later’, shoppers may need something to take and drink with lunch for ‘us, now’. This lends itself to pick ‘n’ mix six-packs and cases of wine. Or specials on wines that are complementary to what the restaurants in the local area range. Or working with other vendors in the local area to put together hampers for picnic lunches. Lastly you then need to shout about what you’ve got on offer so shoppers know you are a destination and solution for their Mother’s Day shopping. Use electronic direct mails to your customer base, your website, social media such as Facebook and Instagram, catalogues and mail drops to promote your Mother’s Day range and offers. Happy Mother’s Day!
ABOUT NORRELLE GOLDRING Norrelle helps improve shopping experiences by understanding how and why people buy things. She has 20 years’ experience in shopper and retail research and marketing across manufacturer, retailer and agency roles with companies ranging from Diageo to Coca-Cola to Vodafone Stores. Most recently she was Shopper Lead APAC at global consumer and retail research house GfK. Call Norrelle on 0411 735 190 or email norrellegoldring@hotmail.com.
PEOPLE
Shifting Rank SCOTT MARSHALL CEO INDEPENDENT GROCERS ASSOCIATION Scott Marshall has left his position as the CEO of Metcash’s liquor division, ALM, to become the new CEO of the Supermarkets & Convenience pillar of Metcash, IGA. Marshall has been the CEO of ALM for the past four years and has more than 25 years experience in wholesale and retail with Metcash. He said that he is looking forward to the new challenge. “I have always been very passionate about independent retailers and I am looking forward to leading the team and creating further opportunities in supermarkets and convenience. It is a bittersweet day for me as I have loved working for ALM and will never really leave the liquor industry as it in my blood.”
ROD PRITCHARD INTERIM CEO AUSTRALIAN LIQUOR MARKETERS Rod Pritchard the current General Manager Merchandise of ALM will act as the interim Chief Executive of Metcash’s liquor business, Australian Liquor Marketers (ALM). Pritchard has extensive experience in the liquor industry including three years at Metcash working closely with Marshall on ALM’s growth initiatives, as well as more than 15 years with Brown-Forman. He said: “Scott certainly leaves big shoes to fill, but I look forward to the challenge and it will be business as usual while we continue to execute the strategies already in place. We will continue to work closely with our retailers and suppliers on supporting and growing independents in the liquor market.”
TIM HEATH SENIOR WINEMAKER KATNOOK COONAWARRA Katnook Coonawarra has appointed Tim Heath as its new Senior Winemaker, beginning late June. Heath has been the Senior
Winemaker at Cloudy Bay Vineyards in New Zealand for the past 14 years. During that time he has been responsible for overseeing winery infrastructure and expansion, and he has extensive experience promoting wine and liaising with key opinion leaders in national and international markets. Heath said: “I’m excited to be joining the team at Katnook, which has some of the finest terroir in the Coonawarra region, as well as an incredible pedigree and history.”
KATHRYN CROMARTY BDM - VICTORIA EBEV AUSTRALIA Kathryn Cromarty has joined eBev in the role of Business Development Manager in Victoria. Cromarty brings a strong hospitality management and sales background to eBev and is passionate about wine. The most recent position Cromarty held was the Product Deployment Analyst for Tabcorp Gaming Solutions. Cromarty was instrumental in building key relationships with customers in the B2B industry and supporting them. Successful in implementing deployment strategy for her network she is thrilled to be joining the fast-paced digital platform.
BRETT STRAUSS BDM - NSW EBEV AUSTRALIA Brett Strauss joins eBev in the role of Business Development Manager with a significant advantage in understanding venue side and the challenges they face. Over the period from 2006 to 2012 Strauss enjoyed the opportunity to develop skills in a range of pubs from small venues to major airport facilities. Over the next few years Strauss launched a number of new niche venues with various capable contributing partners. Strauss said: “I’m very excited about the opportunity to help eBev finally bring the hospitality industry into a digital world while helping build relationships between venue and supplier. I firmly believe eBev will become the centre of the beverage community helping to pull all sides of the industry into one.”
ANNOUNCE YOUR NEWEST STAFF Simply send the details of your newest staff member to djackson@intermedia.com.au along with a high-res headshot and share the news of your latest appointment.
HUMAN RESOURCES
AMBER KING (L) SUE LAURITZ (R) Directors, BrightSide
AGEISM, DOES IT EXIST IN YOUR WORKPLACE? We regularly hear of employers tackling the areas of gender equality and diversity however the question of ageism and whether it’s active in the workplace rarely rates a mention. When employees over a certain age are being overlooked for promotion or career development, age discrimination becomes a real issue. No employer wants to believe they participate in discrimination during the recruiting process however that doesn’t mean it doesn’t happen, even unintentionally. Potentially they can leave themselves open to legal ramifications. To understand how to avoid ageism during your recruitment process try to identify those actions and attitudes that could cause it. We believe a recruitment process that protects against ageism is worth the time and effort and it should also help you secure the right person for the job. Tips to ensure you are not being ageist could be to make sure your position descriptions and job advertisements avoid words with an ageist connotation like young or energetic which can give the impression of a generational preference. During the interview process stick with jobrelated questions, anything that isn’t relevant to their job performance or skills should not be probed in an interview. Aim to have a list of criteria to measure against so you conduct a fair hiring process. If a candidate doesn’t meet expectations, it’s best practice to have evidence to support your decision making process. We need to shake the common stereotypes about older workers; that they’re not technically up-to-date, want higher salaries or don’t have the energy to compete. There are many advantages of employing mature candidates. They are often described as: - Detail oriented, focused and attentive - Good listeners and sounding boards - Strong mentors and able to share a vision - Efficient and confident with invaluable IP - Punctual and organised While there is a time and place for each service offered, by looking at the cost of ‘not getting it right’, working in a retained and/or exclusive manner with your recruitment provider, may not seem like such a big investment. For all things sales and marketing please go to www.brightside.careers or call Sue Lauritz on 0403 063 128 or Amber King on 0404 023 944.
NATIONAL LIQUOR NEWS APRIL 2018 | 17
ALSA STUDY TOUR
18 | APRIL 2018 NATIONAL LIQUOR NEWS
ALSA study group between store visits at Madison Square Park. Mal Higgs, Sean Nicoll, Kylie Farquhar, Paul Williams, Shane Madden, Giuseppe Minissale, Sharni Wise, Sam Cufone, Scott Towers, Heath Forbes, Liette Snow, Janine Tilley and Paul Heilman.
ALSA STUDY TOUR
ALSA Study Tour hits NYC
THE 2018 ALSA STUDY TOUR TOOK A GROUP OF 15 RETAILERS AND SUPPLIERS TO THE US WHERE THEY WERE ABLE TO OBSERVE AND LEARN RETAILING TECHNIQUES IN NEW YORK CITY. WRITTERN BY SHANE T WILLIAMS
O
ccasion-based retailing is still at the forefront of how good retailers should market their store. This was a key finding from the small group of 15 suppliers and retailers who attended the ALSA NYC Study Tour led by Mal Higgs last month. The group identified three main themes that linked ‘occasion-based’ retailing to what they had seen during their 20-plus store visits in the highly regulated New York State and less regulated Jersey markets. ‘More story, less price’, that was the theme in New York State, particularly Manhattan, where due to strict regulations on ownership and discounting, the emphasis was on ‘store provenance’. The in-store experience promoted ‘storytelling’ around craft spirits, particularly American whiskies and European wines. Ticketing, promotion and layouts focused more on ‘manager’s pick’ or educating consumers about brands in-store. There were very few to no catalogues, no heavy discounting and the focus was on storytelling and brand awareness rather than price. Pack formats, the second theme the group noticed again linked back to the ‘occasion’. “If we are heading down the path of occasion-based retailing, then we need various pack formats to service these different occasions,” said ALSA President Giuseppe Minissale. Pack formats varied right across the beer, spirit and wine categories. Wine in can is coming to Australia. This format has made inroads in the US and is heading down under. Recently Dan Murphy’s began ranging some SKUs while a number of major Australian suppliers are also looking into this category. Miniatures, 500ml and one-litre format spirits were a play in both the NY and Jersey markets. The group found these different formats could play a role in the Australian market. Miniatures may work well in high density, high traffic stores, particularly those near transport hubs. The 500ml play could be an opportunity for consumers to buy more premium spirits and still stay within their price range, while larger formats could target both the on-trade and brand loyal consumers. Other interesting pack formats the group identified as retail opportunities included wood packed premium French wine casks (priced at US$35) as well as magnums of sparkling rosé and Champagne. The last theme the study group identified was ‘captivating the shopper’. With a market that is not driven by price or catalogues, there is a greater need to stay relevant and touch consumers out of the store. The group observed that most wine stores had some type of ‘click and collect’ as well as a desk where staff phoned or emailed customers. In some instances stores did around 40 per cent of their business either online or over the phone, not in-store. The full findings from the ALSA NYC Study Tour will be presented at the ALSA Australian Retail Drinks Conference to be held at Peppers Salt Resort in Kingscliff, NSW from 7-10 August.
Scott Towers, Paul Williams and Paul Heilman checking out the ‘wine in a can’ market that is set to trend in Australia soon. There is an explosion of local and craft spirts, particularly American whiskies, sold in various formats.
Janine Tilly, Jeff McKenzie and Sean Nicholl at Madison Square Garden to watch the New York Knicks get up.
NATIONAL LIQUOR NEWS APRIL 2018 | 19
PROFILE
A chat with Champagne Lanson WE CATCH UP WITH PAUL BEAVIS, THE MANAGING DIRECTOR UK & EXPORT MARKETS OF CHAMPAGNE LANSON.
Q WHAT WERE THE HIGHLIGHTS FOR LANSON IN 2017? One highlight is the consistent strategy of Lanson that has been applied throughout the world. In addition the ability to bring some of our premium portfolio to the Australian market including our world renowned Cuvee Extra Age launch last year and finally celebrating a new distribution partnership with Wine DNA network (Young & Rashleigh Wine Merchants for NSW, Sante Wines for Victoria, Cuttings Wines for Queensland, Options Wines for South Australia), which has enabled us to bring this unique wine to Australia. Q WHAT DO YOU SEE AS THE MAJOR OPPORTUNITIES FOR LANSON OVER THE NEXT 12 MONTHS? We will be making a much larger range available to the market, most of which will be exclusive to independent bottle shops and the on-premise. We’ll be bringing something new to the market for the sommeliers to sample in the on-premise, including the launch of an organic cuvee and for the off-premise we will be bringing some genuine innovation and creativity that will delight on shelf for consumers. Q IN OCTOBER LAST YEAR YOU LAUNCHED THE CHAMPAGNE LANSON MUSIC BOX PROMOTION, HOW SUCCESSFUL WAS THAT PROMOTION? DO YOU HAVE ANY OTHER MARKETING CAMPAIGNS ON THE RADAR FOR 2018? Innovative gifting is definitely a part of our strategy, and the Lanson music box we launched in 2017 was a very successful campaign and it sold very quickly in-store. Our plans in 2018 are to continue to diversify our gifting portfolio but not to be famous for gimmicky innovation, that doesn’t always work. Practical, value added
20 | APRIL 2018 NATIONAL LIQUOR NEWS
promotions that have the ability to delight the shopper are essential. You have to allow people time to see and understand the innovation and that means single, annual executions need to be seriously considered.
Q ARE YOU NOTICING ANY TRENDS IN THE CHAMPAGNE CATEGORY IN AUSTRALIA? Certainly rosé has had a growth spurt and that’s been driven off the back of high quality French Provence rosé wines hitting the market. Then consumers make their way into rosé Champagne and this is where Lanson performs very well due to the unique method of non malolactic production that we use. The Lanson rosé style is fresh, clean and mouth-watering and consistent with some of the popular rosé wines in the market today. Also the premiumisation in vintages is growing strong in the market and Australian consumers have always had a very good palate for vintage wines, which enables us to bring our excellent Noble Cuvee Blanc de blanc into the market (2002) which we are one of the last Champagne houses to release such a great vintage and then our Clos Lanson 2007 later in the year. Q DO YOU THINK LANSON IS MORE OF AN ON-PREMISE OR OFF-PREMISE BRAND? CAN YOU OFFER ANY KEY SELLING POINTS FOR INDEPENDENT RETAILERS TO HELP THEM CREATE EXCITEMENT ABOUT LANSON IN THEIR STORES? The non-malolactic style is very niche in all channels. Both channels are as important, one to finance the education and image building in the other. You need a sensible approach to all available channels in the market – availability is the key and being seen in the right places will always be a positive thing. Key selling points for Independent retailers are that we have a unique style of Champagne, we
are one of the oldest Champagne houses present in Australia and have been in the market for at least 160 years. We’ve make a lot of investments in the market and have an exclusive range of products that aren’t represented in chains, including Lanson Pere et Fils, Lanson Green Label, Lanson White Label, Lanson Pink Label, Clos Lanson.
Q DO YOU HAVE TO MARKET THE BRAND DIFFERENTLY IN AUSTRALIA TO HOW YOU WOULD IN OTHER COUNTRIES AROUND THE WORLD? No. Consistent brand building is about setting out your position and sticking to it. Lanson is a 258 year old brand steeped in history, where quality, commitment and consistency in producing our unique style of Champagne is at the forefront of our strategy. Lanson is not a producer of tens of millions of bottles, our focus is on quality. People who buy Lanson do so because they know how good the wine is and they don’t get sucked into gimmicks – we are about hand crafted, controlled production and focusing on what’s in the bottle not just what’s on the label. Q HOW BIG IS THE AUSTRALIAN MARKET FOR YOU? HOW DOES IT FARE COMPARED TO OTHER MARKETS? Australia is very important to us and we value our position and our partners here hugely – of course there is room to grow but it has to be at the right pace and in the right way. Q WHAT IS YOUR KEY MESSAGE TO THE TRADE FOR THE YEAR AHEAD? When it comes to Champagne, creating occasions is key and so we encourage consumers to explore the different styles of Champagne and trade-up.
NEW PRODUCT
GRINDERS COFFEE X-TRACT LAUNCHES
WE CHAT WITH NATIONAL COFFEE ACADEMY MANAGER, ANDY EASTHOPE ABOUT THE NEW GRINDERS COFFEE X-TRACT, WHICH MAKES IT QUICK AND EASY FOR CONSUMERS TO MAKE ESPRESSO MARTINIS AT HOME. Q HOW HAS THE GRINDERS COFFEE X-TRACT BEEN RECEIVED BY THE ON-TRADE? The trade has been really positive toward Grinders X-Tract. We’ve had customers realise that making authentic espresso-based cocktails can be easier than previously done. It’s one thing to have an espresso martini on the menu but another to be able to provide it consistently time after time during a service. Q WHERE WILL IT BE AVAILABLE IN THE OFF-PREMISE AND WHAT IS THE RRP? It is already available for the independents however Dan Murphy’s are the first of the majors to pick it up. The inherent benefits of a great taste, ease of making and of course the great quality espresso martini it makes, make it a great in-home party solution. The RRP will be around $15 per 750ml bottle, which gives a consumer around 25 x 30ml shots.
The margin is good and in line with expectations for a non-alcoholic beverage in the off-premise channel.
Q WHAT MARKETING ACTIVITY DO YOU HAVE PLANNED? We’ve already been driving our launch program through the on-premise market with tastings, partnerships with key venues and point of sale to help build awareness for the product. We’ve also used the Amatil Exchange bar team to create a 20 page recipe booklet on making espresso-based cocktails. There’s a whole world of espresso cocktails that the industry are experimenting with making it an exciting time. Q DO YOU HAVE ANY ADVICE FOR RETAILERS AROUND POSITIONING THE GRINDERS COFFEE X-TRACT IN-STORE? As the espresso martini is the hero drink it should be positioned near other mixers in-
NEW PROSECCO SPRITZ WITH ORANGE & AROMATIC BITTERS
JUST POP & POUR
store as the first location. Then it’s really up to the retailer who can have some fun with the product through tastings and demonstrations. Setting up a little martini bar is a great way to not just sell Extract but also the complementary alcoholic beverages such as Galliano Ristretto, Russian Standard Vodka and or Rum for something a little different. Retailers need to look beyond just selling a particular bottle. If they can sell a whole package to make an authentic beverage they’ll do well to capitalise on this phenomena that is espresso martinis.
WINE NEWS
NEIL MCGUIGAN SAYS NATURAL WINE IS JUST A ‘GRAPE-BASED BEVERAGE’
FERNGROVE LAUNCHES INDEPENDENCE RANGE
Four-time international winemaker of the year, Neil McGuigan, has delivered a brutal criticism of the natural wine category describing it as a “grape-based alcoholic beverage”. Speaking with National Liquor News at ProWein in Düsseldorf, McGuigan was asked for his opinion on natural or orange wine which is wine made with minimal or no chemical or technical intervention and generally minimal or no sulphites for preservation which can attract a unique or funky bouquet when smelling the wine. “I am actually in the wine industry – that natural or orange wine is a grape-based alcoholic beverage – it’s not really wine. We can turn people off wine – that is the issue and that is the risk and as a result – I am sorry – I cannot support it at all,” he said. When asked about targeting wine specifically to millennials, McGuigan was equally evocative. “I don’t recognise millennials as a trend – any wine company has got to continue to evolve and also we have to be sustainable. We have embraced all of the things you have to do to become a contemporary wine business – new wine styles, new varieties in the ground, solar panels and all of the technology like wide bore crossflows and discharge centrifuge that you must continue to embrace and continue to evolve your wine styles.” McGuigan had some advice for wine companies looking to embrace ‘millennial’ consumers by creating fancy packaging and sub-standard wine: “You’ll sell your first bottle, but you won’t sell your second. By all means, innovate with wine styles and packaging – but don’t forget the basics – you still have to make those basic varieties better this year than you did last year.”
Western Australian winery, Ferngrove Wines has launched a new range of wines comprising a Pinot Noir Rosé, Pinot Noir and a Shiraz, with a touch of Pinot Noir. The winery said the range has come about as a result of it wanting to break away and do something special on its own. “With our experience and knowledge of Western Australia’s wine regions, we wanted to make a range of wines like no other, wines that proudly show the best of Western Australian winemaking and regions,” the winery said. “In going our own way, we paid attention to current trends and fashion. We focused on wines that our friends and family love to drink. We wanted to create something with intriguing flavours and a rich, smooth finish.” The Pinot Noir Rosé features 100 per cent estate grown fruit from Ferngrove’s Franklin River vineyard and enjoys a touch of dryness. The fruit was harvested in the early morning, destemmed and pressed straight through with very little skin contact to retain the desired salmon pink colour. The wine was racked and had controlled fermentation prior to blending and bottling within three months to preserve the freshness and acidity. The 2017 Pinot Noir enjoyed ideal conditions with the fruit ripening perfectly with high natural acids. Speaking of the wine Ferngrove said: “Late March/early April saw minimal rain and warmer temperatures ensuring the berry sugars were high enough for the reds to reach their potential, with Pinot Noir a standout.” Speaking about the Shiraz and Pinot Noir blend the winery said: “Maurice O’Shea famously produced a Shiraz/Pinot Noir blend, so following in the footsteps of one Australia’s greatest winemakers, we have released this unique blend from 100 per cent Estate fruit. “With this blend, we have aimed to produce a mid-weight, dry red wine style from the cool Great Southern in Western Australia.”
PROSECCO MAKERS PUSH FOR FEDERAL SUPPORT Wine producers from across Australia have hosted an event for Federal Parliamentarians in Canberra to showcase the quality and importance of Australian Prosecco. The Winemakers’ Federation of Australia (WFA) and Wines of the King Valley organised the event to highlight Prosecco’s economic contribution and to help gather support to ensure producers’ rights to use and label the variety are maintained. WFA President Sandy Clark, said: “Australian and international consumers are enthusiastically embracing sparkling wine. This includes Prosecco which is outselling Champagne in some markets. To meet this growing demand, the production of Prosecco grapes in Australia has tripled since 2015. “The global market potential is huge, particularly in Australia, UK, US, New Zealand and a number of emerging Asian markets. Growth projections estimate that the value of Australian Prosecco sales could reach $200 million within a few years. The Australian industry is well-positioned to take advantage of this growth and we want to ensure that policy settings continue to support this great opportunity to generate more jobs and investment in rural and regional areas.” Australian Prosecco producer Ross Brown, Executive Director of Brown Brothers, said he was delighted to be in Canberra along with fellow producers from around Australia. “It’s a privilege to be in Canberra to showcase the breadth and quality of Australian Prosecco. Of course the bigger story is the enormous economic potential that this grape variety holds for the Australian industry and the direct boost it will give to our regional economies,” Brown said. “Australian Prosecco is gaining a significant foothold in fiercely competitive and rapidly expanding international markets. That makes us a target for other international producers trying to get an edge with consumers. We relish the opportunity to compete on a level international playing field and believe that the potential returns for Australia’s regional economies are enormous.”
22 | APRIL 2018 NATIONAL LIQUOR NEWS
WINE NEWS
WINEMAKERS WELCOME LATEST TRANSPACIFIC PARTNERSHIP Eleven countries including Australia signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11), a move that was welcomed by the Winemakers’ Federation of Australia (WFA). The TPP was signed in Santiago, Chile in March and Trade Minister Steven Ciobo said the new deal will bring a boost to the Australian economy and businesses. “The signing of the TPP-11 delivers extra outcomes for Australian exporters that will help create new Australian jobs,” Ciobo said. “The agreement will eliminate more than 98 per cent of tariffs in a trade zone with a GDP of $13.7 trillion that spans the Americas and Asia. “As tariffs tumble, the TPP-11 will drive demand for Australian goods and services, helping create new Australian jobs.” The WFA Chief Executive, Tony Battaglene also welcomed the deal, saying it is great news for Australia’s wine exporters. “The Australian Government has shown strong leadership in continuing to peruse TPP-11 after the US withdrew, and there will be great benefits for Australian wine producers as a result,” Battaglene said. Speaking during a visit to the Wirra Wirra winery in McLaren Vale, Prime Minister Malcolm Turnbull also welcomed the deal, saying: “There are $2.8bn of Australian wine exported every year, more than half of them from South Australia and enabled by the Free Trade Agreements that we have negotiated in Japan, Korea and China. “The TPP-11, will lower the barriers and the tariffs on wine going into Canada, Malaysia, Mexico and other countries in the TPP.”
BROWN BROTHERS PROSECCO FOR EVERY OCCASION
SPIRITS
BUFFALO TRACE 2018 ANTIQUE COLLECTION LAUNCHES SouthTrade International has confirmed that the 2018 Buffalo Trace Antique Collection has landed in Australia. The collection represents a cross-section of rare American whiskies and includes a range of limited edition whiskies of various ages, proofs and styles. Buffalo Trace Brand Manager at SouthTrade International, James Johnstone, said that the Antique Collection highlights the distillery’s legacy of many decades of distilling genius. “Hailing from the most award-winning distillery and as a heavily awarded range itself, the Buffalo Trace Antique Collection’s demand always outweighs supply globally,” Johnstone said. “It’s great to see that Australia has had so many bottles come through the allocation this year, which we only hope will grow in the future so that more whiskey aficionados are able to enjoy these incredible drops.” The Antique Collection comprises of 18 rare products including the highly pursued Pappy Van Winkle 23 Year Old, the iconic William Larue
Weller and the Weller 12 Year Old. Due to its exclusivity, this unparalleled collection of the world’s finest Bourbons, is available in limited numbers across both on- and off-premise venues within Australia. SouthTrade said that in order to unlock access to specific antique products and earn the ability to apply for them, customers are required to support and purchase a certain quantity of the distillery’s flagship Bourbon, Buffalo Trace.
GLOBAL BEVERAGE BRANDS ADDS TO ITS PORTFOLIO
SULLIVAN’S COVE WINS AT 2018 WORLD WHISKY AWARDS
Australian multi-beverage company, Global Beverage Brands (GBB), has added to its portfolio of premium imported spirits and mixers with Bareksten Botanical Gin, Bumbu Rum and Double Dutch Mixers. Bareksten Gin is a super-premium botanical gin hand-crafted in Norway, using Nordic, natural and organic ingredients as the botanicals. GBB said of the gin: “The product represents the essence of Norway, in both taste and character – dark, wild, breathtaking and dramatic while the liquid is romantic and playful. The complexity and the botanicals summon the senses and are deliciously potent.” Bumbu Rum is hand-crafted in small batches on Barbados, using sugarcane from sustainable farms from eight countries throughout the Caribbean and South America. The rum is distilled using two continuous stills and is aged up to 15 years in Grade A oak barrels from Kentucky which helps to create “an effortlessly smooth and balanced rum with complexity and depth”. Double Dutch is a range of mixers which offers innovative flavours along with some of the more traditional ones. These include Cucumber & Watermelon, Pomegranate & Basil, Ginger Beer, Cranberry Tonic, Indian Tonic, Skinny Tonic and Soda Water. Double Dutch is founded by a pair of young, dynamic twin sisters, who are proudly Dutch. The premium mixers are made from 100 per cent natural ingredients and are also low in calories. Speaking about how they came up with the flavours, co-founder Joyce De Haas said: “At first we approached the issue by talking to mixologists to hear their views on potential spirit enhancers. After a couple of conversations, we were introduced to flavour pairing techniques. That led us to the initial development of our first two flavours: Pomegranate & Basil and Cucumber & Watermelon.”
Tasmanian distillery Sullivan’s Cove has won another major global accolade after being named as the World’s Best Single Cask Single Malt whisky at the 2018 World Whiskies Awards. The Sullivan’s Cove American Oak Single Cask HH0351 collected the award, while the distillery’s Double Cask expression was named as the Best Australian Single Malt. There was also a gold medal for the Sullivan’s Cove Winter Feast 2017. Other Australian medal winners at the awards included a gold medal for Hellyers Road Slightly Peated, a silver medal for Limeburners Darkest Winter and a bronze medal for Limeburners Sherry Cask Strength. Sullivan’s Cove Managing Director, Adam Sable, was understandably delighted with the win. “These awards are incredible recognition of our dedicated and passionate team, and reinforce that Tasmania is one of the world’s best whisky making regions,” he said. Patrick Maguire, Head Distiller, added: “To be crowned World’s Best at The World Whiskies Awards again is a wonderful honour. The distillery was in competition with over one thousand brands from around the globe, so it’s a fantastic achievement for us and Tasmania.” American Oak Cask HH0351 was distilled in June 2000 and decanted in January 2017, making it 16 years and five months old. It was matured in a 200L American Oak ex-Bourbon barrels and produced only 136 bottles. Sullivan’s Cove Distillery was established in 1994, and is the second oldest whisky distillery in Tasmania. Its single malt whiskies are made from 100 per cent Tasmanian malted barley and Tasmanian mountain water. The whiskies are double distilled in their unique, Tasmanian-built pot still and allowed to mature in full size casks over several years in the rare Tasmanian climate. The awards also named the World’s Best Single Malt, with the honour going to Japanese whisky, Hakushu 25 Years Old.
24 | APRIL 2018 NATIONAL LIQUOR NEWS
BREWING
FEDERAL COURT DISMISSES STONE & WOOD APPEAL
COOPERS SESSION ALE AVAILABLE IN OFF-PREMISE Coopers has made its popular onpremise beer, Session Ale, available to the off-premise by launching it in cans and bottles. The refreshing summer style beer was launched in kegs to the hotel trade late last year and Coopers’ Sales and Marketing Director, Cam Pearce, said that in January this year, Session Ale had become Coopers’ second largest selling keg beer after Original Pale Ale and ahead of Sparkling Ale and Mild Ale. “It’s been a tremendous response,” he said. “As Session Ale has become better known, we have been inundated with customer requests for it to be released in a packaged format. “As a result we have started production of Session Ale in cans and bottles. Stocks should be widely available at bottle shops and liquor stores across Australia from 5 March.” Session Ale is the first addition to the permanent Coopers portfolio for 14 years and is brewed using the family’s tradition secondary fermentation process. “It’s an excellent example of innovation by Coopers’ brewers and as a beer, it is fully on trend,” added Pearce. “We believe Session Ale will quickly establish itself as one of our most popular beers.” The Session Ale is brewed using Galaxy and Melba hops and has a 4.2 per cent ABV. The beer carries the same style of label as other Coopers’ beers, but with a blue colouring.
The Federal Court has dismissed Stone & Wood’s appeal of an earlier ruling regarding Thunder Road’s use of the ‘Pacific Ale’ name. Stone & Wood appealed an initial ruling which allowed Thunder Road to continue to use the Pacific Ale name, having launched proceedings in 2015 against Thunder Road’s owners, Elixir, alleging passing off misleading or deceptive conduct in contravention of Australian consumer law. In that ruling the primary judge rejected Stone & Wood’s claims for misleading or deceptive conduct, false or misleading representations and for passing off. He also rejected Stone & Wood’s trade mark claim. In dismissing the appeal the Federal Court said of the original ruling: “It was not a contradictory finding to find that the words ‘Pacific Ale’ alone and without a clear textual and visual connection with Stone & Wood (the latter words as the dominating brand) did not distinguish the beer of Stone & Wood. “The reasons of the primary judge elucidate his conclusions about this. First, as a matter of impression and looking at the labels, decals and get-up of Stone & Wood Pacific Ale his Honour did not see (and we agree with him on this) the words ‘Pacific Ale’ being used as a prominent branding reference. Stone & Wood’s co-founder Jamie Cook, said in a statement that this appeal was not about winning or losing and that the brewer was simply trying to maintain a respectful industry, he also said that Stone & Wood was continuing with its efforts to trade mark the Pacific Ale name. “This judgement is the closure of just one chapter in what has been a long drawn out process for us in protecting our IP. It wasn’t about winning or losing, it was about making a stand on behalf of our community (our team, customers, drinkers, and suppliers), it was also about making a stand for originality and creativity,” Cook said. “There are a lot of businesses in this industry that search for new spaces and create new directions. It’s fine for the rest of the industry to capitalise on the momentum created by that if it’s done in a respectful way. Our stance is about trying to maintain a respectful industry.”
QUEENSLAND GOVERNMENT TO DEVELOP CRAFT BREWING STRATEGY Queensland’s Minister for State Development, Manufacturing, Infrastructure and Planning, Cameron Dick, has spoken with brewers at BrewsVegas 2018 about a plan to strengthen the government’s role in supporting the craft brewing industry. Dick said the Palaszczuk Government recognised the benefits that local craft Representatives from the IBA and the Queensland independent brewers offered to the economy and beer industry meet with Cameron Dick, the Minister for State would tailor a Queensland Craft Brewing Development, Manufacturing, Infrastructure and Planning. Strategy to the industry’s needs. “Year after year, craft brewing has been the fastest growing segment of the beer market; a trend that we’re only seeing accelerate,” he said. “Craft beer production in Queensland is estimated to be worth around $62m per year and growing, and our state’s market share of the sector in Australia has risen by around 2.8 per cent from 2016 to 2017. “More than 13 per cent of the 516 independent breweries in Australia can be found in Queensland, and no less than 22 new breweries have opened in our state in just the last 12 months alone. “The Queensland brewing industry has asked for support to achieve their fullest potential, and I want them to know we are listening and that I’m keen to work with our brewers to sustain their growth and maximise the industry’s wider benefits. “There is more that can be done to target our support for this young industry and I will be working across government and with craft brewers to ensure our strategy addresses local needs and encourages local investment and jobs.” Independent Brewers Association Acting CEO Chris McNamara welcomed the move, saying: “The independent brewing scene in Queensland is young, vibrant, brimming with great ideas and ready to grow quickly, making this the perfect time for the government to become involved and ensure the conditions are right to facilitate that growth,” he said. “It’s a welcome sign of how seriously the Queensland Government takes this industry and its potential.”
NATIONAL LIQUOR NEWS APRIL 2018 | 25
RETAILER PROFILE
VANTAGE GROUP
WE TALK SHOP WITH SHARNI WISE THE RETAIL OPERATIONS MANAGER AT VANTAGE GROUP IN TASMANIA. SHARNI WAS NAMED THE 2017 ALSA YOUNG LIQUOR RETAILER OF THE YEAR AND ALSO JUST ATTENDED THE 2018 ALSA STUDY TOUR IN NEW YORK. Q HOW DID YOU GET INTO LIQUOR RETAILING? I started working in bottle shops casually as a university student and fell in love with the industry, so never left. I’ve now worked for the Vantage Group for 11 years, where I’m currently in the operations role overseeing the 9/11 bottle shops around Tasmania. I believe in any role you want to be challenged and evolve, and I’ve felt I’ve got these things working in the liquor industry through varying positions. It’s dynamic and fun to be part of and while I feel I fell into it a little bit by accident, I wouldn’t have it any other way. Q WHAT DID IT MEAN TO YOU TO BE NAMED THE ALSA YOUNG LIQUOR RETAILER OF THE YEAR? To receive that sort of recognition – and on a national scale – would definitely be one of my career highlights to date. It’s important for me to always be learning and I believe receiving this award opens up my network outside of Tasmania and throughout the industry. The process you go through, whether successful or not, is a great experience in itself. I would encourage any young passionate people to put themselves out there and give this a go. Q HOW DID YOU FIND THE NEW YORK STUDY TOUR? New York was amazing. It’s such an incredible city. The market is regulated completely differently than in Australia so the liquor outlets certainly had a different look and feel, and the way they conducted business was quite unique compared to the way we go about retailing liquor in Australia. I believe the true ‘gold’ in these trips is in the networks you form with other retailers. The group this year had varying roles and levels of experience, and that in itself adds value. Different people notice and comment on different things given what they do at home, so the learning that comes through the discussions is where the value comes in. 26 | APRIL 2018 NATIONAL LIQUOR NEWS
Q WHAT WERE THE KEY OUTCOMES YOU TOOK AWAY FROM THE TRIP? Database management and finding ways to seek out new customers rather than only maintaining your current customer base was a consistent theme. Also, throughout the trip most stores found ways to continue to educate their customers either through signage, tastings, even a ‘training’ room in one venue. Additionally, varied pack formats came through as quite a strong offering, and not being so reliant on price.
Q DO YOU HAVE PLANS TO IMPLEMENT ANY OF YOUR FINDINGS INTO YOUR STORES? Absolutely, we will take some of the insights from New York and mould them into something that will work for us in our market. In-store theatre and the way we interact with the customer – both in-store and through database management is something that we need to put some more time and resource into. Q WHAT APPROACHES DO YOU TAKE TO GIVE YOUR STORES A UNIQUE OFFERING? Our bottle shops, while offering a broad range of products, do focus on local offerings. We have an extensive range of Tasmanian wine and spirits and showcase that in a way that isn’t replicated in other banner groups. Q WHAT ARE SOME OF THE BIGGEST ISSUES CURRENTLY FACING THE RETAIL LIQUOR INDUSTRY? I believe we are in a time when learnings may need to be sought out from other industries, whether that be other sectors of retailing or FMCG. Given the liquor retail industry is so competitive it’s about innovation and staying ahead of the curve. I think particularly in the independent groups we have a long way to go in really using technology and digital properly and whoever can capture that market the best will reap the rewards.
RTD FEATURE
WELCOME TO THE FAMILY. JACK AND COLA 500ML NOW AVAILABLE.
YOUR FRIENDS AT JACK REMIND YOU TO DRINK RESPONSIBLY. JACK DANIEL’S & COL A 5% ABV (10 PROOF), JACK DANIEL’S DOUBLE JACK & COL A 6.9% ABV (13.8 PROOF), JACK DANIEL’S AMERICAN SERVE & COL A 10% ABV (20 PROOF). JACK DANIEL’S, JACK DANIEL SIGNATURE, OLD NO.7 BRAND AND GENTLEMAN JACK ARE REGISTERED TRADEMARKS. ©2018 JACK DANIEL’S. CANNED UNDER LICENSE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN-FORMAN AUST. PT Y. LTD. JACKDANIELS.COM
RTD
READY-TO-DRINK AND READY-TOINNOVATE
AFTER EXPERIENCING A NUMBER OF TRYING YEARS, INNOVATION IS HELPING TO DRIVE GROWTH AND EXCITEMENT THROUGH THE READY-TO-DRINK CATEGORY, ANDY YOUNG TAKES A LOOK AT WHAT RETAILERS NEED TO DO TO MAKE THE MOST OF THIS GROWTH OPPORTUNITY.
T
he ready-to-drink (RTD) category has endured some tough times in recent years. After the brutal Rudd tax of 2008 saw the category taking a big hit, producers and retailers have often looked at new ways to bring the growth back. Now with many producers focusing on the category once again and bringing innovation into RTDs the category is hitting a number of key consumer trends, growth has started to come back, and so now the opportunities are most definitely there for retailers. RTDs offer retailers strong margins and as a whole the category is an impulsive one for consumers, so if retailers can re-think the way they view the RTD category, re-think the way they have the category on show in-store and re-think how customers are reengaging with RTDs then there are some tremendous opportunities to make the most of the re-growth. With RTD being an impulsive category, this helps to drive shopper spend in-store therefore product availability is key to driving this and this is also reflected by the importance of secondary displays, with Brown-Forman saying that 76 per cent of sales are driven from secondary displays.
SHOPPER INSIGHTS Jack Daniel’s RTD Brand Manager Erin Kerr says: “I think it’s an exciting time for RTD in Australia as we start to see slow but positive signs of a turnaround. Australian consumers are generally drinking less but better quality, so premium RTD brands such as Jack Daniel’s are well placed to capitalise on this by engaging consumers on RTD as a measured, consistent and convenient way to enjoy their favourite mixed drinks. This core value of RTD is as relevant today as ever. “Shopper insights confirm that Jack Daniel’s is the most impulsive American whiskey RTD brand, so visibility of Jack Daniel’s RTD in high traffic areas of the store is most likely to drive incremental volume and value. “Bourbon RTD is also the number one liquor category purchased for immediate consumption, so not surprisingly, availability of chilled product remains a priority for shoppers.” Brown-Forman is one producer who has put a lot into its RTD innovation and that has been reflected with in-store success, as Kerr points out, “American
RTD
“BOURBON RTD IS ALSO THE NUMBER ONE LIQUOR CATEGORY PURCHASED FOR IMMEDIATE CONSUMPTION, SO NOT SURPRISINGLY, AVAILABILITY OF CHILLED PRODUCT REMAINS A PRIORITY FOR SHOPPERS,” ERIN KERR, BROWN-FORMAN.
Serve is the most successful Bourbon and North American whiskey RTD launch of the last year based on the value growth it has delivered to the category. “We are continuing to review our understanding of consumer preferences and consequently our current range. In February we launched the Jack and Cola 500ml which was driven through insights that there was a category opportunity with 500ml singles in growth and that Jack did not have a presence in this space. “We developed a premium offering to capitalise on the impulsive purchase in this space and make the world’s number one bar call, Jack and Coke, available in 500ml.”
PREMIUM LIQUIDS One of the things that could well have contributed to the growth the overall RTD category has enjoyed is that producers have taken different tacks with identifying new opportunities. While Brown-Forman and Jack Daniel’s have taken on the stronger serve market, over at Diageo the lighter refreshment aspect has been a focus, although like Brown-Forman, Diageo has used its premium liquid brands in order to help drive that growth. Diageo’s Head of Strategy and Innovation, Drewe Letchford, says the company has had a strategy to bring change into the RTD category over recent years. “Diageo has had a strategy over the course of the
last three years to reframe the premix category. It has taken some work in innovation to do that, but equally we have been innovating and renovating our core brands to make them future fit. “There are three key trends that are driving the growth in the RTD category: the first being what I would call bolder and refined flavour; the second being premium liquids; and third being lighter refreshment.” He adds: “The products that have been particularly successful over the last three years have been playing into either one or multiple of those three key trends. “In terms of the brands that have been successful for Diageo, Lazy Bear has been a huge triumph and certainly the biggest new sub-branch launch in RTD for some years. Smirnoff Pure is another playing into the lighter refreshment space and then there is the work that we have done in Gin with Pimm’s, Gordon’s and most recently with Tanqueray and Tonic, which launched this summer. “ Another area that is opening for retailers is with Australian-made spirit as Vok Beverages introduces its Beenleigh Artisan Distillers range, Australian-made rum with Cola and an Australian Spiced Rum with Ginger Ale. Brand Manager Sarah Habenschuss says this plays into “a new generation of explorative drinkers who have expanded their repertoire of brands and are searching for a more diverse range of brands with
WELCOME TO THE FAMILY. JACK AND COLA 500ML NOW AVAILABLE. YOUR FRIENDS AT JACK REMIND YOU TO DRINK RESPONSIBLY. JACK DANIEL’S & COLA 5% ABV (10 PROOF), JACK DANIEL’S DOUBLE JACK & COLA 6.9% ABV (13.8 PROOF), JACK DANIEL’S AMERICAN SERVE & COLA 10% ABV (20 PROOF). JACK DANIEL’S, JACK DANIEL SIGNATURE, OLD NO.7 BRAND AND GENTLEMAN JACK ARE REGISTERED TRADEMARKS. ©2018 JACK DANIEL’S. CANNED UNDER LICENSE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN-FORMAN AUST. PT Y. LTD. JACKDANIELS.COM
RTD Letchford also has advice for retailers on how to make the most of the category and he agrees with Kerr’s point that opportunity lies in impulse purchases. “There is a lot of opportunity in leveraging the impulsive nature of the category to build shopper baskets. “Shoppers are more likely to buy premix than any other category impulsively when in stores, as an unplanned purchase. As such, there is a great prospect to interrupt a shopper in-store whose primary purchase is beer or wine and have RTD added to their basket.” He adds: “Beyond that there are some very interesting promotional mechanics happening out in the market; new ways to reward shoppers, driving trial and adding new things into their repertoire is a really great opportunity. “That can be mechanics like mixed single promotions, or spend X amount and get something new to try, single bottle ‘try me’ deals. There’s also digital couponing where people who have signed up to a loyalty program with a retailer are served bespoke promotions based on their previous purchasing.”
PERFECT POUR
“WE ARE A COMPANY ABSOLUTELY FOCUSED ON GREAT DRINKS EXPERIENCES AND THE RTD CATEGORY ORIGINATED OUT OF EXACTLY THAT: A PERFECT SERVE, MADE FOR YOU, IN A CONVENIENT FORMAT,” DREWE LETCHFORD, DIAGEO AUSTRALIA. genuine provenance and craftsmanship, perceived as delivering a more interesting flavour profile. “Under-35s in particular are highly adventurous in their tastes – eager to explore categories and discover new tastes at an accessible price point.” She adds that with the spiced rum in particular Vok is helping bring key consumers into stores for retailers. “Spiced rum drinkers are young, single, well-educated inner-city professionals with high incomes. They have a high discretionary income and are generally big spenders on socialising.”
RETAILER OPPORTUNITIES So with RTDs being a category that is back in good health, what can retailers do to make the most of this re-growth? For James Johnstone at SouthTrade there are a number of simple checks and double checks that retailers should be carrying out in order to make the most of the RTD growth. He recommends that retailers double check stock on floor levels against in fridge displays, double check promotional frequency and the visibility of focus SKUs and also double check the visibility in-store, so checking fridge stickers, posters, bollard covers, security gate covers and flood decals, and so on. Although in many ways this may seem elementary it is still an important part of the retailing process and is now definitely something that should be done with RTDs in mind. As such SouthTrade has had a simple philosophy for driving its growth in RTDs, and it is one that should ring true for retailers as well as producers. “Innovate, innovate, innovate. If you stay still in a volatile market and just continue doing the same old things, even with new SKUs, you will struggle in such a competitive RTD market,” Johnstone says.
30 | APRIL 2018 NATIONAL LIQUOR NEWS
Another thing that all the producers agree on is that RTDs offer consumers the perfect at-home experience with the premium drinks being enjoyed as they are supposed to be enjoyed. Habenschuss says: “Beenleigh has been perfecting rum in Australia for 133 years, exploring that perfect take home serve. Now we’ve discovered the perfect serve for consumers seeking a craft Australian-made rum at an accessible price point.” Letchford agrees that it is about offering consumers the best possible experience. “At Diageo we always come back to great drinks experiences so we look at anything that we can do in a store to enhance the experience of the consumer, things like a Pimm’s jug, a cooler, something that can help the consumer to have a great experience at home. “Our focus into the future will remain on the areas where we have seen success recently, which is continuing on lighter refreshment, our focus on gin, which is seen through Gordon’s and Tanqueray and the segment of premium premix and the opportunity that provides us. “We are a company absolutely focused on great drinks experiences and the RTD category originated out of exactly that: a perfect serve, made for you, in a convenient format. RTDs are made for consumers as the maker intended.” Kerr says that with RTDs playing an important role within the industry as a whole they will remain a strong focus for the company and so retailers can have confidence in support from Brown-Forman. “We know that RTD remains the primary way to recruit the next generation of legal age drinkers into our brand and the category, so building our presence at events will place Jack Daniel’s in the hands of millennial consumers where they’re having experiences and thus building memories. “In the last year we have cemented Jack Daniel’s as the most valuable RTD trademark in Australia. Jack Daniel’s RTD has outperformed the category over the past 12 months, with value +5.3 per cent and volume +1.5 per cent, versus the Bourbon and North American whiskey RTD market at +1.6 per cent and -0.6 per cent respectively. “Our promotional plans for the coming year are focused on inspiring and exciting consumers by reinforcing what makes Jack Daniel’s so special, and that’s our home place – Lynchburg, Tennessee. In-store, we’ll be leveraging this to tie Jack Daniel’s RTD to occasions where RTD is most relevant for consumers, including barbeques over summer and social gatherings over the festive season.” So, with a category once again enjoying growth and attention from producers, retailers can have confidence that there is an opportunity to make the most of RTDs. The opportunities lie with key consumer groups and the impulsive purchase elements of RTD shoppers and retailers can once again find scope to drive margins and growth through the category.
WELCOME TO THE FAMILY. JACK AND COLA 500ML NOW AVAILABLE.
YOUR FRIENDS AT JACK REMIND YOU TO DRINK RESPONSIBLY. JACK DANIEL’S & COL A 5% ABV (10 PROOF), JACK DANIEL’S DOUBLE JACK & COL A 6.9% ABV (13.8 PROOF), JACK DANIEL’S AMERICAN SERVE & COL A 10% ABV (20 PROOF). JACK DANIEL’S, JACK DANIEL SIGNATURE, OLD NO.7 BRAND AND GENTLEMAN JACK ARE REGISTERED TRADEMARKS. ©2018 JACK DANIEL’S. CANNED UNDER LICENSE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN-FORMAN AUST. PT Y. LTD. JACKDANIELS.COM
PREMIUM AUSTRALIAN BEER
GIVE THE PEOPLE WHAT THEY WANT
PREMIUMISATION IS RIFE ACROSS THE LIQUOR INDUSTRY, AND NOWHERE IS THAT MORE IMPORTANT THAN IN THE BEER FRIDGE. AVA GREEN LOOKS AT PREMIUM BEER SALES IN AUSTRALIA.
W
hile mainstream beer offerings are still making up the majority of beer sales in Australia, premium beer is certainly nothing to be
sneezed at. “The Australian and international premium beer sector in Australia represents about 27.5 per cent of the total beer market, based on dollars spent,” says Cam Pearce, National Sales and Marketing Director at Coopers Brewery. “However, as the beer category evolves, traditional boundaries are blurring with premium offerings in most sub categories, including craft, mid-strength and low carb.” In fact, the premium international beer segment on its own is the second largest sub category with consistent growth over the past couple of years. And, as Pearce points out, it’s Japanese premium beers, such as Sapporo, that are currently leading this trend. So while everyone in the industry knows that
32 | APRIL 2018 NATIONAL LIQUOR NEWS
the trend toward premiumisation is lumbering on, picking up speed like a runaway Mack truck, what are the stats behind the news stories? According to DrinkWise’s Australian Drinking Habits 2007 vs 2017 report, over six in 10 consumers report that on a day they have an alcoholic drink, they usually have no more than two standard drinks. It seems like the ‘drink less, drink better’ message, as well as health cues in alcohol advertising is taking a firm hold in the Australian psyche. Furthermore, 63 per cent of Australians are consuming most of those drinks at home, rather than at a venue. With that in mind, it’s no wonder that in February of this year, it was reported that for the first time there were more bottle shop licenses in NSW than there are pub licenses. People want to relax at home and, as such, are investing more in their drink of choice. Making premium beer a significantly important part of any bottle shop’s arsenal.
PREMIUM BEER PERFORMANCE IN AUSTRALIA As one of the few high performing categories within the beer market, premium beer is seemingly answering a particular issue that Australian drinkers need solved. “The cost of beer in Australia continues to rise as a result of Government taxes,” says Pearce. “As a result, consumers are increasingly looking for quality rather than quantity. Greater emphasis is being placed on beers at the premium end of the market while craft beers also are increasingly popular.” Speaking of craft beer, Melbourne-based craft brand Two Birds, has seen steady and consistent growth over the last few years, carving a niche in the premium market, according to co-owner Danielle Allen. “Drinkers want to drink something that appeals to them on many fronts,” she says. “Not only does it have to be pleasing to the palate, it
has to mean something and align with their values.” Harking back to the consumer thirst for tradition and origin stories, Allen believes that social media and sharing apps have made information easily accessible to consumers who are wary of being sold a story rather than an excellent product. “You need to stand for something – a lot of premium or craft breweries have great stories to tell,” she says. On the retailer side, Richard Kelsey, of Beer Cartel, says that he has seen a decline in sales of Australian premium beer, while sales of international brands – particularly Peroni, Heineken, Corona and Asahi – are holding steady and in many instances increasing their footprint. “I think craft beers are now replacing a lot of the purchasing of premium beers, in part because these beers have more flavour and have a real story to tell,” he says. “Craft beer is now taking the place that premium beers held for many drinking occasions and are now becoming part of the repertoire of beers offered at restaurants and bars.”
ON-PREMISE TRENDS IMPACTING THE OFF-PREMISE Traditionally, the on- and off-premise have always gone hand in hand in terms of trends, with consumers committing to trialling a bottle of something recommended by a waiter in a venue, then following up with a purchase of a case or six-pack rather than flying blind on a premium purchase. It’s a broad strokes comment – there are always those customers who are willing to be adventurous at any time. Over at Coopers, the influence of the on-premise is responsible for one of their key releases, highlighting the importance of staying up to date with bar trends, even in the off-premise. “Coopers introduced Session Ale last year in keg format only for the on-premise trade. It quickly became popular among consumers to the extent that by February this year, it was Coopers’ largest selling keg beer behind Coopers Original Pale Ale and ahead of Sparkling Ale, Mild Ale and Stout,” says Pearce. “As a result of this demand, the decision was made to make Session Ale a permanent line and to release it in cans and bottles. This took place in March.”
RETAILING PREMIUM BEERS While individual retailers always know what works best in their own stores, it’s always good to have a bit of a refresh. According to Allen, retailers should definitely present their premium offering where the customer can see it immediately, for the best return on investment. “[Keep it] front and centre, as they tend to generate higher margins for themselves and capture the curious customer’s eye,” she says. Kelsey has a slightly different approach for those looking outside the box, a bit more of a hands on approach as opposed to a set and forget. “I think this is all about alignment to occasions, it should be portrayed as the beer to drink for parties, celebrations and when you are looking to impress,” he says.
BEER TRENDS CAM PEARCE: “Tropical, fruity style beers like Coopers Session Ale are currently on trend. Another sector of the beer market which continues to perform strongly is Pale Ale, while low carb, dry beers also remain popular.” DANIELLE ALLEN: “Pale Ales continue to grow and excitement is still very much apparent for unique and creative beers.” RICHARD KELSEY: “There has been a big shift from international to Australian craft beer as the quality and accessibility of Australian craft beer increases.”
NATIONAL LIQUOR NEWS APRIL 2018 | 33
PREMIUM AUSTRALIAN BEER
“THE AUSTRALIAN AND INTERNATIONAL PREMIUM BEER SECTOR REPRESENTS ABOUT 27.5 PER CENT OF THE TOTAL BEER MARKET… WITH PREMIUM OFFERINGS IN MOST SUB CATEGORIES, INCLUDING CRAFT, MID STRENGTH AND LOW CARB.” – CAM PEARCE, COOPERS. KEEP AN EYE OUT Coopers has some exciting news coming up for 2018, with strong support being offered around the new Session Ale cans and bottles as the company will be looking to build on the strong consumer interest that the beer is enjoying. “In July, Coopers will release the 2018 Vintage Ale, which is highly anticipated by beer lovers around Australia. This year’s vintage will be the 18th in the series and the first that will use malt produced at our own malting plant, which was opened at Regency Park last year,” says Pearce. On a more general note. Kelsey says: “From a craft perspective I think you’ll see an increase in approachable lagers that will be released over the next 12 months which are going to further impact sales of premium beer.” Playing directly into that trend over at Two Birds, Allen says that their Aussie Lager in a can is one to watch, as well as their Trail Blazer Lager. “We are doing a national launch for our Trail Blazer Lager both on- and off-premise, so hopefully we create some consumer interest and drive them into stores,” she says. Coming into the colder months is always an interesting time for beer sales, however craft and premium have the potential for more flexibility than mainstream brews. Two Birds, and most craft beer companies, utilise their seasonal range to tap into the changing weather and help keep up customer interest in beers throughout the colder months. While a lot of these have traditionally been on-premise tap offerings, keep an eye out for more varieties coming through in both can and bottle.
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CRAFT AND PREMIUM ARE INTERTWINED While there is still some debate as to whether craft beer fits into the premium beer category or whether it sits alone, the price point of craft beer on the shop floor firmly places it in the premium bracket. What’s more, with the surge of buyouts that occurred in the last 18 months, it’s clear that craft is now, more than ever, an important part of a big brewery’s premium offering. In fact, according to Euromonitor’s global analysis of Alcoholic Drinks in 2017, the mega brewers have seen the rising interest in craftmanship and tradition as an opportunity to revitalise Millennial interest in their own brands. Playing on the legitimate origins of premium brands therefore presents an upsell opportunity for retailers. It’s also worth noting that the sales boom in craft beer and the upward swing in the premium sector are intertwined and uplifting both segments. “The boom in the craft beer sector is helping drive the overall beer market by encouraging consumers to experiment and try different beers and beer styles,” says Pearce. “Most Australian drinkers have a portfolio of four or five beers they enjoy and will come back to. This usually includes two or three premium quality beers.”
Get behind the fastest growing beer category in Craft* by ranging Coopers NEW Session Ale! When Coopers Session Ale was launched on tap late last year this refreshing, summer style Ale with distinct tropical fruit aromas really hit the spot. With mass trial and strong consumer demand built in the on-trade, we decided it’s time we launched Session Ale in bottles and cans. From March, your customers can take home something a bit TROPICALE. Contact your local Coopers Premium Beverages representative.
* IRI volume growth MAT 31/12/17
HUNTER VALLEY
THE HUNTER HAS SOMETHING TO
smile ABOUT
36 | APRIL 2018 NATIONAL LIQUOR NEWS
HUNTER VALLEY
SOME INTERESTING NEW VARIETALS AND BACK TO BACK GREAT VINTAGES HAVE GOT HUNTER VALLEY WINEMAKERS EXCITED, AND RETAILERS SHOULD GET EXCITED TOO, AS ANDREW GRAHAM REPORTS.
T
he Hunter Valley is on a roll. Historically, Hunter winemakers do battle with the weather gods every year as ill-timed rain ruins far too many harvests. But not in 2018. Or 2017, or 2014. In fact, the region hasn’t lost a crop since 2012 – a true golden run of vintages, leaving everyone smiling. It’s not just the sun that has been shining either, with visitor numbers up and Sydney trade sales on the increase. But dig below the surface it’s not all smiles and pallet orders for Hunter Valley winemakers, as there are two key challenges to face – how to crack onto more wine lists and expand sales outside NSW.
“Pinot Noir may be the best I have seen in my time here, it all looks fantastic.” Enthused Hunter winemakers are everywhere at present, like Angus Vinden of Vinden Estate. “The Hunter Valley has been experiencing an amazing run with 2014, 2017 and 2018 all being vintages of exceptional status. So far 2018 has been praised by both growers and winemakers alike; we are buzzing about the quality of these wines.” Of course, there has to be a negative to the very dry (only 150mm since Easter 2017) vintage, as Vinden notes. “The only real downside of this vintage was the yields, with most vineyards slightly down.”
2018’S PROMISE
NOT JUST THE SAME OLD SEMILLON AND SHIRAZ
Right now though, there is enthusiasm a go-go. If given one word to describe the 2018 vintage, Andrew Thomas of Thomas Wines knows what it is, “Outstanding,” he says. One of the most outstanding things about the 2018 vintage was the weather. Or the lack of bad weather more like it, with a growing season that was unusually dry, with abnormally low humidity – both of which meant healthy crops and minimal disease pressure. This was anything but your normal Hunter vintage though, with Jeff Byrne of Agnew Wines noting that it was his shortest and earliest harvest in 20 years. Of course, while Byrne thought it was odd to be picking Shiraz in January, he’s “pretty excited about what’s in the tank now”. Actually, this was a year where the weather gods played nice all round, as Gwyn Olsen of Pepper Tree and Briar Ridge explains: “Vintage 2018 has been pretty exceptional,” she said. “While it was very dry, we escaped any serious heat events this year when compared to last year. There were many cool nights and mornings which allowed for great acid retention and floral fruit notes. I wore a jumper the morning we picked the Dairy Hill Semillon.” Such perfect conditions meant that picking decisions were made solely on ripeness, and fruit came into the winery in perfect health. For a reference point about where 2018 sits, many believe it’s akin to 2007 – one of the more celebrated red vintages of recent times. Indeed Shiraz looks to be the early standout, according to Chris Tyrrell of Tyrrell’s. “I would say this vintage personally reminds me a little bit of 2007, and a little bit of 2014,” he said. “Whites above average and reds exceptional if I had to grade them… Shiraz is very much like 2007; incredible colour with great natural chemistry and lower alcohols than 2014. They are going to be great, (with) impeccable balance in the wines already even at this early stage.” The hero at Tyrrell’s is more unexpected though. Briar Ridge Mount View Vineyard.
If you’re looking for an example of what the fresh face of the Hunter Valley looks like, then Vinden is your man. Since taking over his parents’ estate four years ago, Vinden has branched out into a smorgasbord of different varieties and reinventions of classic styles, including a smart single vineyard Tempranillo; a Pinot Noir Alicante Bouschet blend that is built to be ‘light, funky and delicious’ and an especially vibrant Nouveau Shiraz. That’s just the start of what’s to come for Vinden too, with plantings of Gamay, Mourvèdre and Cinsault in the pipeline. Speaking of Gamay, it is a grape that is ‘so hot right now’ in the Hunter, especially after the success Tyrrell’s has had with the variety. “The 2017 Gamay was incredibly well received and we sold out in three weeks. I wish we could have made more, this year is a similar volume however we will be planting some here onsite to increase our production in future years,” said Tyrrell. Another alternative variety that has found traction in the Hunter is Fiano, with a handful of makers delivering some beautifully crisp and vital wines. Briar Ridge has already found success with the grape, but this year will be the first with both an estate Fiano and an Albariño. For The Little Wine Company, it has been a host of Italian grapes that have delivered (plus their benchmark Gewürztraminer), with the new 2016 Barbera and Sangiovese just freshly released, the 2016 Sangiovese already a trophy winner. Over at Mount Pleasant, the alternate varieties under the B-Side label have been hits too. Originally conceived as a label for winemaker’s experiments, the label has now morphed into one of the more popular ranges at cellar door. Look out for the new release of B-Side Tempranillo Touriga, ShirazMontils and Fiano wines with a very exciting pair of Italians in Sagrantino and Mencia to follow in 2020.
NATIONAL LIQUOR NEWS APRIL 2018 | 37
HUNTER VALLEY
Vintage at Tyrrell’s.
THE VINES THEY ARE A CHANGING While the flow of alternative varieties continues, there has been changes behind the scenes for some of the oldest vineyards in the Hunter Valley. Mount Pleasant, for one, recently completed replanting parts of the original Old Hill Vineyard (established 1880) to 100 per cent Shiraz. Two of the most famous blocks in the region have changed hands recently too. Tyrrell’s has purchased the famous Old Hillside Vineyard – aka The Stevens Vineyard – off Neil and Bernadette Stevens. First planted in 1867 from cuttings believed to be part of the pioneering Busby collection, this 13.52 hectare vineyard includes a block that is thought to feature the oldest vines in NSW. Andrew Thomas has also bought the Braemore Vineyard off Ken Bray, securing access to some of the most desired Semillon vines in the region. As Thomas explains, it’s been a long-term project: “The purchase of this vineyard has been in the pipeline for about the last five years, and it’s awesome to see it all come to fruition,” he said. “It’s pretty much business as usual though. Ken Bray has done a great job over the last 30 years, and will continue to manage the vineyard for me on a day-to-day basis. “The purchase of the vineyard is mostly about securing long term supply of fruit from one of the Hunter Valley’s most iconic vineyards for a label which is arguably the most important to my business.”
SELLING THE HUNTER VALLEY Despite the strength of these famous Hunter producers with equally famous vineyards, there is a challenge that can’t be ignored – that of a lack of respect outside of NSW, and particularly within the industry. As Will Figueira, Senior Wine Buyer at Wine Selectors explains, it’s almost a different world. “It’s very difficult selling Hunter wines outside NSW; why? I am not completely sure. I think that a wine like Hunter Shiraz can be tough as
38 | APRIL 2018 NATIONAL LIQUOR NEWS
“PINOT NOIR MAY BE THE BEST I HAVE SEEN IN MY TIME HERE, IT ALL LOOKS FANTASTIC,” CHRIS TYRRELL, TYRRELL’S WINES Tyrrell’s Wines - Winter Vines.
HUNTER VALLEY
Briar Ridge Head Winemaker Gwyn Olsen. Thomas Wines - Braemore Vineyard.
people perceive the spiritual home of Shiraz to be South Australia, such as McLaren Vale or the Barossa,” he said. “So a lot of people are happy to stick with what they know (ie South Australian Shiraz) but Hunter, seems to be down on that list. “That’s a bit unfortunate really, because people are missing out on amazing wine, at equally amazing prices. Silkman, Thomas, Tyrrell’s, Usher Tinkler – all of these Shiraz compete with any Shiraz in the country, hands down.” One theory is that the stigma of the old Hunter Valley style continues to follow it around now, stopping ‘rusted on’ Shiraz drinkers seeing the dynamic new Hunter. Suzanne Little from The Little Wine Company has experienced this phenomenon first hand. “If I’m out in the trade my biggest frustration is people talking about old Hunter sweaty saddle reds – I mean seriously? Move on people that is so 10 years ago,” she said. “But honestly, I can sell the Hunter, its wines, its winemakers, its community until the cows come home. It’s easy because I believe in it wholeheartedly so I don’t find it difficult to sell Hunter wine. Unless I’m in Perth or Adelaide – I only made that mistake once.” That lack of support from the trade is echoed by Olsen: “We enjoy engaging our customers through our cellar door and wine club with some very positive results. (But) I think the biggest challenge is getting Hunter wines onto wine lists in restaurants – there needs to be more focus around regional expression and interest within the restaurant scene,” she said. At the Small Winemakers Centre they’re showing just how well the local wines stack
40 | APRIL 2018 NATIONAL LIQUOR NEWS
up against the best in Australia too, as Little (who also owns the centre) explains: “Every day in June we have Grange on tasting at Small Winemakers – we pitch Grange against three of our Hunter icons in a blind tasting,” she said. “This year it is 2011 Grange against 2011 Thomas Kiss, 2011 Brokenwood Graveyard and 2011 Peppertree Limited Release (winner of the James Busby and Elliot Family trophies at the 2013 Hunter Wine Show).” While comparison tastings like this can help challenge the notion of great wines, one hurdle that remains is the Hunter Valley wine styles themselves. Garth Eather of Meerea Park explains more: “I think it needs to be said that most Hunter Valley Semillon and Shiraz needs a little extra time to show its absolute best,” he said. “There is definitely a lot of impatience with wine consumers that want to buy a bottle in the afternoon on the way home and drink it that night.” Adrian Sparks of Mount Pleasant, however, thinks that it’s just a matter of time. “Traditionally, Australian Semillon has been
sold and marketed as an aged wine,” he said. “The market however is currently being dominated by bright, crisp and fruit driven styles and varieties and this is where I feel our young Semillons can play a key role in winning over consumers. The release of Semillon as a young wine will challenge consumers (and the industry’s) perception of the variety in a very positive way.” While there is clearly still a way to go, perceptions are changing. Wholesaler Andrew Jamieson of Andrew Jamieson Wine Merchants has a customer list that leans heavily towards on-premise and independent retailers, and believes that the mood is already changing. “The emergence of a few new producers in recent years, and a bit of shift back to more classic ‘Hunter styles’ (gross generalisation here) I think has people excited, and a few good vintages has enabled people to make these and shout about them,” he said. Perceptions or not, the final (upbeat) words come from Angus Vinden: “The future looks bright here.”
BEER TASTING
TINA PANOUTSOS
IAN KINGHAM
NEAL CAMERON
JUSTIN FOX
MICHAEL CAPALDO
GRAHAM WRIGHT
TAM ALLENBY
IN THIS ISSUE OUR PANELISTS TACKLED IPA AND THE LATEST NEW RELEASES AND CIDERS, HERE ARE THE RESULTS.
FIXATION OBSESSION SESSION IPA 4.6% ABV, 330ml This beer could easily become an obsession with all the IPA hallmarks but an easy drinking version. Pine, slight woody/earthy hop notes are evident right up-front and follow through well into the palate without leaving an oily resinous note. The bitterness is assertive but balanced. Nice clean finish with a slight build on the pine-hop notes. Delicious. Style: Session IPA Fixationbrewing.com.au
MODUS OPERANDI FORMER TENANT RED IPA 7.8% ABV, 500ml can An absolute blockbuster. Medium deep but bright red, Galaxy hops to the fore with sweet maltiness in the background. Then the taste: massive, rich, sweet malt with a hint of roasted malt as well – married perfectly with big resinous and fruity hops. And all in perfect balance. It is just so super smooth that you simply don’t notice the high alcohol weight. Great stuff. Style: Red IPA Mobrewing.com.au
CAPITAL BREWING SPRING BOARD SUMMER ALE 4.6% ABV, 375ml can Imagine an American wheat and a Belgian wit having a baby. It would be beautiful, and that’s what this beer is. The honey and spices are subtle and blend into a pale malt structure, delivering freshness with a unique complexity that has your taste buds crying out for more. Style: Summer ale Capitalbrewing.co
GOLDEN AXE APPLE CIDER 5.2% ABV, 375ml can Crisp and refreshing are the first words that strike from the axe. The aromatics are clean and show both red and green apple without any skin driven harshness. There is the inevitable sweetness, yet it doesn’t dominate the palate, instead allowing a well measured dose of CO² to dissipate things quickly. There isn’t much more to discover and in that lies its appeal, a balanced cider that will no doubt quench many a thirst. Style: Apple cider Goldenaxe.com.au
42 | APRIL 2018 NATIONAL LIQUOR NEWS
FIXATION SQUISH CITRUS IPA
3 RAVENS 55 AMERICAN PALE ALE
5.9% ABV, 330ml can With the Australian palate well accustomed to fruity flavours from hops, it was only a matter of time until we fell in love with fruit infused IPA. Squish features the addition of white grapefruit and blood orange, and integrates them seamlessly with a classic US hop profile and IPA malt backbone. It’s a balanced brew that transitions from an orange focussed aroma to a grapefruit assisted bitterness without fault. Style: Citrus IPA Fixationbrewing.com.au
5% ABV, 330ml The 3 Ravens 55 American Pale Ale showcases five hops and five malt sources, which is unusual. The orangey amber colour holds a firm white head; a scent of grapefruit, citrus, honeydew melon and some grassy hops from the glass. The palate has hints of oatmeal and biscuity malt which balance the pine, grapefruit, and citrus notes. The finish is pleasantly dry with a hint of caramel carry. Style: American Pale Ale 3ravens.com.au
AUSTRALIAN BREWERY ALL STAR SESSION IPA
ROCKS BREWING CONVICTION SERIES PALE ALE
4.2% ABV, 375ml can The once beheld paradox of finding a hoppy beer that is moderate in alcohol has been quashed by this cracking medium alcohol IPA. Light crystal and caramel malt notes balance with a mildly dank US hop aroma and flavour, providing the punter with the perfect hoppy lawnmower beer for a hot day. Style: Session IPA Australianbrewery.com
3.5% ABV, 375ml can Rocks Brewing located in Alexandria NSW, has a series of hotels which share in serving their beers. While contract brewing makes up some of their production, their own range of beers are the key focus. This cheeky little session beer pours golden with an off-white head. The aroma offers hints of malt, grapefruit and orange. The palate is light with low malt and hop expression – made for easy drinking. Style: Pale Ale Rocksbrewing.com
MOUNTAIN GOAT RARE BREED LIME CRISIS DOUBLE IPA 8.2% ABV, 640ml The first 2018 edition of Mountain Goat’s legendary Rare Breed series hits the target a little left of centre. The high alcohol blends nicely with the Persian black limes and Himalayan salt, yet the sweet caramel malt and slightly cloying structure overshadows a hop backbone that would be expected of a Double IPA. Style: Double IPA Goatbeer.com.au
YOUNG HENRYS NATURAL LAGER 4.2% ABV, 330ml Young Henrys Natural Lager is less of a traditional craft brew and more of a quaffer for young entrants to the world of beer. Hazy gold in appearance with a dissipating head, Natural Lager has light grass and grainy notes. The palate is clean but low on malt body. Uncomplicated and a little washed, excellent for refreshment but less so for lager flavour attributes. The finish is light and clean. Style: Lager Younghenrys.com
BEER TASTING
VAN DIEMAN ESTATE ALE: EDWARD
KAIJU! AFTERMATH DOUBLE IPA
5.4% ABV, 375ml One of two estate ales recently released by Van Dieman, Edward is crafted entirely from ingredients cultivated on the brewery’s farm. It ticks all the boxes for a farmhouse, delivering spice and hay amidst grassy hops. It dries out quickly, invading all four corners of your mouth and constantly yields new flavours as it warms. A fantastic brew that shows it is possible to produce a beer from ground to glass in house without compromising quality. Style: Hoppy farmhouse ale Vandiemanbrewing.com.au
9.0% ABV, 375ml can The first of the Kaiju beers, Aftermath is now in its fifth year of pleasing the tastebuds of Aussie drinkers. Once the biggest of the monster family, it’s nine per cent is now standard fare from the hop and beast loving brew team. Golden orange with a hint of translucence, jammy pineapple and citrus floods off the glass. The hops are backed with sweet toffee and a dank earthy pine that integrates well. Full bodied with more toffee and caramel and an assertive bitterness that cuts down the sweetness in preparation for another sip. Style: Double IPA Kaijubeer.com.au
GOOSE ISLAND IPA
CAPITAL BREWING CO. COAST ALE
KAIJU! ROBOHOP GOLDEN IPA
4.3% ABV, 330ml Capital Brewing is located in the Canberra suburb of Fyshwick. The hospitality of the brewery is welcoming, and tours, functions, beers and food are all available. Coast Ale is inspired by the beers of San Diego USA, from where the Chief Brewer hails. The colour is amber, and the foam is strong with good lacing. The scent of light fruit tones is evident balanced with soft sweet malt. The palate is quite sweet with some sour grainy notes. Very easy drinking, with a light body and low bitter finish. Style: California common Capitalbrewing.co
5.7% ABV, 330ml For a brewery that rarely holds back, Robohop is almost a gateway beer to the world of Kaiju and their love of big hoppy beers. A malty gold with a slight haze in the glass, pleasing citrus notes mingle with drabs of mango and freshly cut grass. The body is full and provides a sweet biscuit malt backbone that takes the lead over hop flavour. There’s little restraint on the bitterness front, which quickly knocks over the sweetness and dries out the mouth, leaving a lingering reminder that this is indeed a hop monster. Style: Golden IPA Kaijubeer.com.au
5.9% ABV, 330ml Originating in 1988, Goose Island Founder John Hall was inspired by a beer tour of Europe and commissioned the brewery in Chicago. Acquired by Anheuser-Busch in 2011, Goose Island continues to build on its success. With a swag of medals and global recognition the beer is now readily available in Australia. The IPA pours light gold with good white foam. The aroma subtly offers grapefruit, citrus and pine with bready malt. The palate is distinctly light and cleverly expresses the subtle hop components. The finish is aptly dry, wheat-like and clean. Style: IPA Gooseisland.com
MOUNTAIN GOAT BARREL AGED IPA CHRISTMAS ALE 10.4% ABV, 750ml To get a flavour improvement in an IPA using time and wood is a real challenge as both of these are potentially anathema to delicate hop characters. But here it has been done beautifully. Seamless wood vanillin and tannin teases a deep malty richness – and the required typically forward American hop flavour – making it a joy to sip on. Maybe it was the entirely appropriate residual sugar carrying the alcohol to our brains like a Japanese bullet train, but we were ever so comfortable by the time the bottle was empty. Style: Barrel aged IPA Goatbeer.com.au
BENTSPOKE CRANKSHAFT IPA 5.8% ABV, 375ml can BentSpoke is an institution in Canberra and takes its name from Chief Brewer Richard Watkins’ other passion, cycling. Well regarded for an array of beers, Crankshaft IPA continues the cycling theme and pedals some excellent style cues. The strong white head crowns an amber orange brew. The nose has a lovely grassy note, and expresses layers of hop aroma, citrus and tropical fruit. The palate has some nice biscuit malt for balance and carries the hops and alcohol well. A lovely fruity, oily hop finish with contained bitterness. Style: IPA Bentspokebrewing.com.au
WOOLSHED BREWERY CHERAX DESTRUCTOR AUSTRALIAN IPA 5.8% ABV, 330ml A profoundly cool name for a beer, tempered somewhat by the reality explained on the label – the beer being named after the humble yabby. This is an example of a beer that has had fruity hops added by the bucket load to give a big flavour profile all around, which will keep the hop heads more than happy. But many of these hop characters are subsumed by a lack of the clean vibrancy in a beer needed to really make these characters shine – some attention to detail in the brewing process would perhaps require fewer hops to create more flavour. Style: Australian IPA Wilkadene.com.au
EDEN BREWERY PHOENIX D KOTTBUSSER 5% ABV, 330ml Think of it as a German Altbier with a twist; the twist being sweet notes from added molasses and honey. This unconventional approach is typical of the youthful Eden Brewery down in the Southern Highland; while Head Brewer Jacob Newman has had his share of hits and misses over his first year of brewing, his rule breaking approach to the craft of brewing is now producing some routinely excellent and distinctive beers. Including this malty, honeyed and quaffable brew; contemporary it isn’t, drinkable and charming it is. Style: Kottbusser Edenbrewery.beer
PHILTER LAGER 4.4% ABV, 375ml can This most recent release from Philter is a lager that brings plenty of balance to the table. It pours a golden straw colour, with a light to medium head. As you’d expect from these crafty characters, the beer is slightly more hopped – with floral aromas to the fore – compared to mainstream lager. The crisp dryness of the beer makes it fresh and perfect for a hot day, but there is also a slight malt sweetness that’s makes for easy drinking. Style: Lager Philterbrewing.com
This tasting was originally conducted for the Autumn Issue 44 of Beer & Brewer.
NATIONAL LIQUOR NEWS APRIL 2018 | 43
New Releases ATZE’S CORNER WILD ROSE ROSÉ
HIGH COUNTRY TEMPRANILLO
This delicious experience of refreshing red berries and delicate floral notes is guaranteed to impress.
Aromas of blueberry and black cherry, with hints of ground coriander and chocolate. The juicy and plush palate is full of dark berries, chocolate tannins, and has a rich textured finish.
VIN: 2017
RRP: $24.95
ATZE’S CORNER WILD ROSE VERMENTINO VIN: 2017
RRP: $24.95
Discover a wealth of thirst-slaking lemon and aromatic stone fruits, which showcase the magnificent quality of both terroir and artisan craftsmanship.
FERNGROVE INDEPENDENCE PINOT NOIR ROSÉ VIN: 2017
RRP: $23
Soft and textured palate of fresh raspberry and cherry characters and dry finish.
FERNGROVE INDEPENDENCE PINOT NOIR VIN: 2017
RRP: $23
Wild strawberry and black cherry, vibrant and juicy, with gentle French oak influence.
VIN: 2017
KATNOOK FOUNDER’S BLOCK SAUVIGNON BLANC VIN: 2017
VIN: 2017
RRP: $23
With a fleshy, juicy core and soft palate, mulberries, black cherries and plums shine through with this intriguing blend.
GAPSTED BALLERINA CANOPY SHIRAZ VIN: 2016
RRP: $31
The rich and concentrated palate is full of plummy fruit flavours balanced by elegant oak and complex rich tannins.
RRP: $18
A lively, unwooded Sauvignon Blanc with tantalising gooseberry notes, lifted floral overtones and a citrus tang.
KATNOOK FOUNDER’S BLOCK SHIRAZ VIN: 2016
RRP: $20
This generous Coonawarra Shiraz is brimming with spicy and red fruit flavours, coupled with gentle tannins.
TAMBURLAINE ON THE GRAPEVINE CABERNET SAUVIGNON VIN: 2017
FERNGROVE INDEPENDENCE SHIRAZ
RRP: $18
RRP: $20
Organic and vegan friendly, this wine displays ripe blackcurrant and mint aromas with flavours of dark berries and smooth, cedary oak tannins.
TAMBURLAINE ON THE GRAPEVINE CHARDONNAY VIN: 2017
RRP: $20
This organic and vegan friendly Chardonnay displays white peach and citrus aromas with flavours of vanilla and lightly toasted oak.
TAMBURLAINE ON THE GRAPEVINE SHIRAZ VIN: 2017
RRP: $20
Organic and vegan friendly, this Shiraz displays dark cherry and violet aromas with flavours of plum and vanilla.
44 | APRIL 2018 NATIONAL LIQUOR NEWS
WINE TASTING REVIEW
THE SEMILLON AND BLENDS TASTING THE SEMILLON AND BLENDS TASTING REVEALED SOME GREAT WINES IN BOTH VARIETALS, BUT IT REMAINS CLEAR THAT THE HUNTER VALLEY IS STILL THE KING OF SEMILLON, AND WHEN IT COMES TO SEMILLON, AGE DOES MATTER. “All wines tasted were dry and toasty. All had suppression of oak and fruit. The standouts for me were the Brokenwood Trevena Vineyard Semillon – it was outstanding. And all of the Tyrrell’s wines were great as well.” – Nick Papanikolas, Corkscrew Cellars “I really enjoyed the tasting and don’t understand why more people don’t drink Semillon. I enjoyed more of the aged Semillons, I found them to have more texture and balance and not so faulty. The Thomas Wine Cellar Reserve Braemore Semillon, for a 2011 wine is aging very gracefully. I also loved the Brokenwood Poppys Block, which had great length and balance.” – Con Stamoulis, Corkscrew Cellars “The higher the price the better the wine. I found it very hard to find a good cheap Semillon. The cheaper wines had almost no sweetness which was unpleasant. As expected, the best blends came from Western Australia and best Semillon came from the Hunter Valley. Harewood was the pick of the blends and Henschke stood out as the only non-Hunter Semillon of note. But nothing compared to the Mount Pleasant Elizabeth 2009.” – Duncan MacDonald, Cherry Tree Hill “Semillons were showing well. A diverse bracket with lots of bright, lively wines across a number of vintages – yum. Very delicate minerality through many of the Hunter Valley Semillons – great aging potential with those wines. The standouts for me were the Sirius Bordeaux Blanc 2014, the Tyrrell’s Single Vineyard 2012 and the Audrey Wilkinson Cellar Reserve 2009.” – Ambar Maddox, Pernod Ricard Australia “Lots of middling and often green wines followed by a handful of superstars at the top end. It was good to see relatively few under ripe wines. My standouts were the Brokenwood Trevena – a classic Semillon that is just in the zone with no greenness. And the Tyrrell’s HVD – a powerhouse Semillon with length to burn, so intense.” – Andrew Graham, Cracka Wines “I found the bracket to be very up and down. Some outstanding Hunter Semillon both in youth and with developed characters. Always displaying lovely fruit whether hidden behind some toasty nuttiness or bounding out of the glass in youthfulness. It is clear that the Hunter Valley is still the kind of Semillon and the old school vineyards shine the most.” – Andrew Stubbs, Vine “My bracket had a good mix of younger and older style Semillon. There were a mixed bag of flavour profiles, most sitting in the green apple and pear sphere rather than vibrant lemongrass and lemon but still very enjoyable overall. There were a few international wines that were a tad polarising but was great to compare and contrast. The only trend was the movement away from the typical aroma and flavour profiles, but I think that was more of a result of vintage than style direction. The older wines still had a beautiful mouth filling roundness about them with the primary fruit and aged characters playing beautifully together.” – Amy Hayes, McWilliam’s Wines
NATIONAL LIQUOR NEWS APRIL 2018 | 45
WINE TASTING REVIEW
THE SEMILLON AND BLENDS TASTING THE PANEL
1
2
3
4
5
1. Andrew Graham, Online Communications Manager, Crackawines
4. Duncan MacDonald, Cellar Door Manager, Cherry Tree Hill
2. Andrew Stubbs, Vine – Providore of Fine Wine
5. Ambar Maddox, Wine Ambassador, Pernod Ricard Australia
3. Amy Hayes, PR & Media Manager, McWilliam’s Wines
6
7
6. Nick Papanikolas, Director, Corkscrew Cellars 7. Con Stamoulis, Director, Corkscrew Cellars
The System: The wines are blind-tasted and scored on appearance, nose and palate against a 100 point system, before being averaged to find the top rating wines from each LUC price bracket. Top-rating wines over $22 LUC
96
Brokenwood Trevena Vineyard Semillon 2012 Hunter Valley
95
Thomas Wines Audrey Wilkinson Tyrrell’s HVD Cellar Reserve The Ridge Reserve Single Vineyard Braemore Semillon 2011 Semillon 2009 Semillon 2012 Hunter Valley Hunter Valley Hunter Valley
94
94
94
It starts broad & punchy but the length of mouth watering flavours rights the ship. AG
Very well balanced. Honey, Strong acid line softening pear. A great wine. CS to become more of a Still tasted as fresh as a lanolin, rich & weighted daisy despite being seven palate texture. AM
High quality from the get go. Gentle toast & lanolin, a hint of melon & green apple. A star. AG
Lovely lemon & toast. Maybe a little chunky & broad edged. Drink now. AG
Has a richness that suggests it is older than 2015. A drink now wine. DM
A lovely wine that pairs great zesty citrus with lively minerality. AS
years old. Will last forever Great freshness on the & only get better. DM palate with lingering finish & great acid. AH Distributed by
A youthful style filled with Complexity & depth citrus, honeydew melon & with youthful charm & lively acid backbone. AS freshness. AS
Distributed by Samuel Smith & Son LUC $32.68
Vinous, Pure Wine Co, Thomas Wines LUC $43
Distributed by Tyrrell’s Wines LUC $23.01
46 | APRIL 2018 NATIONAL LIQUOR NEWS
94
Distributed by Agnew Wines LUC $42
Mount Pleasant Brokenwood Elizabeth Semillon Poppys Block Cellar Aged 2009 Semillon 2015 Hunter Valley Hunter Valley
Distributed by McWilliam’s Wines Group LUC $22.58
Honey, melon, great length. Loved it. CS Distributed by Samuel Smith & Son LUC $29.06
WINE TASTING REVIEW
Top-rating wines $15 to $22 LUC
91
Harewood Estate Semillon Sauvignon Blanc 2016 Great Southern Fresh cut grass, goose berry, green pea. CS Reminded me of the classic Margaret River SBS, hopefully that’s what it is. DM
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90
89
88
88
Distributed by House of Fine Wine LUC $21.29
Rich flavours of stone fruit, a touch of spice with a dry finish. NP
Lemony & tangy, it’s got a little green fruit, otherwise very tight classic lines. AG
Lovely fresh citrus aromas, elegant citrus & pear palate, mouth watering acid & satisfying finish. AH
A lot of fruit, citrus & lime. Good length. CS
Well rounded with citrus on the palate. Lovely. CS
fruit weight & textural components. Loved this wine! AS
Henschke Louis Semillon 2015 Eden Valley Extremely moreish & packed with flavour. DM
Gundog Estate Tulloch Hunter Wild Semillon 2017 River White Hunter Valley Semillon 2017 Hunter Valley A good example of
Distributed by Garrick Wines (NSW), Baume Fine Wines (QLD) LUC $17.42
Distributed by Single Vineyard Sellers LUC $21.50
Mount Pleasant Gundog Estate The Elizabeth Semillon Chase Semillon 2016 Hunter Valley 2017 Hunter Valley
Zippy citrus, slightly pithy Citrus, apple, delicate with some mid palate all pear. Well balanced held with tight acidity. AS acidity & long finish. AM Distributed by Vintage House Wine & Spirits LUC $16.13
Distributed by McWilliam’s Wines Group LUC $17.20
A well balanced wine with lots of fruit without the sweetness. DM Distributed by Garrick Wines (NSW), Baume Fine Wines (QLD) LUC $17.42
Top-rating wines under $15 LUC
90
Harewood Estate Sauvignon Blanc Semillon 2017 Secondary characteristics Great Southern of key lime pie showing Shortish length, but through. Strong acid/ great, affordable & easy lime with considerable to drink. AH length. AM Herbaceous notes coming
88
Tyrrell’s Hunter Valley Semillon 2017 Hunter Valley
88
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Really notice the grassy edge here. Tight & lean, lots of acid too. AG
Feels a bit young, would love to look at it again in a few years. DM
Medium bodied with great Dry, touch of oak. A nice texture. CS balance of fruit & oak. NP
Nice balance of fruit & oak. NP
Tight acid freshness. Honeycomb, cream, honey. Aged characteristics. AH
through on the palate. Green capsicum, lemon. AM
Distributed by Tyrrell’s Wines LUC $13.55
Must be a Hunter Valley wine. Citrus & green apple. CS
Distributed by Kollaras & Co LUC $10.07
Distributed by Single Vineyard Sellers LUC $12.90
33 South Semillon Sauvignon Blanc 2013 Margaret River
88
Audrey Wilkinson Semillon 2017 Hunter Valley
Distributed by Agnew Wines LUC $13.90
86
Pepper Tree Estate Two in the Bush Grown Semillon Sauvignon Blanc Sauvignon Blanc 2017 Semillon 2017 Hunter Valley/Orange Adelaide Hills
Not showing much Semillon but would definitely appeal to Marlborough Sauvignon Blanc drinkers. DM Distributed by Déjà Vu Wine Co LUC $13.44
Melon, lime & some welcome fragrance. A simple, fresh white. AG Distributed by Bird in Hand LUC $14.84
NATIONAL LIQUOR NEWS APRIL 2018 | 47
EVENTS
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1. DAN MURPHY’S HOSTS HOUSE OF DISCOVERY Dan Murphy’s celebrated the key drinks trends of 2018 with an interactive pop-up hosted in Sydney last month. The ‘House of Discovery’ featured a drinks list created by Dan Murphy’s Spirit Ambassador, Charlie Ainsbury and reflected the at home bartender, tequila and food matching trends. For the at home bartender the House of Discovery featured a Tiki Bar and 1950’s Martini Bar where guests tasted cocktails and learned how to make their own. As premium tequila becomes more of an important category in Australia, this experience educated guests on how to navigate the category and understand that salt and lime are no longer required. Finally in addressing food and drinks matching trends, guests learnt about pairing food with beer, wine or spirits through a ‘drinks first, food second’ experience.
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Dan Murphy’s House of Discovery Express.
Dan Murphy’s House of Discovery Express.
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2. MORE FROM THE ALSA STUDY TOUR A 15-person strong group of retailers and suppliers joined ALSA Study Tour organiser Mal Higgs on the streets of New York City where they were able to pick up some valuable retailing insights. The main findings from the group were around hybrid-retailing, occasion-based retailing, store provenance and storytelling. They also observed interesting pack formats and pack sizes, which could easily translate to the Australian market. Shane T Williams was in attendance and his full report can be read on page 18. And members of the group, led by Higgs, will also present their findings at the 2018 ALSA Australian Retail Drinks Conference in August.
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Sam Cufone and Sean Nicholl in passionate discussion during one of the workshops.
48 | APRIL 2018 NATIONAL LIQUOR NEWS
ALSA NYC study group flanked by two NYPD at Grand Central Station.
3 EVENTS
Mark Ryu, Deb Jackson, Iain Young and Andy Young.
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3. THE MACALLAN’S EXTRAORDINARY QUEST The Macallan Quest Collection Presentation.
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The Macallan Scotch whisky launched its Quest Collection, including four new Macallan expressions at a special event at The Calyx at Sydney’s Royal Botanical Gardens last month. The Macallan Quest, Lumina, Terra and Enigma will be available first at Sydney Airport and Edrington, the company behind The Macallan, has said that the Quest Collection tells the story of the brand’s quest to find the world’s finest oak to craft the barrels which are used to mature the whisky. Edrington said: “The Macallan Quest Collection is a stunning quartet of whiskies encouraging us to take inspiring journeys; to make memorable discoveries; to adventure to places where we can create the best experiences and memories, bringing out the very best in ourselves. Importantly it challenges us to never settle in our quest for the best.”
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4. ST-GERMAIN BRINGS PARIS TO MELBOURNE Luxury French elderflower liqueur St-Germain introduced its first Spritz Bar at Melbourne Food and Wine Festival last month, as an official welcome to autumn. The inaugural St-Germain Spritz Bar saw Melbournians leisurely sipping on a refreshing St-Germain Spritz and enjoying the perfect weekend weather in a beautiful French garden setting by the Yarra. The launch offered complementary French braids from a team of coiffeurs and the ultimate Instagram-worthy playground. Up-and-coming Melbourne-based illustrator Angie Rehe was also onsite, bringing the scenes of the launch to life.
Aboard the Manly ferry with 4 Pines.
4 5. 4 PINES TAKES TO THE WATER
The St-Germain Spritz Bar brought French flair to the Melbourne Food and Wine Festival.
Sydney Harbour City Ferries has awarded a contract to 4 Pines Brewing Company to operate bars and cafés on the Manly ferries. 4 Pines will offer a range of canned beers, including Indian Summer Ale, American Pale Ale, In Season IPA, as well as Brookvale Union Ginger Beer (alcoholic). In addition, a selection of non-alcoholic beverages and healthier food items will be available on the four Manly ferries Narrabeen, Collaroy, Queenscliff and Freshwater, seven days a week. “When we were born in Manly not quite 10 years ago, we would have never imagined we’d be part of something of such scale in conjunction with the iconic Manly Ferry,” said Jaron Mitchell, Co-Founder of 4 Pines.
NATIONAL LIQUOR NEWS APRIL 2018 | 49
SHOP TALK
Shop Talk WE TALK SHOP WITH JON TUCKER AND LEO PAGE FROM MOLLYMOOK FINE WINES & ALES AND GARETH SOUTHAM FROM INDEPENDENT LIQUOR GROUP (ILG).
Meet... JON TUCKER AND LEO PAGE Owner/Operators, Mollymook Fine Wines & Ales, NSW
GARETH SOUTHAM Business Development Executive, ILG
ABOUT US: LEO: When Jon Tucker opened the doors of Mollymook Fine Wines & Ales 11 years ago the plan was simple – to provide locals and tourists alike with an independent alternative to suit all tastes and budgets, as well as old fashioned customer service. I was an addition to the team after a couple of years and became a partner in the business four years ago. We continue to grow the business by providing quality products, a wine/beer/spirits catering service and some wholesaling to local restaurants. With sharp pricing, excellent service and the largest range in the district, we are hard to beat. Recently, we decided to expand the shop and give it a facelift. After a four day closure in November we re-opened the beautifully renovated premises showcasing Australian hardwoods, polished concrete floors, new lighting and music, giving customers even more to explore in an inviting and comfortable space. GARETH: I have been working in the liquor industry since I left school in 2001. I started as a bottle shop Assistant Manager of the Empire Hotel drive thru in Nowra, which is now the Australian Hotel, Nowra. I moved into a few small rep roles before starting at ILG in 2011. My major role is to build co-op business while serving current members.
WHAT’S IT LIKE BEING A PART OF A CO-OP? LEO: We have access to better personalised service, a larger range of products, regular interaction with our ILG reps and help with logistics. GARETH: The co-op is a family-like set up and we all work together to help build up the family business and offer the best service that we can. We fight sometimes like families do but we are
50 | APRIL 2018 NATIONAL LIQUOR NEWS
all passionate about the co-op and the members always come first. The point of difference is that we are member owned and when a member calls the office they know they are dealing with people who know and understand the business and want to help the member. All of our departments are in the one place, not in call centres and our members like the fact that they can talk direct with the people involved in trading, transport, the CEO etc.
HOW ARE YOU FINDING THE CURRENT MARKET? JON/LEO: In our area we are one of ten off license outlets servicing a small population. It is a hard market, but fortunately we are still growing. GARETH: The current market is doing it tough in some parts with the ever increasing cost in products and trying to hit good GP is getting hard with the onset of CDS and CPI increases, it can be hard for some members.
WHAT DEALS ARE WORKING FOR YOU AT THE MOMENT? JON/LEO: A broad range of quality products with good pricing. GARETH: At the moment ILG is going through a logo change with Super Cellars and working hard in getting members’ signs all changed over and the new look brand up and running. Some have already been changed and they look great.
WHAT DO YOU ENJOY MOST ABOUT THE JOB? LEO: We have great local customers, most of whom we know by name so it’s fun talking with them and helping to make their experience in our shop a good one.
“I LIKE TO NOT JUST BE THEIR REP BUT THEIR FRIEND AND TAKE INTEREST IN BOTH THE SHOP LIFE AND PERSONAL LIFE AS WELL,” GARETH SOUTHAM, ILG. GARETH: I love getting out to see members and watching their businesses grow. It’s great to be able to help out in whatever area they need.
WHAT DO YOU ENJOY MOST ABOUT WORKING WITH EACH OTHER? LEO: The ability to work together to identify and deal with all aspects of running our business. GARETH: Leo and John are very good at picking the market in the area with what their customers want. They enjoy their wine and beer talk and understand market information on what’s working.
HOW DO YOU APPROACH THE RETAILER/REP RELATIONSHIP? LEO: By trying to secure the best deals and products available within their portfolios and encouraging a good ongoing relationship. GARETH: I like to not just be their rep but their friend and take interest in both the shop life and personal life as well. Talk about their kids’ achievements in a sport or something they have interest in like footy or cricket. And I often find they’re the same and ask me about my kids or house renovations etc. But I also understand that we both need to get the best out of each other to grow and increase business.
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