AUSTRALIA’S LEADING LIQUOR INDUSTRY MAGAZINE
vol. 38 no. 5 - JUNE 2019
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EDITOR’S NOTE
Editor’s Note
WE ENCOURAGE RESPONSIBLE DRINKING Get the facts DrinkWise.org.au
W
elcome the June issue of National Liquor News. I’d like to kick off this month by thanking Andy Young, Charlie Whitting and the rest of the team for stepping in for me while I’ve been away recovering from concussion. I’m back now and ready to take a look at all that’s been happening in the alcohol and packaged liquor industries while I’ve been away. Last month, Roy Morgan released its latest Alcohol Retail Currency Report, which pleasingly showed market share increases for independent retail outlets, which is great news indeed. So in this issue we had a chat with many of the country’s banner groups to find out what they are doing at a group level to help their retailers stay ahead of the pack. Beginning on page 36, we talk to Independent Liquor Retailers, Liquor Legends, Australian Liquor Marketers and the Independent Liquor Group about how their groups have been performing and what they have planned for the next 12 months. While on that topic, this month our retail insights guru Norrelle Goldring has taken a look at the growth of convenience retail and discusses how gains made by independent liquor retailers is symptomatic of broader consumer and retail trends, which you can read all about on page 22. In the news, reports from Roy Morgan and IRI have shown a continued downward trend in Australian alcohol consumption, as well as some significant changes in the retail landscape, which we cover, beginning on page 10. It’s not news that Australia has an undisputed obsession with coffee, so in this issue Amy Hayes has taken a look at how the Australian coffee culture has continued to grow in quality and diversity and so too has our taste for high quality alcoholic coffee drinks.
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Kea Thorburn, Shane T Williams and Deb Jackson We also have the regular contributions from Retail Drinks Australia, Spirits and Cocktails Australia, Alcohol Beverages Australia, DrinkWise, as well as New Zealand Winegrowers and Wine Australia. The NLN Tasting Panel this month tasted a range of Shiraz, and you can see which wines ranked well over pages 44 to 47. You can keep your feedback coming through djackson@intermedia.com, we are always keen to hear your feedback, look at issues concerning you at the moment, and making sure we make this mag work for you.
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TOP READS 22
SWING TO INDEPENDENTS NOT JUST IN LIQUOR
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ESPRESS(O) YOURSELF
36
THE CHANGING FACE OF LIQUOR RETAIL
NATIONAL LIQUOR NEWS IS THE OFFICIAL TRADE PUBLICATION OF RETAIL DRINKS AUSTRALIA.
6 | JUNE 2019 NATIONAL LIQUOR NEWS
HEAD OF CIRCULATION: Chris Blacklock
Average Total Distribution: 10,294 AMAA/CAB Yearly Audit Period ending 31 March 2018.
DISCLAIMER
This publication is published by Food and Beverage Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or reenactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2019 - Food and Beverage Media Pty Ltd
INTRODUCING
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Curious? Get in touch to find out more enquiries@swiftandmoore.com.au 0409 942 848
CONTENTS
19
32
29
36 25
Contents June Wine
Spirits
16 Wine News: The biggest stories from the world of wine 28 NZ Winegrowers: New Zealand’s next steps when it comes to sustainable winegrowing 29 Wine Australia: The global growth of premium Australian Chardonnay 44 Wine Tasting Review: This month, our tasting panel has reviewed a selection of Shiraz
24 Spirits News: New launches and awards within the spirit category 27 Spirits & Cocktails Australia: A call to freeze the spirits super tax 32 Coffee Liqueurs: Australia’s longstanding love affair with coffee shows no signs of abating
Brews 25 Brewing: The latest stories from the brewing world 42 Beer Tasting: Tasting notes from a selection of new release beers
8 | JUNE 2019 NATIONAL LIQUOR NEWS
Retail Focus 19 State Manager Profile: We chat to Jeremy Goodale, General Manager VIC/TAS at Australian Liquor Marketers 20 Leasing: Marianna Idas of eLease Lawyers stresses the importance of bespoke retail leases 22 Retail Insights: How to take advantage of the rising appeal of independent outlets
26 Retail Drinks Australia: Separating minimum unit pricing fact from fiction 30 Alcohol Beverages Australia: The ABA flies the flag for evidence-based policy in Australia 31 DrinkWise: The growing links between alcohol moderation and the NRL 36 Banner Groups: We talk to some of the industry’s big hitters 50 Shop Talk: We’re in WA with SouthTrade International and De Vine Cellars
Regulars 10 News: All the latest stories from Australia’s off-premise 48 Events: An exclusive look at some of the best events of the last month
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NEWS
Dan Murphy’s appoints new Managing Director Endeavour Drinks Group (EDG) has appointed a new Managing Director of Dan Murphy’s, with Alex Freudmann to join from his current role as Director, Fresh Foods at Coles. Freudmann has been at Coles for almost 10 years and previously worked with Tesco in the UK. He will report to EDG’s Managing Director Steve Donohue. Donohue said: “The team at Dan Murphy’s has been working hard at re-establishing sales momentum while also strengthening key
foundational areas to better serve changing customer needs. “The business has a long history of success with strong customer loyalty, however rapid market changes require us to transform Dan Murphy’s for sustainable long-term growth. “We are pleased to have Alex joining us at this exciting time for our business. Alex has expertise in leading initiatives that have delivered significant improvement in customer experience and has a proven
track record for responding to market disruption and changing customer preferences. “Alex will be responsible for driving forward the Dan Murphy’s strategy in line with Endeavour Drinks’ broader ambition to connect everyone with a drinks experience they’ll love.” A start date for Alex will be communicated in due course and until that time Faye Ilhan will continue her interim leadership of the Dan Murphy’s team.
Retailers must consider compliance if using eBay Retail Drinks Australia has said it believes liquor retailers who are licensed in the states of New South Wales, South Australia or Tasmania should not be using eBay to sell alcohol, until the platform fixes the guest checkout facility on alcohol purchases. The association said that it has met with representatives from eBay to outline key concerns regarding liquor retailing compliance, and in particular the guest checkout facility. Certain states and territories require that a date of birth be entered at the time of transaction, but eBay’s guest checkout facility means that this requirement can currently be bypassed. During the meeting with Retail Drinks, eBay confirmed its intent to work collaboratively towards ensuring that liquor retailers will be able to use its online marketplace with confidence in the future, and that it would remove the guest checkout facility on alcohol purchases by the final quarter of this year. However, Retail Drinks’ CEO, Julie Ryan, said that before then retailers should be vigilant about using eBay for selling alcohol. “Following discussions with Retail Drinks, eBay committed to upgrading their product systems by the fourth quarter of 2019 in order to comply with all state and territory legislation,” Ryan said. “We were really pleased with eBay’s commitment to demonstrating compliance and we look forward to their site being upgraded later this year so that liquor retailers can again use their marketplace with confidence.” One of the major problems for retailers is that eBay’s alcohol policy removes the company from compliance issues and puts all responsibility on the retailer. The policy states: “Wine and other alcoholic beverages may be sold on eBay.com.au, provided the seller holds a liquor licence, displays their licence number in the listing and offers domestic postage only. Listings and products must also comply with the Alcohol Beverages Advertising Code (ABAC).” It adds: “Various states have different laws regarding trading wine and alcohol (see Additional information for links to relevant legislation for each state). Make sure you know your state’s laws and if (and where) you are allowed to sell alcohol.
10 | JUNE 2019 NATIONAL LIQUOR NEWS
“You should also consider the following: When alcohol is posted to a buyer, you must obtain the signature of an adult (over 18 years of age); Many states have very specific laws based on the quantity and type of alcohol being posted; Sellers should describe the signature and postage requirements for fulfilling the transaction when listing such items on eBay.com.au; Many states require that carriers have licences to transport alcohol; Your carrier must be capable of obtaining the required signature. Australia Post is unable to solicit age verification upon delivery of an item.” Although eBay does state that any person selling alcohol on the platform must include its liquor licence number, Steven Rider, the founder of MyBottleShop.com.au said that he has raised concerns that some licence numbers are simply being copied from legitimate retailers. Rider says that he has raised a number of concerns with both eBay and Liquor and Gaming NSW regarding the use of the platform for selling alcohol and the possible lack of compliance.
NEWS
Tovaritch Vodka Wins 116th Medal
The technology challenges facing retailers Australia’s retail sector is facing a number of challenges, driven by advances in technology which have led to an explosion of consumer touchpoints in the market space, according to IRI. In IRI’s Retail Outlook for 2019 and Beyond, ‘Staying One Step Ahead’, Alistair Leathwood, IRI’s Chief Commercial Officer, Asia Pacific explains the issues contributing to the challenges facing the FMCG sector. “Australian supermarkets must invest more heavily in data and technologies to better understand and meet the expectations of today’s hyperconnected consumer”, Leathwood said. “Consumers across the world today are inundated by choice and have easy access to a wealth of information. This puts unprecedented power in their hands and brands are scrambling to meet their changing expectations. “The insights that brands can glean thanks to digital technologies provide the opportunity to experiment with new products, new retail environments and whole new business models.” The Outlook also details that with consumers browsing less than they used to this means they are now more focused and less loyal. With the popularity of click and collect increasing massively, this can mean a reduction in basket size because consumers are able to pick up their goods without wandering the aisles. Ninety per cent of shoppers make lists before shopping, which makes the competition for influence on the path to purchase greater than ever. IRI said that price, promotional mechanics and clever marketing is more influential than brand loyalty in FMCG purchases. This is opening up opportunities for smaller, more contemporary suppliers and brands, and more exclusive products. “Grassroots marketing that brings a relatable, real-life authentic brand story to life has never been more crucial,” Leathwood said. “Brands need to reflect consumers’ wants and needs, and those who don’t will be quickly dominated by those who get it right. It is no longer a case of the big eating the small, it is now a matter of the fast eating the slow.” In terms of new technology trends, Leathwood added: “We know FMCG suppliers and retailers analyse data, but many struggle to create value from it. With the growth of data from the Internet of Things (IoT), the job to decipher it becomes ever-more complicated. “Analysing disparate data from a variety of sources is a complex and overwhelming task for manufacturers and retailers. It is crucial they keep up to speed with new technology trends with a fresh mindset.” “If they master the data they will be able to achieve highly targeted and effective marketing strategies and a deep understanding of their customers.”
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Kollaras & Co Vodka brand, Tovaritch is continuing to cement its title of ‘World’s Most Awarded Vodka’, after winning five gold medals at the World Vodka Masters 2019 Asia competition, held in Hong Kong. This brings the Tovaritch medal tally to 116; a continuous testament to the brand’s super quality. The organic, gluten free, non-GMO vodka won gold across five categories including: Premium, Smooth, Rye, Organic, and Russian. The World Vodka Masters Asia awards were launched this year to provide a platform to determine the highest quality vodka brands in Asia. Blind tastings were performed by a panel of expert judges from the spirits industry, who were impressed by brands that demonstrated ‘simplicity, purity and neutrality’. The award-winning taste of Tovaritch is achieved through a unique terrier and specialised production techniques, including a five-time distillation process, and 20-time filtration through birch and silver. Only the purest water sourced from an underground well is used to deliver a taste that is free from artificial flavours and additives. Kollaras & Co Marketing Manager Georgia Kollaras said: “We are extremely proud to have Tovaritch in our portfolio. It’s an outstanding brand that continues to impress judges time and time again from all around the world.” Eugenio Litta Modignanai, CEO of Tovaritch Spirits International, described the latest wins as being, “Nothing short of amazing, given the highly competitive nature of the spirits market. And we have every intention to stay on top of our game – and on top of our competition.” Tovaritch Vodka is available from leading independent liquor outlets in Australia.
CHECK OUT THESHOUT.COM.AU NATIONAL LIQUOR NEWS JUNE 2019 | 11
NEWS
Lion launches limited edition Origin cans As the official beer of the NSW Blues and the QLD Maroons, Tooheys NEW and XXXX are leveraging state pride and bringing it to life in-store throughout the State of Origin series. With just under 10 million viewers tuning into the 2018 series, Origin provides three of the four biggest TV events of the year*, and that translates to three big reasons to catch up for a beer. It’s the passion for your state that drives the success of Origin, with 90 per cent of Origin supporters avidly supporting one of the teams**. At Origin time, nothing unites Queenslanders quite like their shared love of the Maroons and after 29 years as the official beer of the sunshine state’s favourite team, XXXX is proud to launch its 2019 Origin campaign. To show its support for the Maroons, Queensland’s number one beer***, XXXX Gold, is showing its true colours, turning its iconic Gold cans and stubbies ‘NOTHING BUT MAROON’. With a campaign across OOH, radio, digital, and TV reaching more than 80 per cent of QLD Males 18-64, XXXX will be a key foot traffic driver, painting stores ‘NOTHING BUT MAROON’ this Origin period. As NSW’s favourite beer**, Tooheys New is also once again supporting the NSW Blues. Following the Blues’ Origin win in 2018, there are a lot of supporters who won’t be content with a one-off NSW win. This year Tooheys NEW will feature six of the Blues’ best with their pledges on how they can go back-to-back to ‘CEMENT THE NEW ERA’. Featuring Blues stars past and present, and the new limited edition cans, everything is designed to drive shoppers in-store to pick up a Tooheys New and show their support for the Blues. So while the teams will be doing their job on the field, as NSW and QLD’s favourite beers, Tooheys New and XXXX are the perfect match to whip up support for our boys in-store. *Nielsen TV Ratings **Nielsen Sports SportsLink Australia 18+ (Jan-Jul) 2018. ***IRiMarketedge, MAT April 2019
L-R: Peter Gordon (Grand Master) Griselda Gordon, Ian Atherton, Beth Atherton and Peter Prentice (Chairman)
Ian Atherton inducted as a Keeper of the Quaich Ian Atherton, the CEO of Spirits Platform, was inducted into the Keepers of the Quaich Scotch Whisky Society along with 45 other new members at a private ceremony held at Blair Castle last month. Keepers of the Quaich was established by the Scotch whisky industry to recognise the outstanding commitment of those who produce or promote whisky. Atherton, who has been in the whisky and spirits industry for more than 30 years began his career in the 1980s selling both Scotch and Australian whisky for Gilbeys before he moved across to Suntory selling Japanese whisky. In 2016, he joined Spirits Platform as CEO, which distributes a great range of whiskies including The Macallan, including The Macallan, Highland Park, Bruichladdich, Naked Grouse and Glenrothes. Atherton said that it is an honour to be inducted as a Keeper of the Quaich in recognition of his 30 years promoting Scotch whisky in Australia. “Being part of a unique society of likeminded people, it gives me great pleasure to be in a position to bring the brands to life and recognise all the passion that each of the distilleries pour into producing the world’s best whisky,” he said. To date, just over 2700 men and women from more than 100 countries have been inducted as a Keeper of the Quaich. Together, with the select few that are subsequently distinguished as Master of the Quaich, they represent thousands of years of shared experience and knowledge.
IBA releases Beer Recall Plan The Independent Brewers Association (IBA) has released its Beer Recall Plan, which has been designed to help independent brewers understand the regulatory requirements of having a written recall plan in place. A recall plan is a written document specific to each business which are designed to ensure businesses are prepared to recall unsafe products quickly and at any time to help protect the health and safety of consumers. The IBA said: “We’ve created the IBA Beer Recall Plan and Beer Recall Information Pack to make it easier for [our members] to understand and meet these requirements, and to help them prepare their business for the event of a recall. “Beer may be recalled for a variety of reasons due to issues with packaging or with the beer itself. The IBA is working on a variety of initiatives to assist you in minimising the risk of these issues arising.” The IBA’s recall plan comprises a pack with background information and a brief summary of recall requirements. It also identifies the key areas that brewers need to address in their plan, which contains steps, checklists and templates of what to do in the event of a recall. Full details on the recall plan are available through the Independent Brewers Association website.
12 | JUNE 2019 NATIONAL LIQUOR NEWS
Lou makes a FIFO worker an offer he can’t refuse
When it comes to the liquor game, Lou has it wrapped up tighter than a Cuban cigar. Whether you come in for a bottle of wine or to have chat & cappuccino, Lou will look after you. On a Thursday afternoon the annoying drone of a hipster talking shit about wine rings out through the shop. A man whose top-knot appears to be trying to communicate with his home planet of Wanktopia is at the tastings table. “Oh ma gawd darling, refrigerated Sav Blanc? Should be far warmer, I would know, I’ve been to France twice” The pretentious gourmand is an unfortunate casualty of gentrification, an ever creeping presence in suburban bottle shops. Lou signals for a manager to talk to him, “please educate our friend over there, a Sauvignon Blanc is a wine best served cold”.
A few hours pass and a FIFO worker blows in like a Pilbara cyclone. He has the undeniable thirst of a man eager to throw a handful of pineapples into the blender of hedonism and get juiced up. The man is loudly serenading the store with an ode to his own spending power, “does this $200 one go orright with coke or nah? Moiggght just go the Makers Mark ay”. Like Natalie Imbruglia with one ply toilet paper he is torn. How one man can sound like an entire wetmess at an end of child maintenance payments party is a mystery. Nevertheless, the noise is interfering with a meeting Lou is having. He gestures for his manager to approach, “this man has no respect, I want you to make him an offer that he cannot refuse”.
retail banner group of the year
2011 . 2014 . 2015 . 2017
A dramatic pause falls over the meeting room. The manager nods, “yes, sir”. He knows what must be done. The manager approaches man, “I see you’re looking at that Glenfiddich 21 year, fantastic Scotch, best served neat. Although, I’ve been instructed to make you an offer. Buy both bottles and we’ll throw in this Jim Beam promotional cool bag?” Ah, alcohol related paraphernalia is the kryptonite of the bogan. The man appears hypnotised by the free bag and as predicted by Lou, he is unable to refuse the offer. “DEAL mate”. Peace falls over the store, Lou has restored balance. @belltowertimes
We encourage and embrace our stores individuality, visit liquorbarons.com.au for more great stories.
NEWS
WA CDS operator selected
Australian alcohol consumption continues downward trend The latest findings from Roy Morgan’s Alcohol Consumption Currency Report March 2019 has shown a decline in the percentage of the Australian population aged 18 and over who consume at least one type of alcoholic drink in an average four week period. In 2014, the report recorded 70.1 per cent of the population as consuming alcohol in the time period, with the most recent findings showing that number has declined to 67.5 per cent. The report also showed that all major categories of alcoholic drinks showed declines in incidence over this period, apart from cider, which increased. Wine is consumed by 42.8 per cent of the Australian population aged 18+ over an average four week period, ahead of beer with 38.2 per cent and spirits on 26.3 per cent. Cider is now consumed by 11.4 per cent which has increased from 11.1 per cent five years ago, making it the only type of alcohol to increase. The incidence of cider drinkers is now ahead of RTD (10.8 per cent), liqueurs (6.5 per cent) and fortified wine (4.9 per cent). Michele Levine, Chief Executive Officer, Roy Morgan said: “Alcohol has often been considered to have a central role in the social life of many Australians, however the latest research from Roy Morgan shows that a declining proportion of Australians are now drinking alcohol. Now just over two-thirds of Australians (67.5 per cent) drink alcohol in an average four weeks, down 2.6 per cent points from five years ago (70.1 per cent). “Although wine is more widely drunk, it is beer which dominates the overall volume of alcohol drunk in Australia. Beer comprises a 45 per cent share of the volume of alcohol drunk in Australia compared to 29.1 per cent for wine, 13.2 per cent for spirits, 5.8 per cent for RTD and 3.7 per cent for cider. However, as we’ve highlighted, the drinking habits of Australians are changing and beer’s share of the volume has declined 2.8 per cent points from five years ago while wine’s share has increased 2.4 per cent points. “In large part the success of Australia’s alcohol retailers and brands rides on the drinking habits of Australian men who drink around two thirds (66.6 per cent) of all alcohol drunk in Australia while women drink the remaining 33.4 per cent. “Perhaps unsurprisingly it is men who drink the bulk of beer consumed in Australia and the traditional favourite comprises a huge 58.4 per cent share of all alcohol consumed by men by volume compared to only 19.5 per cent for second-placed wine. However, a deeper analysis of the beer drinking habits of Australian men reveals the tradition may be on a long-term decline. “Today beer comprises only 46.7 per cent of the volume of alcohol drunk by 18-24 year old men compared to 51 per cent five years ago in 2014 and an even higher 62.1 per cent a decade ago in 2009. Over the same time period, the share of cider for this age group has increased from only 1.3 per cent in 2009 to 5.9 per cent today. “In contrast to Australian men, the drinking habits of Australian women are dominated by the consumption of wine which comprises a dominant 48.2 per cent of all alcohol consumed by women by volume compared to only 18.3 per cent for second-placed beer and 15.2 per cent for spirits.” The report also showed that over the last five years the biggest category consumption decline was for wine (down 2.3 per cent points), followed by liqueurs (down 1.2 per cent points) and RTDs (down 0.9 per cent points). Beer showed a decline of 0.6 per cent points and as a result closed the gap marginally to wine as Australia’s most widely drunk type of alcohol.
14 | JUNE 2019 NATIONAL LIQUOR NEWS
The Western Australian (WA) Government has selected WA Return Recycle Renew, a newly incorporated not-for-profit entity to deliver the WA Container Deposit Scheme (CDS). WA Return Recycle Renew was established by Lion and Coca-Cola Amatil (CCA) “in recognition of their shared responsibility (with other manufacturers and the community) for reducing waste generated by beverage packaging”. Interim Chair and Spokesperson for WA Return Recycle Renew Jeff Maguire said: “WA Return Recycle Renew members, Coca-Cola Amatil and Lion Pty Ltd, welcome the selection by the WA Government to the new CDS Scheme. “The opportunity to create the not-forprofit entity that will administer the WA Scheme builds on more than 40 years’ experience in similar programs in other states. “The CDS Scheme enables the community of Western Australia to participate in reducing litter and increasing recycling, and we are looking forward to establishing a customer- and community-focused scheme across all regions and Perth.” The group said it will work with associations from all sectors of the community from all across the state to help maximise opportunities for social enterprises to participate and benefit from the Scheme. The group added: “WA Return Recycle Renew is committed to helping WA deliver on a shared vision of reducing litter, increasing recycling and creating a high level of community participation.”
NEWS
Who is driving online shopping? IRI has detailed the enormous changes happening to Australia’s retail landscape, in particular the rise of online shopping, in its recent Retail Outlook for 2019 and Beyond: ‘Staying One Step Ahead’. The report details the challenges retailers are facing thanks to the enormous changes happening to consumer demands and habits. In particular, this means the rise and rise of e-commerce, or online shopping, which is a rapidly growing market. IRI says it is was worth an estimated $3bn across the grocery, liquor and pharmacy channels in Australia in 2018. While online still comprises a relatively small share of sales, IRI estimates its share is growing 10 to 15 times faster than total channel growth rates. “Millennials are, perhaps unsurprisingly, the biggest adopters of e- and m-commerce, and their influence on the retail market continues to grow. An understanding of their buying habits is crucial; they tend to place ease
and experience on a par with quality and value, and are more driven by product benefits than brand names,” said Alistair Leathwood, IRI’s Chief Commercial Officer, Asia Pacific. “Retail marketers also need to factor in Gen Z, the generation behind them, who are constantly online and will continue to be so.” Convenience is crucial for the mobile younger generations, as well as time-poor mid-lifers. Data garnered from Australian shoppers in 2018, for example, reveals an emerging trend of ‘little-and-often’ shopping patterns – that is, an increase in store visits but with smaller spends per basket. “In response, grocery stores have increased their provision of fresh prepared meals and meal solutions to suit these shoppers’ needs,” Leathwood added. “Similarly, data denoting a rise in the health-conscious indulger has provided retailers the opportunity to invest in healthy brands. “This is a very exciting time for retail innovators who are now able to use new technologies to achieve new levels of growth and success.”
Retail Drinks Australia awarded small business digital grant Retail Drinks Australia will aim to deliver tailored advice to small business owners in the retail liquor industry on how to expand and improve their digital capabilities after being awarded a Government grant worth $100,000. Retail Drinks is just one of 15 industry associations selected to provide sectorspecific advice to small businesses as part of the Department of Jobs and Small Business’ Small Business Digital Champions Project. Retail Drinks CEO Julie Ryan said that being selected to take part in the Project was an important recognition of the credibility of Retail Drinks’ service offering to small business. “We are delighted to have been selected as a participant in the Small Business Digital Champions Project to deliver digital advice to small businesses as part of our wider strategy to improve digital capabilities across the retail liquor industry,” Ryan said. “As is the case in many industries, small business owners in the retail liquor industry often lack the necessary time and financial resources to develop and adopt a well-formed, comprehensive digital strategy for their business. “Leveraging its existing resources dedicated to small business, Retail Drinks
will help bridge this gap for small business owners by providing them with specific, individualised advice through a series of oneon-one store visits and member briefings across metropolitan and regional Australia.” The grant will be provided over two years to help establish a ‘Trusted Digital Adviser’ role and will enable Retail Drinks to progress its existing initiatives in the digital and online space, such as the development of a Code of Conduct for online alcohol sales and deliveries. Ryan added: “The delivery of the Project will help strengthen Retail Drinks’ credentials in the digital and online space as we look to become the go-to source of information and advice for thousands of small business owners in the retail liquor industry. “As part of taking proactive steps in this space, Retail Drinks is currently developing a voluntary, industry-wide Code of Conduct governing the rapidly growing online alcohol sales and delivery sector in consultation with industry and government stakeholders. “Through the development of the Code, in combination with a variety of other industry-led educational initiatives, Retail Drinks is proud to be taking a leadership role in helping small businesses not only participate but thrive in a landscape of digital change and opportunities,” she said.
NATIONAL LIQUOR NEWS JUNE 2019 | 15
WINE NEWS
Brancott Estate’s limited edition label ‘masterpieces’ New Zealand wine brand, Brancott Estate, has partnered with UK designer Benjamin Craven to create four limited edition labels for its 2018 Marlborough Sauvignon Blanc. The partnership has seen Craven create labels which the winery says “bring to life the Marlborough landscape currently depicted on the Brancott Estate label”. Speaking about his designs, Craven said: “I wanted to bring the Brancott Estate personality to life with vibrant colours and my contemporary style, using distinctive geometric shapes.” Patrick Materman, Brancott Estate Chief Winemaker added: “Brancott Estate is known for creating wines that are fresh, vivacious and bursting with flavour. It is exciting to see how Benjamin has interpreted the wine flavours using pinks and yellows, as well as capturing the geometry and contrasting colours of our vineyards in Marlborough, New Zealand. “Our wines taste as good as they look.” The Brancott Estate Limited Edition Marlborough Sauvignon Blanc 2018 will be available in Australia from early May wherever Brancott Estate wines are sold.
Benjamin Craven designed Brancott Estate Limited Edition bottles
Agnew Wines secures new partnership Agnew Wines has established a partnership with Yarra Valley winery Allinda Wines becoming its official distributor in the Australian market. In a first for the company, the team at Agnew has embarked on sourcing a distributer wine label outside its own portfolio. “As the Agnew sales team and customer base continue to grow, a natural progression for us was to expand our portfolio to encompass the best wine regions in Australia and abroad,” Agnew Wines Head of Sales and Marketing, Rohan Beale, said about the new venture. “Allinda is the first brand outside our existing portfolio that we’ve distributed for and we are extremely excited to commence with such a high quality and innovative producer out of the Yarra Valley,” Beale added. Produced in the foothills of the Yarra Valley, the Allinda wine collection has, since its inception in 1990 has been utilising strict organic and biodynamic principles to create its wines. The viticulture team prides themselves on avoiding all uses of fertilisers, herbicides and pesticides on their vines instead using compost teas, fish oil and seaweed extract to feed and nurture their vines which has resulted in improved soil condition and fruit quality. The wines are also proudly vegan friendly with only purely biological practices used by the winemaking team. These strict practices have in turn paid off for the team with their new vintage wines enjoying great success in wine shows both locally and abroad.
Penfolds and Champagne Thiénot’s Champagne collaboration Penfolds has revealed the details of a collaboration with Champagne House Thiénot, which has seen the creation of three new Champagnes to celebrate Penfolds’ 175th anniversary. Three Champagnes, from the 2012 vintage, have been created: a Chardonnay Pinot Noir Cuvée, and two single vineyard wines – a Blanc de Blancs and a Blanc de Noirs, with Penfolds saying this marks the start of a wonderful French and Australian wine alliance. Thiénot Managing Director, Stanislas Thiénot said: “This is a first for us, I am proud to say this has also been a truly collaborative experience from the very beginning. We have created blends reflective of both Thiénot and Penfolds wine styles and philosophies. We are very happy with the results, the Champagnes are modern reflections showcasing fruit, freshness, and finesse. “This is the result of an unexpected encounter between two major wine regions, one belonging to the old world and the other to the new world, but with one single common goal: to produce great Champagnes. In addition, working with Peter Gago
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is extremely interesting and rewarding both for his immense experience and for his innovative vision.” Gago, the Chief Winemaker with Penfolds, worked with Thiénot chef de cave Nicolas Uriel to create the Champagnes and Gago said he was focused on ensuring the Penfolds house style and blending philosophies aligned with those of Champagne Thiénot and their winemaking approach. Liqueur d’expédition housed in Yattarna barriques from Australia added greater
symbolism and connection. “Some time back, we announced our intent to make a Champagne. We are now revealing a partnership with our friends at Thiénot – one which would not have been imaginable a decade or two ago,” said Gago. “To now actually work alongside a Champagne House and ultimately craft Champagnes proudly, which co-bears the globally recognised red stamp of Penfolds, is both wonderful and a first collaboration of its kind for an Australian winery.” The first of the Champagne releases, 2012 Champagne Thiénot x Penfolds Chardonnay Pinot Noir Cuvée will be available from June 2019 at RRP $280.00 AUD for 750ml bottle. Limited large formats (1.5L and 3L) are available in select countries around the world. The 2012 Champagne Thiénot x Penfolds Blanc de Blancs (Avize Grand Cru) and 2012 Champagne Thiénot x Penfolds Blanc de Noirs (Aÿ Grand Cru) will be released in 2020. The Champagnes will be available in Australia via Penfolds.com, Penfolds Cellar Doors, Duty Free and select Fine Wine Retailers.
WINE NEWS
Innovative spray can packaging for Longview Shiraz release Adelaide Hills winery Longview is well known for its 100 per cent estate grown Shiraz, but not so well known for having one of the largest collections of graffiti art in Australia. The release of the 2016 The Piece Shiraz by Longview has paid tribute to this collection, which has been amassed over eight years of holding its ‘The Piece Project’. The event sees four of Australia’s best street artists battle it out to grace the label of Longivew’s premium Shiraz, The Piece. Longview Director, Mark Saturno said: “Every year, we are blown away by what we see getting ‘bombed-up’ by these spray can controllers, making the judges job to award a winner harder and harder.” The label of the 2016 The Piece Shiraz is by Morris Green, Saturno added: “Morris Green’s tattoo work has always impressed us, and his large murals continue to venture into impressive territory each time he does a piece. But this is on another level, even for him. “An astounding example of photorealism, it’s hard to believe that this piece was created completely with aerosol. Utilising the hues of the vineyard as a backdrop, the native Blue ‘Fairy’ Wren pops out to show its splendour. “The birds change colour every year, from dull brown to bright blue, not dissimilar to the changing palette of Longview Vineyard through the seasons.” Speaking about the wine, Saturno said: “Every year we are astounded by the complexities our Shiraz fruit presents to us. Each vintage we identify, not only the best blocks of Shiraz on the vineyard but the best rows. These are hand-picked, berry and bunch sorted, cold soaked and pressed into onetonne open fermenters. Fifteen per cent whole bunch. “After a cool primary ferment, the wine goes through MLF in old French Hogsheads and stays there for 18 months. We then select the best 10 barrels that showcase the perfect balance of blue/black berry fruits and cool-climate spice and length. The wine is then racked, blended and bottled.” The wine is available at $46.30 LUC, $49.60 with the spray can packaging and carries a $90 RRP.
Legends Winners 2019 Photo by Chris Elfes
The 2019 Hunter Valley Award winners named The 2019 Hunter Valley Legends and Wine Industry Awards have taken place and honoured the year’s best people in the region’s wine industry. The awards, which are now in their 13th year, saw more than 300 people gather at the Crowne Plaza Hunter Valley to pay homage to the industry stalwarts who have contributed significantly to the Hunter Valley wine and tourism industries. This year’s award winners included: RSN Australia Hunter Valley 2019 Rising Star of the Year Angus Vinden – Vinden Estate Wines Laffort Australia Hunter Valley 2019 Viticulturist of the Year Brett Keeping – Two Rivers Wines Australian Wine Selectors Hunter Valley 2019 Cellar Door of the Year Brokenwood Wines First Creek Winemaking Services Hunter Valley 2019 Winemaker of the Year Adrian Sparks – Mount Pleasant Wines Hunter Valley Wine Industry 2019 Heritage Award Pokolbin Memorial Gates Hunter Valley 2019 Award for Excellence Brian McGuigan (AM) Sparks is just the fifth person to hold the post of Chief Winemaker at Mount Pleasant and was understandably delighted with the win. “I’m honoured and humbled to be named Hunter Valley Winemaker of the Year,” Sparks said. “The Hunter Valley is such a remarkable place and at Mount Pleasant I have the privilege of working with exceptional vineyards that produce amazing wines that speak to their unique origins. “There is a lot of creativity happening
in the Hunter region which is really exciting to explore from both the perspective of a winemaker and wine lover. As one of the Hunter Valley’s pioneering wineries, Mount Pleasant has an incredible story and one that is best shared by enjoying our range of wines that capture O’Shea’s spirit of innovation.” The highest honour in the awards is presented to wine and tourism luminaries who have reached ‘Living Legend’ status through more than 30 years’ continuous involvement in the industry. This year, the Wine Legend award was presented to Greg Silkman, owner of First Creek Winemaking Services and highly regarded industry leader. Having first arrived in the Hunter in 1985 to establish Tamburlaine Wines and has made his mark as a winemaker at various iconic wineries in the region. The winners of the Tourism Legend Award were Bill Roche (AM) and Imelda Roche (AO), who were honoured for their establishment of the much loved Hunter Valley Gardens. Hunter Valley Wine and Tourism Association Vice President, Brian McGuigan said he was honoured to be among the winners, and congratulated and noted the many contributions to an industry which had reaped international recognition as a premier wine and food destination because of the hard work of its many passionate custodians. “It’s no easy feat to make such an indelible mark on an industry that is so widely revered. The Hunter Valley is the oldest and most visited wine region in Australia by overseas tourists, thanks to the hard work, caretaking and vision of all our winners,” McGuigan said.
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WINE NEWS
Seppelt unveils 2019 Luxury Collection The collection is led by the 2017 St Peters Grampians Shiraz and the 2008 Show Sparkling Shiraz.
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n Wednesday 5 June, Seppelt released its 2019 Luxury Collection – an annual showcase of the celebrated styles and quality that Seppelt is renowned for. This year’s release is made up of 10 wines, each exemplary of their vintage, region and style. Led by the flagship 2017 St Peters Grampians Shiraz, the Collection also includes the sought-after Drumborg Vineyard releases and the formal release of 2008 Show Sparkling Shiraz – a noteworthy vintage, displaying remarkable cellarability and style. Adam Carnaby, Seppelt Winemaker, said that the 2019 Collection is a testament to the diversity and quality of the Seppelt vineyards. “Sourced from an array of Victoria’s most renowned winemaking regions, these wines are crafted to truly reflect their regional nuances – unique characteristics which are quintessentially Seppelt in style. “In particular, the 2017 St Peters Shiraz is a real tribute to what the Grampians region can deliver. Utterly distinctive, this year’s release was again sourced from the finest, most intense fruit – resulting in a powerful wine, equally displaying great finesse
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that will continue to evolve with age.” Delivering a promising vintage, 2019 also marks a number of significant milestones for Seppelt, namely; 55 years since the forerunner to St Peters Shiraz, ‘Great Western Hermitage’, was first crafted and the renowned Drumborg Vineyard was planted in 1964. Additionally, it’s been 20 years since the first bottling of Jaluka Chardonnay – a wine made to be enjoyed on release but equally known for its ability to age gracefully, with the 2018 vintage no exception. Carnaby continues: “2018 was a magic year across our regions and 2017 in the Grampians resulted in elegant expressions that are complete and well balanced. Together with the return of Mount Ida and the awaited 2008 Show Sparkling, myself and the team continue to be proud of what this Collection delivers.” This is the second year Seppelt’s premier wines have been released in unison, helping provide consumer clarity around the winery’s leading expressions and guidance for vintage release timing. The Collection will continue to release annually, with the wines included being vintage dependent.
“2018 was a magic year across our regions and 2017 in the Grampians resulted in elegant expressions that are complete and well balanced.” – Adam Carnaby, Seppelt Winemaker
STATE MANAGER PROFILE
IN THE SPOTLIGHT We caught up with Jeremy Goodale, General Manager VIC/TAS at Australian Liquor Marketers (ALM), to chat trends and future plans for his region. Q: How has 2019 been performing in Victoria and Tasmania so far? Jeremy: Without question the brilliant weather has really aided sales throughout the early part of 2019. In Victoria, January through to April we have been blessed. With the challenge of comparing the differing months of Easter this year versus last year, putting March and April together I feel like we are in a good place as we approach winter.
Q: What makes your state unique market-wise? Jeremy: First, from an independents perspective we have nearly all indie banners represented in Victoria. With a strong presence of IGA stores in Victoria, it helps ALM Southern States have a large share of the ALM business. Secondly, the Victorian on-premise market is thriving. The explosion of suburban licensed restaurants and bars along with the many amazing hospitality precincts that Melbourne offers makes us spoilt for choice. And Melbourne is so well known as the leaders and innovators in the small bar scene, including having some of the most talented bar staff in the industry. To keep pace with the growth, ALM Southern States has launched some innovative solutions for the on-premise customers to support the trends that are evident.
Q: Are there any specific trends you’re seeing? Jeremy: There seems to be a real rush to provide an at-home delivery service for consumers. Just at the moment there hasn’t been one that has landed the perfect solution, but it won’t be
Jeremy Goodale, ALM long before it becomes a part of the consumer’s alcohol-buying repertoire. I see the next evolution of the local liquor store to be where the best of the best retailers create smaller format super premium stores that allow shoppers the opportunity to sample, explore and discover. While we are currently enjoying the boom of premium gin, in particular Australian craft gin, I am looking forward to the next trend to come, which will be Australian craft whisky. We are so lucky to have so many brilliant distillers, winemakers and brewers in Australia, I have no doubt the imminent whisky boom will be world class.
Q: What are the top performers for your state across all categories? Jeremy: Gin and craft beer are the standouts, with products like Stone & Wood, Prickly Moses, Tanqueray and Bombay Sapphire leading the charge. Canadian Club is experiencing another year of double digit growth, and higher ABV RTDs are also in growth, led by Jim Beam, Jack Daniel’s, Wild Turkey and Woodstock. Mumm Champagne is the standout sparkling and Squealing Pig Rosé has been really successful since launch.
Q: Are there any state-specific initiatives that you are planning for this year? Jeremy: Yes, there are. ALM Victoria will be launching a new on-premise platform that is currently in development phase, which we are really excited about, and will add some genuine value for our current and new customers.
“With a strong focus on growing our wine share we are partnering with our on- and offpremise customers to offer some unique products and strategies to help grow sales and margins.” – Jeremy Goodall You will see a very different way in which we communicate to our customers with impactful call to action offers from our supplier partners. We have added some digital capability to our business to support how our retailers navigate social media and alternate advertising mediums, and with a strong focus on growing our wine share we are partnering with our on- and off-premise customers to offer some unique products and strategies to help grow sales and margins. Finally, with a new Warehouse Manager, Transport Manager and Logistics Manager, there is some creative thinking on the best way to service our existing and growing customer base utilising the biggest range of products available from any wholesaler in the state. Exciting times ahead.
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LEASING
IS A RETAIL LEASE STANDARD?
Marianna Idas, the Principle Solicitor of eLease Lawyers, talks about the importance of understanding leasing obligations.
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any people believe retail leases are standard and therefore they do not need the assistance from a lawyer. Unfortunately, there is no such thing as a ‘standard retail lease’. Some states have templates, for example, in NSW they have the Law Society Lease which has been drafted by the NSW Law Society in a way that is protective to both parties. However, these templates are general and may not suit your business. Leases should be tailored to your specific circumstances, and contain terms and conditions that have been agreed by the parties. In general, leases are typically prepared by the landlord’s solicitor, which means it is not uncommon for the lease to be drafted to the landlord’s advantage. Any lease provided to you can be improved to ensure you have added protection and any hidden costs are minimised. If drafted correctly, your lease can be one of the main assets of your business, particularly if you plan on selling your business, use the premises as a shopfront or plan to stay in the same location for many years. Getting it wrong can be a costly mistake. For example, if a potential purchaser for your business finds any clauses in the lease that are to the tenant’s detriment, it could cause the sale to fall through as it is very difficult to have any terms in the lease amended at a later date. Leases are complicated and contain many clauses which can impact your business in a detrimental way if not drafted correctly. The best way to protect yourself is with legal advice with a lawyer specialising in leases. A
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lawyer will help advise you of your rights and obligations under the lease. They will then negotiate and amend the lease to suit your needs and make it more favourable to you. Once the lease has been finalised and explained to you, your lawyer will then direct you to execute the lease. Leases always contain hidden costs that you should be aware of. Many of these costs can be eliminated from the lease if you have the assistance from a lawyer who specialises in leases. It is understandable that you will want to save on costs when starting your business, but any costs paid to a lawyer could potentially save you more in the long run. For example, you could pay a lawyer a few thousand dollars but there is the potential to have them save you tens of thousands of dollars. Some of these savings are included in the below list: • rent • annual increase in rent – there are various methods to calculate this • turnover rent • outgoings for the premises • outgoings for the common property • maintenance items, e.g. air conditioning • make good – how the property is to be returned at the end of the term • redecoration – e.g. painting (this could be an annual expense) • providing an updated bank guarantee annually – bank fees apply here, as well as the top up in the bank guarantee • providing new bank guarantee if the landlord changes – bank fees apply
• promotion contribution • default payments including interest • payment of the landlord’s lawyer’s fees • insurances including public liability, property insurance, loss of profits and any other insurances required by the landlord • costs relating to obtaining consent from the landlord for an assignment of the lease and works to the premises • landlord’s supervision costs of you undertaking works to the premises • signage costs • costs associated with operating outside of trading hours • costs to ensure you comply with any clean energy laws • hoarding costs for the premises when undertaking works • installation of separate meters A lawyer can advise you of the above costs and negotiate with the landlord to remove some of these items to help save you money in the long run. It is your responsibility to comply with the lease and if you are not aware of what your obligations are then you could potentially be in breach of the lease. Breaches in the lease could result in the termination of the lease by the landlord and additional costs payable by you to the landlord as a result of your breach. Invest in the assets of your business and ensure you obtain proper legal advice from a lawyer that specialises in leases, as your lease is one of the most important parts of your business.
NEW LOOK
SAME GREAT NORTHERN TASTE
RETAIL INSIGHTS
SWING TO INDEPENDENTS NOT JUST IN LIQUOR
A recent report about the gains made by independent liquor retailers is symptomatic of broader consumer and retail trends, writes Norrelle Goldring.
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he release of the Roy Morgan Alcohol Retail Currency Report findings in May, as reported in National Liquor News and TheShout, showed a share increase for independent chains. Roy Morgan attributes this to “proximity to other shops, low prices, an easily browseable range, special offers, expert staff knowledge, and good service”. While some of that may be true, and assuming ‘low prices’ doesn’t mean ‘lowest prices’ (which are generally most attainable in the big box formats), there are broader consumer trends at play across retail channels that are beginning to be reflected in off-premise liquor. The convenience market is growing rapidly in Asia Pacific. A GlobalData report named the region as the largest and fastest growing convenience market in the world. In Australia, Woolworths has been increasing its footprint of its small format metro stores, and Coles recently announced plans to convert 200 Coles supermarkets to a new premium and convenience format. Coles also plans to refurbish 100 stores to stock more ready-to-eat food and semi-prepared meals. So, why the growth in small and convenience formats in local area locations? One reason is the growth of medium density housing, where residents look to walk to the stores in the block or two surrounding their apartment. Another is a preference for buying local. A recent Choice Magazine Supermarket Satisfaction Survey saw South Australia’s Foodland coming out on top for customer satisfaction, with Harris Farm second, IGA fifth
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and Foodworks sixth. Woolworths and Coles were seventh and eighth respectively. In this survey, customer satisfaction related primarily to local fresh produce, with buying local seen to reduce food miles and support local producers, among other reasons. Another contributor to the Choice supermarket satisfaction measures? Ease of parking. Foodland topped the study due to its helpful staff, locally produced food, and ease of parking. While Harris Farm topped the list for fresh produce, its lack of parking saw it come in second. Parking isn’t just important to supermarket shoppers, either. The Australian driving culture is reflected in the importance of parking across retail channels. A UBS Evidence Lab study of 14,000 consumers globally revealed the frequency of shopping mall visits in Australia dropped 15 per cent, and the frequency of department store visits dropped 13 per cent in 2018 from the previous year. In the same period, mall visits in other markets such as South Korea, Vietnam, and Taiwan increased by double-digits. According to the survey, Australian consumers want better car parking rather than new services or dining precincts at a time when mall owners are reducing, or at least not increasing, car parking to make way for said precincts. So, independent bottle shops may win in the battle for parking, and when local residents can simply walk to the bottle shop. Independents can also win range wars – not breadth, but stocking specialist, niche and new products. My beer industry sources tell me they have seen a shift to independents for craft beer
because independents can range a new product or vintage faster than the majors, often the day after a release versus weeks in the majors due to their processes. Beer Cartel, for instance, on its website lists what’s new on a daily basis. And independents can stock smaller brands because they don’t have the volume production requirements of the majors. And the latest vintages because their smaller volumes means the stock sells through faster on a brand basis. The Roy Morgan Alcohol Retail Currency Report also showed a decrease in hotel bottle shop share. This may be for range reasons as above, and also I suspect competition from latenight on-demand alcohol delivery services, such as Jimmy Brings, cutting into occasions that were historically the province of hotel bottle shops. So, independent bottle shops can leverage their local advantage with parking, with specialist ranges, with service and knowledge of the local community and customers, and localised marketing via community social media and events.
ABOUT NORRELLE GOLDRING Norrelle has 20 years’ experience in the liquor industry and in retail, category, channel and customer strategy, planning and research, working in and with global retailers, manufacturers and research houses. Contact Norrelle on 0411735190 or email norrellegoldring@hotmail.com.
PINOT NOIR GREAT SOUTHERN, W.A. Most often, we talk about wines to pair with food, however at Ferngrove we talk about pairing a glass of Pinot Noir with good friends. Ferngrove Independence Pinot Noir is a versatile companion for dining outdoors and relaxing with friends over a woodfired pizza. So good is the pairing, we think it’s worth a selfie moment. “Ferngrove Independence Pinot Noir is made using soft hands in the winery and is crafted to refine the purest essence of our vineyard into an elegant expression of Great Southern Pinot Noir. Softly textured, filled with sweet cherry and spice. A wine perfect for every-day consumption or to start any great conversation.”
CRAIG GRAFTON - CHIEF WINEMAKER
WWW.FERNGROVE.COM.AU
SPIRITS
COPPER DOG LAUNCHES IN AUSTRALIA Diageo has released its blended malt Scotch whisky, Copper Dog, into the Australian market with it available now in selected on-premise venues before becoming available to offpremise retailers in July. Copper Dog is a blend of eight Speyside single malt whiskies and is described as producing “a deliciously fruity liquid with a touch of spice – a whisky designed to be mixed”. Master Blender Stuart Morrison has created Copper Dog using a range of whiskies which have been aged in refill American and European oak casks, first fill Bourbon casks and rejuvenated casks, before being brought together in Hogshead casks. The flavour profile has been designed to reflect the typical characteristics of the Speyside region, boasting “notes of crisp apple, zesty citrus, dried fruit, vanilla and an aromatic spice, among others”. The whisky is bottled at 40 per cent ABV. Copper Dog is the brainchild of London nightclub, bar and restaurant entrepreneur Piers Adam, who bought the Craigellachie Hotel in 2013. Inspired by the pub’s rich history, he sought to produce a house blend that celebrated the Speyside region. Speaking of Copper Dog’s launch to the Australian market, Adam said: “I wanted to bring customers fresh and exciting ways to enjoy whisky. Copper Dog started at the Craigellachie Hotel, but we always aspired to share our Scottish whisky and blend globally. “Copper Dog is simple and approachable but complex enough to mix well. It’s a whisky that has this resilience and versatility. We can give consumers a glass that they are in control of, however they wish to enjoy it, while hearing the story behind the blend. In the spirit, the diversity of flavours created in Speyside is evident, for me Copper Dog is a true representation of the region.”
SouthTrade’s Cape Grim 666 Vodka range
VODKA 666 CELEBRATES PROVENANCE WITH NEW PACKAGING Cape Grim 666 Vodka has unveiled a packaging refresh and two unique new flavours: Lemon Myrtle Honey and Wattleseed Coffee. The new packaging aims to highlight the brand’s “provenance and handcrafted quality”, celebrating Tasmania’s Cape Grim region – a pristine and untouched landscape of wild forests and rugged coastline – where the Cape Grim 666 Vodka is distilled and bottled. The first of the two new vodkas, Lemon Myrtle Honey, is made using honey from Ligurian Bees from Kangaroo Island. “With the honey adding a soft sweetness, the palate gives a strong hit of lemon, delicate touches of eucalyptus and [an] overall sweet refreshing taste,” the tasting notes read. Wattleseed Coffee, on the other hand, is described as “the world’s first cold-filtered coffee vodka” and has been created with artisanal coffee roasters St Ali. “Featuring a unique blend of roasted coffee flavours and earthy tones, Wattleseed Coffee is bold but not big, with hints of orange peel, dark cocoa and vanilla for a bitter-sweet finish.” “With the rise in demand for fresh and unique tasting cocktails, we saw a great opportunity to showcase local Australian ingredients and create unique profiles,” explains Dean Lucas, founder of Cape Grim 666 Vodka. “As the only craft producer 100 per cent focused on vodka we are thrilled to bolster our product variety and deliver on-trend flavours.” The introduction of the two new flavours also strengthens SouthTrade International’s premium Australian craft spirit portfolio.
AUSTRALIA STARS AT AMERICAN DISTILLING INSTITUTE AWARDS The global reputation of Australia’s spirits industry continues to grow, after this country’s distilleries put in a strong showing at the prestigious American Distilling Institute Awards (ADIA). The results for the 2019 ADIAs were announced last month and Australia shone, with 36 medals and four Best of Category wins. In total there were 18 bronze medals, 17 silver and one gold to go with the Best of Category wins. The result was a particularly strong one for the Adelaide Hills Distillery, which claimed three Best of Category wins to go with the Best Australian Grain Whisky the team recently won at the World Whiskey Awards. The distillery also impressed, collecting nine medals at the awards for a range of its spirits. The three Best of Category wins were for International Contemporary Gin for the 78
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Degrees Gin; International Herbal/Botanical/ Spice Liqueur for The Italian, Bitter Orange Aperitif; and International Apple Brandy for the Adelaide Hills Apple Brandy. Founder and Distiller Sacha La Forgia was understandably delighted with the win, telling National Liquor News: “I’m humbled to receive these accolades across our portfolio. At Adelaide Hills Distillery we craft spirits for better, always improving quality and with the environment in mind. Our goal is to make every bottle we produce better than the ones we produced before.” The other Best of Category win went to Four Pillars, whose Navy Strength Gin claimed the International Navy Strength Gin crown. The distillery also picked up three medals. Other notable Australian distilleries performing well included Archie Rose with six medals, plus Ambleside and Pietro Gallo Estate who each collected four medals.
Adelaide Hills Distillery did especially well
BREWING
THE 2019 AIBA WINNERS ARE REVEALED The 2019 Australian International Beer Awards (AIBA) were held in Melbourne last month, with the Keller Door Schwarzbier Draught from 4 Pines named Champion Australian Beer. US brewery Firestone Walker Brewing Co, also won big, with Feral One brew named as the Champion International Beer. The awards saw an additional eight Champion trophies awarded on the night, which was hosted by the Royal Agricultural Society of Victoria (RASV). Paul Guerra, CEO, RASV said the 2019 AIBAs delivered a remarkable calibre of entries. “The AIBA is the largest annual beer competition in the world, offering exhibitors the opportunity to benchmark their beer against industry standards to stand among some of the most talented brewers in the world. “With almost 2600 entries from more than 400 breweries across 26 countries, 2019 marks the biggest year in the awards’ history and we look forward to seeing this growth continue.” Queensland was well represented on the night, taking out two of the top four Australian spots: Champion Large Australian Brewery, awarded to Balter Brewing, and Champion Medium Australian Brewery, awarded to Green Beacon Brewing Co; while Victoria’s Blackman’s Brewing took out Champion Small Australian Brewery.
On the international scale, New Zealand took home three of the four Champion International Trophies, with Champion Large International Brewery going to DB Breweries, Champion Medium International Brewery awarded to Deep Creek Brewing Company, and McLeod’s Brewery taking home Champion Small International Brewery.
The 4 Pines team celebrate their win
GREAT NORTHERN REVEALS BRAND REFRESH
ALEXIS ROITMAN RESIGNS FROM IBA CEO ROLE
Great Northern Original and Super Crisp has undergone its first brand refresh since it was launched almost nine years ago. Carlton & United Breweries said the packaging update gives the brand a more contemporary look and will help customers to differentiate between the two products. The brewer was also adamant that while the packaging has changed, the beer remains the same as always. “The branding might look a little different, but it’s the same Great Northern. We take a great deal of pride at the brewery in making sure the Great Northern Quality remains of the highest standard,” Yatala Brewery Plant Manager Tom Robinson said. The colour of the cans has changed from gold to sand and Super Crisp’s labelling now includes the words ‘low bitterness’. “Great Northern Super Crisp has always been a less bitter blend,” Robinson added. “It’s always been a part of the Super Crisp taste profile. We’ve just taken the term out of the brewery and put it on a label. “We thought it was a clever way for customers to recognise Super Crisp and how it is different from our Original brew. “We know the ‘low bitterness’ taste profile works, because Great Northern Super Crisp has become a popular beer, especially out and about in the great outdoors.”
The Independent Brewers Association (IBA) has announced the resignation of CEO Alexis Roitman and the relocation of its head offices to Melbourne. Roitman was named as the CEO of the IBA almost a year ago, in the same time period that the IBA revealed its Seal of Independence. She also oversaw the launch of the IBA’s Beer Labelling Guidelines and the association’s merger with Good Beer Week. “The Board will be reviewing the requirements of the executive office over the next few months,” IBA Chair Jamie Cook wrote in an email to IBA members. “In the meantime I will be working closely with Kate Paterson (Head of Industry Development), Siobhan Kerin (Head of Events), Jason Sommers (Event Manager) and Sophie Taylor (Public Affairs Manager) to implement our plans. “The Association thanks Ms Roitman for her service and wishes her well in her future endeavours.” In the same email, Cook also notified IBA members that the association’s head office has been moved to Melbourne. “As the IBA and Good Beer Week entities and team head towards the finalisation of the merging process we have decided to relocate the merged team to a new location in Melbourne,” Cook explained.
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RETAIL DRINKS AUSTRALIA
SEPARATING MINIMUM UNIT PRICING FACT FROM FICTION
Julie Ryan, the CEO of Retail Drinks Australia, discusses the impact minimum unit pricing has had in the Northern Territory.
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etail Drinks’ most recent member roadshow in the Northern Territory demonstrated the significant changes in the Territory’s retail liquor environment as a result of the NT Government’s continuing implementation of the Riley Review recommendations. One of the most significant changes has been minimum unit pricing (MUP) which set a minimum floor price of $1.30 per standard drink across all alcohol products. The NT Government’s stated objective of this policy was to “minimise the harms associated with high-alcohol, low-cost alcoholic beverages”. Proponents of MUP have been pointing to the fact that there has been a reduction in hospitalisations and alcohol-related assaults in some regional centres since MUP was introduced on 1 October 2018, as a measure of its effectiveness. Given that the introduction of MUP was less than 12 months ago and was only one of a wider range of 200 different recommendations from the Riley Review, it would be at best premature and at worst misleading to say that it has resulted in direct, tangible benefits as far as alcohol-related harm reduction is concerned. The case remains that other policy measures, such as increased policing powers to search and seize alcohol and the increased presence
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of Police Auxiliary Liquor Inspectors (PALIs) outside bottle shops in regional areas, are likely to have a far more direct impact on the presence of problem drinkers in those areas. The query remains, though, have they simply moved to somewhere else which has a correlating spike in alcohol-related hospitalisations? We don’t know, but that is because those statistics are not being shared. It is a practical fact that it is impossible to isolate the impact of MUP in the NT, as it is the proverbial ‘needle in the haystack’ of 200 other policy measures being applied simultaneously. What is clear is that affordability and access to alcohol has been affected by MUP and that has resulted in a number of unintended consequences, both for retailers and the general public. First-hand reports received from liquor retailers in the NT commented that there had been a recent spate of alcohol thefts and break-ins, as well as an increased level of aggression shown towards staff. This has coincided with the increased misuse of nonedible alcohol substances such as mouthwash and cooking essences. The NT Government’s Alcohol Review Implementation Team (ARIT) recently contacted all store owners in March encouraging them to restrict access to alcoholic mouthwashes and cooking essences by moving them behind the counter and putting
daily purchase limits on these items. This example illustrates the precise problem with MUP – it fails to discourage harmful alcohol consumption among heavy drinkers, who simply avoid increased prices by purchasing (or stealing) other alcohol products. Many of these alcohol products are not intended for consumption and may result in even greater harm to the community long term. Although the first anniversary of MUP in the NT is still several months away, the 12 month mark for the Scottish version of MUP has just ticked over. One of the key data trends of MUP in Scotland has been an increase in off-trade alcohol expenditure, which rose 11 per cent in the first six months of MUP, according to data from IRI. Further to this, Nielsen data shows that in the 46 weeks leading up to March 2019, natural volume sales in Scotland increased by 1.8 million litres to 203.5 million litres indicating that MUP did not result in a total reduction in the amount of alcohol purchased either. We know that total population measures like MUP punish everyday responsible drinkers, rather than addressing the harm from alcohol misuse with targeted, evidence-based measures to assist those with a problem. Let’s stop punishing the majority simply because it’s ‘easier’ than finding solutions to the complex issues of alcohol misuse in the minority.
SPIRITS & COCKTAILS AUSTRALIA
FREEZE THE SPIRITS SUPER TAX Alec Wagstaff, the CEO of Spirits & Cocktails Australia, says that a freeze of the spirits super tax would be the first step in unlocking the Australian spirit manufacturing and retail sector’s full potential.
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or many years Australian spirits drinkers have paid some of the world’s highest taxes on their drinks. Australia’s tax is 70 per cent higher than that paid in New Zealand; it’s more than double that paid by consumers of packaged beer and it is four times that paid by drinkers of commercial cider. And this high level of tax is increased every six months. In recent years, Australia’s local distilling sector has started to build a premium reputation, with Australian-made spirits taking out prestigious awards around the world. There are now more than 180 distilleries in Australia – predominantly small, family businesses. They are passionate about what they do and committed to their community. Many of them are already investing in much-needed tourism and hospitality infrastructure, with the result that growth in the distilling sector is directly creating jobs and also supporting Australia’s broader tourism offer. However, these distillers face a huge barrier. We need urgent action now, followed
by a comprehensive review of alcohol tax arrangements. We need a system that relieves the high tax paid by drinkers, stops the tax getting worse and attracts material investment into the industry. Spirits and Cocktails Australia, with the support of the Australian Distillers Association (ADA), has been campaigning for a freeze on the twice-yearly indexation of excise on all spirits. We consider a freeze the important first step to giving spirits drinkers a fair go and to unlocking the full potential of the spirit manufacturing and retail sector across the country. During the recent federal election we ran a strong campaign urging candidates to support a freeze of the spirits super tax and we will continue to campaign until this is achieved. We encourage you to highlight the issue with the new government and to indicate to them your support for the introduction of an equitable alcohol tax system by emailing your local MP or signing the petition available here: https:// www.freezethespiritssupertax.com.au/
“We need urgent action now, followed by a comprehensive review of alcohol tax arrangements. We need a system that relieves the high tax paid by drinkers, stops the tax getting worse and attracts material investment into the industry.” NATIONAL LIQUOR NEWS JUNE 2019 | 27
NEW ZEALAND WINEGROWERS
CONTINUOUS IMPROVEMENT: THE NEXT STEPS FOR SUSTAINABLE WINEGROWING NEW ZEALAND With a significant amount of campaigning in the recent Australian federal election dedicated to environmental policy, sustainability in the primary sector is without doubt a hot topic, says Natalie Grace, the Manager – Australia for New Zealand Winegrowers.
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ccording to Wine Intelligence’s SOLA Opportunity Index, wines with a sustainability and environmental connection have the best chance of success in a crowded market. It states that consumers “have a growing intent to buy wines that are produced in a way that takes both the environment and those creating the product into consideration, and are willing to consider designations that are broader than just ‘organic’ as supporting cues”.
Two decades of industry participation For 20 years, New Zealand Winegrowers has led Sustainable Winegrowing New Zealand (SWNZ), an industry-wide certification programme based on recommendations and guidelines issued by the International Organisation of Vine and Wine (OIV). Since its commercial introduction in 1997, the programme has evolved yet its objectives are still relevant today: • to ensure New Zealand continues to make high quality and distinctive wines; and • to continue to export these wines internationally, produce them efficiently and grow the sustainability of our wine industry. SWNZ has achieved a lot in 20 years. Almost every wine-producing nation now has at least one sustainability programme, and New Zealand’s own has reached the enviable position of being considered a world leader through establishing a framework for our members to articulate their sustainability achievements; attaining near full industry participation; and strong brand equity in the SWNZ logo, with many eligible wineries using it on their labels and packaging.
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But what does this look like in practice?
Sustainability in action Some key achievements from SWNZ members over the 2016 growing season collated from SWNZ data include: • 96 per cent of wineries measured and recorded water use; • 98 per cent of vineyards used monitoring techniques in the vineyard to optimise water applications; • 92,000 cubic metres of by-product was diverted from landfill by vineyards and wineries through reuse or recycling programmes – the equivalent of 36 Olympic swimming pools; and • 2,500ha was set aside for biodiversity protection, restoration or enhancement by vineyards and wineries – the equivalent of 3,030 football pitches. These last two points are significant in the context of New Zealand representing just 1400 growers and wineries (16 per cent of Australia’s 8700) and the total producing area being under 38,000ha. Essentially, more land was set aside in New Zealand for biodiversity protection, restoration or enhancement than planted to Pinot Gris, our third most popular white wine variety.
Continuous improvement Standing still means being overtaken, and with a mandate from participants to do more, Sustainable Winegrowing must continuously improve, which has led to an extension of the programme – SWNZ Continuous Improvement (SWNZ CI). Based on the SWNZ ‘pillars of sustainability’ structure (biodiversity, soil, air, water, energy,
plant health, waste management, people, business practice), each pillar is allocated an aspirational industry goal. For example, zero waste to landfill and 100 per cent renewable energy for the waste management and energy pillars respectively. SWNZ CI puts sustainability in the hands of our members; members set their own goals and timeframes, SWNZ CI provides guidance, best practice and verifies achievements. While in its pilot stage, the SWNZ CI programme has begun to see positive steps forward. Groups are developing to discuss industry issues and solutions. Members are collaborating around the waste pillar to identify their waste streams and tackle their shared supply chains to reduce packaging and use recyclable packaging. They are sharing challenges, ideas and solutions, and it’s that activity that will lead the industry to achieving that audacious zero waste to landfill goal. In terms of sustainability, our modern wine industry is coming up to 50-years-old. We want to be producing high quality wines sustainably for the next 50 years and beyond. To New Zealand’s winemakers and grape growers, sustainability means delivering excellent wine to consumers while helping the natural environment, local businesses and communities involved to thrive. For New Zealand’s wine industry it represents a commitment to protect the places that make our famous wines. Exactly what this looks like is best told by our producers – don’t miss the opportunity to ask them about it during your next trade visit or tasting and develop a deeper understanding for the sustainability story behind each wine.
WINE AUSTRALIA
AUSTRALIA’S PREMIUM CHARDONNAY INCREASING IN DEMAND Peter Bailey, Manager Market Insights at Wine Australia, discusses the popularity and growth of Chardonnay both in Australia and globally.
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ustralian Chardonnay has enjoyed the wine sector’s highs and weathered its lows with resilience, and it continues to hold a special place among Australian wine lovers. It remains Australia’s top white variety and is second overall behind Shiraz. In 2018, 408,000 tonnes of Chardonnay were crushed across Australia, which made up 47 per cent of the total white winegrape crush. The second largest white variety was Sauvignon Blanc with 93,000 tonnes followed by Pinot Gris/Grigio with 76,000 tonnes. The volume of Chardonnay still table wine exported from Australia has been on the rise, from 149 million litres in 2011 to 185 million litres in 2018. The United Kingdom (UK) and the United States of America (USA) are the two biggest destinations, with each taking in more than 60 million litres of Australian Chardonnay in 2018. Chardonnay is the second biggest selling wine in the UK behind Sauvignon Blanc and is Australia’s biggest selling wine in the market ahead of Shiraz. According to IRI Worldwide, in 2018, the sale of Australian Chardonnay in the
UK off-trade market increased by four per cent in value. More than 90 per cent of Australian Chardonnay is sold at under £7 per bottle and sales increased by four per cent. The strongest rate of growth for Australian Chardonnay came at £9 or more per bottle, up 35 per cent, but only 0.4 per cent of total Australian Chardonnay sales were in this price segment. In the USA, Chardonnay is the second biggest selling wine behind Cabernet Sauvignon and is Australia’s number one wine ahead of Cabernet Sauvignon. In the 12 months ended March 2019, sales of Australian Chardonnay in the USA off-trade increased by eight per cent in value, with the strongest growth rates coming at US$15 per bottle and above, albeit off a relatively small base (0.1 per cent share of Australian Chardonnay sales). Ninety-five per cent of Australian Chardonnay sales in the USA are at US$4.00–7.99 per bottle and sales increased by five per cent in the price segment. According to IRI Worldwide, the value of Chardonnay sales in the Australian off-trade market was flat in 2018. Chardonnay is the second biggest selling white table wine behind
Sauvignon Blanc. However, Chardonnay outsells Sauvignon Blanc at A$20 or more per bottle ($48 million in sales versus $37 million). The value of Chardonnay sales grew by 10 per cent at A$20.00–29.99 and by eight per cent at A$30.00–49.99 per bottle. In contrast, Sauvignon Blanc sales grew by four per cent at A$20.00–29.99 but declined by four per cent at A$30.00–49.99. Analyses of online wine offers in Australia illustrates the status of Chardonnay as a premium and sought-after variety, with around four times the number of listings as Sauvignon Blanc or Pinot Gris/Grigio and more than double the average list price. The highest price for any Australian Pinot Gris/ Grigio or Sauvignon Blanc was found to be between $30 and $40 per bottle, whereas for still Chardonnay the highest price was $189.99 and 15 per cent of listings were over $100 per bottle. The only variety to come close was Semillon, with 25 per cent of listings over $100 per bottle and an average listing price around $10 higher than for Chardonnay (but far fewer products).
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ALCOHOL BEVERAGES AUSTRALIA
BEST PRACTICE FOR EVIDENCEBASED ALCOHOL POLICY Gohar Yazdabadi, the Research and Policy Manager at Alcohol Beverages Australia (ABA), discusses how a strong and reliable evidence base will make for better policy outcomes for Australians.
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mplementing effective and efficient public policy when it comes to alcohol isn’t an easy task and no one is suggesting that policy makers must get it one 100 per cent right, all the time. But starting from strong and reliable evidence base will mean that policy implementation will result in better outcomes for Australians. The first step to evidence-based policy is defining the issue. In the case of alcohol policy, the issue for policy makers should be how to implement measures that will reduce the harmful consumption of alcohol. This is because alcohol-related harms in society arise from the harmful consumption of alcohol as opposed to alcohol consumption in general. The most credible source of data showing Australia’s relationship with alcohol comes from the Australian Institute of Health and Welfare which surveys close to 24,000 Australians to understand their drinking habits. Its data shows that at a population level, 84 per cent of Australians now enjoy their favourite alcoholic beverages responsibly and in moderation. Further, the Australian Bureau of Statistics (ABS) reports that Australians are consuming less alcohol today than at any point in the last 55 years. At the population level, Australia doesn’t have a problem with alcohol. Despite the results at a population level, it is still important that more is done to reduce alcohol-related harm arising from excessive
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“Harmful alcohol consumption occurs in pockets of our society and it is those pockets that need to be targeted with effective programs and policies.” alcohol consumption. Harmful alcohol consumption occurs in pockets of our society and it is those pockets that need to be targeted with effective programs and policies. When policy makers ignore the need to target the right sub-groups of a population then policies will not yield reductions in alcoholrelated harm. A study of across 30 OECD countries, including Australia, found that there is no significant correlation between population level alcohol consumption and the number of disability-adjusted life years (DALYS) lost due to alcohol use. Most significantly, the study also found that there was no meaningful correlation between strict alcohol policies and alcohol-related harm. These findings reiterate the need for a targeted approach to alcohol-related harm. Most importantly, considerable thought must be given to the unintended consequences
of policy implementation. A recent study found that in the US, policies that have been implemented to prevent drinking during pregnancy, such as pregnancy warning signs, may actually lead to significant adverse outcomes such as increase in preterm births and low birth weights. The study estimated that in 2015, the cost of these adverse outcomes was more than USD$700 million. Despite the risks posed with unintended policy consequences, it is unfortunately the weakest link in policy development in Australia. It is a complex area that requires looking at a problem through the lens of the target audience and understanding their experiences. It makes it even more important that policy makers understand their audience. ABA is working hard to make sure policy makers have the information needed to put forward the best possible solutions. The industry comes from a unique understanding of its consumers and plays an important role in the reduction of harms. It is important that we are included at the table as part of the solution. Everyone in the industry can help build knowledge about the solutions that have worked in their community. If you are part of a local accord or have implemented a new way of dealing with harm in your community then get in touch with your local member of parliament and let them know. The more industry forms part of the solution, the more likely effective targeted policies will be implemented.
DRINKWISE
YOU WON’T MISS A MOMENT IF YOU DRINKWISE Simon Strahan, the CEO of DrinkWise, discusses increasing community understanding of the importance of moderation through its latest partnership with the NRL.
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ou won’t miss a moment if you DrinkWise is an initiative created by DrinkWise and supported by industry, event sponsors, media and sporting codes to promote the importance of drinking in moderation. The initiative recognises DrinkWise research which shows that the vast majority of people (93 per cent) believe that it is important that people drink responsibly when attending events and 92 per cent agree that a public event can be ruined if people drink too much. Since the commencement of the initiative in 2014, DrinkWise has partnered with sporting codes and events including the AFL, the NRL, the Spring Racing Carnival, Splendour in the Grass and the Australian Open. Most recently, we have extended our partnership with the NRL to further promote responsible attitudes and behaviours towards alcohol consumption in the NRL community.
The partnership includes a new program which will educate players, NRL officials and fans about the importance of drinking in moderation via education sessions with all NRL clubs, state clubs and junior representatives, as well as DrinkWise presentations to rookie camps. A DrinkWise representative will also sit on one of the NRL’s wellbeing and education advisory groups. In support of the program, NRL CEO Todd Greenberg has said that working with DrinkWise goes beyond a standard partnership, as the education program will benefit not just the players, but the entire NRL community. He expressed the League’s commitment to ensuring players of all ages and all stages of their playing career are supported to make better decisions – recognising the importance of the DrinkWise partnership in this process. The program launched with DrinkWise messaging featuring prominently across the
Gold Coast to Brisbane convoy for the new ‘Magic Round’, when all 16 NRL clubs played over the opening weekend to kick off the NRL season. Our partnership with the Gold Coast Titans and their Head of Performance and Culture, NRL great Mal Meninga, will further promote the DrinkWise moderation message. DrinkWise signage (pictured) will be seen at all games and a digital presence on NRL.com will expose the campaign to an additional 1.9 million unique viewers each week. The partnership was launched with our new ‘You won’t miss a moment if you DrinkWise’ TV advertisement featuring NRL stars, including legend Wally Lewis, which will air on Channel 9 this NRL season. As part of the partnership, we will also be producing videos for the DrinkWise Unmissable Moments series with key NRL players to further promote the moderation message.
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COFFEE
A non-alcoholic espresso martini from Lyre’s
ESPRESS(O) YOURSELF
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ustralia has an undisputed obsession with coffee culture, with it even being a cornerstone of the longstanding Melbourne vs Sydney argument. And with the country being the 15th largest consumer of coffee in the world, it makes sense that the elegant and diverse flavours of the new styles of coffee are integrating themselves in the drinking habits of Australians, with the opportunity for retailers in both on- and offpremise to be cashing in. A white paper produced by The Future Laboratory in conjunction with one of the originals in the coffee liqueur stakes, Tia Maria, has found this to be based on a concept they have dubbed the ‘third wave of coffee’. This movement has been driven predominantly by millennial consumers, who want to experience coffee in a multitude of ways – espresso, cold drip, latte, even deconstructed – all in an effort to experience the different flavours and aromas that can be found within high quality coffee. This experience has filtered through to coffee’s brethren, coffee liqueur. The explosion of new and exciting styles of coffee liqueur
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The Australian coffee culture continues to grow in quality and diversity and so too does our taste for interesting and high quality alcoholic coffee drinks, as Amy Hayes discovers.
from both craft and commercial outlets has opened the door for consumers to experience coffee liqueur on their own terms and for their own tastes. And the use of different base spirits has developed a wider and more exciting range of drinking experiences for consumers. “Coffee is being crafted into ingredients rather than being used as a singular flavour component in a cocktail,” said Union Hand Roasted Coffee’s Cocktail Expert David Jameson. “This kind of experimentation will drive resurgence in interest in coffee cocktails, and create exciting new flavours and combinations.” And the market is most definitely picking up on these trends, with a multitude of options becoming available to retailers.
At the base of the spirit The original spirit that has been used with great success has been rum: a spirit that has the power and nuance to stand up to such an intense flavour as coffee, while its mellow and soft notes of vanilla and molasses have been able to offer liqueurs such as Tia Maria a luxurious smoothness. This creates a drink that
offers as pleasurable an experience over ice as it does within an Espresso Martini. This match of coffee and rum can be seen elsewhere in the market with a relative newcomer, Spresso by powerhouse Flor de Caña. It utilises Nicaraguan premium highland coffee variety Caturra blended with seven year old Flor de Caña rum. Merlin Jerebine from Vanguard Luxury Brands suggests an enjoyable an easy blend for consumers to try is the Bourbon Black Russian, a take on the classic Black Russian with equal parts American whiskey and Spresso topped with a good splash of Cola. Another player in the coffee liqueur category that utilises the complementary flavourings of a rum-like spirit in their blend is Kahlua. Kahlua uses a combination of sugar cane spirit and distillate, similar to rum to create their liqueur. Hailing from Mexico, Kahlua is one of the original houses to offer coffee liqueur to a global market being a go-to for occasions from bars to house parties since 1936. One of the unique elements that make Kahlua a particularly special drink is its
COFFEE sourcing. It is created using a combination of 100 per cent locally sourced Arabica coffee and sugar cane from Veracruz, Mexico. The coffee is roasted to a perfect medium for balance then carefully extracted to bring out the best in the Arabica beans. The coffee extract is then mixed with spirit. Ben Parton, Brand Ambassador for Kahlua, explains it best when he describes why these specific elements have been selected. “What grows together, goes together. Cane and coffee grow well in Mexico, so it’s not surprising the founders thought to put the two together. “Arabica coffee is used because it’s smoother and enjoyed far more universally than its Robusta counterpart and it also grows in the Mexican Highlands of Veracruz, whereas Robusta grows at lower altitudes. The coffee is roasted to medium so we can have a rich coffee flavour without losing balance,” he added.
The third wave of coffee While rum has been a popular choice for those creating coffee liqueur, there are also those focused on a coffee-based experience that brings the specific blends of coffee to the fore. One major disruptor in the space has been Mr Black with its new age attitude bringing the ‘third wave of coffee’ movement to life. Mr Black uses a neutral vodka base, citing that it allows the rich, complex flavour of the specialty coffees to shine. It also utilises the cold brew method for its coffee to keep the delicate nuances of the coffee flavour intact allowing it to show consumers the flavours at their most expressive.
Making cocktails with Kahlua
kahlúa espresso martini 1 part kahlúa 1 part vodka 1 part espresso
Enjoy Kahlúa Responsibly
COFFEE
MR BLACK’S MANAGING FOUNDER, TOM BAKER TALKS COFFEE TRENDS
Pouring a Mr Black at dinner
Q. Why do you think people are crossing over their love of coffee into their drinking habits? Tom: Coffee is one of those things that runs deep with Aussies, it’s part of our national identity. Before Mr Black, there really wasn’t much that bridged the gap between Australia’s favourite flavour and something to drink at night. Sure Espresso Martini’s flow plentifully in bars, but what’s a coffee lover to do at home? Mr Black is just that – boozy coffee for the nation that loves to drink it.
Q. What are the biggest trends you are currently seeing in the off-premise? Tom: The biggest trend we’re seeing in shops is the boom in Australian craft products. Drinkers no longer have to settle for imports when we’re making world-class spirits here in Australia. Aussie spirits used to be few and far between, and sold at a significant premium to the rest. Now you can buy Mr Black – a genuinely world-class Australian craft spirit – for for about the same as a bottle of imported gin. It’s a great time to be an Australian producer, and consumers are spoilt for choice. This parallels with the rise of cocktail culture across the country – more people are crafting cocktails at home than ever before – making drinks beyond the humble gin and tonic or Bourbon and coke. Every week drinkers send us their photos on Instagram – shaking up an Espresso Martini for friends, or enjoying a boozy affogato on a night in.
Q. Why should retailers have a solid coffee liqueur presence on their shelves? Tom: We know shoppers walk in-store with a pretty solid idea of what they are looking for, and this often includes making cocktails at home for friends and family. Coffee is Australia’s favourite flavour and the Espresso Martini is Australia’s favourite cocktail, so it’s not a hard sell to offer Mr Black as a craft coffee for the night. It’s both Australian-made and looks pretty damn good – even if we say so ourselves.
Q. What is the biggest driver for sales of Mr Black in the off-premise? Tom: We have a younger, more affluent customer base. Range us with your Australian craft spirits and ride that wave, or pair it with premium vodka and sell the ultimate Espresso Martini cocktail bundle. Both are proven to significantly lift sales of Mr Black for retailers small and large. Gifting is an occasion where we truly excel due to our stunning taste and packaging. We get three Christmases at Mr Black – Mother’s Day, Father’s Day and Christmas. Mr Black is a worldclass Australian spirit for coffee lovers – who wouldn’t want that under the tree?
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“We have a number of close relationships with growers around the world. This current season we’re using coffees from Kenya, Colombia and Papua New Guinea. Each brings something important to the flavour profile – we are always chasing a balance between body, acidity and bitterness, with rich, complex flavour,” said Managing Founder of Mr Black, Tom Baker. Baker recommends using Mr Black to create a Cold Fashioned cocktail as a perfect winter warmer. “It’s easy to make – just mix equal parts of Mr Black and rye whiskey, stir and serve on a big rock of ice.” He particularly enjoys this cocktail made with Mr Black because it “shows a more delicate, complex side of coffee. Coffee as a bitter, not as an antique liqueur”. A newcomer to the coffee liqueur game that has already shown great signs of popularity is the launch of the whiskeydriven Jameson’s Cold Brew. Also using the method of Cold Brew, Jameson Cold Brew is a combination of triple-distilled Jameson Irish Whiskey and cold brew coffee extract crafted with 100 per cent Fairtrade Arabica beans from Columbia and Brazil. Brand Ambassador Neil Flannery commented on how they brought the mix together in perfect synergy: “The intense rich coffee bean aromatics combined with vanilla nuttiness of Jameson give a distinctive taste, combining the bold and natural with refreshing coffee impact followed by charred wood from the pot still whiskey contribution on the palate. Full bodied, smooth and a warming mouthfeel”. This particular flavour profile is a perfect option for those looking to reignite their love of the traditional Irish Coffee or for a refreshing option, trying it with tonic water.
And while not all spirits in the coffee liqueur game offer the same taste profile, the same can be said for those who are pushing the boundaries in spirits – non-alcoholic spirits. A trend that has been noted as one to watch for 2019, non-alcoholic spirits create a spirit drinking experience in a nonalcoholic format. One of the key players in this space is Australian brand Lyre’s which has seen the popularity of coffee liqueur and included one within its portfolio. Utilising Arabica and Robusta coffee beans alongside natural essences, the team at Lyre’s has developed a liqueur with close consideration to making it an experience in its own right. “We’ve worked hard to ensure all of the supporting notes in the bouquet and on the palate work hard to support the hero coffee flavour that’s front and centre,” said Creator of Lyre’s, Mark Livings. “Sweetness can be overly cloying in some liqueurs and we really wanted to avoid this, hence some bright acidities and other notes that really cut through the richer flavours of espresso, spice, caramel and toasted nuts,” he added. This style of liqueur lends itself to being blended within cocktails and can be used alongside other non alcoholic products within the Lyre’s range – including Lyre’s White Rum to create a non alcoholic Espresso Martini. With such a wide and varied range of coffee liqueurs on the market, there is an amazing opportunity for off-premise retailers to enjoy Australia’s coffee culture. The diversity of taste profile and style, all anchored by fine coffee flavour, allows them a plethora of options that can appease every palate.
BANNER GROUPS
The changing face of liquor retail We catch up with Australia’s leading banner groups to discuss the changing face of liquor retail and how they are evolving to gain market share.
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lthough supermarkets still dominate the $15.4 billion retail alcohol market, over the last 12 months their share has fallen from 74.7 per cent to 72.9 per cent, according to the latest finding from Roy Morgan. The Roy Morgan Alcohol Retail Currency Report found that during the same 12 month period, the share going to independent retailers increased from 9.8 per cent to 12.9 per cent, representing a gain of more than 130,000 customers compared to a gain of only 25,000 for supermarkets.
What’s driving the shift? Consumer behaviour is changing. Shoppers are being driven by convenience more so than price and things like loyalty programs, e-commerce, custom ranging and building strong customer connections are more important than ever. The benefits of being a part of a banner group are vast; including having access to superior buying power, business and marketing solutions, staff training, loyalty programs, while allowing you to operate independently enough to suit your local customer base. Here we catch up with the heads of Independent Liquor Retailers (ILR), Liquor Legends, Australian Liquor Marketers (ALM), and Independent Liquor Group (ILG), to hear about how these groups are empowering their retailers to stay ahead of the pack.
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Berowra Cellars
BANNER GROUPS
John Tourloukis from Local Liquor Holt
Independent Liquor Retailers Corey Leeson, the General Manager of Independent Liquor Retailers (ILR), discusses how the group is acquiring new members and launching new customer initiatives, and how banner groups need to stay competitive. Q How has ILR performed in the last 12 months? What are you looking forward to in the year ahead? In a tough retail trading environment, ILR has performed very strongly. Until the end of April 2019, we have MAT growth of 12.7 per cent in value and 7.4 per cent in volume. Most of this growth is on the back of acquiring 44 new members and our new initiatives such as our ‘Home of the Longneck’ program and developing customised marketing for our different banners. Our partnership with Foodworks has been a major success, with 17 stores running our Local Liquor program and all stores are showing growth in most categories since switching over. Another major win is our move into Queensland in which we now have 55 members. We have found our niche in QLD that resonates with these venues and is proving to be a fruitful partnership.
Q What are the key issues that ILR is facing? Apart from the overarching factors of a reduction in alcohol consumption, younger generations abstaining from alcohol and immigration from non-alcohol drinking countries, there are several issues that are impacting our business. It varies depending on where the store is located. For instance, the drought is having a devastating effect on our members in the central and north west with no end in sight. If there is no water for crops and
Until the end of April 2019 ILR has had MAT growth of 12.7% in value and 7.4% in volume
livestock, this means no income for farmers. Our membership is strong in this area and we are doing all we can except we can’t control the weather. Product leakage in our metro centres is another issue, with online stores, other stores and the chains becoming sub wholesalers and selling products to our members. We are working with our suppliers to mitigate this impact but more needs to be done to get these sales back into the right channels. As a business we rely on products going through the right channels to generate income for our advertising and marketing programs. The more income we generate, the more we can return to members.
Q What are the key initiatives/focus areas that ILR is leading to continue the development and support of your members? ILR is developing the ‘retailer tool kit’, where we have marketing platforms with the capability to tailor to each venue. Each venue is different, with different customer bases, demographics and product ranges. Stores need the ability to be able to tailor their advertising and ranging to suit. By transitioning to more digital mediums we are able to do this and, with the investment we are making into data capture, this will ensure we are analysing our shoppers’ behavior and delivering the right promotional program for our members. Our plan is to build a strong connection between our shoppers and our members via loyalty, custom ranging and great shopping experiences.
Q What are the customer initiatives/new products in the pipeline for your group? Regarding customer initiatives, the launch of our new ‘Local Liquor A-List’ program where consumers will receive special ‘member only’ offers and rewards will be the focus. This program is being jointly built with retailers and customers to ensure a great customer experience and
“Our plan is to build a strong connection between our shoppers and our members via loyalty, custom ranging and great shopping experiences.” seamless integration with members. Using a mobile app with the latest technology will ensure this is a game changer for ILR.
Q What do you think the industry can do to further support banner groups? The suppliers need to ensure that banner groups are competitive in our pricing, and deliver appropriate levels of margin support to ensure our ongoing viability. If the independent stores can’t compete and customers continue to shift to the chain stores, the consumer will be the one who is hit hardest in future. Suppliers need to invest in independent only products to offer a point of difference but under a brand with equity. Independent retail outlets also need to ensure they are aligned to banner groups that are there to support them, deliver programs and products that drive foot traffic into their store and deliver the margins they require. Retailers need store support from their banner to maximise their profits. The industry needs to support banner groups like these to ensure their future viability.
NATIONAL LIQUOR NEWS JUNE 2019 | 37
BANNER GROUPS
Liquor Legends Having the ability to adapt quickly when required is one of the key strengths of Liquor Legends, according to National Trade Manager Vaughan Peters. Q How has Liquor Legends performed in the last 12 months? What are you looking forward to in the year ahead? It’s been another busy year for us as we have welcomed 32 additional members to the group over the last 12 months, and from across the states. From a broad business performance perspective, we have seen double digit percentage growth across key metrics of Retail Sales, Transactions and GP$. Impressively, 41 per cent of total sales is to REWARDS members and these shoppers are proving more profitable across the same metrics, with greater basket size and average spend. Obviously, we are looking to continue this momentum throughout the year ahead and have structured our plans accordingly.
Q What are the key issues Liquor Legends is facing? It’s not so much issues, but it is important that we are consciously aware of the happenings and challenges occurring in individual state markets. This means that having the ability to adapt quickly when required is really important and it’s a key strength of what we do. Our Managing Director John Carmody has been appointed to the board of Retail Drinks Australia as a banner representative. Contributing to capabilities, rights and intelligence of the greater packaged liquor industry can only be seen as positive.
Q What are the key initiatives/focus areas that Liquor Legends is leading to continue the development and support of your members? Fact-based plans are crucial to the continued success of and support to our members, and having the ability to align these plans state by state makes a great deal of difference to the end result. Also, we have found that the focus around customer life cycle is a major point to build on the shopper/retailer relationship. Another area we are focusing on is the more tangible areas of the shopper experience in-store and this, along with education, is on our radar. We have the benefit of a strong business development team, which is well equipped to review the performance of each outlet, and assess and help with each comparable position.
Q With craft still proving a popular trend across multiple categories, what are the challenges for banner groups in dealing with increased supplier numbers and having the right products on shelf? It is challenging because it is easy to get caught up in everything ‘emerging’ in craft, so we defined a foundation plan on craft encompassing an entry level journey from gateway to specialty. With members in states across the country we know that acknowledging locality is important. It is also important to be open to the transit behaviour of the shopper and working with a range that satisfies a balance without getting too cheeky.
Q What are the key trends your group is focusing on for 2019? The well-being trend will continue to amplify and this will increasingly include the non-alcohol category. Also the expectation from shoppers will continue to increase and they will continue to want and expect more, so it’s important for us to keep working on the education and awareness of our members and staff in order to meet that shopper need.
Q What are the customer initiatives/new
32 new members over the last 12 months 41% of total sales is to REWARDS members 38 | JUNE 2019 NATIONAL LIQUOR NEWS
products in the pipeline for your group? The e-commerce and convenience space is now more apparent in a variety of retail industries and we are working towards this same space with absolute intent. There’s no doubt that having the ability to provide a solution of this nature to independent retailers will see us open up greater opportunities.
“The e-commerce and convenience space is now more apparent in a variety of retail industries and we are working towards this same space with absolute intent.” Q What do you feel is working best from a marketing perspective for your group? This is an interesting one and there is no doubt that the traditional print media is still very important in the markets we operate in. We have trialled a broader marketing path and from that we took some key learnings of the need to be ‘always on’. For FY20 our plans and program will see us in the market place more often than before and we will also be maximising the strength of the direct communication to our 450,000+ REWARDS Members.
RANKED #1
“Best in Class” by industry suppliers
P R O F I TA B I L I T Y L O YA LT Y | G R O W T H
2016 ADVANTAGE MIRROR REPORT
LIQUOR LEGENDS WINS BEST RETAIL OUTLET! AT THE RECENT AUSTRALIAN HOTELIERS ASSOCIATION AWARDS & LIQUOR STORES ASSOCIATIONS AWARDS BEST RETAIL R: OUTLET WINNE EL TORONTO HOT L A RG E F O R M A T RETAIL V HOTEL, VIRG INIA, SA DING INDUSTRY LEA SIGNAGE RETAIL STORE AND FIT OUTS
Over 300 outlets Nationally, 32 new members in the last 12 months.
If you want to grow your business, you need a Loyalty Program! Rewards members are growing rapidly More than 1,600 members per week. Now over 435,000! LET’S HAVE A CONFIDENTIAL CHAT ABOUT YOUR BUSINESS Call Lex Neal (National Operations Manager) at Hotel & Tourism Management on 0407 740 833 Or e-mail lneal@liquorlegends.com.au
www.liquorlegends.com.au liquid stock control & bookkeeping
BANNER GROUPS
Australian Liquor Marketers With shoppers making the move back to their local shopping strip, ALM’s Interim CEO Rod Pritchard explains how the group is empowering retailers to meet their local demand. Q How has ALM performed in the last 12 months? What are you looking forward to in the year ahead? Across the board, independent retail appears to have had a particularly strong year. Shopper insights point to the fact that customers are preferring to ‘shop local’ and are placing greater value on the convenience, value offering and trusted advice that is available at their local independent store. Consumers have increased their commitment to supporting local producers, which inevitably leads them to their local shopping strip. Personal relationships are more likely to be developed within your local store, with the opportunity for knowledgeable and helpful staff to provide recommendation and endorsement of local range. IBA (Independent Brands Australia) retailers have complete autonomy to tailor their range to best meet local market demand, which is a competitive advantage versus some of the national chain banners.
Q What are the key issues that your group is facing? There are a few factors that are conspiring to drive price inflation, and this threatens sustainable volume growth for the industry into the future. Premiumisation represents a double-edged sword, as consumers ‘drink less, but drink better’. This is driving value growth for the industry, which is great for retailer margins in the immediate-
Kilmore Cellarbrations, Victoria
term, but is ultimately inhibiting volume growth long-term. Inflation has also been driven by the introduction of the various container deposit schemes across the country.
Q What are the key initiatives/focus areas that your banner is leading to continue the development and support of your members? IBA will continue to focus investment into our store network, ensuring that we deliver on our ‘Best Store in Town’ proposition. This has proven to be a winning formula, with store refurbs translating to a fantastic shopping experience to our customers, which in turn, drives repeat visits and increased share of liquor spend from these shoppers. Looking to the future, we are committed to enhancing our digital capability to ensure the IBA network is ‘Future fit’. Critical to this is our ability to align the network to an ‘integrated POS network’.
Q With craft still proving a popular trend across multiple categories, what are the challenges for banner groups? Consumption habits are evolving, so it is critical that we ‘embrace change’ to ensure we stay ahead of these trends. Shoppers visit our stores seeking new and interesting products that they can personally relate to – and we are perfectly placed to meet that demand. The explosion of ‘craft’ in all categories has presented both opportunity and risk for our retailers, as there
“IBA retailers have complete autonomy to tailor their range to best meet local market demand, which is a competitive advantage versus some of the national chain banners.” will always be a degree of hit and miss that comes with innovation. However, new product development delivers significant growth to the industry, so the challenge is to correctly identify the winners.
Q What are the key trends you are focusing on for 2019? Shoppers are gravitating back to their local shopping strip, and our retailers are best placed to understand exactly what product offering they are looking for. We empower our retailers to fine-tune their range and offer to meet local area demand, and we encourage our retailers to identify the emerging craft offerings across all categories that will drive traffic to our stores.
Q What do you think the industry can do to further support banner groups? The industry has faced growing pressure over recent years, and retail competition has never been greater. It is important that independent retailers and suppliers strengthen our partnerships, focused on delivering sustainable growth in this environment. As outlined above, independent retailers are well-positioned to capture market share in the years ahead as shoppers gravitate to their local shopping strip, but it is critical that our pricing proposition meets customer expectations for us to consolidate on this growth opportunity. As our customers increase their reliance and interaction with electronic media, there is an even greater opportunity for suppliers and retailers to increase our focus on partnership in the digital space, leveraging one another’s assets and providing an enhanced brand and shopping experience.
40 | JUNE 2019 NATIONAL LIQUOR NEWS
BANNER GROUPS
Independent Liquor Group Independent Liquor Group CEO, Paul Esposito talks to National Liquor News about an action-packed year ahead and the launch of a new premium banner. Q How has ILG performed in the last 12 months? What are you looking forward to in the year ahead? Over the last 12 months, we have been busy implementing new systems, and continually improving our members’ offering to help future proof Australia’s largest member-owned cooperative. We are now experiencing the benefits of the Super Cellars rebrand, with good growth in membership, value and volume. This, along with the strong performance of our Bottler banner in both states, has delivered ILG solid growth in all categories. The year ahead is action packed, with further improvements such as the implementation of our new ERP system, web portals, e-commerce and the launch of Fleet Street, our new premium banner. We will also be expanding ILG further in Victoria, providing independent retailers an opportunity to join the cooperative.
Q What are the key issues ILG is facing? The issues we are facing as an industry are complex. Discretionary spending on alcohol is declining and the drinking habits of consumers are changing. The biggest impact on a declining market is the chase for market share, which results in increased competition, and a lack of price appreciation. This impacts our members as their operational costs continue to rise.
“Consumers are looking for quality, and are wanting to buy craft or products that are viewed as craft without paying the premium price. The difficult choice for our members is choosing the right products.”
Q What are the key initiatives/focus areas that ILG is leading to continue the development and support of your members? Current research shows that consumers are moving away from big box formats to convenience and online platforms. We are currently working in the digital space to help improve foot traffic and assist our members to improve the customer experience. We cannot ignore digital Australia. More shoppers are being influenced by what is being seen on devices, as well what is seen in-store. This will be our focus moving forward.
Prosecco/rosé, craft and premium beer, spirits and supporting NPD. We will also be focusing on driving foot traffic back to the convenience sector.
Q What are the customer initiatives/new products in the pipeline for ILG? We need to look for efficiencies in all areas of our business to remain competitive. We want to partner with our suppliers for exclusives, rather than enter into the private label space. As Australia’s largest liquor cooperative, we have to respond to the challenges and stay ahead of our competition.
Q With craft still proving a popular trend across
Q What do you think the industry can do to
multiple categories, what are the challenges for banner groups in dealing with increased supplier numbers and having the right products on shelf? The craft revolution is definitely here. Not only in the beer space, but craft spirits are now playing a major role. Consumers are looking for quality, and are wanting to buy craft or products that are viewed as craft without paying the premium price. The difficult choice for our members is choosing the right products.
further support banner groups? The industry needs to understand that each outlet is independently owned and a ‘one size fits all’ program does not necessarily work for each outlet. The industry also needs to remember that before the major chains dominated the liquor industry, it was the family-owned independents that helped build some of the brands that are still relevant today. The industry can help by making it a level playing field for all.
Q What are the key trends your group
Q What do you feel is working best from a
are focusing on for 2019? The key trend is premiumisation with the launch of Fleet Street and we will be focusing on popular products such as spritz, pink spirits, gin,
marketing perspective for ILG? Today press and catalogues still play a major role from a marketing perspective, but we are quickly moving to the digital and social platforms.
NATIONAL LIQUOR NEWS JUNE 2019 | 41
BEER TASTING
Josh Quantrill
Cameron Flett
NSW Sales Manager, Capital Brewing Co
Manager, Warners at the Bay Bottle Shop
Rosemary Lilburne
Lou Dowling
Craft Beer & Cider Specialist, The Oak Barrel
Co-owner, PNV Merchants
Joe Wee
James Atkinson
Owner, Noble Hops
Beer Writer
Liam Pereira
Charlie Whitting
Venue and Events Manager, Batch Brewing
Editor, Beer & Brewer
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What’s our Seasonal Focus? This issue we zero in on Red, Amber and Brown Ales
THE BREW REVIEW O AS N
Mountain Goat North Street IPA ABV: 6.5% Style: IPA Pours a dark copper in the glass, with medium clarity, good head retention and sparkling carbonation. Grassy hops with a hint of pine on the nose. Overall, a well-balanced bitter IPA, older world in style with some light Crystal malt influence. Juicy tropical fruit to start with a piney resin undertone to balance, followed by an enjoyable lingering bitterness. FOOD MATCH: Cheeseburger Goatbeer.com.au
Feral Brewing Biggie Juice ABV: 6% Style: NEIPA The juicy haze of Feral’s popular Biggie Juice – now in cans! – immediately gives away its NEIPA underpinnings. It’s all about juice and fruit on the nose, with pineapple, mango and other tropical fruits all present. Fresh and fruity with a rich mouthfeel, there’s more piney resin in there than you might expect once you take a few sips. A very well-made NEIPA, and a fine example of the style. FOOD MATCH: Schnitzel with lemon wedge Feralbrewing.com.au
42 | JUNE 2019 NATIONAL LIQUOR NEWS
Dainton Matchstyx Smoked Chilli Stout ABV: 6.7% Style: Chilli Stout Pours a borderline impenetrable black in the glass. Nose is reminiscent of milk chocolate with a subtle smoke and coffee notes coming through; the chilli isn’t that evident until you take a sip, which starts off similarly chocolatey before a subtle chilli note hits. The chilli almost acts as a foil to the chocolatey stout flavours, subbing in for hoppy bitterness in the palate cleansing department. A very nice beer. FOOD MATCH: On its own Dainton.beer
Nomad Brewing Surfside Lager ABV: 5% Style: Lager Clear and pale, this extremely well-made lager displays slightly spicy, floral and subtle bubblegum aromas. It’s got great mouthfeel, low bitterness and no faults at all to speak of. Described by one panelist as a “full smasher”, this is an easy drinker for a hot summer’s day, with a very clean, crisp and cleansing finish. FOOD MATCH: BBQ prawns Nomadbrewingco.com.au
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Hix Brown Ale ABV: 5% Style: Brown Ale Perfect colour for the style with a beautiful, brown to deep red hue. Toasty malt aromas – and a hint of hop spiciness – jump out of the glass, along with hints of chocolate sweetness and caramel. The palate mirrors the nose, with light caramel and toasty malts combining to form a beer of medium sweetness, and a lingering bitterness that cleanses the palate for the next sip. A lovely light-bodied brown ale. FOOD MATCH: Bangers and mash Hickinbotham.biz
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Red Hill Two Bays Pale Ale ABV: 4.5%
ABV: 7.2% Style: Traditional Apple Cider Light copper to gold appearance with a medium haze, the nose is very fresh on this vintage cider – displaying an enticing, fruit-forward aroma. The flavours are evident of a nice, clean ferment, with the freshness of the nose carrying through to the palate. A nice and sessionable well-layered flavour profile, combining vibrant fruit characters with a bold tartness. FOOD MATCH: Penne carbonara Williesmiths.com.au
Pikes Beer Company Passionfruit Belgian Witbier ABV: 6% Style: Witbier There’s a lovely estery aroma, with bananas, orange, clove and bubblegum coming through too. Upon taking a sip, a Christmas spice flavour makes itself evident as well, with great carbonation lengthening the palate weight. A classic style, and while the passionfruit only adds a subtle influence, this is a solid example of a witbier. FOOD MATCH: Ceviche Pikesbeercompany.com.au
Style: Red Ale Bonehead’s red ale pours a deep ruby red and expresses a massive piney hop character – combined with dark caramel – on the nose. The palate displays a nice, dark and complex malt flavour with a medium hop bitterness. Overall, a solid red ale with a medium body that is very drinkable. FOOD MATCH: Shepherd’s pie Boneheadbrewing.com.au
ABV: 6.3% Style: Saison Aromatically, Exit Brewing has crafted a beer with honey, floral, orange and earthy, estery notes on the nose. It displays a good body and is reasonably fruity, with a long finish. The raspberries add a very subtle tart sweetness; otherwise, it’s true to style and an easy, pleasant drinking saison, with no faults to speak of. FOOD MATCH: Stinky cheese Exitbrewing.com
La Sirène Wild Saison ABV: 6.5% Style: Saison Pours gold with a slight haze. Nice zesty, estery notes on the nose lead into a palate that almost hints at stewed fruit, or perhaps peach, followed by an alcohol warmth. It’s quite a busy beer, and thanks to the wild Brett yeast used to brew it, there’s a sour and funky element to cap things off as well. This is truly a feisty farmhouse ale. FOOD MATCH: Hard cheese Lasirene.com.au
ABV: 5%
Style: India Red Ale Pours a clear tan brown, with the malty, caramel, pine and cinnamon toast aromatics a delightful combination. Good, strong bitterness, a great malt character and a strong hop profile are all right on style, with the sweetness and hoppy-ness working in perfect tandem. If you’re a red ale fan, this one will not disappoint – delicious! FOOD MATCH: Beef Bourguignon pie Littlebang.com.au
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Tumut River Brewing Co Portstar Style: Smoked Porter An inviting smoky character peeks through on the nose, along with hints of coffee. Smoke, black coffee, dark chocolate and a charred wood character keep it interesting in the mouth, where the light texture belies the complexity of flavour on offer. A lovely smoky porter, with all the flavour in the world packed into its delicate body. FOOD MATCH: Grilled steak Trbc.com.au
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Little Bang Brewing IRA
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Style: Pale Ale Pale and clear straw colour that is more reminiscent of a Euro lager, hinting at the lighter body which follows later. Fruity citrus aromas and a tiny bit of dank character are evident on the nose. This is a very sessionable little number, sprightly in flavour and with a nice restrained bitterness. Not overly complex but very drinkable. FOOD MATCH: Potato scallops Redhillbrewery.com.au
Willie Smith’s 2018 Kingston Black
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Wayward Brewing Red IPA ABV: 6.5% Style: Red IPA There’s good head and lacing in this dark red, clear beer from Sydney brewery Wayward. Nice floral hoppy notes come through on the nose, along with a sweetness reminiscent of glace cherries. On the palate, slightly bitter hops are followed and brightened by a malty sweetness, all wrapped up with a lengthy finish. FOOD MATCH: Lamb cutlets Waywardbrewing.com.au
Wayward Brewing Funky Pineapple Hand Grenade ABV: 6.5% Style: Brett IPA Medium gold in colour with a fluffy white head, this complex release from Wayward does what you expect – nicely combining a subtle Brett funk with a dank hop character. Aromas are reminiscent of citrus peel, mango and pineapple juice, while a clean citrus flavour profile marries well with a solid bitterness and Brett funk which bounce off one another. FOOD MATCH: Taleggio cheese Waywardbrewing.com.au
This tasting was originally conducted for the Winter Issue 49 of Beer & Brewer.
NATIONAL LIQUOR NEWS JUNE 2019 | 43
WINE TASTING
THE SHIRAZ TASTING
THE PANEL
1. James Wilson, Regional Director – Asia Pacific and Emerging Markets, Casella Family Brands 2. Emma Fogarty, Senior Brand Manager, SouthTrade International 3. Geoff Bollom, Retailer, Fennell Bay Cellars
4. Ralph Chalmers, National Sales and Key Account Manager, Château Tanunda
8. Nigel Burton, CEO, Burton Premium Wines
9. Andrew Stubbs, Manager, Vine Wine 5. Sabine Duval, Senior Wine Buyer, The Wine Collective 10. Daryl Fisher, General Manager, 6. Elizabeth Schoen, Sales Manager NSW/ACT, Fisher Fine Wine Samuel Smith & Son 11. Michael Park, Wine Merchant, Dan Murphy’s 7. Brendon Nottage, Senior Category Manager for Wine, Kollaras and Co
Kingsford
THE PANEL’S PICKS T aylors The Pioneer Shiraz Region: Clare Valley VIN: 2013 LUC: $107.50
“Vannillan oak, caramel, prunes. A big, sexy wine, upfront and forward.” – Daryl Fisher Distributed by: Taylors Wines
Zema Estate Shiraz Region: Coonawarra VIN: 2015 LUC: $18.29
Very well executed, soft yet muscular. Lovely build of flavours to finish. Complex stuff.” – Michael Park Distributed by: Porter and Co (SA); Bacchus Wine Merchants (NSW); Westwood Wines (VIC); Claret and Co (WA); The Wine Tradition (QLD); David Johnstone & Associates (TAS)
P attriti Shiraz Region: McLaren Vale VIN: 2016 LUC: $12.60
“Perfumed and confectionary nose. Violets and blackberries. Rich, chewy palate, tight, grippy tannins.” – Daryl Fisher Distributed by: Vinsight Wine (NSW/ACT); Patritti (Rest of Aus)
THE SYSTEM 95-100 Classic: an exceptional wine
44 | JUNE 2019 NATIONAL LIQUOR NEWS
90-94 Outstanding: a wine of remarkable character
85-89 Very good: a wine with impressive qualities
WINE TASTING LUC $24 AND OVER A uswan Creek Ambassador Shiraz Region: Barossa Valley VIN: 2017 LUC: $44.54 “Showing its age. Earthy, old wood character. Red berry. A big, rich wine with a soft leathery texture.” – Daryl Fisher “Incredible, complex, drying, savoury and very long.” – Michael Park
Distributed by: Auswan Creek
G undog Estate Marksman’s Shiraz Region: Canberra District VIN: 2017 LUC: $38.32 “A beautiful example of classic Shiraz. Gamey nose. Beautiful fruit on the palate. Very drinkable on its own.” – Emma Fogarty “Deep crimson, but also orange, brown. A great mid-palate that develops an almost fortified character.” – Ralph Chalmers Distributed by: ALE (NSW), Gundog (Rest of Aus)/
A ndrew Thomas Sweetwater Shiraz Region: Hunter Valley VIN: 2017 LUC: $25.19 “A really good wine. Medium-bodied yet displays great length, with earth, spice and great complexity.” – Andrew Stubbs “Blackberry, smoked meat, black pepper, dark chocolate, hints of oak. An earthy finish and a long length with good complexity.” – Elizabeth Schoen Distributed by: Vinous (Sydney/Canberra/Victoria), Thomas Wines (Rest of NSW), Pure Wine Co. (QLD/SA), Thomas Wines (Rest of Aus)
“A range of heavy and dark styles. Some more enjoyable wines weren’t afraid to try a lighter style.” – Emma Fogarty Nepenthe Apex Shiraz Region: Adelaide Hills VIN: 2016 LUC: $43
A ndrew Thomas Elenay Shiraz Region: Hunter Valley VIN: 2017 LUC: $35.48 “Plums, quince paste and lavender. A lovely elegance. Good acidity, balance and complexity. Long length.” – Elizabeth Schoen “Rich, powerful, age-worthy wine. Solid structure, savoury complexity and good integration.” – James Wilson Distributed by: Vinous (Sydney/Canberra/Victoria), Thomas Wines (Rest of NSW), Pure Wine Co. (QLD/SA), Thomas Wines (Rest of Aus)
“Very easy to drink. Well balanced. Tannins give good structure. Dark fruit on the palate.” – Emma Fogarty “Perfect colour. Ripe cherries. Meaty, big and bold. Takes no prisoners. Happy days.” – Geoff Bollom
Distributed by: Australian Vintage Limited
DID YOU KNOW? • Sales of Shiraz were $624.7 million in MAT to 31/03/19, growing at 3.8 per cent versus YA. • In terms of volume, 34.24 million litres were sold over this time period, with volume sales growing at 2.3 per cent. • Total Bottled Shiraz (19 per cent value share of Total Bottled Wine) is the second largest varietal, behind Sauvignon Blanc (20.3 per cent). • It accounts for 62.6 per cent of the Total Bottled Wine growth over the last MAT.
Source: IRI Data MAT 31/03/19
Shingleback Unedited Shiraz Region: McLaren Vale VIN: 2016 LUC: $53.75 “Deep red with a nose of perfumed oak. The palate features raspberries and tight tannins. Good acid.” – James Wilson “A really good Shiraz with deep dark plums, savoury meats and an earthy, chocolate style.” – Andrew Stubbs
Distributed by: David Muster (SA), Domaines & Vineyards (WA), Shingleback (Rest of Aus)
THE SYSTEM 95-100 Classic: an exceptional wine
90-94 Outstanding: a wine of remarkable character
85-89 Very good: a wine with impressive qualities
NATIONAL LIQUOR NEWS JUNE 2019 | 45
WINE TASTING LUC $14-$24 M cW 660 Reserve Syrah Region: Canberra VIN: 2017 LUC: $15.48 “So restrained yet so enticing. Balanced like a European Crozes-Hermitage.” – Andrew Stubbs “Dark chocolate, black pepper, high acidity, grippy tannins, toasty oak, long length, excellent intensity and balance.” – Elizabeth Schoen
Distributed by: McWilliam’s Wines Group
“A lot of the wines had very pronounced bouquets and were definitely fruitforward styles.” – Ralph Chalmers B rand’s Laira Blockers Shiraz Region: Coonawarra VIN: 2014 LUC: $15.26
C alabria Three Bridges Shiraz Region: Barossa Valley VIN: 2017 LUC: $16.13 “Medium-bodied but really supple. Herby and French jam. And long, good tannin.” – Michael Park
“Really so drinkable. Has great weight yet elegance, all in the one package.” – Andrew Stubbs
“Floral, bubblegum and blackberry notes. A big, rich wine with great tannins and oak. Tight and complex.” – Daryl Fisher
“A full-bodied wine, with mocha espresso and black cherry. Has potential for further ageing, but equally drinking well now.” – Elizabeth Schoen
Distributed by: Calabria Family Wines
Distributed by: Casella Family Brands
W indowrie Family Reserve Shiraz Region: Wine of Australia VIN: 2016 LUC: $16.13
J acob’s Creek Double Barrel Shiraz Region: Barossa VIN: 2016 LUC: $17.73 “Dark fruits, jammy, rich, mulberry. So well-balanced, charred tannins. A great drink.” – Daryl Fisher
“Delicate, restrained but ever persistent. Tannin and fruit combine in a complete package.” – Andrew Stubbs
“Very juicy and very structured fruit. Stewed cassis and nice, soft oak spice.” – Michael Park
“Bright, deep red. Vanilla and oak on a red berry fruit nose. A powerful red berry fruit palate. Good integration and balance.” – James Wilson
Distributed by: Veraison Wines Distributed by: Pernod Ricard Australia G eoff Merrill Jacko’s Shiraz Region: McLaren Vale VIN: 2014 LUC: $18.28
SHIRAZ FACTS • Shiraz continues to hold its strong first position in value terms, with 39 per cent dollar share of Total Bottled Red Wine (+0.2 Share Point Change YA). • These gains were at the expense of Cabernet Merlot (-0.6 per cent), Merlot (-0.4 per cent) and Cabernet Blends (-0.2 per cent). • During the last MAT, both Shiraz volume (+2.3 per cent) and units (+2.5) growth were lower than Shiraz value growth.
Source: IRI Data MAT 31/03/19
“Dark chocolate and mint on the nose. Palate shows notes of cherry, black pepper, black olive and cassis.” – Emma Fogarty “Lifted aromatics, attractive cherry tannins, well integrated with a good length.” – Ralph Chalmers Distributed by: Young and Rashleigh Wine Merchants (NSW), The Wine Company (QLD), Options Wines (SA), Prime Wines (VIC), West Coast Wine Cellars (WA), Thomas Chin (NT)
THE SYSTEM 95-100 Classic: an exceptional wine
46 | JUNE 2019 NATIONAL LIQUOR NEWS
90-94 Outstanding: a wine of remarkable character
85-89 Very good: a wine with impressive qualities
WINE TASTING LUC UNDER $14 A ngullong Shiraz Region: Orange VIN: 2017 LUC: $11.83 “Dark fruits, blackberry and pepper. Balanced but with real body and structure.” – Daryl Fisher “A good mouth-filling Shiraz. A bell curve of flavour intensifies across the palate. Nice grip of tannin but all in balance.” – Michael Park Distributed by: The Lane Cellars (ACT); Angullong Wines (Rest of Aus)
“The best wines had delicious primary fruit and integrated oak in the background.” – Andrew Stubbs I Am George Shiraz Region: Langhorne Creek VIN: 2016 LUC: $13.16
T amburlaine On the Grapevine Preservative Free Shiraz Region: Orange VIN: 2018 LUC: $12.66 “Medium-bodied and silky. Well-structured but will respond well with gutsy food.” – Michael Park “Blackberry, dark plums, floral. Simple, good fruit and oak balance.” – Daryl Fisher
Distributed by: Tamburlaine Organic Wines
“Higher prices points showed both varietal and regional characters.” – Nigel Burton J acob’s Creek Barossa Signature Shiraz Region: Barossa VIN: 2017 LUC: $13.32 “Deep crimson. Up-front it’s fruit-driven. Good balance and tannins. Well integrated.” – Ralph Chalmers “Tannins give good structure. Mint and dark chocolate on the nose. Savoury, with a long finish.” – Emma Fogarty
“Jasmine and perfume notes on the nose. Blackcurrant and plum on the palate with dried herbs and cocoa notes to finish.” – Elizabeth Schoen “Dark, deep red in colour, with raspberry on the nose. Tight focused fruit on the palate. A good food wine.” – James Wilson Distributed by: Pernod Ricard Australia
N ine Stones Shiraz Region: Barossa VIN: 2016 LUC: $10.21 “Deep rich colour, clean nose, spicy acidity, long length and fruit.” – Nigel Burton “Very impressed. Love the full, rich palate. Delivers well.” – Brendon Nottage
Distributed by: Calabria Family Wines
G eorge Wyndham Bin 555 Shiraz Region: Wine of Australia VIN: 2017 LUC: $10.57 “A delicious style with some distinct savoury, earthy feels, as well as balance and persistence.” – Andrew Stubbs “Plums, strawberries, cherries and blackberries, with hints of chocolate and tobacco leaf. Good acidity, length and complexity.” – Elizabeth Schoen Distributed by: Pernod Ricard Australia
Distributed by: Pernod Ricard Australia
THE SYSTEM 95-100 Classic: an exceptional wine
90-94 Outstanding: a wine of remarkable character
85-89 Very good: a wine with impressive qualities
NATIONAL LIQUOR NEWS JUNE 2019 | 47
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Double Rainbouu designers Toby Jones and Mikey Nolan (l-r) with waiters dressed in their Peroni uniforms
EVENTS
1. PERONI LAUNCHES NEW BOTTLE AND GLASSWARE TO AUSTRALIA Peroni launched its most significant global brand makeover since 2005 with a redesign of its bottle and glassware. At an event held at Sydney’s Smoke Bar at Barangaroo House on 30 April, attendees got to see the new bottle and enjoy special cocktails made with the Italian premium beer. Peroni was also activating throughout the month of May at House Bar at Barangaroo House, bidding to create Aperitivo House with a twist. Tall and elegant, the new glassware has been styled to deliver the best drinking experience, while the new bottle design aims to reinforce Peroni’s premium Italian craftsmanship. The Peroni logo has also evolved to evoke a classic iconic style, with references to the brand’s Roman provenance in a new, hexagonal label on the bottle, as well as a modernisation of the iconic blue ribbon and a hand-drawn maize icon to highlight the ingredients.
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2. THE INAUGURAL DRINK EASY AWARDS ARE HELD IN SYDNEY The newly designed Peroni bottles
3. TASSIE MID-WINTER FESTIVAL COMES TO SYDNEY The Huon Valley Mid-Winter Festival came to Sydney for one night only to give locals a taste of what happens on the Apple Isle. The pagan-inspired festival of fire, folklore and local produce is held by Willie Smith’s every year, and the launch party took place at The Welcome Hotel in Rozelle on Saturday 4 May. Centred around the tradition of wassailing – a ceremony to scare off evil spirits – the event featured live folk music and Tasmanian food, beers and ciders. Willie Smith’s also held events in Canberra’s Old Canberra Inn on 12 May, in Melbourne’s The Cherry Tree Hotel on 25 May and Brisbane’s The Mill on Constance on 1 June.
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The Willie Smith’s team in full wassailing get-up
48 | JUNE 2019 NATIONAL LIQUOR NEWS
Leading Sydney hospitality figures and media gathered at Restaurant Hubert’s Theatre Royal in mid-May for the launch of The Drink Easy Awards, a new national drinks awards aiming to shake up the way drinks are judged and awarded in Australia. Created by Mike Bennie (P&V Merchants), Duncan Welgemoed (Africola) and Tamrah Petruzelli (Super Assembly), the awards will bring together all streams of beverage creation in Australia, with categories for Beer and Cider, Wine, Spirits, and Non-Alcoholic. “It’s an award that does away with the old school mode of judging, instead pursuing a wide and inclusive community on what ‘drinks easy;’ and where to find these drinks,” explained Mike Bennie. Mike Bennie (right) speaking at the Drink Easy Awards
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SHOP TALK
Shop Talk We talk shop with Neil McLellan from SouthTrade International and Steve Colangelo from De Vine Cellars in Inglewood, Western Australia.
Meet... NEIL MCLENNAN, WA Sales Executive, SouthTrade International
STEVE COLANGELO, Store Owner, De Vine Cellars, Inglewood, WA
L-R: Neil McLellan and Steve Colangelo
Q About us:
Q What deals or promotions are you working on at the moment?
NEIL: I was working in a bank and it was mind-numbingly boring, I guess I fell into the liquor and hospitality industry by accident when a relative asked me if I wanted a part time bar job. I was the first glassie in the Moon and Sixpence when it opened in 1989 and 30 years later I still love the industry, the amazing people you meet and most importantly the friendships you make. STEVE: I was working as a commercial fisherman, it was seasonal and I had a couple of part-time jobs and one thing led to another and along with Dom and Ross I got into the liquor trade. We were just three young guys with Italian backgrounds and a love of wine – that was 21 years ago and now we have two stores and have won the Liquor Stores Association’s Store of the Year award six times. And we still love wine and are still all mates.
NEIL: We are working on our Australian craft range at the moment, with Adelaide Hills Distillery, Mr Black Coffee Liqueur, 666 Vodka and Starward whiskies receiving lots of focus. Gaining distribution is important but then we have to sell the product off the shelves with competitive pricing; bundle deals with products like Fever Tree mixers or Master of Mixes are effective. Another awesome way to encourage sales is to host in-store tastings – get people to sample the products. There’s nothing more powerful than getting liquid on lips. A high priority or focus for me is Southern Comfort, I see growth in sales weekly with my retailers. Initially it was a task seen by many as hard as re-floating the Titanic, but its happening. We have had promotions with cocktails, gifts with purchase, fridges, eskies and currently we are giving away Dunlop Volley shoes with a Southern Comfort & Cola 10 pack. STEVE: We are having success with our in-store masterclasses/tastings, with up to 25 people attending a sit down session doing simple things like pairing Aussie craft gins with Fever Tree tonics and food. It’s simple but effective and because we offer a bundle deal on the night we get great sales pull through.
Q Are you noticing any current trends in the market? NEIL: I see a movement away from a lot of the old mainstream products and although the market has been a little tight in Western Australia people are buying better, newer and more exciting products . Gin and tonic is a huge beast in on- and off-premise, I am lucky SouthTrade has a great selection of both. STEVE: Craft and premium products are where all the action is at the moment, whether its wine, spirits or beer our customers are looking for quality or something new and different.
Q What are the biggest challenges you are facing in the current market? NEIL: The competition between suppliers is pretty hot, we are all battling for the same space on the shelf or the floor. The real challenge is to be able to make your products more appealing or relevant to both retailers and the consumer. You really must have the wisdom to see that not every product in your portfolio will suit individual customers, so tailor your offering to each customer differently. STEVE: In our store the biggest challenge has been keeping our range fresh and interesting for the customers, while maintaining the store’s ambience and ensuring that it’s not too cluttered so they can shop and move around comfortably. Finding the room to keep all of the new products on offer is also a daily battle, with so many great products available and little room to work with. It’s hard but we really try to give all our suppliers a fair go.
50 | JUNE 2019 NATIONAL LIQUOR NEWS
Q How do you approach the retailer/rep relationship? NEIL: I think the first thing a rep sells to a retailer is him or herself. Don’t make promises you can’t keep and don’t try to get retailers to buy products that don’t really suit their demographic. Once you have established trust with a retailer they will be comfortable with your judgement and understanding of their outlet and be happy to try new products and the next thing you know you are mates. With Steve, the first priority when I call on him is to have a coffee and then we’re onto business. Way back in the beginning of my sales career the famous Miles Bennett (Remy and Lionel Samson) said the best sales tool a rep has is the guy behind the counter in the store. STEVE: Sales reps are integral to the success of our stores, they introduce new products that make us different and interesting, a true destination. We have built some fantastic relationships over the years and have come to rely on people like Neil to help us become even better at what we do.
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