National Liquor News June 2022 by The Intermedia Group

AUSTRALIA’S LEADING LIQUOR INDUSTRY MAGAZINE

vol. 41 no. 5 - June 2022

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Editor’s note

WE ENCOURAGE RESPONSIBLE DRINKING Get the facts DrinkWise.org.au

Welcome to the June issue of National Liquor News.

Also in this issue, Seamus May has investigated the

It’s now the first month of winter, which for many

North American Drinks segment, and how it stays

will be the perfect time to curl up with a glass of red

competitive alongside the ‘shop local’ movement

or perhaps a hot toddy cocktail. But for some, winter

which has seen a lot of attention in recent years.

represents a slowing down of social occasions, which

Unfortunately, COVID hit me right before

creates a pressure-free opportunity to explore some

our scheduled tasting this month, so there are

of the non-alcoholic options that are becoming

no wines reviewed in this issue. But stay tuned

increasingly popular on the market, and learn about

next month, as we’ll be doing a double tasting of

how they can fit into their lifestyles year-round.

Chardonnay and Pinot Noir. Our panel will sip

So in this issue, we’ve done an incredible deep dive specifically into the non-alcoholic beverage

and swirl through a huge range of SKUs to bring you their top picks of both varietals.

market, with Snooper analysing how the NOLO

Completing our June issue is all the latest product

category has changed in the past year (from page

and industry news, as well as insights and analysis

26); IRI digging through the data and trends of

from our awesome regular contributors such as

the segment (from page 28); and Seamus May

Retail Drinks Australia, Australian Distillers, eLease

reviewing the opportunity of the no alcohol

Lawyers, Strikeforce and Wine Australia.

shopping opportunity (from page 30).

I hope your winter kicks off well! Get in touch if

We thought the change of seasons and the

there’s anything you want to see in these pages for this

upcoming end of the financial year was also a great

season and beyond – always keen to hear from you.

time to collect some key insights from Australia’s vibrant network of banner groups. From page 42,

Cheers,

you’ll find my interviews with the leaders of a range

Brydie Brydie Allen, Editor

right now and reveal their thoughts on the current

02 8586 6156

liquor retail environment.

ballen@intermedia.com.au

Top Newsletter reads

“The associated marketing of all of these new measures was subject to the established regulatory framework. As a result, the year 2021 was an extremely

➤

busy year for ABAC, with record levels of activity for our Adjudication Panel and the pre-vetting service.

➤

“The majority of ABAC complaints and breaches related to digital social media posts, with the lack of age restriction on certain social media posts generating particular concern.” Jenkins also said the scheme’s prevetters deserve congratulations on their “impressive results” in dealing with such a significant increase in the number of requests they received.

10 | National Liquor News

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W ine industry responds to glass cost increases L MG reports soaring results for latest brand campaign W hat drives the appeal of celebrity brands?

Events

The latest liquor industry

Events Coopers celebrates 160 years Image credit: Elfes Images

Legends of the Hunter Valley recognises excellence Over 350 guests gathered at a large marquee on the grounds of the Cypress Lakes resort last month to celebrate the Legends of the Hunter Valley Awards.

Coopers is celebrating 160 years in 2022, with a range of activity to mark the occasion. Following the release of a special anniversary beer, plus the announcement of a $50 million investment at its Regency Park site (including a microbrewery and a whisky distillery) the brand recently hosted an industry gala dinner in Adelaide. It also unveiled a 170 metre long billboard in Sydney, specifically calling out the Coopers history from 1862 until now.

The Awards celebrated wine excellence in the Hunter Valley, and also placed a renewed focus on the tourism operators that support the region. Read our full report on the awards at: https://bit.ly/3wL1wN0

The Whisky Show comes to Sydney The Whisky Show returned to Sydney in May, with two packed out rooms at the Sir Stamford Hotel at Circular Quay. Drinkers were treated to a fantastic selection of whiskies from Australia and around the world, with a rare whisky bar that also served up particularly hard to find drams.

GABS returns for a huge year The Great Australasian Beer Spectapular (GABS) returned to Brisbane, Sydney and Melbourne last month, with 117 brand new festival beers created by a huge range of breweries especially for the occasion. The lineup of brewers involved this year was bigger than ever, and the exhibitors took things to a whole new level with a range of activations, including the Balter ‘Tins of Glory’ tinnie hurling competition, the Bentspoke roller racing challenge, the Ballistic paint and sip workshop and much more. GABS will be making its way to Auckland on 25 June.

June 2022 | 11

Marketplace Brand news and promotions Compa Drinks Co. launches tequila seltzers in Australia A new brand is causing a buzz in Australia’s liquor industry, launching a line of tequila-based seltzers into Australia. SKUs - Grapefruit (inspired by the Paloma cocktail) and Mango (inspired

Big Drop releases new limited edition winter beer

by mango margaritas).

Following on from their hugely successful first

Compa Drinks Co. has just released its two naturally flavoured debut

Compa Drinks Co. is a certified foreign bottler of tequila and tequila-

seasonal release, Poolside, the world’s most

based products, which is no small feat for an independent Australian

awarded brewer of alcohol-free craft beers, Big

company. The new seltzers use 100 per cent premium Blue Agave

Drop Brewing is back with a brand new limited

tequila, blended and packaged into the RTDs in Sydney. Co-founder and

edition winter release.

Managing Director, Nick Chappell, said this creates a fresh and clean flavour-forward product with a unique point of difference. “On the back of the huge growth in both the agave space and seltzer market, a tequila seltzer was a match made in heaven,” he said. “The process of getting our products to market has taken around 14

Available for ranging from mid-June, Woodcutter Brown Ale, is likened to “having a cup of coffee surrounded by Autumn leaves” and is sure to be yet another crowd pleaser from the brand. Featuring hints of bonfire and toffee

months and so far the response has been incredible. As one of, if not the

apple, with a rich, warming, peppery finish,

only, seltzers on the market using real 100 per cent Blue Agave blanco

Woodcutter certainly draws on Big Drop’s English

tequila, we have found a point of difference in a saturated market.”

heritage but, as with all the brand’s beers, is

Compa Drinks Co. said there is a sizable opportunity with this RTD innovation, noting that Australia is now the third biggest consumer of agave-

brewed locally and more sustainably in Australia. Woodcutter has previously won top prize

based spirits per capita globally. In addition, both tequila and seltzer sales

for Best Low Alc Dark Beer at the 2019 World

have increased exponentially in the past two years, with no sign of slowing.

Beer Awards and will be the perfect winter

The new tequila seltzers from Compa Drinks Co. are available now via Kaddy or ALM.

complement to their Galactic Milk Stout, which took out World’s Best No Alc Beer’ at the 2021 World Beer Awards. With its use of Bramling Cross hops and notes of honeycomb, chocolate and coffee, it’s quickly gaining a strong yearround fan base here in Australia. Given the IWSR finding that 65 per cent of Australian consumers are looking to try new no and low alcohol offerings, these two winter brews from Big Drop are sure to help you maximise your no-low offering this winter. So grab that fluffy jumper and marshmallows and make this a booming non-alcoholic winter by ordering yours through Paramount, Kaddy, Polkadot (TAS) and Wine Gang (WA). Alternatively, contact the Big Drop Team at: customersupport@bigdropbrew.com

12 | National Liquor News

Marketplace

Mumm unveils latest Millésimé release Pernod Ricard has unveiled the latest vintage release from Mumm Champagne, with the G.H. Mumm Millésimé 2015 now available on the Australian market. Maison Mumm has been making vintage Champagne from only the

Bombay Sapphire celebrates botanical suppliers with Premier Cru

most exceptional harvests

Bombay Sapphire has unveiled its latest super premium

trademark style alongside

expression, Premier Cru, handcrafted in celebration of its citrus

the unique character of

suppliers in the Murcia region of Spain. The new gin has Murcian

different vintages.

since 1842, and each release showcases the House’s

lemons at its heart, complemented by mandarins and sweet Navel oranges, for a bright, elegant and rounded flavour profile. Master Distiller, Dr Anne Brock, said: “I am incredibly

The 2015 Millésimé specifically is a blend based on Pinot Noir grapes,

proud of the meticulous processes used to produce Bombay

showcasing the full potential

Sapphire Premier Cru, from the skilled sourcing and

of the grape variety with a

preparation of botanicals to my role in carefully adapting

rich and aromatic palate and

every small batch of gin to bring out the nuances of the

dazzling fruit flavour.

late harvest during distillation, amplifying the unique

Laurent Fresnet, Maison

characteristics and finest flavours into a consistent flavour

Mumm Cellar Master, said: “A seductive, tantalising

profile every year.”

champagne, Mumm Millésimé 2015 offers a wealth of

Bombay Sapphire Premier Cru has a slightly higher ABV of 47 per cent, and is available from Bacardi-Martini Australia.

magnificent aromas. At the height of its evolution, it is the consummate incarnation of epicurean delights.”

Modus unveils new crafted beer design Premium craft brewery, Modus Brewing, is set to launch a new modern brand look across its award-winning range of beers. The modern look reflects the brand’s new industry leading brewery and world class venue based in Newcastle, and highlights the Modus quality mantra of ‘Beer First, No Shortcuts.’ Modus Founder and Owner, Grant Wearin, said he tries not to judge a beer by its can, but to set the tone of the new brewery and premium craft beer, a new elevated design approach was imperative. “Modus has always prided itself on being at the forefront of innovation and seriously good liquid. Our new brewery is ticking all the quality and sustainability boxes we’ve always dreamt of so we took the opportunity to reimage our on-shelf presence with new packaging and branding,” Wearin said. Modus Hazy 3.5%, Modus XPA, Modus Pale and Sonic Prayer IPA will be available from July across the country.

June 2022 | 13

Marketplace

Fontanafredda touches down in Australia One of Piedmont’s most historic Barolo producers, Fontanafredda, is touching down in Australia thanks to a new distribution agreement with Calabria Family Wine Group’s international portfolio arm, Vintners & Co. Merchants. Fontanafredda is nestled in the foothills of the Alps that form the Italian border with France and Switzerland. Diverse soils and daily temperature variations allow the label to produce an extensive array of varietals, from Barolo to sparkling. “As one of Piedmont’s most recognised wine producers, this new partnership presents an exciting opportunity for our team to tap into new sales channels as the thirst for great international wines grows amongst Australian wine drinkers,” said third-generation Sales and Marketing Director of the Calabria Family Wine Group, Andrew Calabria. The Fontanafredda portfolio will be available in Australia from late June, including its highly rated Barolos and other well known Italian varietals like the Roero Arneis DOCG, Langhe DOC Nebbiolo, Piedmont DOC Dolcetto and Piedmont DOC Barbera.

William Grant & Sons to distribute De Kuyper in Australia

St Hugo introduces new Single Vineyard Collection

De Kuyper, the internationally renowned producer of cocktail

St Hugo has announced the launch of its

liqueurs, is changing its distribution arrangements in Australia

new Single Vineyard Collection, which

from 1 July 2022, moving from Bacardi-Martini Australia to

expands its fine wine range and showcases

William Grant & Sons.

the nuances of the brand’s house style through single vineyard terroir. The first release for this collection

Mark de Witte, CEO of De Kuyper, said: “We are convinced that William Grant & Sons is the perfect partner to pursue our vision to ‘Own the Cocktail’ in the important Australian market. We are

celebrates the home and soul of St Hugo

looking forward to accelerating the growth of our premium brands

and includes the 2018 Barossa Valley Fabal

together with this outstanding premium spirits house.

Shiraz, the 2016 Barossa Valley Koch Shiraz

“I also want to take the opportunity to thank Bacardi-Martini

and the 2018 Coonawarra Flint Cabernet

Australia for a long and very successful partnership, which has

Sauvignon.

spanned almost 25 years. We highly value their prosperous

St Hugo Chief Winemaker, Peter Munro, said: “The dirt always wins. As a winemaker you can do all you like to craft and shape the wines, but the dirt always comes out in the final expression of the wine. That’s the pleasing thing about the St Hugo Single Vineyard Collection, they’re a true representation of where the grapes are grown; be it the soil, the aspect or the phenomenal age of the vines, each vineyard tells its own story and imparts this history and legacy into the grapes, and that’s something we’re so excited to share with the world.” The limited new collection features QR codes on the back label of each bottle to create an integrated digital storytelling experience, so consumers can learn about the vineyards and winemaking techniques.

14 | National Liquor News

efforts to build our portfolio over this long period of time.”

https://www.mobrewing.com.au

Marketplace

4 Pines Ultra Low celebrates freshness in the non-alc space There are a few generally accepted ways of producing non-alcoholic beverages, each with their own strengths and weaknesses. 4 Pines Brewing Co took a different pathway to most, bringing the concept back to brewing fundamentals. The exploration of this process took six months from concept to consumer. Ultra Low is brewed the 4 Pines way, with the same ingredients and equipment used to brew all of their multi award-winning beers. It is not sweetened like other low-alcoholic beers and isn’t tunnel pasteurised, which would dull the fresh flavours. 4 Pines Ultra Low is for here, there and everywhere. The ultra-refreshing, ultra-low alcohol malt beverage is dominated by fruity hop notes, underpinned by herb and citrus. A subtle and clean malt character with balanced bitterness refreshes the palate, finishing slightly tart to leave you wanting more. 4 Pines Ultra Low is made for beer lovers, by beer lovers… with less than 0.5 per cent ABV. Cheers to that!

Vanguard adds new premium spirits to distribution portfolio Vanguard Luxury Brands has expanded its premium spirits distribution portfolio in the last month, to bring new super-premium mezcal and Japanese whisky to Australia. Following a 50/50 venture with Los Siete

East Pole becomes Australia’s first mid-strength distillery

Misterios and global supplier Chatham Imports, Vanguard will

Crafted in Melbourne using the finest Australian botanicals, East

now be importing and

Pole launches with two mid strength gins, Classic Dry and Pink

distributing three Los Siete Misterios SKUs in Australia. The three

Grapefruit; each capturing the intensity, mouthfeel and taste

new releases will be the artisanal Doba-Yej, bright and floral

profile of a full strength gin, but with only 22.3 per cent ABV.

with balanced citrus notes; the Pechuga, long and fragrant and

Founder and CEO of East Pole Distillery, Dylan Alexander, says: “We know moderation is a real trend, but often it means ‘all or nothing’. Why drink for 11 months and then stop cold turkey? What if we could moderate the everyday?” Research revealed 79 per cent of people thought a full

made with turkey breast; and the Tobala, made from the crown jewel of agave varietals. The second announcement was about the release of a new expression from world-renowned Mt Fuji Distillery, which has released the Fuji Single Grain Japanese whiskey. Described

flavoured gin with less alcohol was highly appealing and created

as premium yet accessible, it is a blend of three types of grain

more occasions to enjoy gin.

whisk(e)y that emulate flavour profiles of Bourbon, Canadian

East Pole has invested countless hours perfecting the mid strength method to deliver great tasting gins with all the flavour consumers expect with just half the ABV. From mid-week martinis to long Sunday afternoons, East Pole is an addition to the drinks cabinet, not a substitute. It’s as East as that. 16 | National Liquor News

and Scotch whiskies. Vanguard Luxury Brands noted that both of these recent product announcements was driven by consumer demand for these categories, with both agave spirits and Japanese whiskey seeing incredible recent growth that is tipped to continue.

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Retail Drinks Australia

Retail Drinks demonstrates continued commitment to responsible retailing Retail Drinks has recently updated its Guidelines for Responsible Product Ranging Decisions, writes CEO, Michael Waters.

Ever since Retail Drinks was formed, we have demonstrated an unwavering commitment to maintaining the industry’s right to retail responsibly, and to the responsible promotion, sale, and supply of alcohol beverage products. To ensure the reputation of our sector, Retail Drinks promotes standards of operation for its members beyond the required standards of legal compliance, implementing a range of voluntary product and service control initiatives which are adopted by members and the broader industry, including initiatives such as Online Alcohol Sale & Delivery Code of Conduct, Choose to DrinkWise, ID25, and Don’t Buy It For Them. At the start of the COVID-19 pandemic, we also created our Social Distancing Guidelines for Retail Liquor Stores, to help promote the safety of customers and staff across the country. One of our most recent industry responsibility initiatives is the updated Retail Drinks Guidelines for Responsible Product Ranging Decisions. We developed these guidelines to assist liquor store operators make product ranging choices that minimise potential misuse and subsequent harm related to excessive alcohol consumption. The guidelines include a checklist of issues that liquor retailers may wish to consider when making product ranging decisions for their stores. According to these guidelines, product ranging considerations should include a balanced assessment of factors such as the perception of targeting underage drinkers, product appeal and positioning; promotion style, including advertising, alcohol strength and packaging format; as well as the name of product, packaging, graphics, and colour. We strongly recommend that all liquor retailers carefully examine our Product Ranging Guidelines and ensure that these factors are top of mind when making decisions about products sold in-store. Should a liquor retailer determine that a product does not fit these guidelines, our advice is to not stock that product either in store or online. Lastly, our commitment to the safe and responsible retailing of alcohol products is reflected through our ongoing engagement and support of For any liquor retailers yet to familiarise themselves with

the ABAC Responsible Alcohol Marketing Code and the ABAC Alcohol

our range of industry responsibility initiatives, including

Packaging Compliance Guide, which set the standard for responsible

our recently launched Product Ranging Guidelines,

marketing to adults. As part of our continual engagement with ABAC,

visit our website today or contact Retail Drinks on

we recently participated in ABAC’s Review of the Code, providing a

02 8335 3200 or info@retaildrinks.org.au

comprehensive submission which offered several policy recommendations on how to further improve its functioning.

20 | National Liquor News

■

Australian Distillers

Australian Distillers conference boosts spirits and breaks records Chief Executive, Paul McLeay, discusses the highlights of the organisation’s recent conference, and how this showcases its focuses for the rest of 2022. The exciting potential of Australian spirits

Another program highlight was

generously shared their spirits with Bill Lark,

was showcased in April at a record-breaking

Tasmanian distiller Adam Pinkard’s moving

to create a commemorative blend. A specially

Australian Distillers conference in Melbourne.

recollection of the distillery fire that left an

packaged bottle gifted to each dinner guest is

With more than 400 delegates, the

employee in intensive care with burns to 40

truly priceless, as this delicious whisky will

conference was effectively sold out for

per cent of his body. Adam’s raw honesty as

never be offered for sale.

the first time in our history. That’s quite

he described his own battles with mental

Our final day was designed to allow

an achievement since hosting our first

health in the aftermath of the fire, as well

delegates to relax and socialise, with a

conference in 2014 with just 30 attendees,

as his insights about the operational lessons

bespoke program of four regional tours

and represents a resounding vote of

learned, reduced many in the audience

showcasing local distilleries and produce.

confidence in our industry.

to tears.

While celebrating our achievements,

After a welcome reception hosted by

His presentation was also an appropriate

we at Australian Distillers know this is

Starward Distillery, delegates attended a full

introduction to the launch of the BECA

no time to rest on our laurels. As our

day of informational sessions, with topics

Safety Toolkit for our members.

industry expands quickly, one challenge

including scaling for success and post-

After such an intense program, the gala

will be to maintain a laser focus on safety

COVID changes to retail and hospitality.

dinner was a welcome chance for attendees

and sustainability, as these underpin our

Given May’s federal election, one of the

to kick back and be entertained by celebrity

ongoing social license to operate.

most well-received presentations was an

MCs Hamish Blake and Michael ‘Wippa’

One of my priorities over the next

overview of the political landscape by Spirits

Whipfli. Australian Distillers president Stu

twelve months is to explore how we might

& Cocktails Australia Chief Executive, Greg

Gregor joined the pair on stage to launch

establish accredited, industry-driven

Holland. As I write, the election is yet to

our Hall of Fame and honour the first four

vocational education. This will be the key

be decided. But regardless of the outcome,

inductees: the late Raymond ‘Spike’ Dessert

to generating a skilled, reliable and safe

one of Australian Distillers’ top priorities

the Third, Bill Lark, Patrick Maguire and

workforce as we grow. Working closely with

for the year ahead will remain the same: to

Cameron Syme.

state governments, our plan is to identify

work with the incoming government on fair

The dinner also gave us an opportunity

and engage with local training providers

and sustainable alcohol tax reform. Whilst

to celebrate thirty years of contemporary

to ensure that relevant, practical and

Australian spirits are the third highest taxed

Australian craft distilling in a fittingly

standardised training is available for those

in the world, this will always be a handbrake

memorable way. In anticipation of the

keen to join the exciting world of Australian

to growth.

milestone, 36 Australian distilleries

distilling.

■

June 2022 | 21

Leasing

What to do when your retail property is flooded in NSW If you are a NSW tenant and your retail property

with other tenants, then the landlord is responsible

floods, it is advisable to first check if the legislation

for cleaning this area. If this does not occur, then the

in your state provides you with additional protection

tenant is entitled to compensation for any loss the

and review your lease to see what your rights and

tenant has suffered.

obligations are. If you are not sure, then speak to a retail leasing lawyer who can assist you. In the meantime, the below steps can be useful.

Marianna Idas, Principal at eLease Lawyers, summarises the key steps for NSW rental tenants during times of flooding.

5. Who is responsible for structural repairs? Generally, the responsibility rests with the landlord. If the landlord fails to do this within a reasonable time,

1. The tenant should notify the agent or landlord

then the tenant may be entitled to compensation.

As soon as the tenant is aware of the damage caused to the premises, they should notify their agent or

6. Compensation for when the tenant cannot operate in the premises

landlord with details of what has been damaged, when

The lessee is not liable to pay rent or any amount

and by what means.

payable to the lessor in respect of outgoings or other charges during the period where the shop cannot

2. Contact your lawyer or review your lease Most leases generally contain a damage and destruction clause that outlines what occurs when

be used. If the tenant can operate in part of the premises, then only part of the rent should be paid.

the property is damaged by flooding. If the lease is retail, then additional protections are provided by the relevant legislation in each state.

7. Right of termination If the lessor considers that repair is impractical or undesirable, the lessor or the lessee may terminate

3. Where to obtain a copy of your lease

the lease by giving not less than seven days notice in

If the lease is registered, then a search can be

writing to the other.

conducted on the title and a copy obtained.

If the lessor fails to repair the damage within a

If the lease is not registered, then either ask the

reasonable time after the lessee requests the lessor in

other party or the lawyers who represented the parties.

writing to do so, the lessee may terminate the lease by giving not less than seven days notice in writing

4. Who is responsible for the clean-up of the premises?

of termination to the lessor.

There are varying factors that determine who is

8. Insurance

responsible for the clean-up including type of lease,

Review the lease to identify if a policy is in place by

type of premises and relevant insurance.

either party and if this includes flooding.

The tenant is normally responsible for cleaning the inside of the premises. If there is a common area 22 | National Liquor News

If that party did not obtain such insurance, then a claim could be made against that party.

■

Tracking Trends

Everything is temporary Industry trends are changing constantly and retailers need to be agile to respond to this, writes Stephen Wilson, Category & Insights Manager at Strikeforce. Never was a truer phrase spoken than ‘everything

to be constantly reviewing range and minimising

is temporary.’

or eliminating missed opportunity by avoiding a

This particularly applies to the world of fast-

stagnant offering.

moving consumer goods. We often talk about aligning

Conversely, getting ahead of the curve with a

with prevailing trends and tailoring our retail offering

dynamic offering that keeps customers interested and

to maximise the opportunity presented.

leverages sales, by constantly ‘refreshing’ the category

The definition of the word trend describes “a general direction in which something is developing or changing”.

with brands that align with trend changes, will add value and grow sales revenue. Obviously, this approach applies across the total

Liquor categories by their very nature are fluid and

range and in a practical sense can be as simple as

evolve at varying rates driven by macro trends, like

reapportioning existing available space or cutting the

a holistic approach to better health and wellbeing,

range tail and introducing new brands as required.

or a sharper focus from individuals on how their

The key is to understand the share of shelf versus

consumption impacts their surroundings, rejecting

share of sales for existing brands, and estimated

excessive consumption to reduce wastage which

share of shelf that should be allocated to any new

results in a smaller environmental footprint.

brand entrants.

We need look no further than the GABS top 100

A category-by-category approach is recommended

hottest beer brands for 2021 as an example of how

on a rotational basis to allow range changes and

changes to categories can occur.

maintenance, rather than tackling the entire store

In the top 10 SKUs, just two products maintained

range all at once.

the same position, three ranked lower, two ranked

There is a mountain of information available to

more than five positions higher and there was a debut

assist with understanding which trends are driving

product included in the top 10 ranked beers compared

sales and which have now passed. These are easily

to the previous year’s survey.

accessible through information contained in trade

Demand for the debut beer SKU is driven by the trend of a holistic approach to better health and

Stephen Wilson Category & Insights Manager Strikeforce

magazines, conversations with company reps, trade contacts and direct from the customer’s mouth.

wellbeing, underpinned by drinkers seeking ‘better

The rate and frequency of change will only intensify

for me’ alternatives. The debut SKU is a zero carb,

with the passing of time. The challenge is to ensure

zero sugar beer.

that the offering to shoppers evolves along with trend

Focusing on just craft beer demonstrates the need

“The key is to understand the share of shelf versus share of sales for existing brands, and estimated share of shelf that should be allocated to any new brand entrants.”

change. The reward is a healthier bottom line.

■

June 2022 | 23

Wine Australia

The growing value of Riesling Australia is finding good a reason to love Riesling, writes Peter Bailey, Manager, Market Insights at Wine Australia.

Renowned wine critic Jancis Robinson once said

Australia dominates the Riesling category within

about Riesling: “This is the wine to drink while

the local domestic market, with a 97 per cent share of

writing or reading; it refreshes the palate and

value. Clare Valley (46 per cent) and Eden Valley (15

sharpens the brain.”

per cent) are the two dominant regions for Riesling

Australia is a leading global producer of Riesling and home to some of the world’s oldest Riesling vines. In 2021, just over 21,000 tonnes of Riesling were crushed in Australia, ranking it at number eight among the country’s white varieties. However, among the top 10 white varieties, Riesling attracted the highest average grape purchase price of $1,096 per tonne. In comparison, the two most crushed white varieties of Chardonnay and Sauvignon Blanc averaged $531 and $677 per tonne respectively. The average purchase price of Riesling grapes in Australia has risen every year since 2012, when it averaged $509 per tonne.

sales within Australia and both regions recorded sales

“Australia dominates the Riesling category within the local domestic market, with a 97 per cent share of value.” Peter Bailey Manager, Market Insights Wine Australia

growth between 2019 and 2021. Other regions to record growth off much smaller bases included Great Southern, King Valley, Tasmania and Canberra District. Australia exports Riesling to 71 destinations around the globe. In the 12 months ended March 2022, the value of Riesling exports totalled $18 million, down 13 per cent on the previous year. The top five destinations by value were the United States (24 per cent), United Kingdom (17 per cent), Canada (13 per cent), Japan (six per cent) and Sweden (five per cent). Compared to the 12 months ended March 2021, exports declined to the United States (16 per cent), the United Kingdom

According to IRI MarketEdge, in 2021, sales of

(13 per cent) and Sweden (23 per cent) but increased

Riesling in the domestic off-trade market totalled

to Canada (28 per cent) and Japan (20 per cent).

$75 million, similar to 2020 but up from $68 million

Riesling exports to Japan are at record value levels,

in 2019. The average price paid for Riesling has also

albeit at a relatively low level of $1.2 million. With

grown from $14.51 per bottle to $15.36 per bottle.

import tariff on Australian bottled wine to Japan

The healthy average price reflects the positioning of

now at zero, there may be an opportunity for further

Riesling in Australia’s domestic market. By volume,

growth. South Korea is another East Asian destination

the biggest segment for Riesling is between $20 and

that also has seen strong growth in Australian Riesling

$30 per bottle, with a third of total Riesling sales. The

exports. In the past five years, exports of Riesling have

next biggest is $15 to $20 per bottle, with just under

grown from $50,000 to $700,000. The import tariff on

a quarter share.

Australian to South Korea is also zero.

24 | National Liquor News

■

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IRI

Digging into the non-alcoholic numbers Antonia Tolich, Consultant at IRI, discusses growth trends of different segments within Australia’s non-alcoholic beverage market.

26 | National Liquor News

We’ve seen more and more Aussies embrace no and

+$32.5M vs YA with the majority of sales driven by

low alcohol products over recent years as consumers

liquor channels (70 per cent share).

look to moderate their alcohol consumption. The

Heineken is still the number one brand for total sales,

non-alcoholic category continues to evolve, now

delivering $23.7M (latest MAT) and seeing growth +16

valued at $141.2M and seeing growth +66 per cent

per cent vs YA, but with the recent innovations in 2021,

vs YA, growing well above the total liquor category

Great Northern Zero has overtaken in terms of actual

and showing no sign of slowing down as more brands

growth, delivering $18.2M growth for the category this

enter the category.

year. We’ve also seen the rise of smaller breweries who

While non-alcoholic beer has been around in

are innovating in this space, for example with the likes of

the market for some time, the largest recent growth

Heaps Normal and Athletic Brewing Co, which are seeing

driver is innovation across the board, with new

success after building up social media followings for their

products developing to meet the growing needs of

non-alcoholic products within the craft beer space.

consumers looking for lower ABV, lower sugar and

Interestingly we haven’t seen the same momentum

lower calorie options. The overall market is still small

from cider, being the only non-alcoholic category to see

with lower household penetration, but recent trends

decline, dropping nine per cent (value) vs YA. There is

show that post-COVID shoppers are looking to cut

a need for innovation and large brands to rupture the

down on their alcohol consumption with household

segment and drive growth, which we have seen from

penetration of liquor dropping -2.4 per cent vs YA

other segments, with cider only holding two per cent

(Liquor Weighted, MAT to 27/3/22).

share of the total non-alcoholic category. Kopparberg

Beer has been the key category standout holding

is the lead brand in the segment for sales, delivering

the lion share within the total non-alcoholic category,

$1.2M across grocery and liquor, but it’s starting to see

with nearly 72 per cent share. Total non-alcoholic

decline. While the cider market is more mature than

beer is now valued at $89.3M and showing no signs

other segments, it will be interesting to keep an eye on

of slowing down, seeing incremental growth of

whether the category is able to innovate to grow.

IRI

Hot non-alcoholic products to try These two recently launched non-alcoholic products are sure to excite your customers.

Giesen 0% Sauvignon Blanc The world’s first alcohol-removed New Zealand Sauvignon Blanc, sporting a fresh new look! Zero per cent alcohol and 100 per cent flavour. Plus, for the healthconscious consumer, there’s 80 per cent fewer calories than traditional 12.5 per cent ABV Sauvignon Blanc, with only 13 calories per 100ml serve. Giesen Group is taking the no alcohol wine category seriously, investing over a million dollars in their own specialised spinning cone technology to further refine the Giesen 0% wine range. It makes for the perfect Savvy choice! Also featuring in the popular range is non-alcoholic rosé, Pinot Gris and Merlot.

Despite the challenges in producing high quality non-alcoholic wine, this segment continues to perform well, now valued at $35.1M and seeing strong growth

Sidewinder XPA

of +$20.9M vs YA (+66 per cent).

Super tasty, super juicy and

Both liquor and grocery have driven growth for non-alcoholic wine, with

super fresh. The latest no

nearly an equal split of sales between each channel. Grocery continues to drive

alcohol Sidewinder beers

the strongest growth for wine (+71.5 per cent) and sees dominance of larger wine brands including Edenvale and McGuigan, that together make up nearly 96 per cent of total sales for the segment. It will be interesting to keep an eye on smaller niche brands that are launching in this space, including Plus Minus which has seen increased ranging in grocery outlets. We have also seen large manufacturer Accolade come out with a new zero alcohol range, launching Hardy’s Zero in Coles, and we expect other large manufacturers to continue to adapt portfolio priorities to push ranging of non-alcoholic products.

are fruity and finally here. Sidewinder Lime XPA with zingy lime, citrus hops, a malty backbone and mediumlow bitterness means good times can be enjoyed anytime, anywhere. Sidewinder Passionfruit XPA melds juicy passionfruit with tropical hops and biscuity malts to give an eminently crushable

Non-alcoholic spirits and RTD are the categories to watch right now. Despite

expression of sunshine in a can. Sidewinder

being smaller in size, they are seeing the largest number of new entrants, from

XPA Deluxe shines with grapefruit and

Gordon’s to smaller craft distilleries including Brunswick Aces. Gordon’s Zero

pineapple alongside spicy and slightly floral

made a splash with its launch in July last year in both RTD and larger format 750ml

notes and the proper bitterness expected

pack sizes, and has driven an incremental $694K for the category since launching.

from an XPA. From by the award-winning team

Non-alcoholic RTD has overtaken non-alcoholic spirits in terms of category share, sitting at nearly seven per cent and seeing strong growth in the last year with the market now valued at $8.6M driven by growth in the last year.

■

Source: IRI Market Edge Australia Grocery & Convenience & Liquor Weighted Market, MAT to 04/03/2022

at Brick Lane and its world-class brewery, which allows unique precision and yeast management to brew the Sidewinder beers to less than 0.5 per cent ABV, while giving each XPA beer a full flavour profile naturally from the fermentation process.

June 2022 | 27

Snooper

NOLO gathers pace and space No and low alcohol categories are proliferating in multiple channels and successfully competing for space, but execution remains conflicted, writes Laurie Wespes, CEO and Founder of Snooper. There’s been some movement at the no and

to no alcohol products, such as Melbourne’s

low alcohol (NOLO) category ‘station’ since

Brunswick Aces and the recently opened

Increased range, space and display in the off-premise

we last discussed NOLO beer with National

Dan Murphy’s Zero% craft bar in Hampton.

In the off-premise, perhaps the heartland

Liquor News readers in January last year. But

Seadrift distillery has launched a ‘So-Bar’ in

of NOLO categories, ranging has also

some challenges remain.

the middle of Brookvale’s brewery district on

continued at pace. In the past 12 months

Sydney’s northern beaches.

we have observed the introduction of many

First, the good news

products, for instance, at least six nonalcohol spirits and RTDs, as well as countless

range carried cross-category in the

Range proliferation in non-licensed channels

licensed channels, and new and increasing

Supermarkets are increasing their NOLO

brands including Great Northern, Free

distribution of NOLO categories in

ranges, with Woolworths now numbering

Time, Tinnies, Pirate Life, Brewdog, and

non-licensed channels. In other words,

more than 30 products across beer, wine

Nanny State, and the seemingly unstoppable

more NOLO categories and products are

and spirits. In just one brand example,

Heaps Normal. This is naturally resulting

becoming more readily available.

eleven Naked Life cocktail SKUs were

in higher SKU counts. For instance, our

There has been an increase in both NOLO

non-alcoholic beers from a number of

launched in late 2021 and these are ranged

Snoopers observed that several venues in

Moving into the on-premise

in supermarkets and in 500+ convenience

SA had no NOLO beer offering in December

In 2021, 29 per cent and 20 per cent of surveyed

stores across the country.

2020, but 12 months later had three brands

consumers acknowledged having seen no

The growth of zero alcohol online

or low alcohol beer and no or low alcohol

pureplays has also continued. Alongside

Larger assortments offered and the

spirits respectively when going out. The past

Sans Drinks now sits Craft Zero and

increase in facings means we are seeing

year has seen the launch of bars dedicated

Undrink, among others.

more space devoted to NOLO products.

28 | National Liquor News

and had 11-12 facings in January 2022.

More off-location floor displays are also being achieved for NOLO categories, with branded displays against occasions such as Dry July and as part of the regular promotional calendar as part of multicategory gondola ends and off-location displays, particularly in independents. All of this activity is being positively reflected in the NOLO category’s share of sales. According to an IWSR study, NOLO volume increased by 2.9 per cent in 2020, and in fact outpaced the performance of regular alcohol, which recorded a volume decline of 1.4 per cent in the same year. Both Endeavour Group and Coles Liquor Group have seen NOLO category sales nearly double in a 12 month period. Nonalcoholic beer was the star performer at +47.1 per cent in grocery and +89.9 per cent in liquor channels. The NOLO alcohol market in Australia is expected to grow by +16 per cent to 2024 and is currently valued at $94.9 million across grocery and liquor as consumers, particularly Generation Z and Millennials, continue to moderate alcohol consumption.

Executional challenges remain There are conflicting opinions and executions on

Wobblers highlighting non-alcoholic SKUs in the beer fridge at BWS.

whether to block all NOLO products together or locate them with their respective categories.

planogram management, navigation and supporting

Within beer, our Snoopers have observed stores

signage in the off-premise, but has improved markedly

beginning to range NOLO variants together rather

in ranging, space allocations and off-location displays,

than being ranged in a brand block next to their mid

and moved meaningfully into a number of non-

or full strength counterparts. Shopper research may

licensed channels.

be required to understand the decision tree in this

Proliferating SKUs create their own challenges,

regard – are shoppers looking for NOLO first, or the

however, and require impact tracking pre and post

brand first?

range extension introductions, as well as range

At-fridge and at-shelf POS such as decals, wobblers

review discussions to ensure the category continues

and shelf stripping for navigation, whilst observed

to bloom, rather than grow uncontrollably like the

by our Snoopers, have not moved as fast as ranging

proverbial weeds.

and floor displays, particularly when compared to other categories such as seltzer. If retailers are not ranging all NOLO variants or categories together, highlighting the NOLO SKUs becomes even more important for shopper navigation, particularly for NOLO only brands that don’t have a full-strength brand ‘parent’.

The outlook NOLO is a sustainable trend not a fad. It’s still going through some executional growing pains in

■

Sources: 1. Snooper data – assessment of 2000 store visits between August 2020 – April 2022 across national and independent off-premise banners 2. https://www.statista.com/statistics/1256641/ australia-visibility-of-no-low-alcohol-drink-trends/ 3. https://theshout.com.au/national-liquor-news/noand-low-alcohol-trend-shows-no-signs-of-slowing/ 4. https://www.smartcompany.com.au/industries/ retail/non-alcoholic-drinks-growth-australia/ 5. National Liquor News December 2021 edition

“Larger assortments offered and the increase in facings means we are seeing more space devoted to NOLO products.” Laurie Wespes CEO and Founder Snooper

June 2022 | 29

Non-Alcoholic Drinks

An opportunity in abstinence Seamus May explores what is driving the popularity of non-alcoholic occasions, and why no alcohol is no problem for retailers.

For those in the liquor retail business,

Zero are, and whether it’s something they’d

month to do it… Same with Canada and the

it might seem counterintuitive to focus

like to include in their fridge ongoing,

Czech Republic.”

marketing and retailing efforts on occasions

for those occasions where a zero alcohol

dedicated to actively avoiding alcohol.

product is more suited.”

Nevertheless, according to Chris Allan,

The scope of these occasions has now gone beyond their charitable origins, helping give rise to permanent changes in

Brand Director of XXXX, alcohol abstinence

A global trend

months like that of Dry July, Ocsober and

There are now several periods of the year when

As West said: “Over the past few years,

FebFast are now too large, and too lucrative,

drinkers are encouraged to moderate their

consumers have been choosing to moderate

for retailers to ignore. In fact, XXXX Zero,

intake of alcohol or abstain from drinking

their alcohol intake for their own reasons

the brand’s first non-alcoholic option in

entirely. In many cases, these occasions have

and it has certainly become more of a bigger

nearly 150 years of brewing, was released

been developed by charities as a fundraising

lifestyle choice elevating the growth of no-

in the run up to Dry July this year.

drive via pledges and sponsorships.

low products as a category.”

consumer habits.

“It presents an exciting incremental

Non-alcoholic months have moved from

According to Rebecca Yeates, Director of

purchase opportunity for retailers, to have

localised, small-scale efforts to a worldwide

Trade Marketing & Category for CUB, these

consumers purchase XXXX for more occasions

phenomenon, with Australia right at the

patterns are being repeated in Australia.

through their week,” Allan explained.

cutting edge of the trend, as Big Drop’s

“Some of the biggest barriers to drinking

Darren West illustrates.

“What we are seeing is an increase in consumers choosing to moderate, and that

non-alcoholic beer is not understanding

“On a global level, Dry July has spawned

Dry July boosts non-alcoholic sales during

its relevance or a misconception that it

many variations. In the UK, it didn’t really

the cooler months, which typically under-

won’t taste as good as mid strength or full

start until 2013, when the charity Alcohol

index for this offer,” Yeates says.

strength beer.

Concern got behind it, but in the form of

“Occasions like Dry July provide

Dry January,” West says.

consumers with a great platform to see just

“Tournée Minérale in Belgium has been

how great non-alcoholic beers like XXXX

going since 2017. They chose February as the

30 | National Liquor News

“This seems to kick-start the upward trajectory leading into the warmer and typically more social or celebratory time of year where non-alcoholic continues to play a key role.”

Non-Alcoholic Drinks

Cameron MacFarlane, Marketing Director at Tribe Breweries, also said

more socially respectable to ‘have a day off ’ or ‘have just one.’”

these non-alcoholic occasions are helping people think differently about the no alcohol market.

Wine rises to the non-alcoholic occasion

“It has become trendy to not drink,

The beer segment may be a leader of the

and many people set challenges with

non-alcoholic drinks category, however,

themselves, as well as their friends and

non-alcoholic occasions have shone a

family, to abstain from alcohol,” he said.

light upon the category’s wine sector.

Hot non-alcoholic products to try These two non-alcoholic products are gaining traction and will be a hit with your shoppers.

Great Northern Zero Great Northern Zero is a 0.0 per cent alcohol beer, brewed with an outdoor lifestyle in mind. With its

“While some of these initiatives and

Angela Flynn, Marketing Manager

fruity aroma and crisp finish, it is

months have been around for over a

for Giesen Group, identified alcohol

the ultimate 0.0 per cent alcohol

decade, Australia still has a big drinking

abstinence months as one of the

refreshment for your favourite

culture and being ‘sober curious’ still

motivating factors driving Giesen’s

adventure. The Great Northern

has a lot of stigma attached to it.”

investment

Zero recipe has gone through

Brown Family Wine Group’s

non-alcoholic

production technology.

(BFWG) Group Marketing Manager,

“The Dry July Trust is doing a great

Emma Brown, believes there is change

job in promoting awareness for the

coming, and said: “The social stigma

Dry July campaign in both Australia

of taking time off alcohol has certainly

and NZ and every year they see growth

dropped off.

in numbers of people participating in

“[No alcohol months] are making it

the challenge,” Flynn said.

an alcohol removal process and then blended to create a crisp 0.0 per cent alcohol beer without compromising on taste. Aroma and taste features deep golden hues and a fruity aroma that carries through to the palate. Great Northern Zero has a balanced sweetness that is complemented with subtle bitterness. It finishes clean and crisp.

Wolf Blass Zero Wolf Blass, one of Australia’s most iconic and award-winning wine brands, has tapped into the rapidly growing non-alcoholic trend by introducing a refreshing new portfolio of zero alcohol wines to its stable of excellence. The range consists of a Sparkling Cuvée, Shiraz, Sauvignon Blanc and most recently launched, a Rosé, available in stores such as Dan Murphy’s and Woolworths Grocery. This lower in calorie, lower in sugar, exciting new offering is underpinned by Wolf Blass’ ability to continually innovate and evolve, whilst still striving to deliver on quality and taste so that consumers can moderate, but without the compromise.

June 2022 | 31

Non-Alcoholic Drinks

“In fact, it was this movement that drove the innovation around our 0% range.” Another wine brand that is operating

brands too, with French brand Barton and

Bladocha also highlighted this, noting:

Guestier introducing zero per cent products

“This is a great opportunity to test your

over the last two years.

products, see which ones of these will be

and innovating in this space is Fourth Wave

Guillaume Bladocha, Export Manager

Wines, which has produced a range of zero

for Asia-Pacific, said: “We have very strong

per cent ABV wines in cans, including

ambitions for this year’s Dry July.

become your top seller for the full financial year coming up.”

Dry demographics

soon to be released non-alcoholic Moscato

“After two years of having the wine in the

and Bubbly Rosé SKUs. Ross Marshall,

market, I believe that July 2022 will be the

It is clear that the non-alcoholic month

Managing Director of Fourth Wave Wines,

strongest one ever in terms of depletions on

occasion has played a crucial role in

also cited non-alcoholic month occasions

our zero per cent alcohol wines.”

expanding public interest and acceptance

as crucial to the emergence of the nonalcoholic category.

of both alcohol abstinence and of non-

Trying dry

alcoholic products themselves.

“Feb Fast, Dry July and Sober October

The brands that spoke to National Liquor

But who exactly is purchasing these

have been important for the zero alcohol

News were in agreement – non-alcoholic

products, and participating in these

category as it has put the focus squarely

months are a key gateway to the category

occasions? Most brands National Liquor

on what is happening in this space for a

for many consumers.

News spoke to agreed that it’s a trend led

condensed period of time,” Marshall said.

Paul Bowker, Founder and Managing

largely by young adults.

“During these occasions we generally see

Director of Brick Lane Brewing, which

Heaps Normal’s Andy Miller gave some

a trend of new products and innovations as

is seeing great success with its ultra-low

important background for retailers, and

they have a stronger chance of visibility.”

alcohol beer Sidewinder, said: “The key

said: “While it’s clear the uptake of non-

BFWG is another wine group to recently

for the no alcohol months this year is to

alcoholic options is happening across people

enter the category, releasing a 0.5 per cent ABV

encourage consumers to try a number of

of all ages and backgrounds, it’s being led by

Prosecco under the Brown Brothers label.

options within the space.”

younger drinkers.

Brown explained how the group hopes to

MacFarlane agrees, and said: “The most

“The number of people in their 20s

market this new expression over the coming

important thing retailers can do is be aware

abstaining from alcohol increased from

months, saying: “We will be supporting this

of the space and trial the options available,

8.9 per cent in 2001 to 22 per cent in 2019.

product and future releases to this category

rather than remain ignorant to the category.

Australians aged 18-44 are twice as likely

in key socialising periods, including the key

“Taste, trial, find your favourites and

to consume zero and low-strength alcohol

‘dry months’.”

then display them easily and proudly

compared with those aged over 45.”

The non-alcoholic market of Australia

for customers to find and experience,

Lyre’s Chief Marketing Officer, Paul

is attracting the attention of overseas wine

particularly during sober-curious months.”

Gloster, also concurs, saying that although

32 | National Liquor News

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Non-Alcoholic Drinks

all ages are involved, “Millennials and Gen Zs seem to be most engaged in mindful drinking occasions.” Yet, retailers should also note that there is a broad audience for non-alcoholic drinks, that crosses generational divides. This wide appeal is something that Bowker is particularly keen to highlight. “What we are seeing is the non-alcoholic products cut across a wide set of demographics and include non-drinkers and regular drinkers across all age groups,” he said. “The real surprise has been the very strong take-up by those in their 20s and 30s who are highly social but also very conscious of wellbeing.”

A timely conversation This conversation is a timely one, considering the recent proliferation of NPDs in the non-alcoholic sector. One such example is Lyre’s, which this year has added several new non-alcoholic SKUs to its portfolio, replicating the flavours and experiences of drinks such as pink gin, agave spirits, and Scotch whisky. Gloster said it’s important to keep an eye out for new products as brands continue innovating, as “having quality alcohol-free options will keep customers in store and coming back. People will go where quality options are sold – they still want to be social even when not drinking.” Reviewing your non-alcoholic range is also timely right now considering the next ‘dry’ month occasion approaches next month – Dry July. One tip for this upcoming occasion comes from Jaz Wearin, Co-founder of Modus Brewing, which produces non-alcoholic beer brand, Nort. “Have a highly visible non-alcoholic section in the lead-up to July, so customers know they are being supported through the month and have a clear path to purchase when they are ready to stock-up for going dry in July,” Wearin said. Meanwhile, Brown suggested retailers should lean into the joy and exploration that this purchasing journey brings. “Make it fun. There’s a huge opportunity for retailers to inject fun into this category, particularly during the key awareness months,” she said. For West, it’s a good idea to also recognise the importance of the charitable message behind the month. “Dry July is certainly a very noble cause, and it was started by three mates who wanted to take a month off the booze. Getting friends to sponsor them, their target was to raise $3,000 for the local hospital waiting room, they raised $250,000,” West said. “Retail could look to set up their own teams of staff, friends and customers to form a Dry July team. Partner with no-alcohol companies and brands to help with sponsorship and goodies and support packs along the way. This really is a fantastic opportunity to first and foremost get behind a wonderful initiative through entering your own team or supporting your customers on their journey.”

34 | National Liquor News

Non-Alcoholic Drinks

Quality is key for retailers Although abstinence occasions place

“Ultimately, I think retailers need

a heightened focus on non-alcoholic

to be loud and proud of their non-

offerings, Miller says its important

alcoholic options,” he said.

to also keep the bigger, year-round, picture in mind too. “Think about how you can not only cater to those who are abstaining

“A big issue we’ve noticed with many retailers is that they struggle to know where to place non-alcoholic options in their shops.”

for July, but also to those who are

Finally, Gloster explains that

cutting back or experimenting with

high-quality and wide ranges are the

smaller adjustments to their lifestyle,”

determining factors that will increase

he said.

the number of customers and sales of

Similarly, Brown said: “It’s

non-alcoholic products.

important for retailers to realise this

“As more and more alcohol-free

is not a ‘turn on and off ’ category fad,

months get added to the agenda and

it’s here to stay.

mindful drinking increases in spades

“It’s important for them to

across the board, look toward the

consider having a high-quality range

opportunity rather than seeing it as

throughout the year.”

a challenge,” he said.

MacFarlane suggests retailers

“No alcohol months can certainly

should redouble their efforts in

be an opportunity for retailers.

making sure non-alcoholic products

With so many amazing alcohol-free

are immediately visible to consumers

options in the market now, there’s no

seeking them out, with prominence

reason sales have to stagnate during

taking absolute priority.

no alcohol months.”

■

Kaddy: Why you need to invest in your NOLO beer range Kaddy Marketplace has the data and it

170 per cent YOY, overtaking all other

brews like Big Drop’s award-winning,

all points one way - we’re entering a no

segments on Kaddy.

non-alc Galactic Milk Stout, Sobah’s

or low alcohol (NOLO) beer boom. Here’s the lowdown on what’s happening.

What’s really important for retailers

Finger Lime Cerveza and Brewdog’s

to note is that not only are the volumes

Nanny State Hoppy Ale prove wildly

increasing, but the SKU count is

popular. Big Drop is also currently the

Liquor News last year, Kaddy co-founder

exploding too. There are now 125 low

most awarded brewery in the UK.

Rich Coombes made a prediction

alcohol (0.5 per cent or less ABV)

that we should “not sleep on non-alc

beers on Kaddy Marketplace, with new

earlier this year, the volume of NOLO

this summer”, calling the category an

releases added regularly, like Brick Lane

beverages sold is now growing globally

“unstoppable juggernaut” and noting how

Brewing Co.’s Sidewinder XPA, and

at six per cent CAGR and will be at

some of the best-selling products on the

Capital Brewing Co’s Alc-Less Pacific

eight per cent CAGR over the next four

Kaddy Marketplace were NOLO.

Ale which was released for pre-sale in

years, meaning that this is just the start

mid-May.

of the boom.

In the November edition of National

Now, over six months later, that juggernaut is riding a tidal wave. Over

That range explosion has been driven

According to IWSR research out

NOLO beer is here to stay - and now is

the past six months, the top-selling

by more adventurous options too, with

the time to be dropping in on this wave.

product on Kaddy Marketplace was

top brewers venturing beyond lagers

Check out Kaddy Marketplace, your home

Heaps Normal’s Non-Alcoholic beer, with

and session ales into the whole beer

of NOLO, today.

the category growing at an extraordinary

kaleidoscope. For example, we’ve seen

kaddy.com.au

36 | National Liquor News

North American Drinks

A toast to America Seamus May discovers why culture, history and occasion are key to unlocking the sales potential of North American drinks.

Australia is blessed with one of the world’s

Manager, Andy Milne, reveals.

The last two decades in the Australian

finest drinks industries. Beer, wine and

“Australians are definitely upgrading

spirits business have been defined by a

spirits are now all produced in this country

their drinking choices and enjoying a

domestic distilling scene that is stronger than

in higher quality and quantity than perhaps

premium product,” Milne says.

ever. It might be suspected that this would

they have ever been.

“The total market for glass bourbon is in

eat into the market of American spirits, but

Nevertheless, there remains an enduring

decline by -5.0 per cent in 9L moving annual

popularity amongst drinkers for imported

total (IRI Data Mar-22), with value and

“I think it is helping the category rather

beverages from North America in Australia.

mainstream driving this decline, however

than hindering it. With more consumers

For retailers, the North American drinks

super premium is continuing to grow,

exploring the super premium category

sector is one that demands attention –

performing +8.0 per cent in 9L.”

of Australian whisky, we are seeing these

offering a route into a lucrative niche with a dedicated audience.

With this change in habits has come a shift in demographics too. In particular, Milne sees a market for

Milne believes the opposite is true.

same consumers learning and discovering more about the same American whiskey category as they look to expand their drinks

Bourbon – a perennial firm favourite

bourbon amongst the over-25 year old age cohort, noting: “In the 25-45 year old sector,

“Having so many great Australian whiskies

Uniquely American spirits, such as bourbon,

consumers are upgrading their bourbon

available to consumers, they are able to learn

continue to resonate with Australians. An

choices from the value or mainstream

and engage more with these products. That

IRI report released in late 2021 revealed that

choices of their youth and seeking a higher

provides them the confidence to make new

bourbon remains the number three ranked

quality option that doesn’t break the bank.”

discoveries when purchasing in-store.”

glass spirits category in Australia, a position it

Here, Milne believes there is a clear

has maintained for the preceding three years.

opportunity for some of SouthTrade’s

Nevertheless, there does appear to be

imported American spirits.

knowledge,” he said.

RTDs and liqueurs tap a younger adult market

a shift in the bourbon drinking habits of

“This is where we have significant growth

Milne also describes a growing trend

Australians that will pique the attention of

for Buffalo Trace and Eagle Rare 10 year

among younger drinkers for flavoured

retailers, as SouthTrade International Brand

old,” he said.

whiskey liqueurs.

38 | National Liquor News

North American Drinks

“Younger Australians are definitely looking for something fun and enjoyable to share with their friends,” Milne explains. “They are particularly engaged with brands that have character and don’t take themselves too seriously, such as Fireball and Sheepdog [both USA-made liqueurs]. Flavoured American whiskies are taking

“We believe that Australia’s long-term cultural interest in America also crosses over into beer.” Kym Bonollo Head of International Beer CUB

Australia by storm.

Australia to then be mixed with a signature cola made for the Australian palate,” he said. Indeed, this focus on the particular Australian taste for American whiskey is something that Woodstock highlights in its marketing efforts. “Unlike other Bourbons who highlight their American heritage, Woodstock celebrates Australian mateship,” Marsh says.

“Fireball whiskey continues to take share

One intriguing brand that plays in

“Woodstock Bourbon is seeing steady

from mainstream whiskey brands, growing

this space is Woodstock Bourbon, which

growth in the Australian market due to its

+35 per cent in 9L, and the recently launched

presents an attractive offering for retailers

unique positioning and value proposition.”

Sheepdog Peanut Butter Whiskey is creating

and drinkers alike.

a huge noise across Australia.”

Like Milne, Marsh believes that

Produced at the illustrious Heaven Hill

international whisk(e)y has retained its

Another category that offers a similar

bourbon distillery in Kentucky, Woodstock

attraction for Australian drinkers, partly

playful and easy proposition is whiskey RTD.

certainly has strong USA credentials, but

due to the variety the category offers.

“If you count RTDs, Australia was once

a key point of difference is that the brand

“From Scottish whisky, American

the biggest consumer of North American

is effectively produced especially for the

whiskey, Irish whiskey and even recently

whiskey per capita,” Milne says.

ANZ market.

the growth of Japanese whisky, international

“American whiskey is the second biggest

Rob Marsh, Senior Brand Manager RTD

category in Australia, sitting just behind

and Spirits at Carlton United Breweries

Scotch whisky. However, once you factor

(which distributes Woodstock) explained the

“On top of this, the different

in RTDs, Canadian whiskey and American

production process to National Liquor News.

climates of these areas allow for a different

spirits, it’s likely that [the category] would

“Woodstock’s Bourbon is sourced from

barrel and aging process which produces

come out on top.”

Heaven Hill, Kentucky and is imported into

credibility is viewed strongly by Australian consumers,” Marsh says.

unique flavours.”

June 2022 | 39

North American Drinks

North American beer a niche worth its shelf space There can be no doubt that North America has produced some of the most iconic beer brands in the world, that are celebrated around the globe. Yet a strong domestic brewing scene again might leave some retailers wondering if there is still value in the North American beer sector. Kym Bonollo, CUB’s Head of International Beer, tackles this issue head on, saying: “Within the Australian craft beer market, more than 97 per cent of it is domestic, and about one per cent is North American.” Where North American beers tend to shine, according to Bonollo, is with larger, big-brand offerings that continue to appeal

cultural interest in America also crosses

A crafty challenge

to Australian drinkers.

over into beer,” Bonollo said.

Despite the dominance of more ‘mainstream’,

“When we think North American beer, it

“The big and popular American beer

big brand lagers in the North American beer

is usually the more mainstream imports like

brands we see in movies, TV shows and

category, Lion is backing Voodoo Ranger,

Corona and Budweiser that come to mind

sport embed ‘Americana equity’ into

a craft-style IPA, to buck the trend. Jonny

and are popular in-store,” Bonollo said.

those beers we see when walking into an

Day, Lion’s Brand Ambassador for Voodoo

Australian bottle shop.”

Ranger, believes that the position of the

“Budweiser is a top 10 international brand in Australia, worth over $20m in retail sales value annually.

Another of these beer brands is Pabst Blue Ribbon (or PBR) which is now

US at the cutting edge of the global craft industry leaves the beer well positioned.

This popularity could be part of a

produced in Australia by Tribe Breweries.

“The US is a very mature craft market

wider trend towards more approachable

Tribe’s Marketing Director, Cameron

renowned for flavourful IPAs and trends are

beers, as Bonollo continued: “Australian

MacFarlane described PBR as “an iconic

seen there well before they hit Australia,”

drinkers have over time migrated towards

North American brand for many decades”

Day said.

easier drinking brews that are lower in

and “a counterpoint to mainstream

bitterness, to the point where we now see

Australian lager.”

And while Budweiser and PBR are tapping into the preference for sessionable, easy

two-thirds of the Australian beer market’s

Within its home nation, PBR has one

value sitting below 20 International

of the more interesting brand journeys,

Bitterness Units (IBU).

recovering from a two decade decline to

“Voodoo is in the big flavourful space –

become a favourite of the counter-cultural

when craft drinkers pick up a Voodoo IPA

‘hipster’ demographic of the 21st century.

they know it’s going to be packed full of

“The top 10 North American beers in Australia average just 10 IBU, and it

drinking beers, Voodoo Ranger is targeting the other end of the flavour spectrum.

is this alignment in easy drinking, low

“PBR has always attracted counter-

flavour and make an impact, something we

bitterness styles that is at the core of why

cultural demographics globally, particularly

know they love to then go and share with

North American beers resonate with

within the arts, music and sport scenes,”

their mates,” Day said.

Australian drinkers.”

MacFarlane says.

Retailing North America

Besides the science of bitterness, Bonollo

“PBR is highly sessionable and provides

says the irrepressible cultural heft of the

an exciting, no-nonsense beer experience

All the brands in this story agreed that North

United States also benefits the stature of

that really is designed for inspiring

American drinks require a dedicated and

North American beers in Australia.

moments of celebration and fun amongst

different approach to standard Australian

these communities.”

products. In particular, the strength of

“We believe that Australia’s long-term 40 | National Liquor News

North American Drinks

American culture was identified as something that retailers can translate into sales. “Our key advice to retailers would be definitely

Another commonality amongst brands

Californian wine

was the recommendation for a wide North

Australia’s wine industry is one

American range.

of the world’s best, and as such,

to maximise opportunities where PBR is well-

“It is crucial that retailers continue to offer

regarded or has ties – such as American inspired

a diverse range of international brands to

other nations to break in.

events or national days,” MacFarlane says.

cover a broad range of shopper preferences

Yet, there are some

and occasions that people are looking for,”

particularly strong brand

Bonollo says.

narratives out there that

“Fourth of July and Superbowl are obvious occasions for North American beers and should be part of retailers’ promotional calendars.”

it can be difficult for wines from

MacFarlane concurs, saying: “It’s really

retailers should not overlook

This perspective is shared by Bonollo, who

important to not neglect the value in some

completely, and none are as

said: “We recommend taking full advantage

of these North American alcohol brands,

strong as Robert Mondavi

of key North American sporting events,

particularly those with long histories.”

Private Selection, as

specifically around the NFL Superbowl and NBA playoffs.

While Milne concluded: “I think having

Constellation Brand’s Brand

a range to offer is key. Consumers are clearly

and Activation Manager,

“Budweiser will also continue as the official

seeking a more premium offering, so if you are

Andrew Theodosi, explains.

beer sponsor for the FIFA World Cup in 2022.

only stocking mainstream brands then you are

The key North American holiday occasion of

missing out on a higher average basket weight

Central Coast became

scale for Australian activation is Halloween.”

and more frequent purchasing.”

synonymous with exceptional

■

“Long before California’s

wine, legendary winemaker Robert Mondavi pioneered the region,” Theodosi says. “He inherently recognised the Central Coast’s potential to produce phenomenal grapes—and, ultimately, wines of the utmost quality—at a more accessible price.” Theodosi also believes that Californian conditions offer a crucial point of difference to Australian wines. “The California growing region has a perfect blend of fog, wind, chill, and warm sunshine, almost every day,” he said. “These conditions cause the grapes to ripen slowly, producing intense, pure fruit flavour. The warm days and cool nights of California provide ideal ripening conditions for the grapes to develop complex flavours and deep, concentrated colour.”

June 2022 | 41

Banner Groups

Reign of the independents Some of the country’s biggest banner groups discuss their thoughts on the current state of the Australian off-premise industry and how they have carved out strategies of success.

Despite a couple of years of pandemic uncertainty, Australia’s off-premise industry is an incredibly vibrant one at the moment. With on-premise venues forced to close and many changing restrictions on the lives of consumers, the liquor retail sector was where many people turned to, developing shopping habits that remain influential even as things return more to normal. Independent retailers often saw great results from these changes in habits, as consumers embraced local and small businesses like never before. And from that, they’ve learned the value of these retailers and continue to show their support. This has meant great things for Australia’s independent banner group networks, who are helping keep countless independent retailers competitive and make the most of their businesses. These banner groups aren’t resting on their laurels either – they’re continuing to push for the best for their members and contributing to that vibrant off-premise industry that consumers are enjoying. In these pages, we caught up with the people behind some of the country’s leading banner groups – Thirsty Camel VIC, Liquor Marketing Group (LMG), Independent Liquor Group (ILG), Independent Liquor Retailers (ILR), Liquor Legends, Independent Brands Australia (IBA) and Liquor Barons – to find out how they’re performing, what they’re working on, and what plans they have for this year and beyond. 42 | National Liquor News

■

Banner Groups

What’s trending The people behind some of the country’s leading independent banner groups share the top retail trends they are keeping an eye on at the moment. “We continue to see growth in premium products, particularly spirits $65+ and bottled wine $30+. This premiumisation trend is even more apparent when combined with the other major trend, being e-commerce adoption, which saw +65 per cent growth in Q1 2022, on top of the +262 per cent growth for the same period last year.” – Gavin Saunders, LMG “I’m watching the resurgence of differentiation. In my opinion, this is going to become more and more important as consumers seek out new experiences. This also will mean the ‘one size doesn’t fit all’ trend will accelerate.” – Chris O’Brien, Liquor Barons

“There are numerous trends in the market at the moment such as zero alcohol, the expansion of beer categories and the ever-growing presence of NPDs. Outside of products, the other trend we are dealing with is the crippling freight costs around the country and removal of discounts on certain products due to lack of supply.” – Paul Esposito, ILG

“Cocktails at home, whether they be the ready to serve cans, bag in box or pre-batched full size bottles. There’s so many variations that have come out really quickly in the past few months that are a

“I’m closely watching the world of automation and on-demand real-time deliveries. Overseas we’re seeing drone and robot deliveries, trying to combat the biggest drain on online profitability - delivery fulfilment. We’ve also seen micro fulfilment centres that allow even quicker delivery, and as new players disrupt the

hit at the moment. Following that

market, shopper expectations on delivery time will

trend, we’re watching tequila, a

change even more.” – Raff Palermo, ALM

category we’ve been hearing a lot about lately.” – John Carmody, Liquor Legends

“The cocktail trend and growth of at home

“As health adopts a more holistic

cocktails is an interesting one. This plays

meaning in 2022, more consumers will

into the at home occasion and saw massive

seek both physical and mental wellness.

growth during the pandemic but we are

The low and no alcohol category is a

starting to see signs of this tailing off as the

great opportunity for our membership to

on-premise fights to bring customers back.” – Corey Leeson, ILR

capitalise on different trading occasions.” – Adrian Moelands, Thirsty Camel VIC

June 2022 | 43

Thirsty Camel Victoria

Thirsty Camel VIC gives back to members Adrian Moelands, General Manager of Thirsty Camel Victoria, talks about how the business has reinvested its positive results for the benefit of members. Q - How has Thirsty Camel VIC been faring in 2022 so far? this year, which has enabled us to give

Q - What do you see as the biggest opportunities and challenges for Thirsty Camel VIC for the rest of this year?

back more to our members. Total business

Thirsty Camel members have connected and

value is up 15.14 per cent YTD, while total

supported their local communities through

Q - What are the key things you are working on to support your members at the moment?

business volume is up 10.65 per cent YTD.

the toughest of times. This connection with

There are a few imminent initiatives that

We supported our members by giving them

the local community and the format of our

we’re working on to deliver great outcomes

triple rebates in Q2 and double rebates in

convenient retail format, gives us a great

for our members, and these will continue

Q4, and we funded core range for every

base to build from in multiple ways this year,

to be a focus for Thirsty Camel VIC in the

single member.

as we cater to the latest consumer trends and

near future.

We have experienced great results already

Whilst it’s great to see our business continually growing, we are most proud of

continue to deliver the best for members and customers alike.

time trade, so it will be important for us to be ready to service these new consumers.

For example, we’re introducing a tiered store model and Retail Excellence program,

the behaviours of the company. We are here

One area of opportunity we’re watching

for the members and we must ensure we

closely this year is the non-alcoholic drinks

continue to give back as much as possible.

category. We believe this category can drive

We have also started to roll out the

That’s what you do when you are a member

new consumers into our stores during

next phase of our loyalty program, Hump

first organisation.

current dwell times, for example with lunch

Club, including an app and the ability to

44 | National Liquor News

which will allow each store to have a tailored program and growth plan.

Thirsty Camel Victoria

wallet. Hump Club will also have a drive thru

Q - You recently held a conference in Port Douglas – how did that go?

solution and improved data to better target the

Having just returned from our first forum since

right consumers.

2019 with record attendance from both suppliers

add your loyalty card to your smart phone’s digital

and members, there were many highlights for us.

Q - What is the role of the online for Thirsty Camel right now?

This included being able to present the year’s plans,

We know consumers are looking to save time and

what our focus is moving forward.

showcase the past year’s amazing results, and discuss

many are making their decision pre-store, so we

At the forum we also welcomed 19 new stores and

are launching some digital initiatives to ensure we

12 new suppliers. There were more supplier stalls at

are engaging and capturing consumers before they

our expo than ever before, with exclusive deals for

physically enter the store.

attending members from both suppliers and our wheel

Likewise with our loyalty program and the

of fortune.

upcoming launch of the Thirsty Camel app, we are

We held a cane toad race at the gala dinner, which

looking to make the online experience as seamless as

saw $5,000 raised for the Ronald McDonald House – a

possible utilising click and collect, which will assist in

great result for a good cause.

providing a loyalty solution in conjunction with the drive thru as well.

On returning from Port Douglas, we also had the pleasure of awarding the Local Legends Award at the recent AHA awards to Peter Appleby from The Grand

Q - What would you say the general focus is at Thirsty Camel VIC now and into the rest of 2022? We are focused on embedding the programs that have been launched recently, as we believe these programs

Hotel in Warrandyte and Michelle McQuilton from Woolsthorpe Union Station Hotel.

■

Dave Upham, Adrian Moelands, John Upham and CEO Peter Bishop

are going to deliver great value to our members. Our innovation hub is also looking at some new and innovative retail solutions that will further support our membership. One such solution we’re looking into is digital shelf ticketing, so we will continue to explore that further. There will also be a focus on playing to our strengths, which first and foremost is the convenient store format of Thirsty Camel VIC stores. Consumers continue to seek fast and easy solutions, so our layout and inclusion of drive thru has substantial appeal.

Q - How do you see the liquor retail landscape evolving in the next 12 months? We expect trends that thrived during the pandemic, like that of premiumisation and no and low alcohol, will remain influential over the coming year. Likewise, we expect the uplift of shopping local will continue, despite consumers getting back into their regular routine now that pandemic restrictions have been lifted. The local community remains important to these consumers and they will seek out local shopping destinations. June 2022 | 45

Liquor Marketing Group

Refreshed opportunities for LMG Gavin Saunders, CEO of Liquor Marketing Group (LMG), notes how retail refresh and branding activity has led to great growth for the group and its members.

Q - How has LMG been faring in 2022 so far?

executing a leading retail offer for their

independent retailers. The average basket

customers and drive incredible growth

size online is more than double an in-

LMG member performance has continued

which has been achieved over the past year.

store transaction and it has strengthened

the strong growth and momentum enjoyed

customer engagement and retention. A significant opportunity for LMG is to

considerable investment in LMG marketing

Q - What are the biggest opportunities and challenges for LMG for the rest of this year?

and programs, has continued to deliver Q1

The biggest opportunity and challenge for

and websites.

growth volumes for LMG being greater than

LMG and our members is to retain and

E-commerce has been adopted by

25 per cent higher than Q1 CY2020. For

further grow our customer base which

our customers due to the benefits of true

context, this performance compares against

we have attracted over the past two years.

convenience. The LMG platform offers

reported results for major competitors of

LMG members have enjoyed strong growth

one hour delivery, plus the full range and

growth between three and six per cent. Areas

in customer count as more shoppers focus

aligned pricing with in-store. As more

of progress for LMG include our retail store

on local and convenience and with this

and more shoppers are delighted by these

refresh program, resulting in 93 stores being

trend combined with LMG programs, it has

benefits and more, there is no reason to

refurbished in the past year and strong sales

delivered market leading retail sales growth.

believe that the rate of adoption and growth

over the past few years. Consumer trends towards convenience and local, alongside

growth, with a notable increase in premium

further grow the e-commerce reach of the Bottlemart, SipnSave and Harry Brown apps

will diminish any time soon. e-commerce platforms is the ability

where LMG was selected as the retail partner

Q - Do you have any new customer initiatives you’re excited about for this year?

to rebrand 21 AVC stores across four states,

LMG will refresh and relaunch our e-commerce

social media. LMG digital data base

under the Bottlemart, SipnSave and Harry

app and website in August. The existing

marketing and social media drive our

Brown brands. The Harry Brown brand itself

platform has delivered great results, however

e-commerce performance which benefits

has grown, with LMG on track to deliver

the upgrade provides many more exciting

our members.

on our strong expansion plans for our

opportunities to engage with customers, for

large format retailer brand. Four new store

example, with loyalty integration, gamification,

Q - What is LMG’s biggest strength?

openings in 2022 will bring the total number

endless aisle and favourite shopping lists which

LMG strength is through having a

of stores to nine and another two stores

notifies customers every time their favourite

membership of exceptional retailers and

are in the pipeline for 2023. Harry Brown

products are promoted.

a structure where LMG’s sole focus is

product sales in refreshed stores. We’ve also had the AVC partnership,

provides the opportunity for members and

The other unique benefit of the LMG to market offers through digital and

supporting them to grow their businesses.

Q - What is the role of the e-commerce for LMG right now?

This structure and focus has allowed us

high volume stores operated by exceptional retailers who are committed to ranging and

E-commerce offers a great opportunity for

delivers growth ahead of the market.

suppliers to work with a small number of

46 | National Liquor News

to invest in platforms and support which

■

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NLN.MAY2022

Independent Liquor Group

ILG to build on growth with strong 2022 pipeline Paul Esposito, CEO at Independent Liquor Group (ILG), talks about the exciting plans of the cooperative and what this will mean for members.

Q - How has ILG been faring in 2022 so far?

disruptions. Even with all the supply chain

Our members are on track for another

Q - What are the key things you are working on to support your members at the moment?

record year, with ILG sales revenue set to hit

We are working on numerous projects to

current environment.

$418M. Happily, ILG is still experiencing

help support the membership. In QLD, we

membership growth in all states with our

will purchase a new modern warehouse, to

Fleet Street banner soon to hit a milestone

better service our QLD and Northern NSW

of 20 stores in both NSW and QLD. Our

members and provide consistency in all

Q – What can suppliers be doing to better support banner groups right now?

other banners, Bottler and Supercellars,

three sites. We have significantly increased

We’ve always valued our relationship with

have maintained momentum with significant

our investment in e-commerce and digital

our suppliers. Unfortunately, some suppliers

growth in sales revenue and membership in

to drive traffic flow to our member stores.

(not all), can’t resist the temptation of

NSW, QLD and Victoria. In summary, we are

Our complimentary business development

‘dumping’ stock into larger non-wholesale

on track to achieve all the goals we have set

training workshops recommenced this

groups, giving them the ability to sub

with member benefits and returns increasing.

month after two years due to COVID,

wholesale. Competition is good, however all

designed to put current business practices

we ask for is a level playing field to allow our

Q - What are the biggest opportunities and challenges for ILG for the rest of this year?

under the microscope and develop practical

members the same buying opportunities.

suite of skills, which is vital in a business

Q - Anything else to add?

The biggest challenge we face is the continual

environment where flexibility is the key.

ILG is built on its members, not investors,

issues, our service levels are still at these levels. This is a great achievement in the

and long-lasting changes to any manager’s

disruptions to supply chain and the impact

We have some other exciting initiatives

shareholders or speculators. The purpose of

it is having on cost of goods and freight.

in the pipeline too. We are in the process of

ILG is to provide goods and services to its

Another challenge we are experiencing is

launching Liquorstop Warehouse in late June,

members. We aim to operate more efficiently

the loss of members due to acquisitions

and my IT team has been working on new

than our ‘for profit’ competitors because we

by the chains and other groups. On the

member portals for a simplified ordering

don’t need to reward investors. We are equitable

flipside, sometimes these acquisitions work

process and better visibility on inventory.

because we reward members who engage

in our favour. Our biggest opportunity is

with ILG, rather than rewarding investor shareholding. Our goal moving forward is to

members. We have restructured our product

Q - What are the biggest strengths of ILG right now?

and pricing offering, which gives our on-

During Christmas and Easter, we managed

our influence in the marketplace. We aim to

premise, restaurants, caterers better buying

to keep delivery service levels to the

lower our distribution costs, provide better

prices and services.

members above 98 per cent with minimal

pricing and share the benefits with members.

our wholesale business to non-bannered

48 | National Liquor News

recruit more members so that we can increase

■

Become a part of Australia’s Largest Liquor Co-operative

Now 20 stores strong and growing “First of all let me say that you guys have been truly helpful in setting up the first Fleet Street in the Blue Mountains. From creating floor plans and category to fill a shop, advice on stocks, set ups, ordering, training and the final stretch to opening has been an exercise. The support and assistance have been outstanding. I expected assistance but what I got was a partnership. We are looking forward to the opening which will take place in mid-June 2022”

- Kun Rahadian, Hometel Group “ILG understands the challenges of running a small business and has a team dedicated to lending a hand and be there to help us. Fleet Street has allowed us to showcase and offer a distinct range sought after by the locals”

- Sam Ingham-Myers, Fleet Street, Camp Hill Cellars

FOR MORE INFORMATION Pat Kenny 0409 308 341 (NSW/VIC) | Craig Stephenson 0434 575 589 (QLD)

Independent Liquor Retailers

ILR champions the local community Corey Leeson, General Manager of Independent Liquor Retailers (ILR), discusses how localised tailored strategies will remain key to the group’s success for the rest of this year and beyond.

Q - How has ILR been faring in 2022 so far, and what do you see as the biggest opportunities and challenges coming from this for the rest of the year?

our business to be able to market in smaller

costs of doing business and provide programs

areas within NSW, ACT and QLD to tailor

and platforms that will deliver incremental

advertising with popular local products and be

margin and increased consumer foot traffic.

a champion of the community. This provides

We’re continuing to work on regionalising

We’re holding strong and continuing to

a key point of difference to our competitors

our offers to cater for local demographics and

grow sales with above average growth in

while supporting local producers.

upscaling our digital and online offerings to

certain categories. We are continuing to

We are also rolling out cost saving

expand and invest, to grow the membership

measures for retailers to help them with

in new markets of QLD and soon VIC.

their costs of running a business. These

steal customers from our competitors.

Opportunities include our continued roll

include electricity offers, merchant services

Q - How can suppliers better support banner groups right now?

out of digital services to improve marketing

savings, paperless receipts and convenience

Provide a point of difference to help the

and grow sales via digital advertising

lines savings, as well as exclusive category

independent sector. Brands are grown

and e-commerce solutions. Plus, we will

programs that offer additional discounts and

in independents, not the chains. Provide

be riding the market trend of shopping

rebates for stocking profitable, high margin

unique products and promotions that give us

local. We are the only group in Australia

lines supported by suppliers.

enhanced margins and a reason to support.

with the name Local Liquor, so we will be

But also be mindful that stores don’t have

Q - What is the role of e-commerce for ILR right now?

‘rubber walls’. The amount of new product

benefits of shopping local and celebrating the community our retailers operate in.

We have set up our own e-commerce

going to support a new line, it has to deliver

The biggest challenge will be managing

platform under myfoodlink to provide

higher than normal promo GP and shelf GP,

the continually increasing cost of doing

an option for members to get into online

be backed by an extensive marketing and

business, with the ongoing battles of logistics,

retailing. Seeing the growth in online,

sampling campaign and have an exit strategy

fuel costs, import costs, dry goods costs and

we understand the need to have an omni

if it doesn’t work.

out of stocks all putting pressure on prices.

channel presence and so have partnered

launching a brand campaign to show the

being launched is out of control. If we are

with marketplace solutions such as

Q - Anything else to add?

Q - What are the key things you are working on to support your members at the moment?

DoorDash and Uber to help our retailers

If anyone is interested in looking at a banner

cater to demand with same day delivery.

that will deliver you a more profitable and

We are aiming to be the market leader in

Q - What is the general focus at ILR now and into the rest of 2022?

give us a call. We bat above our weight and

regionalised advertising by capitalising on the trends of local products. We have set up

To provide solutions to help members save on

of your community, join Local Liquor.

50 | National Liquor News

customised solutions to make you succeed, if you want to be a true local and champion

■

BECOME a local GET HIGH REBATES AND EFFECTIVE MARKETING

BE A PART OF TARGETED, VIBRANT AND EFFECTIVE MARKETING CAMPAIGNS SHARE IN ALL PROFITS AND ENJOY HIGH REBATES DO NOT PAY MEMBERSHIP FEES DO NOT PAY FINANCE FEES DO NOT PAY MONTHLY OR ADMIN FEES DO NOT PAY SHRINK WRAP FEES WE ARE RUN BY OUR MEMBERS FOR THE BENEFIT OF OUR MEMBERS

We are truly local

AND WE HAVE A BANNER GROUP TO SUIT YOU

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Liquor Legends

Liquor Legends enjoys growth in its 30th year John Carmody, Managing Director of Liquor Legends, said the banner is focused on delivering on its core mission during this milestone year. Q - How has Liquor Legends been faring in 2022 so far?

what we promote to get that mix right and

We’ve been lucky that it’s been a really great

Q - 2022 marks 30 years of Liquor Legends - how will you be marking the occasion?

year for us so far, coming off the back of

We’re putting together something that

related to data, and how to utilise that to make

the uncertainty of the past few years. In

will see our biggest investment behind a

our members’ lives easier. Simplicity is what

the past quarter, our sales have been up

promotion ever. We want to really give

we’re really striving to provide for members

by greater than 10 per cent on the year

back to the customer and embody what our

with all our services, so they can spend

prior, each month. Sales are outgrowing

business is, around that ‘reward yourself ’

their time focusing on the things that really

business growth and we’re really proud

message, and reward them for supporting

matter to them at a store level. Finally, digital

to be delivering such good results to

us for 30 years. As an independent business,

marketing is a focus for us, as we expand

our members, some of which are above

customers are the lifeblood of what we do.

what we’re doing in this space and also fine

industry standard.

I’d also like to thank our members and

tune existing operations. We need to evolve

suppliers for evolving with us and seeing

as our customers evolve and reflect on who

Q - What is the role of e-commerce and online for the business right now?

the absolute benefit of our model. We do

we are as a brand.

It’s a big part of where we have focused

mindset allows us to make the right

our energy, but we haven’t forgotten about

decisions with the amazing support of

Q - What can suppliers do differently to support banner groups?

the traditional side of the business. We

these members and suppliers.

It’s important to be innovative, try new

better use our data to deliver great sales and transaction growth. Number two is also

it differently, but that real data focused

see e-commerce as complementary - it’s

things and get rid of old ways of thinking. A big focus for us with suppliers has been

retailers and our customers, whenever they

Q - What is the general focus for Liquor Legends for the rest of 2022?

need it. We don’t expect it will be 100 per

We always start with our mission statement,

pushing this through our channels too, which

cent of our customers’ shops, but if we don’t

which is to be the best imaginable partner

we haven’t done in the past but we’re working

have that offering there, we’re missing out

for our suppliers, members, retailers and our

closely with suppliers to do more now. We’ve

on a whole customer base that would go

team. We will live and breathe that this year,

identified what we can improve from our end

to our competitors instead. It’s also a great

with a few key objectives underneath.

too - marrying up our data to our suppliers, to

about having an option that’s there for our

way to attract new customers who may not have shopped in-store. 52 | National Liquor News

Number one is to grow the members’ GP dollars. We’ll look at how, when and

the digital support of brands - we’re keen on

help retailers order better and help suppliers have the right stock levels for each store.

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Independent Brands Australia

IBA raises the digital bar Raff Palermo, Head of Digital at Australian Liquor Marketers (ALM), discusses the company’s online strategy and how this supports its network of Independent Brands Australia (IBA) retailers.

Q - What is the role of e-commerce at IBA right now?

has increased. Same day delivery, and

E-commerce is a top priority for the

facilitate this, as well as agile solutions for

Q - How are you supporting IBA members in the online space right now?

business. Over the past two years, ALM

regional stores. Shoppers have heightened

Our digital platforms are designed with

has been investing in its digital capability,

awareness around their orders so it’s

IBA retailers in mind, and we will partner

ramping up scale and focusing on customer

critical we keep our promises on delivery

with retailers in all aspects. Training,

centric execution and experience.

time frames.

onboarding, order fulfilment hardware,

partnerships with providers that can

Continually raising our game has meant

Click and collect order fulfilment has

fraud protection and prevention,

we have moved from marketplace model

become resurgent again, increasing by

marketing, customer service and lead

ShopMyLocal, to IBA bannered standalone

more than 20 per cent since the start of

generation is through the line integrated.

e-commerce sites for Cellarbrations, The

December last year. Shoppers are coming

We will support our retailers in delivering

Bottle-O and Porters Liquor, facilitating

in-store for a number of reasons, including

an exceptional experience for their online

expanding shopper missions. Pleasingly, in a

convenience and safety (not needing to

shoppers. These things are done centrally

short period of time we have become

and executed locally for the benefit

an integrated offering; both the

of the whole network.

physical and online retail offerings

Q - How do you see the liquor retail landscape evolving in the online space in the next 12 months?

have come together in one strategy, one plan and one conversation with our retail and supplier partners. The second important part of e-commerce is catering to the surge

Online sales are reported be in the

in on-demand deliveries, which are

vicinity of $2.0bn, which makes up

expanding our audiences and their

nearly 10 per cent of total liquor

new shopping preferences. We currently have

browse in-store), flexibility (browsing in-

retail. While we won’t experience the

partnerships with Uber Eats and DoorDash

store), and immediacy (with rapid purchase

multi-year growth that happened during

marketplaces in this quick commerce channel,

and collection options). Selling via digital

lockdowns, and inflation will impact it,

servicing stores in Victoria, New South Wales

channels creates increased ‘stickiness’ of

the growth of online will continue at a

and now Queensland.

consumers for our retailers with more

faster rate than physical retail. For me,

reasons for shoppers to interact with them.

a baseline has been set - shoppers are

Our e-commerce strategy and our future mindset is about being not just relevant

now comfortable buying online and will

Q - Do you have any new initiatives you’re excited about for this year?

continue to do so.

Consumer personalisation. Consumers have

retail – we want to use online solutions to

Q - What are the biggest opportunities and challenges for ALM in this digital space this year?

an expectation on how their data is being

complement in-store and invest online growth

used to make their online experiences

back into bricks and mortar businesses. We

richer. Our ability to create scale and brand

know consumers still want to shop local and

It is all about the shopper and consumer

visibility for our retailers across the three

we are enabling them to do this across the full

experience. Technology and the fulfilment

banners but balance it with a local and

path to purchase. Replicating our physical

is critical to any e-commerce channel

personalisation for their individual outlet

strength online boosts convenience for

and consumer expectation since COVID

will, I believe, really see us lead in this space.

consumers and coverage for our retailers.

in all paths to purchase but to lead the e-commerce space for our retailers.

54 | National Liquor News

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Liquor Barons

Liquor Barons beats expectations Chris O’Brien, General Manager at Liquor Barons, details how the WA cooperative has seen sustainable growth in 2022 so far.

Q - How has Liquor Barons been faring in 2022 so far?

we take growth at all costs, or do we continue

Liquor Barons ran a very sophisticated

with our model of taking growth with the right

e-commerce solution for three years, before

Liquor Barons is performing ahead of

members? We think that over time, quality will

closing it down five years ago.

expectations. We had budgeted for a slight

outperform quantity, so our focus is to continue

decline in off-premise sales on a like for like

to pursue those retailers who share our values

basis, for both the calendar and financial

and our culture and who can add value to our

years, but we’ve been fortunate that this

business, while we add value to theirs.

hasn’t been the case.

Providing we continue to pursue quality

Q - How do you see the liquor retail landscape evolving in the next 12 months, in a post-COVID restriction environment?

The opening up of the on-premise and

members, quality advertising and quality

I think COVID has been particularly

the borders had a significantly lesser impact

in promotions, I think we’ll continue to

kind to good independent retailers. It has

on our performance than budgeted, and

perform at an above market level.

encouraged a number of consumers to

therefore, we’re still growing from what

give us a go and those independent liquor

Q - What’s the role of online and e-commerce at Liquor Barons at the moment?

retailers who give great experiences have

with us. Not only have we achieved growth on

I’m not convinced there’s an independent

surprised and heartened by the reluctance

a same store basis, but our model is resonating

group in the marketplace that has an

of new consumers to return to their pre-

particularly well with the trade as well in that

e-commerce solution I would be interested

COVID habits as the general environment

our number of stores has also increased - the

in using as a shopper. There are individual

returns to pre-COVID settings.

cooperative now has 94 members and our

specialist liquor retailers in the independent

pipeline is particularly strong.

space who are offering excellent online retail

was a phenomenal COVID-influenced set of numbers from the previous financial year. A real standout is that the momentum is

Our strategy is focused on having the best liquor store in each town or city around

experiences, however, at a group level I don’t see this at the same standard.

been able to win many of these new or returning consumers over. I’ve been both

Q - Is there anything suppliers can be doing differently to better support banner groups?

Western Australia, not just Perth. This has

For us, we’re focusing on using the digital

Right now the industry is structured with

been particularly successful and we continue

space to emphasise our customer experience

independent banner groups being rewarded

to attract the best retailers from around the

and to continue to drive people in-store

for taking on additional stock or volume at

state to our cooperative.

to achieve that great experience. We do

more cost, as opposed to delivering good

have a handful of individual stores who are

retail experiences. We would encourage the

Q - What are the biggest opportunities for Liquor Barons this year?

performing reasonably well in the online space,

supplier community to look at how they

and we continue to provide those individual

structure pricing and trading terms and

sites with class-leading technology solutions.

acknowledge that both brand building and

In terms of growth, the big question is: Do

But we choose not to run it as a group now.

volume can and should be rewarded.

56 | National Liquor News

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Retailer Profile

A total focus on the customer The simple philosophy of Liquor Barons Duncraig is what helped it become the Liquor Retailer of the Year at the most recent LSA WA Awards.

Before becoming the Co-owners of Liquor Barons Duncraig, Mick Donovan and brother-in-law Andrew Charleson have always held an interest in the liquor industry, being employed in both the wine and on-premise sectors for multiple years. According to Charleson, it’s the human element of the industry that has kept them here so long. He said: “When you’re talking liquor, the conversation is invariably a happy one.” This positivity extends to the operation of Liquor Barons Duncraig, helping it be named Liquor Retailer of the Year at the most recent Liquor Stores Association of WA Awards. “We don’t do this for accolades but we have worked extremely hard to build

“We carry enough stock in the shop

allow you to spend more time getting

our business, so it was very gratifying,

to bring a slight tear to the eyes of our

to know your customers and grow their

particularly for our staff, who are just

accountant, but having a comprehensive

interest in wine.”

fantastic and always give us their all,”

range of products relevant to our customers’

Although COVID impacted these events,

Charleson said.

needs is critical. We also then need to present

it didn’t impact consumers’ appetite for

those products in a way that encourages

more knowledge, with Liquor Barons

them to keep coming back,” he said.

Duncraig recording a marked uptake in

Donovan said the store’s philosophy is pretty simple - be totally focused on the customer.

Although the store is focused on wine,

people choosing more quality products to

“We want our customers to enjoy their

the mixed demographic of customers allows

shopping experience and that starts from the

Liquor Barons Duncraig to carry a range of

As we move away from this COVID

minute they walk in the door. Our staff are

categories and not be dependent solely on

era though, Charleson and Donovan say

there to be courteous, friendly and helpful,

one. Big movers at the moment are driven by

they “couldn’t be happier” to be in retail,

but not imposing. All the little things add

both local and national trends, and include

especially under the Liquor Barons banner.

up and each is vitally important,” he said.

Western Australian wine, hard seltzer, and

They said that in challenging times, being

craft beer.

able to rub shoulders with other members

“When you build good relationships with

try at home.

your customers, the rewards come and you

Donovan and Charleson said they

who have been in the industry for decades

create strong loyalty and trust. It’s not rocket

enjoy the challenge of getting customers to

is invaluable, as is the WA localised services

science but it’s certainly the foundation of

broaden their tastes and try something new,

of the banner.

strong effective customer service.”

which is something they have embraced by

They said: “Liquor retailing has always

introducing themed wine tasting and food

been presented with challenges and now is

pairing events.

no different. Rising costs, lower margins,

With this philosophy in mind, Liquor Barons Duncraig is confident in its approach and how this keeps it competitive against other

These events have been hugely successful,

health conscious consumers… the list goes

stores in the area. This extends into the product

if not difficult during COVID, with

on, but we are still in the best industry ever,

mix on offer too, as Donovan explained.

Charleson noting: “Events such as these

so we just crack on and adapt!”

58 | National Liquor News

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National Liquor News June 2022

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IRI: Digging into the non-alcoholic numbers

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EVENTS

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