National Liquor News May 2019

AUSTRALIA’S LEADING LIQUOR INDUSTRY MAGAZINE

vol. 38 no. 4 - MAY 2019

WHISKY ON WHEELS How Glenfiddich’s Whisky Wanderer will spread the word on the world’s most awarded single malt

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EDITOR’S NOTE

Editor’s Note

W

elcome to the May issue of National Liquor News, one where I have had to step into the Editor’s chair while your usual Editor, Deborah Jackson, recovers from concussion.

Deb was involved in a pretty nasty car accident back in March and while she thankfully walked away from the accident, the concussion she suffered is still a concern for doctors. I am sure you will all join me in wishing Deb a speedy recovery – we all miss you in the office Deb. Looking at what’s going on in this issue, there is lots for us to talk about following another busy month in the alcohol and packaged retail industries.

Lion are once again making headlines as the company continues its foray into the craft spirits category. Following its purchase of 50 per cent of Four Pillars Gin in March, Lion acquired a minority stake in Vanguard Luxury Brands in April, who funnily enough are the distributors for Four Pillars.

Iconic South Australian banner group, Sip’n Save (SNS) celebrates its 40th birthday this year, with celebrations happening throughout May. We’ve spoken to the current President, General Manager and the CEO of Liquor Marketing Group about what has helped make SNS such a successful and popular group and one that has survived and thrived over the last 40 years.

This issue also sees the Publisher of NLN, Paul Wootton, reporting on his recent trip to ProWein.

The world’s largest wine fair turned 25 this year and while 11 show halls with nearly 7000 exhibitors can be pretty intimidating, Paul donned his comfortable shoes and walked the halls to discover what is new and trending in the wine world.

Wine Talks returns this month and we’ve spoken to Adrian Sparks, the Chief Winemaker at Mount Pleasant about his ‘less is more’ process to making wines at the Hunter Valley winery, and letting the wines and vines speak for themselves. We’ve also spoken to the team at Hardys about their newest release – a new, richer pair of red wines, forged in

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

Andy Young

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PUBLISHER: Paul Wootton

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ACTING EDITOR: Andrew Young ayoung@intermedia.com.au

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fire, and how these are underpinning the brand’s vision to drive growth.

Charles Whitting has looked into the readyto-drink category and has spoken to a number of suppliers and retailers about the continuing evolution of RTDs and why they are an essential part of any retailer’s offer.

We also have the regular contributions from IRI, Retail Drinks Australia, Spirits and Cocktails Australia, Alcohol Beverages Australia as well as NZ Winegrowers and Wine Australia.

The NLN Tasting Panel this month tasted a range of Cabernet Sauvignon, and you can see which wines ranked well over pages 44 to 47.

You can keep your feedback coming through nationalliquornews@intermedia.com.au, we are always keen to hear your feedback, look at issues concerning you at the moment, and making sure we make this mag work for you.

Cheers Andy

kthorburn@intermedia.com.au

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DISCLAIMER

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NATIONAL LIQUOR 40 | MAY 2019

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4 | MAY 2019 NATIONAL LIQUOR NEWS

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I T ’S B AC K T H E O R I G I N A L TA S T E O F J O H N N I E WA L K E R & C L A S S I C C O L A

AVA I L A B L E I N S TORES FROM JUNE

CONTENTS

20

39 8 38

31

Contents May Wine 20 ProWein: Paul Wootton brings us all the latest global trends from this year’s ProWein in Germany 28 Wine Talks: We talk to Mount Pleasant and Hardys 32 New Zealand Winegrowers: A celebration of New Zealand’s flagship grape – Sauvignon Blanc 33 Wine Australia: The advantages Australian wines have in the domestic market 44 Wine Tasting Review: Our Panel gives its verdict from our Cabernet Sauvignon tasting

Brews 14 Brewing: New releases, distribution deals and advertising disputes 18 New Release Beers: We shine a spotlight on some exciting new beers

6 | MAY 2019 NATIONAL LIQUOR NEWS

35 Independent Brewers Association: The IBA welcomes the changes in excise for brewers

Spirits 8 Glenfiddich: The whisky is bringing a touring distillery tour to Australia 13 Spirits News: What’s been happening in the spirits world 31 Spirits and Cocktails Australia: Can you really call it a cocktail party if your guests aren’t drinking cocktails?

39 RTDs: Innovations abound in a category that continues to thrive and grow

Retail Focus 26 Industry: What does the arrival of Kaufland mean for Australia?

30 Retail Drinks Australia: How to get the best out of your staff

34 Alcohol Beverages Australia: Setting out plans to raise awareness on pregnancy warning labels 36 Rent Reviews: Marianna Idas of eLease Lawyers discusses the pitfalls and processes of rent review clauses 38 Retailer Profile: Bucket Boys in Sydney, NSW 50 Shop Talk: We’re chatting beers with Coopers and The Bottle-O

Regulars 10 News: All the latest stories from Australia’s bottleshops 16 IRI: Facts and figures for the industry from IRI 48 Events: New launches and events – we were there to cover them

Start CeLebratinG with bottLeMart (winner of beSt retaiL Group at 2018 aLia awardS)

Bottlemart is winning with the shopper1 and thanks to the industry, winning at 2018 alia awards. the driVing ForCes are our Family oF retailers who represent the Bottlemart Brand on a daily Basis.

so, Cheers to you and start the CeleBrations with Bottlemart!

Call us now to find out how LMG can grow your business.

New South Wales Aidan Desmond 0427 250 618 | Queensland David Gyte 0411 039 723 Victoria Chris Christofi 0401 714 257 | Western Australia Mike Stubber 0419 992 542 South Australia & Northern Territory Simon Rowe 0417 417 886

1

Leading convenience liquor retailer for price perception, innovation, premium products and shopper satisfaction.

COVER STORY

GLENFIDDICH BRINGS DISTILLERY EXPERIENCE TO AUSTRALIA Glenfiddich is taking to the road with the Glenfiddich Whisky Wanderer, bringing a little touch of Speyside to Australia.

G

lenfiddich has announced the launch of the Glenfiddich Whisky Wanderer, a luxury whisky tour which aims to bring the distillery experience to life across Australia.

The tour will kick off at the Good Food & Wine Shows and will introduce retailers, trade and consumers to a truly spirited single malt journey with tastings, masterclasses, food pairings and exciting collaborations.

The Glenfiddich Whisky Wanderer is at the heart of a three-year program that will take Luke Sanderson, Glenfiddich Brand Ambassador, more than 9,000km across the country to share his whisky expertise with inquisitive mavericks.

“Because we are so far away from the distillery, for us this is all about bringing the industry experience to life and driving that pioneering spirit throughout the country,” Sanderson told National Liquor News.

And with the Glenfiddich Whisky Wanderer coming in the shape of a 1970 vintage Leyland two storey bus, it is a case of literally driving the spirit around the country.

Sitting at over 4m tall and 10m long, the Whisky Wanderer has been kitted out with a high-class premium bar, hydraulic pop-up roof and glinting copper stag’s head on the front.

HONOURING BRAND HERITAGE “There’s an undeniable and growing interest in whisky throughout Australia, so we wanted to bring a touch of the Glenfiddich distillery experience to Australia. The Whisky Wanderer

8 | MAY 2019 NATIONAL LIQUOR NEWS

“The Whisky Wanderer is the perfect accompaniment for our wonderful liquid, and in true Glenfiddich style, we wanted to do something with a difference.” Luke Sanderson, Glenfiddich Brand Ambassador is the perfect accompaniment for our wonderful liquid, and in true Glenfiddich style, we wanted to do something with a difference,” Sanderson said.

“This program is about honouring the brand heritage, while playing into the maverick spirit Glenfiddich has brought to the category. For those looking to try their first single malt, the tour provides the ultimate immersive and memorable experience to give ‘Blended Drinkers’ and ‘Malt Explorers’ confidence to trial something new.”

Sanderson told National Liquor News that ultimately the Wanderer is about helping the trade and consumers to understand more about single malt and breaking down some of the barriers surrounding single malt as a category.

“Sometimes it can be a bit intimidating

and we really want to break down those boundaries,” he said.

Sanderson explained that a lot of what Glenfiddich has been doing at the distillery is progressive and experimental, and that has been the case throughout the life of the distillery. The Whisky Wanderer is about helping the trade understand the single malt category as it continues to enjoy its growth trend, but also continues to develop and evolve.

“The trade focus will be learning about different ways that whisky is influencing life and particularly through a maverick spirit where you are allowed to be curious and challenge the norm. That will be through educationals and masterclasses and aligning with a couple of our key partners to drive teaching and awareness about the whisky category for the trade.

“We want to help drive education among staff and give them the licence to be advocates and have more confidence through selling and understanding what is in the bottle.”

With a lot of consumers interested in the story and true messaging behind brands, Glenfiddich’s role as the brand which started the single malt category is an important one for everyone in the trade to understand. With a trip to Speyside not something you can do in an afternoon, the Glenfiddich Whisky Wanderer offers a unique opportunity to immerse yourself in the distillery experience, understand about the brand and its history, and give your customers the confidence to make their single malt purchase.

BE PART OF AUSTRALIA’S LARGEST INDEPENDENT LIQUOR NETWORK • BEST STORE IN TOWN Best brands and offers to match your local market • MARGIN Increasing retailer gross profits up to +4% YoY • FOOT TRAFFIC Driving up to +2% more customers to store YoY • IN STORE SPEND Increasing basket size up to +3% YoY

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With group buying power, we can meet the demands of the local market and give your shoppers the best available offers.

NEWS

BACARDI-MARTINI AUSTRALIA APPOINTS NEW MANAGING DIRECTOR

James Brindley, James France and Rodney O’Connell

LION ACQUIRES MINORITY STAKE IN VANGUARD LUXURY BRANDS Lion has acquired a minority stake in the premium spirits distributor Vanguard Luxury Brands, further cementing Lion’s entry into the growing craft spirits category.

The announcement follows Lion’s recent purchase of 50 per cent of Four Pillars Gin, as well as the acquisition of leading UK craft brewer Magic Rock Brewing Company.

Vanguard Founder and Managing Director James France said the deal with Lion is a logical next step.

“This investment means we will go even further in providing the best brands for the best bars and retailers, and for that reason we are truly at the forefront of Australia’s flourishing craft and premium spirits industry,” France said.

“I look forward to continuing to lead the Vanguard business as Managing Director.

The culture and focus on premium brands that Vanguard is known for will be maintained, and we are enormously proud of this.”

Vanguard has been Four Pillars’ distributor since the distillery’s launch in 2013 which is set to continue, with the pair recently inking a new long-term distribution agreement. This means the same craft spirit experts will continue to sell Four Pillars to both on- and off-premise accounts.

Lion Managing Director James Brindley said the simultaneous deals between Lion, Four Pillars and Vanguard are a fortunate outcome for Lion as it enters the growing premium spirits category.

“James France is widely recognised and respected within the premium spirits industry here and around the world,” Brindley said.

“James and his team at Vanguard have been working closely with influential bartenders, hospitality operators and retailers for over a decade. Vanguard is a fabulous business and we at Lion will work hard to ensure we support Vanguard in continued service and engagement with our customers.

“This partnership is a combination of two strong businesses with complementary strengths and we are excited to see the growth that will come.”

Vanguard has been awarded On-Premise Supplier of the Year three times in the last six years at the annual ALIA awards.

10 | MAY 2019 NATIONAL LIQUOR NEWS

Bacardi-Martini Australia (BMA) has announced the appointment of a new Managing Director, Mauricio Vergara joining the Australia team from his role as Chief Operating Officer with Bacardi’s North American division.

Vergara has been with Bacardi Limited since 2013 and the appointment comes in response to the company’s growth in the Asia-Pacific region, with the company saying it “marks the continued development of global talent across the business”.

Regional Vice President Denis Brown, who will continue to have regional responsibility for Australia, welcomed Vergara to BMA and said he was looking forward to introducing him to the Australian market.

“I’m thrilled to welcome Mauricio Vergara to the North Asia Pacific (NAPAC) Region Bacardi Leadership Team,” Brown said.

“Mauricio and the leadership team will continue to focus on developing the spirit and cocktail categories. Australian consumers are enjoying more cocktails and mixed spirits like gin and tonics, as witnessed in the growth of the gin category, aperitifs and super premium spirits.

“I am looking forward to introducing Mauricio to Australia’s sophisticated bar scene and customer landscape gaining his input from North America. Also, I am delighted we can demonstrate developing talent globally with this appointment as we move to make the next 10 years Bacardi’s best 10.”

Vergara has spent 15 years in the beverage industry and has worked in various marketing and commercial leadership roles in his six years with Bacardi Limited.

“I’ve spent more than 25 years in brand marketing, 15 of which have been in the beverage industry,” Vergara said. “As someone who’s been responsible for commercial strategy, customer marketing and sales of the Bacardi portfolio across North America, I have a passion for the front end of our business.

“The global spirits industry is adapting to cultural shifts.

Consumers are more informed and want to know the story behind what they’re buying. I’m eager to continue to develop Bacardi-Martini Australia’s portfolio, leading a forward-thinking team in a pivotal phase of growth.”

Before Bacardi, Vergara has worked for Procter & Gamble, Coca-Cola, SAB Miller and Brown-Forman. He holds a Master of Business Administration and a Bachelor of Science in Marketing from Instituto Tecnológico y de Estudios Superiores de Monterrey in Mexico. Vergara will move to Sydney and begin his new role in July.

Mauricio Vergara

NEWS Doug May

DOUG MAY ANNOUNCES HIS RETIREMENT Doug May, Lion’s Trade Relations Director has announced his retirement, with his last day at the end of April.

May told National Liquor News that he was looking forward to his retirement and that there were still a few things he wanted to do, while he still could.

“I’m happy that I’m able to leave Lion on my own terms,” May said. “I’m going to buy a farm, have a few head of cattle and enjoy my retirement,” he said.

May has worked with Lion for 21 years, and in that time has proved to be a popular person across the industry, with many people happy to wish him well with his future endeavours.

James Brindley, Managing Director of Lion, told NLN: “Doug has been selfless and tireless in his work for our great industry, for Lion and for his customers and colleagues. I cannot thank him enough for his contribution.

“It has been a wonderful experience to work alongside him, to learn from him and to share many of the enjoyable moments this vibrant and dynamic industry has to offer. As Doug moves on, I must admit to feeling a sense of loss. His presence at Lion will be sorely missed. He is a good friend and worthy of the title of ‘Legend of the Industry’ bestowed by the Drinks Industry Association members in 2010.”

That sentiment was one echoed across the industry.

Shane Tremble, General Manager Corporate Services at Endeavour Drinks Group, said: “Doug understands that one of the great

strengths of our industry is its people, he built a network of friends, colleagues and relationships that covered every sector of the drinks industry and he has earned the respect of all of us.

He has always been a great ambassador for his business and for his brands, and a great advocate for his customers.

“Doug is one of the true gentlemen of the industry, I won’t say he’ll be sorely missed because I suspect I’ll keep bumping into him at the races.”

The good wishes also came from competitors, with Peter Filipovic, CEO of Carlton & United Breweries telling NLN: “Doug May’s passion for the industry and the customers that sell our beer is exceptional. Not only is he a great advocate for Lion, his support of the broader beer category, especially the perfect pour in the on-premise sector, has been a highlight over the time I have known him.

“Doug has an infectious personality, a great sense of humour and is a great entertainer. Wishing you all the best for the next chapter in your life. You will be sorely missed in the industry.”

May also worked alongside the Australian Liquor Stores Association, now Retail Drinks Australia, with Chief Operating Officer Michael Waters giving his regards.

“The Association, formerly LSA NSW and ALSA, now Retail Drinks Australia, has enjoyed a long, respectful friendship with Doug spanning several decades – it’s one that we will cherish and remember fondly.

“Quite simply put, there has never been, nor will there ever be another Doug May. He is known and respected by all and his professional legacy will be long remembered.

On behalf of the Retail Drinks board and management, we wish Doug a long, happy and healthy retirement.”

Everyone at NLN and Food and Beverage Media echoes all these sentiments and we all wish Doug a happy, healthy and long retirement.

HUGE GROWTH PREDICTED FOR ORGANIC WINE Organic wine currently represents only a small percentage of the global still wine industry, however new research from IWSR Drinks Market Analysis predicts a rapid increase over the coming years.

The growth, according to the IWSR Organic Wine Report, will be fuelled by growing consumer sentiment for sustainability and organic products.

The report forecasts that by 2022, worldwide consumption of still wine is projected to reach 2.43bn nine-litre cases. The organic wine subcategory is expected to post the strongest increases (+9.2 per cent compound annual growth 2017-2022).

“Overall, total still wine volume is increasing slightly but remains largely flat, while the organic wine market is forecasted to reach 87.5m cases by 2022,” said Mark Meek, IWSR’s CEO. “Much of that growth is being driven by

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Europe, which will account for 78 per cent of the global organic wine market by 2022. The Americas will represent about 12 per cent of total organic wine consumption.”

Organic wine is made from grapes grown without the addition of synthesised chemical fertilisers, pesticides, herbicides or fungicides.

Organic certifying bodies also place restrictions on the amount of sulphur dioxide that can be added to the wine and the chemical fining agents used in the winemaking process.

In Australia the demand for organic wine is continuing to grow and the rise in both the quality and quantity of organic wines available is a factor in this growth.

The IWSR Report shows that the total global organic area under vine has increased by 234 per cent since 2007 and in 2017 surpassed 400,000 hectares.

CHECK OUT THESHOUT.COM.AU NATIONAL LIQUOR NEWS MAY 2019 | 11

EDITORIAL

SIP’N SAVE CELEBRATES ITS 40TH BIRTHDAY

I

Sip’n Save has been part of the South Australian liquor retailing landscape for 40 years, Andy Young talks to the team behind the group about the secrets to its long-term success in the state.

conic South Australian brand, Sip’n Save (SNS) is a hugely successful liquor retailing story, with 40 years under its belt, plus the strongest awareness and advocacy of any independent retail brand within its catchment.

The group also has the largest market share of any single independent retail brand within state, and with that kind of resume it is no wonder the group is celebrating its 40th birthday this year.

SNS Chairman, Tony Hurley, whose family have been part of the group since it was formed, explained where the group originated and why he feels it has been so successful over its four decades.

“Originally it was the combination of two family-run buying groups. One was called Bar-Gains and one was called Red, White and Amber. Then with the backing of the AHA SA the group formed to a new group called Sip’n Save, and that was 40 years ago.

“Since then there have been a few logo changes, but we’ve never changed the name and I’m not sure there’s another group in South Australia that is 40 years old.”

In terms of why it has been successful, Hurley added: “Good steady leadership is definitely a factor. Over the 40 years, Sip’n Save has had only four Chairpersons and two General Managers. Simon Rowe is only the second General Manager in the group’s 40 year history and that helps. It was led by Mike Shelley for 34 years and Simon for the last six years, so good sound leadership is key.

“We also look at our local market and make sure we are relevant to those; but very good and strong membership is what SNS is all about. SNS likes to makes sure the members are happy, and if the members are happy then you have a really strong membership base.”

Another key part in the history of SNS came in 2005 when the group merged with Liquor Marketing Group (LMG). Rowe, who is General Manager SA & NT for LMG says that having a national perspective, while keeping Sip’n Save’s strong South Australian focus and feel has been key.

“The national buying power opportunities is definitely a factor for success for Sip’n Save,” Rowe said. “In addition there is a lot more data, insights and technology, along with a structured approach and more effective operating systems nowadays compared to what we had.

12 | MAY 2019 NATIONAL LIQUOR NEWS

“I started a year and a half before we started with LMG and there has been significant changes in that time, but access to discounts and buying prices is significantly better now.”

He added: “The LMG approach is very good at understanding there are different nuances within the various states. LMG has the benefits of being a national organisation but they understand what needs to be done to meet the shopper needs at a state level, including an understanding that different products sell in different areas. We have a really good representation of state products within the Sip’n Save program as this meets the needs of our shoppers.”

LMG and Sip’n Save are both not-for-profit organisations with their primary purpose being to operate for the benefit of their membership. Both groups are owned and governed by members and operated solely for the benefit of its membership. This alignment and focus were one of the primary drivers of the success of the merger of the two groups back in 2005 and remains a key strength today.

There are currently 110 venues operating under Sip’n Save branding and they represent approximately 23 per cent of the South Australian market.

SNS will celebrate its 40th birthday In May with activity and activations giving its shoppers the chance to participate. SNS will

commemorate the milestone with another iconic South Australian brand, West End Draught, which has brought out a special retro pack with acknowledgement of 40 years’ operating side by side in the South Australian market.

Also on offer is the chance for a shopper to win a 40 year old Glenfiddich, valued at $4,900. The 40th birthday promotion will include an additional catalogue, out of home advertising, store theming and activations for shoppers which champion other iconic South Australian products and brands. LMG CEO Gavin Saunders, said the group plans to continue its support and investment in SNS to help secure its future.

“Given the strong performance, continued focus of the group on members and investment to promote South Australia’s leading liquor brand, we expect that the next 40 years will deliver further success for Sip’n Save and all its members,” he said.

And with Hurley adding, “with all the market research we have done, we believe there is no other independent group in Australia that has got the market share or the recognition that we have got in South Australia” you can understand why LMG and Sip’n Save members wish to celebrate the milestone, while continuing to grow the iconic SA brand in the future.

SPIRITS

SULLIVANS COVE WINS AGAIN Sullivans Cove Distillery is celebrating once again after collecting another global award, winning the World’s Best Single Cask Single Malt title for the second year running at the World Whiskies Awards.

The 10-year-old French Oak expression, TD0217, claimed the prestigious award and follows the 16-year-old American Oak expression winning the same award last year. Sullivans Cove won the World’s Best Single Malt in 2014, making it the only distillery in the world to ever win World’s Best Single Cask Single Malt twice, and bringing its total of World’s Best awards to three overall.

Managing Director Adam Sable said: “This is one of the younger whiskies that we’ve bottled at 10 years old, and it just goes to show that the whiskies we’re bottling now are as good as anything we’ve ever released.”

About half of the winning cask was packaged in 200ml miniature bottles and sold as part of a gift pack released to Sullivans Cove’s mailing list members last year, with only 147 full-sized bottles made available.

“There’ll be some pretty happy people out there. I love the idea that it went into the gift pack in the 200ml bottles, because it gives more people a chance to taste it. Huge congratulations have to go to our whole team, including our tasting panel, who check every cask at regular intervals to determine when and if they’re worthy of a Sullivans Cove label, and the optimal time for bottling,” Sable added.

Australia’s position as a growing force in the international whisky market was further cemented at the awards with Dan Murphy’s picking up the award for World’s Best Supermarket and John Rochford of McLaren Vale Distillery winning World’s Best Distillery Manager.

THE 2019 AUSTRALIAN DISTILLED SPIRITS AWARDS WINNERS The winners of the 2019 Australian Distilled Spirits Awards (ADSA) have been revealed in an event hosted by The Royal Agricultural Society of Victoria (RASV), with Hellyers Road named as the Champion Australian Distiller.

Having won the Champion Whisky in 2018 for its 10-Year-Old Slightly Peated Malt, Hellyers Road took the next step this year, winning Champion Australian Distiller, with Master Distiller and General Manager Mark Littler (pictured right collecting the award) understandably delighted with the win.

“Our whiskies are beginning to unveil their quality with age and these awards are certainly testimony to this fact,” Littler said. “Some of our oldest single malts are now approaching 17 years which places them amongst the oldest aged statement spirits available from an Australian distillery.

“These whiskies are not only attracting attention from within Australia but also overseas. In the last six months alone we have shipped around one dozen single cask Master Series whiskies to various regions of Asia and the demand continues to escalate.

“Our oldest core range whisky is 15 years and this product too is being courted by distributors in Europe, Asia and the United States. It’s a very exciting time for Hellyers Road and the recognition stemming from these awards will only serve to further the brand’s growing reputation,” he added.

Hellyers Road won two gold and one silver medal for the three whiskies it entered into the awards. Other trophy winners included: Champion Whisky – Fountain of Youth – Fleurieu Distillery; Champion Gin – Ounce Gin – Bold – Imperial Measures Distilling; Champion Vodka – Citrus Vodka – Alchemy Distillers Pty Ltd; Champion Brandy – Apple Brandy – Adelaide Hills Distillery; Champion Liqueur – Marionette Dry Cassis – Marionette Liqueur; Champion Australian Micro Batch Spirit – Honey Old Tom Whisky Barrel Aged Gin – Anther Experimental Distillation; and Champion Small Batch Spirit – Batch Zero Gin – South Coast Distillery.

BLADNOCH APPOINTS NEW MASTER DISTILLER The Australian-owned Scotch whisky distillery Bladnoch has appointed a new Master Distiller following the departure of Ian MacMillan in January.

Dr Nick Savage (pictured above) joins the distillery bringing with him an impressive track record through the industry, which David Prior the Australian owner and CEO of Bladnoch said he was excited to bring into the business.

“It’s a great privilege to welcome Nick Savage to the Bladnoch business,” Prior said. “He has an impressive track record with a number of significant whisky companies and brands, most recently as Master Distiller for The Macallan.

“His youthful, positive and energetic approach will add great value to our team and business, as will his technical and operational skills. With the Visitor Centre opening in mid-June and Nick joining the business we are excited to undertake the final phase in bringing this amazing Lowland single malt distillery back to the whisky world.”

Dr Savage was most recently the Master Distiller for The Macallan where he led the Whisky Mastery team and played a key role during the major launch of the brand’s new distillery and visitor experience in June 2018. Prior to this, and after being awarded his PhD in engineering, he commenced at Diageo as Technical Lead in Cask Maturation, he then spent time in the Scottish Lowlands working with William Grant & Sons in brewing and distilling.

Speaking about his decision to join the Bladnoch team, Dr Savage said: “The vision and ambition shown by David Prior and the team at Bladnoch Distillery, together with the phenomenal efforts since 2015 with the re-generation of the historical site, played a huge part in my decision to join the Bladnoch business.

“The opportunity also allows me a new challenge in Single Malt Lowland Scotch Whisky from a 200-year-old distillery. Combined with the passion and drive that the Bladnoch team have for the ultimate quality, I’m extremely excited to be a part of the amazing future of the brand.”

Prior bought the Bladnoch Distillery in 2015 and worked with MacMillan to get the distillery up and running after it had closed down the previous year. They went on to launch Pure Scot and a range of Single Malt whiskies.

MacMillan left the business in a full-time capacity in January, but he continues to offer support and advice to the distillery.

NATIONAL LIQUOR NEWS MAY 2019 | 13

BREWING

KOLLARAS & CO SECURE BREWMANITY CRAFT BEER DISTRIBUTION DEAL Kollaras & Co Pty Ltd has announced a new distribution deal with craft beer brand Brewmanity Brewing Co, throughout QLD, NSW, VIC, TAS and SA in on- and offpremise, as well as their duty-free channel.

Brewmanity was founded by a group of beer-loving mates who wanted to start a brewery. They did so three years ago when they banded together to raise money for their friend who was diagnosed with Motor Neurone Disease (MND). Sales of the brewery’s Social Beast Pale Ale and Tango & Splash Juicy Lager have since raised over $250,000 that have been donated to the MND foundation.

Regular events such as Beer March for MND held in pubs across NSW, QLD and VIC have helped to create a sense of community, as well as make a powerful impact through raising much needed funds.

“We are proud to join forces with Brewmanity, an innovative company redefining the liquor industry,” commented John Kollaras, Managing Director of Kollaras & Co. “We are excited by the growth potential and look forward to helping raise funds for such a worthy cause as Fight MND.” “As an independent brewery, Brewmanity is excited to work with a thirdgeneration family business in Kollaras,” adds David Neitz, Brewmanity Director and AFL legend. “Their family values and strong relationships with independent retailers around the country over many years are impressive, and they have openly embraced our ‘Good Beer Good Deeds’ philosophy. We’re now looking forward to working with the Kollaras team and their retail partners to pour out goodness across the country.”

14 | MAY 2019 NATIONAL LIQUOR NEWS

IBA WELCOMES EXCISE CHANGE The Independent Brewers Association (IBA) has welcomed the passing of the Treasury Laws Amendment (2019 Measures No.1), which brings key excise changes to help Australia’s craft brewing industry.

The changes will see the alcohol excise refund cap increased from $30,000 to $100,000 and also the extension of the concessional draught beer excise rate to kegs of eight litres, down from only kegs over 48 litres.

IBA Chair Jamie Cook said the increase to the excise refund cap will relieve the burden on independent brewers, with up to $70,000 more in capital which they can use on people, plant and equipment, and breaking into the market.

“The changes should result in a direct increase in employment, capacity and quality, allowing Independent Brewers to continue to supplement their communities, stimulate the economy and continue to disrupt a highly concentrated market,” said Cook.

The excise refund cap will also mean extra capital for small businesses that manufacture distilled spirits such as gin and whisky, and other fermented beverages like non-traditional cider.

The change to the concessional rates to beer kegs under 48 litres is, according to Assistant Treasurer Stuart Robert MP, good news for consumers as well as craft brewers.

“The lower, draught beer excise rates will now be available to craft brewers. This is being done by extending the lower excise rate to draught beer in kegs of eight litres or more,” Robert said.

“Currently, the lower rate is open only to brewers who package their beer in larger kegs over 48 litres. From 1 July 2019 draught beer in smaller kegs will be taxed at that lower rate of excise.”

BREWERS CALL FOUL ON ALCOHOL ADVERTISING CLAIMS The Brewers Association of Australia has hit back at media reports regarding alcohol advertising, sports sponsorship and youth drinking, which the association has labelled as “demonstrably wrong”.

The reports followed a media release and report from the Foundation for Alcohol Research and Education into alcohol advertising in the NRL and AFL. The release claimed: “There is overwhelming evidence that exposure to alcohol marketing encourages children to start drinking from an earlier age and is linked to increased consumption, including among school children and those who play the sport.”

However, the Brewers Association said this claim was wrong.

“Over the last 40 years alcohol advertising has increased in volume and expanded its reach, especially in the last 10-15 years through digital and online media. Yet, every Australian Government indicator over the same period shows underage drinking improving markedly.”

The association pointed to abstinence among 12-17 year olds in 2004 being 54.3 per cent, whereas in 2016 it was 82 per cent. In 2004 the average age of first drink was 14.7, in 2016 it was 16.1. In addition, the proportion of 12-17 year olds drinking at lifetime risky patterns has declined from 6.4 per cent in 2004 to 1.3 per cent in 2016 and the proportion of 12-17 year olds at risk of drinking harm on a single occasion has fallen in that timeframe from 17.2 per cent to 5.4 per cent.

The Brewers Association said: “If the claim were true, the trends in underage drinking would be going up. Instead, they are falling.

“Independent Australian and international research shows alcohol advertising is not a catalyst for youth attitudes to alcohol, drinking behaviour or uptake. Parents, family and peers are by far the principal influences.”

Townsville

Brisbane

Sydney

AT YO U R SERVICE Operating from three well equipped distribution centres, Each complemented with experienced support staff Be a part of Australia’s largest Liquor Cooperative, ser vicing the industr y since 1975.

For more information contact Pat Kenny (NSW)

0409 308 341

www.ilg.com.au

Craig Stephenson (QLD)

0434 575 589

IRI INSIGHTS

IRI LIQUOR KNOWLEDGE This month’s IRI Insights take a slightly different look at the market, detailing how the total off-premise market has performed over the last 12 months to March (03/03/19).

LIQUOR GROWTH The trend of consumers drinking less, but drinking better has continued in the 12 months to 3 March 2019, and is demonstrated with a 2.9 per cent dollar growth, but a 0.3 per cent volume decline.

The total retail liquor market is now worth $18.1bn, and that dollar growth is worth $0.5bn.

This trend is evident across multiple categories, with particular emphasis on beer and full bottled spirits.

While the beer category does still command the highest levels of growth, as the midstrength and craft beer segments begin to slow down, the influence of beer on the overall growth of liquor is beginning to wane. Wine is now starting to become the key area for growth in the liquor category and is helping to move the market forward. Rosé and sparkling in particular are two key segments fuelling growth in wine and the overall liquor category, which highlights the potential of the new Brown Brothers Prosecco Rosé, which brings together two key trending wine styles (see brand spotlight).

Despite the slowdown in mid-strength and craft beer, coming off a very high base, and despite the continued decline in the classic beer segment, at 36 per cent beer still has the highest percentage of all the categories in liquor.

Wine is continuing to see strong growth, with rosé and Prosecco remaining buoyant.

Canned wine is coming off a small base but is also a segment which is starting to deliver for the wine category as a whole, giving wine a 26 per cent share of the overall market.

The Ginnaissance has continued over the last 12 months, delivering over 40 per cent of the value growth in the spirits category. Scotch remains the biggest segment in spirits with single malt helping to drive growth, although World whiskies, primarily Canadian, Irish and Japanese are becoming increasingly influential as spirits have 21 per cent of the market share.

While Bourbon continues to dominate the RTD segment, Ready to Drink gin is benefiting

16 | MAY 2019 NATIONAL LIQUOR NEWS

from strong brand recognition in glass spirits and brand extensions in the convenience of a premixed alcoholic beverage. Commonly the RTDs gin segment is the domain of trail gin drinkers, tapping into single serve occasions.

RTD has 14 per cent market share.

Challenges remain for the cider category, which declined slightly in 2018, with -0.3 per cent share of overall growth. With further canned products becoming increasingly available and a lot of work from Cider Australia on identifying Australian-grown and 100 per cent fruit ciders, there is hope that the cider category can reverse this trend and add to its three per cent market share.

CATEGORY BREAKDOWN BEER 36% WINE 26% SPIRITS 21% RTD 14% CIDER 3%

MARKET SHARE

LIQUOR CATEGORY PERFORMANCE CATEGORY

DOLLAR GROWTH

VALUE

Beer

2.4%

$6.6B

Wine

2.8%

$4.6B

Glass Spirits

3.9%

$4.4B

Ready To Drink

4.4%

$2.5B

Cider

-0.3%

$493K

IRI INSIGHTS

CATEGORY STANDOUTS WINE Rosé sales continue to surge and the overwhelming popularity of this varietal is apparent, with 31 per cent of the growth in bottled wine coming from rosé. All pricing brackets are growing with $12-$16 the highest contributor.

Prosecco was responsible for one in two incremental dollars spent on the sparkling wine category and enjoyed a stronger trajectory over the summer period. The Brown Brothers range represents the number one brand driving growth in Prosecco.

Canned wine sales are growing strongly and are now valued at $9.7m as a pack type.

The pack format is conducive to Australian drinkers’ outdoor culture (in addition to glass free sites) and form an ideal size for a small serve occasion where opening and consuming a full bottle of wine is prohibitive.

BEER AND CIDER Contemporary Beer was easily the highest growth sub category. As a comparison Classic Beer has experienced a sales decline of -5.7 per cent and continues to trend lower.

Craft Beer delivered 8.2 per cent growth in the latest MAT with continued experimenation of drinkers into this segment. Total Craft is valued at $686M, adding $52M to the segment in the latest MAT. The changes in the moderation and craft styles of beer are being offset by the high ABV cider choices.

SPIRITS & RTD Drinkers’ love affair with Gin continued in 2019. Gin generated over $4 in every $10 of category growth from just seven per cent of category sales. The influence of social media should not be underestimated with the highly ‘Instagramable’ nature of Pink Gin for example a contributing factor in Pink Gin’s $9m growth.

Whisky drinkers have really demonstrated an interest in World Whisky outside the traditional spectrum of Bourbon and Scotch. Excluding Bourbon and Scotch, World Whisky’s growth was driven by Canadian Whisky, Irish and the strong growing Japanese Whisky range Scotch is the biggest sub category in glass spirits for just over 20 per cent of category sales. Single Malt Scotch is the growth driver generating 15 per cent year on year dollar growth. Blended Scotch still accounted for 84 per cent of Scotch sales in the latest MAT but is experiencing a -1.7 per cent year on year dollar sales decline.

Bourbon dominates strongly in Ready To Drink and continues to enjoy growth through ABV changes. The strength of Canadian Club continues to dominate in RTD, with 15 per cent MAT growth recorded in the segment.

BRAND SPOTLIGHT BROWN BROTHERS PROSECCO ROSÉ Brown Brothers has looked to make the most of two key growth areas in the wine category with the launch of its Prosecco Rosé. Winemakers have added a touch of Cienna to the category-leading Brown Brothers Prosecco to create a sparkling wine with a softer, rounder side to the palate. With consumers embracing experimentation, actively seeking out new experiences and not afraid to try grapes they have never heard of, this hybrid represents everything they want and also marries two simultaneously popular segments.

NATIONAL LIQUOR NEWS MAY 2019 | 17

PROMOTION

NEW RELEASES From Irish stout to cold pressed cider there are always new beers coming in to the market, here’s a look at five of the most recent new releases.

O’HARA’S IRISH CRAFT STOUT

MODUS FORMER TENANT RED IPA

O’Hara’s, Ireland’s number one craft beer brand, is finally available in Australia. O’Hara’s Irish Stout is the flagship brand and brewed to traditional recipe with a robust roast flavour and a full-bodied, smooth mouth feel. With notes of espresso and dark chocolate this is a masterclass in stout. O’Hara’s Irish Red Ale and Irish Pale Ale are also available.

This 7.8 per cent ABV Ruby Red IPA is bursting with aromas of passionfruit and mango due to a heavy hand on the Mosaic and Galaxy dry hops. The beer has a complex blend of citrusy hops and savoury caramel malt flavour followed by a slightly sweet finish.

The allure of this cult classic, and Modus’ most-awarded beer, rests in the decadent blend of hops and malt combining in the sweetest beer symphony your buds are asking for.

RRP $18 Distributor: Rhizome Beverages Website: rhizomebeverages.com.au

RRP $33 per four-pack Distributor: Modus Operandi Website: mobrewing.com.au/beer

PROMOTION

L’AUTHENTIQUE BRUT CIDER

L’AUTHENTIQUE ROSÉ CIDER

BERTIE COLD PRESSED CIDER

Brut Apple Cider is the flagship of the L’Authentique range of French ciders

by Val de Rance. Orange gold in colour, this original dry cider is extremely well balanced with natural aromas of ripe apples and has medium sweetness.

For those who enjoy crisp, clean flavour with a dry finish this heralds a new generation of sophisticated French ciders. No added sugar, no added yeast, vegan, gluten-free and also available in Rosé, Pear, Raspberry or Lemon & Ginger.

Rosé is latest addition to the L’Authentique range of French ciders by Val de Rance. France sets the benchmark for cider and the L’Authentique range is a blend of 18 different cider apple varieties exclusive to Northern France. L’Authentique ciders are fresh, aromatic yet dry and contain no added sugar, no added yeast, are vegan and gluten-free. Also available in Brut, Pear, Raspberry or Lemon & Ginger.

The cold press for this cider is in Bertie Street, Melbourne, in the former home of the Bertie Beetle chocolate treat.

Using only hand-picked and coldpressed Victorian apples, this cider is crisp and delicious – small on sugar but big on taste. Created using the same apples we eat at home, like Royal Galas and Sundowners, this is a true Australian apple cider. The cider is available now for various independent and chain retailers.

RRP $20 Distributor: Rhizome Beverages

RRP $69.99 per case Distributor: Colonial Brewing Co

Website: rhizomebeverages.com.au

Website: colonialbrewingco.com.au/ bertie-cider

RRP $20 Distributor: Rhizome Beverages Website: rhizomebeverages.com.au

SHOT AT

THE GLEBE HOTEL

PROWEIN 2019

The fun of the fair After 25 years, ProWein is bigger and better than ever – and the perfect place to discover what’s new and trending in the wine world. Paul Wootton reports.

T

o paraphrase Benjamin Franklin, nothing is certain in life except death, taxes and getting sore feet from visiting ProWein.

Germany’s wine fair, which turned 25 this year, is so large it can take anything from an hour to several days to walk through all 11 of the show’s large halls.

Within those halls, the show shines a spotlight into every corner of the wine world, with nearly 7,000 exhibitors from 60 nations attracting over 60,000 international trade visitors.

It’s a place where business gets done, which is why so many producers come to showcase their wines and why this year Wine Australia had a record number of producers (83) on its stand.

For the 900 journalists that attend ProWein, the show’s size is a double-edged sword. In three days, you can barely scratch the surface of the thousands of stories that await you there.

But if you’re aiming to take the temperature of the world’s wine sector, identify the latest trends or simply remind yourself of the enormous

20 | MAY 2019 NATIONAL LIQUOR NEWS

diversity of wine styles produced and consumed across the globe, there’s no better place.

Over the next few pages, we’ll present some of the highlights and key observations from the wine world’s most important fair.

WHY DRINK ENGLISH WINE IN AUSTRALIA? While Italy and France make up nearly half the total number of exhibitors at ProWein, one of the joys of the show is the opportunity to sample wines from less well known winemaking nations. Armenia, Moldova and Georgia all had a presence at this year’s event, as did a small contingent of producers from Great Britain.

From a small base, English wine has soared in its own market over the last five years, establishing a reputation for excellent sparkling wines. Several Champagne houses have even bought land in southern England and are planting vineyards there, possibly as insurance against any future climate change but more likely to protect their market share in the UK, where premium

English sparklers are selling well.

One new English sparkling wine producer is Black Chalk Wine, a first-time exhibitor at ProWein. Its first vintage, the 2015, was released last year and has attracted great reviews.

Currently only available in the UK, Black Chalk is looking to scale and is exploring export markets including Australia.

But Australia already produces world-class sparklers so why would we drink English fizz over here?

Because English sparklers are different, says Black Chalk Director and Winemaker Jacob Leadley.

“The key points of difference are the way we’re working with the acidity and the precision of the fruit; and Black Chalk Wild Rosé

PROWEIN 2019 the real purity that we’re getting with the slightly longer, cooler growing season,” he explains.

“Particularly in the on-trade, sommeliers really love that purity that we’re offering. I’m not going to talk a lot about minerality but there really is this kind of backbone to the wines that’s quite impressive and that England does incredibly well.

“We know there are some great sparkling wines in Australia but we all want something a little bit different sometimes. Particularly on restaurant lists, it’s nice to have something that really stands out and works with different foods. I think English wine can really do that.”

ORGANIC EXPLOSION A large section of this year’s ProWein was dedicated to organic, biodynamic and natural wines – and there were many more organic wines showcased outside of that area, suggesting organic is fastbecoming mainstream in the wine world.

New Zealand’s Babich Wines has seen interest in its own organic wines soar, driven by huge demand from the UK and the US. “Those two markets could easily swallow all the organic wine we make,” CEO David Babich says. “For years, interest hummed along at a level but now it’s multiplied tenfold.”

He emphasises this interest isn’t evident in every market. While Babich sells “a bit of organic domestically”, demand from New Zealand’s consumers for organic wine is nowhere near UK levels.

Nonetheless, he feels organic wine is on the cusp of being mainstream.

“Five years ago, it was a bit difficult selling organic wine in retail,” he says. “I’d actually say to the retailer, ‘Look, you run an organics section.

Don’t put my wine in that, put it in the New Zealand section. I don’t want it sold on an organic platform because a lot of organic doesn’t taste any good.’

“But once you’ve got companies who know how to make good wine actively involved in this; and the wine tastes like non-organic wine; and if the price isn’t too premium (consumers will pay a premium, but it just can’t be too much of a premium), then I think we’re into the main market here. And that confidence level of consumers in organic wine has jumped up.”

Within the vast Spanish wine area of ProWein, members of Spain’s association of organic wine producers had their own section.

According to association president Esther Pinuaga, this reflected Spain’s status as “the biggest producer of organic agriculture – food and wine – in the world”.

But as to whether we’ve reached a tipping point with organic wine, Pinuaga concurs with Babich’s view that it depends on individual markets.

“There’s still a lot of room to grow,” she says. “There still has to be greater awareness. There still has to be more knowledge. There are a lot of markets in the world, like Asia, where they’re not so aware of what organic means. That’s an interesting opportunity for wineries like ours.

“Even in Europe there are countries like Poland, for instance, where wine consumption is still growing. But they don’t have that much interest yet in what organic means. So I think as wine culture and wine consumption evolves in a country, consumers there will get into organic more.”

In terms of Australian production, certified organic or biodynamic wines exported globally is a small but growing export segment, worth $16 million in 2018. Although it declined in volume by 6%, its value grew by 8% in 2018 and the segment has grown in the past five years at a compound annual growth rate of around 35% in both value and volume.

The main market for Aussie exported organic and biodynamic wines is Sweden, which accounted for 26% of all wine in this category. The UK was ranked second with 18%, followed by mainland China with 17%.

SNAPSHOT: AUSTRALIAN WINE ProWein affords a good opportunity to assess Australia’s place on the international wine stage. As the 7th largest wine producer in the world, with 135,133 ha under vine, Australia enjoys a substantial and increasingly healthy export market.

In 2018, exports increased 10% to $2.82 billion, with total volume rising 5% and average value growing by 5% too. Aussie rosé is experiencing phenomenal growth, as the figures below illustrate.

AUSSIE EXPORT TRENDS Australian sparkling wine Exports to Europe are up 12% by value Exports to the UK are up 2% by value Exports to Thailand are up 20% by value Australian rosé Exports to Europe up 66% by value Exports to the UK up 17% by value Exports to the USA more than doubled by value Australian Pinot Noir Exports to Europe up 31% by value Exports to China up 9% by value Exports to New Zealand up 38% by value Australian Grenache Exports to Europe up 19% by value Exports to China up 23% by value Exports to Denmark up 45% by value

AUSTRALIA’S TOP 5 EXPORT MARKETS

BY VALUE ($)

AUSTRALIA’S TOP 5 EXPORT MARKETS

BY VOLUME (9L CASES)

China

$1.14b

United Kingdom

27.3m

United States

$425m

China

19.1m

United Kingdom

$389m

United States

17.9m

Canada

$210m

Canada

8.2m

New Zealand

$93m

Germany

3.9m

FAST FACTS: AUSTRALIA

63% 2,543 21.7 million

of wine produced is exported

active exporters

glasses of Australian wine enjoyed overseas every day

24,541

different products exported

Source: Wine Australia

NATIONAL LIQUOR NEWS MAY 2019 | 21

Higher altitude vineyards are a response to climate change

PROWEIN 2019

Wine Trends You Need To Know Here’s the lowdown on the latest developments making waves in the wine world

W

ine in cans, high altitude wines and the rise of Chenin Blanc and Gamay – all key trends likely to impact the global wine industry in the coming years.

The predictions were made by wine experts Stuart Pigott and Paula Redes Sidore in a seminar hosted at ProWein in March. They explained the trends they highlighted were driven by three factors: climate change, social change and the ever-present changing nature of the industry.

says the number one advantage is convenience.

It sounds so harmless, doesn’t it, convenience?

That you can just slip it in your pocket or in your bag and you take it with you. It’s about freedom. I suggest this canned concept has something to do with the pleasure in wine.”

TREND 2 - HIGH ALTITUDE WINES

TREND 1 - WINE IN CANS This is a divisive topic, Redes Sidore admits, explaining she grew up in an era where cans signified something cheap, where the contents of the can “weren’t worth putting in a glass”. But she says that a younger generation have grown up with craft beer and cider in cans and for them cans are an acceptable alternative to glass.

“Cans are a format and what matters is what’s inside,” she explains. “We’re seeing some really fantastic wines in cans, including single varietal, single vintage, single vineyard cans coming out of California right now. It’s really beautiful stuff that’s playing in the same league as half bottles.”

The USA has already embraced the trend and Oregon’s Union Wine Company, which began putting wine in cans back in 2013, enjoys great success with its Pinot Noir, Pinot Gris and rosé

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Francis Ford Coppola Winery’s canned wine in cans. The Francis Ford Coppola winery was another early adopter, with its Sofia Minis and its Diamond Collection of four single varietals.

Pigott refers to an industry report from the US that looked at the use of aluminium cans in the wine industry there. “The most important item in there was the section about the advantages of selling wine in cans. And it

The effects of climate change, with drought stress becoming a more frequent problem for winemakers, will result in a greater focus on higher altitude vineyards in the future, Pigott argues.

“When I first got involved with wine in the eighties, a vineyard that was 1000 metres above sea level seemed like a really big deal,” he says.

“It doesn’t seem that way anymore.”

Illustrating his point he showed off a wine from Salta in Argentina made from grapes grown 2000-3000 metres above sea level.

“There are important differences when growing grapes at that altitude,” he explains. “The air is thinner, it’s generally dry, you have super intense sunlight and the soils drain very fast.”

Redes Sidore points out that wine students are taught there are three classic climate types: Maritime, Mediterranean and Continental. She suggests the mountain climate is now emerging as a fourth climate for vintners to explore.

NSW WINE OF THE YEAR MOUNT PLEASANT

2017 OLD PADDOCK & OLD HILL SHIRAZ NSW Wine Awards

The tradition continues...

NSW Governor’s Trophy for Best in Show Trophy – Best Dry Red Trophy – Best Shiraz 2018 NSW Wine Awards

@mtpleasantwines mountpleasantwines.com.au

PROWEIN 2019 modern development. They’re how winemaking began, when farmers and winemakers couldn’t take the risk of a single planting in case that planting failed.

“It was a bit of a safety net,” he says. “And today, that same safety net is working for the winemakers that are looking at their vineyards and saying, ‘Okay, these field plantings are giving us a bit of security in terms of the ripening point’, right?”

This is increasingly important as climatic conditions around the world become less predictable.

“Field blends are something that’s near and dear to my heart because it touches on two of the really important issues,” says Pigott.

“It touches on the idea of climate change and sustainability and what we as an industry are going to be doing as we look at the fact that the climate – mother nature, which is the biggest factor when it comes to wine – she’s changing.”

TREND 5 - VEGAN WINE Mulderbosch’s Sean Griffiths

“Chenin has so many amazing complexities. It’s my go-to grape” – Sean Griffiths, Mulderbosch TREND 3 - CHENIN BLANC AND GAMAY “These are two grape varieties which have become the 21st century mega-cool twins for sommeliers and wine freaks around the globe,” Pigott says. “Both have become fashionable partly because they were so unfashionable. But both are very interesting grape varieties.”

Pigott claims Gamay is a variety that has great potential under new hotter climatic conditions. In the very ripe 2015 vintage in Beaujolais, where most of the world’s Gamay is grown, growers found none of the wines went above 13.5 per cent abv and good levels of acidity were still present. “By contrast, with Pinot Noir you have to race to pick the grapes early to avoid the acidity falling through the floor and the grape sugars shooting through the ceiling,” Pigott says. “I think we’re going to see a lot of exciting wines coming out of Beaujolais in the next few years.”

Chenin has its spiritual home in the Loire in France but some of the most exciting Chenin wines of the last few years have come from South Africa. Mulderbosch has established a reputation for its fine Chenin wines, having made single varietal Chenins since 1996.

Sales and marketing manager Sean Griffiths says, “We were at the vanguard of making world-class Chenin and we were one of the

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pioneers in recognising what can be achieved with the variety.”

In the last couple of years, the winery has focused on single vineyard Chenins, three of them, all from Stellenbosch.

“We’re really trying to demonstrate the difference of terroir. So we’ve gone to three of our partner growers, and we’re working with very similar age vines, we’re vinifying in exactly the same manner. So they really are an expression of terroir.”

Could Chenin Blanc one day be as popular as Chardonnay or Sauvignon Blanc?

“Undoubtedly,” says Griffiths. “Chenin has so many amazing complexities. It’s my go-to grape. It’s just the most incredible grape to work with because you can make anything from fresh and fruity styles to full, ripe, rich wines and on through to dessert wines. In terms of its versatility, its ageability, its foodfriendliness, it’s unrivalled, I think.”

TREND 4 – FIELD BLENDS Field blends are inter-planted vineyards of multiple grape varieties that are grown, harvested and vinified together.

“It’s a blend,” says Pigott, “but it’s a blend where the blending is done in the vineyard, not in the cellar. And that’s the extent of it.”

As Pigott explains, field blends are not a

This trend was not highlighted by Pigott and Redes Sidore but, in conversation with multiple producers at ProWein, it became obvious that vegan wine was fast becoming a topic of great interest – inspired by consumer demand, especially in large markets such as the UK. “Vegan is massive in Australia, absolutely huge,” Brad Rey, director of Zonte’s Footstep winery, asserts. “I get asked for it more than organic biodynamic. Organic biodynamic is very much a niche space where they’re very focused on the land. Vegan is just straight out a dietary requirement and under the new methods using crossflow for filtration all my wines from 2018 are vegan friendly. I’m not using any kind of egg white or gelatin to clarify my wines.”

According to Rey, producers are increasingly promoting the vegan-friendly nature of their wines in their marketing and packaging.

“We are all doing it,” he says. “From these wines, I have developed a sticker, like my gold medals. Not metallic but white with a big ‘V’ on it that says ‘Vegan Friendly’. People want it. It’s not really a quality thing, it’s a health, dietary thing. The labels provide an assurance of a choice in diet.”

David Babich, CEO of Babich Wines, also sees the demand for vegan wine as a growing trend. He’s had massive interest in the UK, where veganism has exploded in the last year. He points out that it’s not just vegans drinking vegan wine.

“If you go out to dinner and there are six of you, and one’s a vegan, everyone at that table is drinking vegan,” he says. “If there are two vegan wines available, they get drunk.

That’s sort of the impact. Vegan is really driven quite strongly through the on-trade because it’s a social situation but retail buyers are also asking, ‘Can you supply us something vegan?’

If it’s organic and vegan there’s a multiplier. It’s super interesting.”

SHOPPER INSIGHTS

KAUFLAND IS COMING –

WHAT’S THE LIKELY IMPACT ON LIQUOR? The Kaufland hypermarket format and ranging models indicate a slow burn for liquor, writes Norrelle Goldring.

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etail press reportage on Kaufland has increased as the retailer marches toward a likely late 2019 launch in Australia. So who is Kaufland, and what’s their likely impact on off-premise liquor?

Based on the German verb ‘kaufen’, meaning ‘to buy’, Kaufland is owned by the German Schwarz Group, the world’s fourth largest retail conglomerate and owners of Lidl. Lidl is quite similar to Aldi in its look, feel, range and go-tomarket. Schwarz Group have set up a number of Lidl trademarks in Australia in the past few years, but are yet to indicate intention to launch the Lidl operation here, citing the local market as too small and concentrated, and preferring instead to enter the US market.

So, to Kaufland. Kaufland currently operates nearly 1300 stores across Germany, the Czech Republic, Slovakia, Poland, Romania, Bulgaria, Croatia and Moldova. Australia will be its first non-European market entry and there are reports that the store format and offer may be altered for this market. Kaufland cites its values as being simplicity, quality, variety and price.

Traditionally Kaufland has been a hypermarket of Costco style, category breadth (including not only groceries and liquor but electronics, homewares, clothing, etc.) and proportions, only more so. The big difference is in the size of the range – up to 60,000 skus for Kaufland, versus 4000 for an average Costco.

For context, Aldi typically stocks 1500 skus per store, and Coles and Woolworths up to 25,000.

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This range scope requires a very big box to keep it in. In the Australian market, according to its website, Kaufland is looking for sites 17,000sqm+. The average Costco is around 13,000sqm, and for comparison the average Coles around 2300sqm.

The Kaufland brand ranging model is similar to Lidl’s or Aldi’s, with primarily their own brands (the German Kaufland site lists 25 of their own brands) and the occasional international branded flagship product such as Baileys or Corona. Most of the wines listed on the German Kaufland site sit between 4 and 8 Euros per bottle (AUD$6.30-$12.60), with well-known beer brands such as Erdinger and Franziskaner between 10 and 16 Euros (AUD $15.70-$25.20) for a 20-bottle case.

Whilst Aldi has been ranging liquor in its Victorian stores since 2003, it’s only in the past few years that it has extended to more stores in some other states (neither Costco nor Aldi are currently legally able to sell liquor in SA or QLD). According to Roy Morgan packaged alcohol sales data from November 2018, Aldi represents 3.3 per cent of total packaged liquor and ‘other supermarkets’ (likely Costco, plus possibly Ritchies and few independent supermarket chains) only 0.8 per cent. (Woolworths dominates with 52.1 per cent, Coles 15.4 per cent, IGA same as Aldi at 3.3 per cent, and independent bottleshops and hotels 20.4 per cent).

Kaufland appear to be driving store rollout

here faster than did Costco. Currently there are three sites in Victoria in development, at Epping, Dandenong and Chirnside, and three further Victorian sites awaiting approval for Mornington, Oakleigh and Coolaroo.

Based on European penetration, Morgan Stanley estimates that Australia could support as many as 295 Kaufland stores long term.

Note that Aldi, after 17 years of operation here, in 2018 just surpassed 500 stores, and Costco at time of writing has fewer than a dozen locations with only a few in development. One of the constraints with big box formats is obviously suitable site availability, as Woolworths discovered with the Masters experiment.

So unless I’ve completely misinterpreted something here, it looks like for liquor it should be a reasonably slow burn in terms of Kaufland’s share of total offpremise liquor sales.

ABOUT NORRELLE GOLDRING Norrelle has 20 years’ experience in the liquor industry and in retail, category, channel and customer strategy, planning and research, working in and with global retailers, manufacturers and research houses. Contact Norrelle on 0411735190 or email norrellegoldring@hotmail.com.

Wine Talks In this edition of Wine Talks we chat with the Chief Winemaker at Mount Pleasant about how the pedigree of their Hunter Valley vineyards helps his winemaking, and we hear from the team at Hardys on their exciting new innovations for producing some new, richer reds from the McLaren Vale.

WINE TALKS

Photo Credit: Chris Elfes

LETTING THE MOUNT PLEASANT VINEYARDS SING Mount Pleasant’s Chief Winemaker Adrian Sparks adopts a ‘less is more’ attitude to his winemaking, as he creates wines that give consumers a true taste of the Hunter Valley.

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he grapes for the 2019 vintage are picked and the wines are developing now and for the third year in a row Mount Pleasant Chief Winemaker Adrian Sparks is very excited about the vintage.

Both 2017 and 2018 offered excellent wines and Sparks is confident that it will be a similar story for the 2019 vintage.

One of the great things for Sparks is that these high quality vintages mean he can do exactly what he wants with the wines – and that is as little as possible.

“Mount Pleasant is the Hunter Valley,” Sparks told National Liquor News. “We want to make wines that fully represent everything that is the Hunter. As part of this and our premiumisation story, since 2018 we have not taken fruit from any other region or any other grower. So we are really backing the Hunter Valley region because that is what we are.”

Mount Pleasant is hitting a number of key wine trends offering high quality wines throughout the range from Elizabeth through to Lovedale with Semillon and from Philip through to the Maurice O’Shea for Shiraz.

One of the big trends is the growth in popularity of wines in the $15-$25 bracket as premiumisation hits the wine category.

Consumers are prepared to pay that little bit more for their wines, but are expecting high quality returns and Sparks says both the Elizabeth Semillon and Philip Shiraz are perfect wines for

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this trend as they represent extremely good value.

“They both have a long history of being truly Hunter Valley,” Sparks said. “The Elizabeth is internationally recognised and is one of the core Semillons of the Hunter Valley. It’s all off the Lovedale vineyard so it has got great pedigree and people can back its ability to age.”

In terms of his winemaking at Mount Pleasant, Sparks says he simply wants the amazing fruit that is grown in some of the premium spots in the Hunter to really shine through.

“Less is more,” Sparks said. “It’s about picking fruit at the right time. As the grapes ripen the green goes away and it goes into this citrus character and we just pick it then. Then it’s low or no fining, good clean ferment, neutral yeast strain and into bottle. It’s more about showcasing the vineyard and the fruit rather than trying to put a winemaking stamp on it.

“Mount Pleasant is all about the vineyard.

The winemakers are respectful of the fact that it is the vineyard that makes our wines; it has such legacy and history.”

It’s the same story for the different Shiraz wines that Sparks makes for Mount Pleasant, with minimal interference and striving to let the amazing fruit be pivotal to the winemaking ethos.

“You’re getting the best of both of our estates with the Philip Shiraz. You get the darker fruit spectrum off the Estate and lighter more red aromatic spectrum from Rosehill.

Philip has always been a blend of those two vineyards and it really is a truly Hunter Valley wine, because it shows what we believe the Hunter Valley represents in that single season.”

The winemaking behind Philip is also focused on letting consumers experience everything about the Hunter for that year. The oak has been dropped by over two-thirds over the last five years and for Sparks it is about highlighting the Hunter Valley style of mediumbodied, fruit-driven, drinkable wines.

One of the keys for Sparks that helps Mount Pleasant is the sites that were chosen and then planted in the late 1800s and early 1900s.

“Maurice O’Shea knew what he was doing, he had the choice of where to plant in the Hunter and he got it spot on. It’s no coincidence; they are perfectly planted, out of the afternoon sun, out of the wind, the right orientation and well looked after. The Old Hill looks after itself every year, it’s a freak vineyard, it has this incredible strength to it.”

With ‘craft’ going from strength to strength in the beer and spirit categories, it seems strange that the trend hasn’t converted into wine. But with Mount Pleasant’s mantra of letting the region shine in its wine, about doing what’s right in the vineyard over making commercial decisions and backing the Hunter Valley with high quality fruit and a less is more style, Mount Pleasant is craft, it is premium. And if you want the Hunter Valley in a glass – it is Mount Pleasant.

WINE TALKS

FLAMES FAN HARDYS’ GROWTH PUSH Hardys has unveiled a new richer red, forged in flames, which is underpinning the brand’s vision to drive growth in the premium, craft wine space

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arrel finishing is a trend that has helped drive tremendous growth in the spirits category, with Scotch and Irish whiskies as well as gin and Cognac all seeing strong growth and all using different barrel finishing techniques.

With consumers seeking out more creative and craft-driven beverages, barrel finishing is becoming more prevalent around the world, and it is a trend that has not gone unnoticed by the team at Hardys.

In addition to the barrel finishing trend, the $20 to $35 wine category is another area enjoying strong growth in Australia, adding another $36m of retail sales value in the last 12 months*. The premiumisation trend means that consumers are prepared to spend more on their alcohol purchases now, but they are also searching for good quality and good value, and it is the combination of these three factors which has fuelled the launch of Hardys Char NO.3.

Hardys have aged the finest Shiraz and Cabernet Sauvignon from Mclaren Vale in charred oak barrels. Ranging from NO.1 to NO.4, charred oak barrels help mature the wine to a new depth, a process which the winemaker says “enhances these full bodied wines with greater depth and richer flavour”.

The ageing in No.3 barrels (heavily charred) enhances the varietal characters of Cassis, Chocolate and Mocha before revealing a

beautiful complexity, subtle toasty flavour and a very smooth finish. Andrew Stark, General Manager - Marketing and Category at Accolade Wines, said that “consumers in this price segment are aspiring to drink bolder, more complex and crafted wines that deliver unique tasting experiences and have a story to tell. This new contemporary wine range will engage consumers across a traditional and well-loved wine brand”.

He added: “Launching Hardys Char NO.3 is an important part of recruiting new consumers into the brand; those wine drinkers who are ready to take the next step in their wine journey. They are looking for more distinctive and innovative red wines that offer something different while showcasing creativity and craft.”

PREMIUMISING WINE In another nod to the premiumisation of the wine category, the Char NO.3 packaging has been designed to reflect its contemporary and premium positioning. Featuring an elegant tapered bottle design and distinctive label, the Char NO.3 stands out on the shelf.

Being launched under the Hardys label gives this wine the backing of a brand with a rich heritage, and one that has stood the test of time. Additionally the wine should have strong appeal to retailers as it has the ability to attract and engage two distinct, but

hugely important customer types: the High Potentials – those younger, legal age, affluent, higher spending shoppers but who are less confident wine drinkers – and the Engaged Explorers: these are more knowledgeable, confident and frequent wine drinkers.

Hardys will be supporting the launch of Char NO.3 nationally with a through-theline marketing campaign. This will focus on driving awareness and trial, predominantly through digital and in-store activations.

Premium displays and point of sale material will drive stand out in-store, encouraging consumers to trial and explore these beautiful wines.

The bottles also feature augmented reality labels, which, through the Char NO.3 app available on the app store, will help to further engage consumers and give them some insight into the story and the craftsmanship behind the wine – as Stark said, this is another massive consumer trend.

In addition to the marketing campaign and labels there are a number of launch deals available to retailers who purchase this new wine before 28 June 2019. For more information on the wine, the deals and point of sale support contact your Accolade Wines Business Development Manager or call 131 492. *IRI – Australian Off-premise market- MAT to 3/03/2019

NATIONAL LIQUOR NEWS MAY 2019 | 29

CONTRIBUTOR’S

HR/IR support for small business – a critical need

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he cost of employing and managing staff is often the biggest outgoing in a small business (upwards of 40 per cent to 50 per cent of turnover) and for liquor retailers, managing staff effectively can be the difference between success and failure, particularly given the face-to-face nature of transactions and the role of staff in ensuring a positive customer experience.

The costs of having poor performing staff to Australian businesses and the broader economy is staggering. According to the Australian Industry Group (AIG), the direct cost of absenteeism to the Australian economy is $22 billion each year, with the cost of presenteeism (staying at work for longer than required) estimated to be even greater at almost $26 billion (Source: Absenteeism & Presenteeism Survey Non Contributor 2015).

Ineffective staff management is also a massive risk for business owners and can be very destructive if left alone for too long. Some of the most obvious ways in which poor staff management can lead to adverse outcomes for small businesses is through higher staff turnover, lost productivity, lower staff morale

and higher levels of absenteeism. For business owners, replacing staff can be a very expensive and time-consuming exercise considering the need to advertise, interview, onboard and train new employees as part of this process.

For business-owners who put in the right amount of time and effort into managing their staff, the results can be equally profound.

Effective management strategies can help foster a positive and productive work environment where staff are motivated to put in the maximum amount of effort to help the business achieve its goals.

Retail Drinks knows exactly how important it is for business-owners to be equipped with the information and tools they need to manage their staff effectively. That’s why as part of its rapidly expanding member services offering, Retail Drinks is launching a dedicated, in-house HR service to provide members with bespoke advice on all staff and HR-related matters including wage rate information, recruitment, employment contracts, staff entitlements and occupational health and safety matters. This exciting new service for Retail Drinks members will be up and running very soon.

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“Ineffective staff management is also a massive risk for business owners and can be very destructive if left alone for too long. Some of the most obvious ways in which poor staff management can lead to adverse outcomes for small businesses is through higher staff turnover, lost productivity, lower staff morale and higher levels of absenteeism.”

JULIE RYAN, CEO, RETAIL DRINKS AUSTRALIA Julie Ryan is the CEO of Retail Drinks Australia, the national industry body enhancing the freedom to retail responsibly. Before joining Retail Drinks Julie was a director of the Winemakers Federation of Australia, and spent seven years on the executive management team of a global wine company with a broad responsibility covering global legal services, government affairs, company secretarial and risk.

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When is a cocktail party, not a cocktail party? When there are no cocktails.

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hat is in a name? You are invited to a cocktail party – what do you expect to be offered when you arrive? Nine times out of ten in Australia you will be offered the same old trays laden with sparkling wine, beer, red and white wine and a soda water. Well I hate to break it to you but you ain’t at a cocktail party unless cocktails are served.

Rewind and add the option of a gin and tonic or a whisky highball, both very simple to execute, and don’t you think the tone of the event has fundamentally changed? Ok, you’ve come this far, why not step it up and add in something a little more complex such as an Old Fashioned or a Boulevardier? Now we are at something special where your host has made that extra effort to make you feel welcome.

Recent years have seen a rapid growth in the consumers’ willingness to explore the cocktail and to support the many new venues that are serving and creating them. And with good reason. There is a cocktail to suit everyone’s

palate. Cocktails are theatre. Cocktails add drama. Offer your guests a Mojito and invoke the spirit of Hemingway or conjure the glamour of The Great Gatsby’s legendary parties by offering F. Scott Fitzgerald’s drink of choice, the Gin Rickey.

With a shake of your cocktail shaker you can transport your guests away from their day-today lives to somewhere exotic for an evening (or an afternoon).

Stir equal parts gin, Campari and sweet vermouth, garnish with a half orange slice, hand your guests their Negroni and with the first sip they can be transported from your living room to a piazza in Italy. Add triple sec and fresh lemon juice to Cognac, shake, strain into cocktail glass and hey presto this Sidecar is taking your guests on a ride around Paris.

Add a dash of Angostura Bitters and a splash of vermouth to rye whiskey and you transport your guests straight to Manhattan.

Somewhere sunnier? Tequila, Cointreau and fresh lime juice and this Margarita has your

CONTRIBUTOR’S

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guests partying like it’s fiesta time in Mexico, while a Mai-Tai will have them relaxing by the beach in Hawaii.

Home-made cocktails can bring all of these experiences to friends and family. A cocktail party makes for a wonderful shared experience and spirits fit perfectly with the trend to drink less but drink better.

Leading retailers are embracing the move to cocktail culture. They are making it easier for consumers to plan and prepare for home entertaining by placing ingredients and equipment in dedicated sections along with recipe cards. It does not need to be overly complicated – in fact the key to success is to make it simple for consumers. The sales teams of spirit suppliers are a good source of inspiration and support to help retailers drive sales and profits through meeting and encouraging the consumer’s desire for something different and generous.

Serving cocktails is the difference between having a party and giving a party.

ALEC WAGSTAFF, CEO, SPIRITS & COCKTAILS AUSTRALIA Alec Wagstaff joined Spirits & Cocktails Australia in September 2016 bringing public policy and communications experience in the FMCG and telecommunications industries. Spirits & Cocktails Australia is an incorporated association with a vision to promote and protect a spirits sector which improves Australia’s drinking culture to create social and economic opportunities for future generations.

NATIONAL LIQUOR NEWS MAY 2019 | 31

NZ’s flagship grape: The International Sauvignon Blanc Celebration

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ccording to IRI MarketEdge, sales of imported wine in the Australian offpremise grew by 2.6 per cent in volume in the year-ended February 2019 – driven by wines from New Zealand and Italy.

New Zealand remains the leading source of Australia’s wine imports and with Sauvignon Blanc representing 78 per cent of New Zealand’s exports across the ditch, was celebrated accordingly in Marlborough earlier this year at the second International Sauvignon Blanc Celebration. Shared here are highlights from three days of focused discussion on the country’s flagship grape variety.

THE PATH TO PREMIUMISATION New Zealand Master of Wine Sam Harrop believes a sense of place defines a great wine and the role for Sauvignon Blanc producers is to show consumers the evolution away from a “homogenised style with a generic sense of place.

“Marlborough has built its success on a style the market can understand and wines of site are the natural step forward towards premiumisation. By seeking out the best vineyards, by age, altitude or certain soil types, a sense of place can be achieved through wines of style and wines of site,” he says.

Using Rioja as an example, Harrop explained where Marlborough can now focus.

“They (Rioja) have already got the wines of style in the bag and have had for many decades.

They have taken the consumers on a journey and now trade those consumers up to the higher price points, to the more sympathetic wines with more fruit expression, more balance, more harmony, they are exploring special sites and releasing very special wines that are very different from the norm.”

EARN THE RIGHT FOR HIGHER VALUE Steve Smith MW addressed the impact of climate change on Sauvignon Blanc and whether summer heat waves, drier springs,

increased rain in February and April and increased humidity will still allow for the production of wines the world has fallen in love with in 2050 and beyond.

A number of proposals were considered, however, one that has the wider industry playing its part is earning the right for higher value. Smith says: “securing increased value from the wine produced will allow a move away from a proportion of production that is the bulk wine commodity space, where cost of production is critical and is exposed to climate change risk. Everything from viticulture through winemaking, through packaging and brand building. It is exceptional execution.

“They may be just tiny or small volumes, but they have a considerable halo effect and build value to the category. Increasing growth margins while capturing more value helps significantly in providing investment in mitigation to climate change.”

REMOVING THE ARROGANCE FROM WINE In one of the more polarising sessions of the celebration, American Master of Wine Tim Hanni implored producers, sommeliers, retailers and all those in communications roles

to stop categorising wine as ‘commercial’ or ‘beginner’ wines. “When consumers hear their wine of choice is considered ‘commercial’ or not ‘sophisticated’, the harm done will last for years,” he says.

“They are not commercial wines, they are wines that are made in a larger quantity that are enjoyed by millions of people. It is important that you learn how and why other people are different, so when we get to wine education, we have a better understanding of the market we’re serving.

“This will literally create millions and millions of consumers who are no longer embarrassed by their taste.”

Hanni’s final plea was to celebrate the diversity of consumers. “Work hard to promote wine without all this baggage. Demonstrate to people how to enjoy their wine and food so they can have a steak with Sauvignon Blanc. Why not? If you want to sell more New Zealand Sauvignon Blanc, learn to taste the wine and think – ‘who would like this? How do I communicate with them? How do I create context for their enjoyment?’”

To view speaker presentations, New Zealand Winegrowers has made these available at www. sauvignonnz.com/presentations

NATALIE GRACE, MARKETING MANAGER – AUSTRALIA, NEW ZEALAND WINEGROWERS New Zealand Winegrowers is the national organisation for the country’s grape and wine sector. As the local representative for the organisation in Australia, Natalie Grace is responsible for all Australia market activity including the education and events program, visiting media and trade, and market insights. Prior to her appointment in 2013, Natalie was the Communications Manager for New Zealand winery Craggy Range based in Hawke’s Bay.

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CONTRIBUTOR’S

Australian wine’s home ground advantage

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ccording to Wine Intelligence, Australia is the world’s tenth most attractive wine market. Wine Intelligence analyses wine markets based on a number of economic and winespecific measures. The measures are given a score and weighted according to their significance.

Australia scores relatively highly on GDP (gross domestic product) and GNI (gross national income) per capita and is sixth in the world on the StarMac index (a proxy for a globalised economy). In terms of wine market measures, it is particularly strong on wine consumption value.

International Wine and Spirit Record (IWSR) data shows that Australia is the tenth largest wine consuming country in the world and ranks eighth for per capita consumption.

Importantly, it is a relatively high value market, with the eighth highest average value for still wine of the top 20 wine consuming countries.

Australia has also been part of the global premiumisation trend in mature markets, with value growth exceeding volume growth as consumers switch to higher value products.

On the downside, like most mature wine markets, Australia has declining per capita consumption and low population growth, leading to an overall decline in market volume.

Recent Wine Intelligence research found that the overall number of regular wine drinkers in Australia has decreased by 10 per cent, and the number of weekly wine drinkers has dropped from 8.5 million in 2010 to 7.4 million in 2018.

Confirming this trend, the volume of wine sold in the off-trade in Australia in the year ended February 2019 declined by 0.6 per cent (IRI MarketEdge).

LOCAL VS IMPORTED WINE IN THE DOMESTIC MARKET These characteristics of the market apply to all wine-producing countries looking for sales opportunities. However, for Australian wine, the Australian market has a number of specific advantages. It is stating the obvious to note that consumers speak the same language and share a common culture with the wine

“International Wine and Spirit Record (IWSR) data shows that Australia is the tenth largest wine consuming country in the world and ranks eighth for per capita consumption.” producers, the freight distance is shorter than to any other market and there are zero tariffs on Australian wine in the market.

Most importantly, Australian wine has an 83 per cent share of the market. Australia does not dominate any other market in the same way.

Apart from New Zealand (where Australian wine has a 73 per cent market share) the next highest market share is Malaysia, where Australia has a 37 per cent share.

In the on-trade, the share of imported wine is higher than in the off-trade. Statistics from eBev (a wine sector trade portal and digital marketplace for on-premise) indicate that imports make up 34 per cent of onpremise wine orders, while in the off-trade it is 16 per cent of wine sales by volume (IRI MarketEdge 2019).

Not only does Australian wine in general have

a home ground advantage, but individual states demonstrate a relative preference for locally produced wines in both the on- and the off-trade.

Research by Wine Business Solutions, looking at wine listings, shows that imported wines are particularly popular in the eastern states, while all states offer something of a ‘home ground advantage’ to listings of wine from their local wine regions.

Analysis of off-trade wine sales using IRI MarketEdge data shows that there is a particularly strong home ground advantage for Tasmanian, South Australian and Western Australian wine in their own states, at the expense of imported wine. In the markets with limited local production, the Northern Territory favours wine from New South Wales, while Queensland has the highest share of imported wine.

SANDY HATHAWAY, INDUSTRY ANALYST, WINE AUSTRALIA Sandy is an analyst in the Market Insights team at Wine Australia. She has particular responsibility for domestic market insights. She has been involved in the Australian wine sector for more than 20 years in a number of roles and has been with Wine Australia since 2016.

NATIONAL LIQUOR NEWS MAY 2019 | 33

ABA will continue to work with regulators on pregnancy warning labels

CONTRIBUTOR’S

PANEL

T

he Australian and New Zealand Ministerial Forum on Food Regulation announced its decision to mandate pregnancy warning labels on alcoholic beverages in an aim to raise awareness of FASD, promising that industry will be consulted on the form of the label and its introduction.

The Forum has tasked Food Standards Australia and New Zealand (FSANZ) with developing the label. FSANZ has begun the process by undertaking market research on the labelling initiative, which is a welcomed step by the industry, with public consultation to follow in August.

Developing effective public health policies requires understanding the catalyst needed to initiate a change in the behaviour of a target population. In this case, the change being sought is to stop women from consuming alcohol while pregnant. Finding the right catalyst will be key in a successful initiative.

Research has shown that while pregnancy warning labels do increase awareness, they don’t translate to a change in behaviour. It is creating that change in behaviour that is important to creating a reduction in the incidents of FASD and without it the policy initiative has limited value.

Official government data from the Australian Institute of Health and Welfare shows that 98.8 per cent of women either abstain or decrease their levels of alcohol consumption while pregnant. This data provides clear evidence that awareness levels are already very high.

That said, our industry is very supportive of investigating targeted solutions which will help address the consumption of alcohol during pregnancy, and hence reduce the risk of FASD occurrence.

Changing behaviour of drinking while pregnant requires an understanding of the motives to consume alcohol while pregnant.

This is an area that has had little investigation and further analysis will provide the learnings which policy makers can use in developing effective initiatives to tackle FASD. These learnings can aid in driving programs focused on targeted intervention, as this is

“Official government data from the Australian Institute of Health and Welfare shows that 98.8 per cent of women either abstain or decrease their levels of alcohol consumption while pregnant. This data provides clear evidence that awareness levels are already very high.” known to produce some of the most effective public health policy outcomes producing the required change to create a positive result.

In the case of reducing FASD in Australia, the targeted interventions needed to start with well-resourced health care professionals like GPs, midwives and obstetricians to provide education and support to women during pregnancy. This helps to provide stigma-free, safe environments assisting in reducing the risk of unintended health consequences.

DrinkWise has worked hard to develop and promote a voluntary label to assist in raising general awareness, taking into consideration best-practice in the field. The label also takes into consideration the practical limitation of packaging such as label space and the plethora of other labelling requirements the industry must balance.

It is important that in the process of developing the labels and in coming to a final decision on the form of the label that FSANZ recognises the limitations of both the impact that the warning labels will have on the issue of FASD and also the effect that the mandatory warning labels will have on the industry.

ABA will continue to co-ordinate the industry consultation and work closely on this process, so that we are clear to FSANZ about what, as a matter of effectiveness and practicality, will work for pregnancy warning labels. To keep up to date on the FSANZ process, subscribe to Food Standards Notification Circular on the FSANZ website (www.foodstandards.gov.au) and be sure to make your views known in the consultation process.

GOHAR YAZDABADI, RESEARCH AND POLICY MANAGER, ALCOHOL BEVERAGES AUSTRALIA Gohar Yazdabdi is the Research and Policy Manager at Alcohol Beverages Australia. Gohar brings over 10 years of experience in leading and implementing strategic evidence-based policy changes across the Federal and NSW Governments and has also worked as an in-house commerical lawyer.

34 | MAY 2019 NATIONAL LIQUOR NEWS

CONTRIBUTOR’S

PANEL

IBA welcomes excise changes

E

xcise rates have long been the thorn in the side of brewers, not to mention a major growth constraint when trying to get a brewery off the ground.

That’s why we were delighted to announce that changes to beer excise were passed by the House of Representatives on 2 April, marking another milestone in our fight to reduce the excise burden.

The Independent Brewers Association has been lobbying the Federal Government for changes to excise since 2017. Last year, we obtained the coalition’s agreement to increase the alcohol excise refund cap from $30,000 to $100,000, as well to extend the concessional draught beer excise to kegs of 48 litres or less.

Following the Bill’s assent, these changes will take effect from 1 July 2019. They reflect the hard work that the IBA has done on behalf of our members and will aid in the growth of our industry.

REINVESTING IN OUR SECTOR The refund cap will provide small and medium producers – the vast majority of breweries – with up to $70,000 more capital in their pockets to invest in their businesses and the wider industry.

This both relieves the financial strain on smaller artisanal producers while providing avenues for reinvestment in the sector.

Following surveys of the IBA’s members, the majority of respondents said that they would reinvest the excise refund in both capital expansion and hiring more staff.

The changes therefore will likely result in a direct increase in employment, capacity and quality, helping Australia’s independent brewers to supplement their communities and meet the consumer demand for local, independent beer.

FRESHER BEER The extension of the concessional rates to beer kegs under 48 litres removes the disincentive for brewers to use smaller kegs, coming as a welcome change for both brewers and onpremise venues. Beer being available in smaller kegs will mean faster turnover of product, resulting in fresher, higher quality beer.

This will also allow venues to experiment

with trialling different beer styles. In short, it will lead to more consumer exposure to a greater variety of fresher, better-tasting beer.

NOT THE END OF THE EXCISE FIGHT Although we welcome these developments, we’re not done pushing to ensure that the excise system is fair on smaller, independent brewers.

We will continue to monitor the excise regime to ensure that it does not impose barriers to growth and that it is reasonably indexed across all alcohol categories.

For the meantime, we raise a glass of fresh independent beer to these changes and look forward to seeing the boost in growth that they will generate.

“The changes therefore will likely result in a direct increase in employment, capacity and quality, helping Australia’s independent brewers to supplement their communities and meet the consumer demand for local, independent beer.” Jamie Cook, Chair, Independent Brewers Association

JAMIE COOK, CHAIRMAN, INDEPENDENT BREWERS ASSOCIATION Jamie Cook is the Chairman of the Independent Brewers Association and co-founder of the Stone & Wood brewery. After escaping corporate life in 2008, Jamie set up Stone & Wood along with friends Ross Jurisich and Brad Rogers. Since then, Stone & Wood has grown into one of Australia’s largest privately owned breweries and after a long career in brewing industry starting back in 1981, Jamie felt it was time he gave back to an industry that has been so good to him and became Chair of the IBA in January 2019.

NATIONAL LIQUOR NEWS MAY 2019 | 35

LEASING

MARKET RENT REVIEW WARNINGS Marianna Idas, the Principle Solicitor of eLease Lawyers, discusses the cautions and processes you should be aware of with rent review clauses.

R

ent review clauses in the lease are not standard. Generally, there are three major types of rent review methods: percentage increase, CPI and market rent view. Hidden traps with market rent reviews can make your future rent much higher than you anticipated. So make sure you understand your rent review clauses, have a specialised leasing lawyer and look out for these major items.

NOTICE AND ACCEPTANCE The Landlord may require you to respond to its market rent notice within a short period of time, e.g. 21 days. If you do not respond within this timeframe it could result in your automatic acceptance of the proposed new rental. Ensure that: 1. y ou have either ample time to respond to the notice; 2. y our best contact address is listed in the lease. If you change your address, make sure you have a mail redirection or a subsequent written agreement with the landlord to ensure that any notices are sent to your new/correct address; and 3. t he way you process your mail is such that you do not miss any important notices such as this.

OPTION PERIOD – TO RENEW YOUR LEASE Many leases are drafted in a way so that you must exercise your option to extend your lease prior to receiving notification from the landlord of the new market rent.

If you have already exercised your option and subsequently receive the market rent notice you are bound to paying this rent for the increased lease term. This rent may be higher than you anticipated.

36 | MAY 2019 NATIONAL LIQUOR NEWS

If, however, you are a retail shop then you may obtain the protection of the relevant legislation for your state, which your lawyer can advise you on. For example, in NSW section 32 of the NSW Retail Leases Act 1994 allows you to make a written request for determination of the market rent at any time within the period that begins three and six months before the last day on which the option may be exercised under the lease.

The period within which you must exercise the option is varied so that the last day on which the option may be exercised is 21 days after the determination of the rent is made and notified to you in writing.

If your state does not contain the above protection, then your lawyer can request a new clause in the lease to this effect. That is, the new market rent (or as determined by a valuer) is provided to you before your right to exercise your option to renew the lease is lost.

RATCHET CLAUSE Because the market rent can decrease, some landlords may put a ratchet clause in the lease.

What this means is that the rent cannot be less than it was previously. If you are a retail shop then in most states it is prohibited to stop the rent decreasing. Any clause in the lease stopping this decrease is void.

DISPUTES If the parties cannot agree on the market rent then an independent review is required. Ensure you and the landlord have the opportunity to make written submissions to the valuer. A valuer’s decision is generally binding, and the costs of appointing them are shared equally between the parties. It is always advisable to try and reach an agreement direct with the landlord

to avoid these additional costs. Valuers are to review the rent as specified in the lease.

ASSUMPTIONS AND LIMITATIONS The rent review is essentially the valuation of a hypothetical lease in the open market at the review date, but assuming and disregarding certain things about the lease. The starting position should reflect the rent as reality and should not assume or disregard any matters to create an artificial position. For example, clauses in the lease can provide that the rent on review must be the “best” rent obtainable in the market. This should not be agreed as this would entail a much higher rent.

Additional examples of assumptions that could be imposed in the lease by the landlord to your disadvantage include: 1. To disregard any incentives. It is common practice to grant rent free periods or other concessions. Disregarding incentives is unreasonable as you will be penalised for something that is common in the market.

2. Include any improvements you made to the premises. If you have paid for, and carried out, works to the premise then you should not be penalised on review for works you have completed which increased the rental value.

These assumptions can be avoided by seeking alterations in your lease.

PREVENTION OF DANGERS Prevention is better than a cure. Focus on the details in your lease and clauses surrounding how your rent is to be reviewed and ensure that you understand your rights and obligations.

A leasing specialist can advise you of the terms of your lease and negotiate changes to save you money in the long run.

A RICHER RED FORGED IN FLAMES

Enjoy Hardys responsibly

RETAILER PROFILE

BUCKET

BOYS We chat with Johnathan Hepner, co-founder of Bucket Boys, about their crowdfunding campaign.

Q: BUCKET BOYS HAS LAUNCHED A CROWDFUNDING CAMPAIGN. WHAT ARE YOUR PLANS? Johnathan: We’re looking to raise up to $1 million, with a minimum target - which is the minimum for you to achieve the goals you’ve set out - of around $200,000.

Q: WHAT ARE YOU HOPING TO DO WITH THESE FUNDS? Johnathan: We’ve set them up in tiers. Tier one is we’re going to help to fund the two new shops that we’re opening up. We’ll need the money for that.

We’ve signed the lease on both of them so it’s going ahead. The website is in the first tier as well. That’s something that has to be done.

The second tier is about brewing more beer and importing more beer. The third tier is more in the way of an idea of opening a brewpub to tie it all together.

There are other things as well – we’ll need working capital, we have to pay off a couple of loans. But those are the mains goals: two shops, the website, importing beer, and hopefully putting some money away for a future home to make beer.

Q: TELL US ABOUT THE NEW SHOPS Johnathan: The first one is in the new development called Darling Square in between Haymarket and Darling Harbour. It’s a massive place for tourism and for locals. We’re going to be putting up a bottle shop and a bar in the middle of the Exchange Building.

The second is in Penrith. We always wanted to put a shop out west in Penrith or somewhere in the foothills. We found a spot right next door to High Street Social in Penrith. We’re putting a bottleshop there. It’s becoming a nice little area for beer. We think the west is so under-serviced and the rent is so good. From a business perspective it’s very low risk out there.

Q: HOW MUCH CAN EACH PERSON POTENTIALLY INVEST AND WHAT DO THEY GET? Johnathan: The law states that $10,000 is the most that any one person can give. We have set a lower limit of $150. We’re basically going to give a lifetime discount that is based on what you put in. That’s on our website, in our stores and in our bar. Our business is at a stage where we’re not profitable, so we’re raising this money to expand in the hopes that we’re going to grow to a place that we can get out of treading water. What we wanted to do was create rewards that see you get a return on your investment regardless of whether we pay you a dividend. We’re trying to give people something that’s substantial. We wanted to make it a no brainer for people.

Those who invest at the lowest level – $150 – will receive a lifetime 10% discount on beer, as well as a beer on their birthday at any of the bars (or one free shipping voucher if you don’t live in Sydney). The next level is $600. Where it gets cool is we’re combining our White Whale Society into the shareholder model so it will cease to exist as a subscription service. It’s going to become our shareholder model. So anyone who puts in $600 will become a White Whale member for life. That means they get pre-release access, which comes in handy when we’re releasing things like Cloudwater cans.

38 | MAY 2019 NATIONAL LIQUOR NEWS

Bucket Boys’ co-founder Johnathan Hepner

“IF PEOPLE ARE WILLING TO PUT MONEY INTO A BUSINESS LIKE OURS IN THE TRANSITION STAGE, IF THEY WANT TO GO ON THE JOURNEY WITH US, WE WANT THEM TO GO ON THE JOURNEY AND FEEL LIKE THEY REALLY GET SOME VALUE OUT OF IT.” They sell out so fast, it’s nice to know that you’re going to get access to them first. We’ll also do members-only beers, we’ll do White Whale tastings, and they’ll get a 15% lifetime discount as well.

Q: WHAT’S BEYOND THAT? Johnathan: Then we have two higher levels that are $2,400 and $5,000.

The $2,400 level is the exact same thing as before with a couple of little differences, but we also include 20% discount lifetime and a year of our quarterly subscription.

Those who invest $5,000 will get a 25% discount for life. You’re pretty much getting beer close to cost – a lifetime of beer. We may lose out on some margin later on, but if you’re willing to put that much money in our business we’re happy to keep you around as a customer.

A cool thing that we’re going to do – I think we’re the first people to actually do this – at these two top levels is we are introducing a syndicate option. At gold level ($2,400), two people can split the investment cost, but both will still receive the benefits. At black level ($5,000), the investment can be split between four people. So you and three of your mates could go in $1,250 each, and then each get a 25% discount and own 10,000 shares in Bucket Boys.

We’re really trying to splash it with the discounts. If people are willing to put money into a business like ours in the transition stage, if they want to go on the journey with us, we want them to go on the journey and feel like they really get some value out of it. I want them to feel like family members.

Q: WHAT ARE YOUR PLANS FOR THE FUTURE? Johnathan: We want to expand in other cities. Two reasons. One of the main things is shipping is getting so expensive, so it would be great if you ordered in Victoria it was shipped from a store in Victoria. So we would have local shipping everywhere. The other is as we expand our footprint, the more places we’ll be able to send our beer to. We would also get wholesale margins which would be good for business.

RTD FEATURE

WELCOME TO THE FAMILY. JACK & GINGER BEER NOW AVAILABLE. C R A F T E D W I T H C A R E . E N J O Y T H E S A M E WA Y. J A C K D A N I E L’ S & L E M O N A D E , D R Y, G I N G E R B E E R , C O L A A N D Z E R O S U G A R C O L A 4 . 8 % A B V ( 9 . 6 P R O O F ) A R E R E G I S T E R E D T R A D E M A R K S . © 2 0 1 9 J A C K D A N I E L’ S .

CANNED UNDER LICENCE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN-FORMAN AUST. PTY. LTD. JACKDANIELS.COM

caption

RTDs

THE CONTINUING EVOLUTION OF RTDS

RTDs continue to evolve, finding new ways to grow within the off-premise marketplace, making them an essential part of any retailer’s offer.

STRIP DPS 40 | MAY 2019 NATIONAL LIQUOR NEWS

RTDs

T

he RTD category is one that thrives on innovation and diversity. After all, there are myriad different spirits and mixed drinks out there, each one representing an opportunity for suppliers to create a new product for a different occasion. In addition, RTDs are most popular among newer, legal age entrants to the drinking market, who often bring new and industry-driving demands and expectations with them.

The last decade has seen the category come through some significant challenges, from legislative changes to evolving tastes, but it has always found a way (if not multiple ways) to rise to the occasion and maintain its position as a key staple for retailers.

Of all off-premise alcoholic categories, RTDs are enjoying the greatest growth.

“There are several attributes why RTD is so popular: convenience, perfect blend/taste profile that remains consistent, and easy-to-deliver at a refreshing temperature,” says Stuart Reeves, assistant Brand Manager at Jack Daniel’s. “From a retailer’s perspective, RTDs over-index in impulse purchase so to disrupt path to purchase, deliver cold product and add value to the purchase.

“We are committed to recruiting the next generation of drinkers by delivering products that drive commercial results for our customers. Jack Daniel’s will always be recognised for its iconic Jack & Cola bar call, and to offer friends of Jack a new exciting news we have recently added Double Jack & Dry and Jack Daniel’s & Ginger Beer to the family.”

LIGHT VS DARK Just as the spirit category is split into light and dark spirits, so too are RTDs. The dark RTDs have long been the most dominant within the category, with Bourbon and cola representing a considerable chunk of sales, while Irish and Canadian whiskey-based RTDs experience consistently strong growth.

However, the light RTDs still have an important role to play within the category. Vodka-based RTDs are leading the way through innovative new serves, while gin also has similar opportunities for growth, albeit from a smaller base. It is important that retailers understand what consumers are looking for in these different kinds of drinks, so that they can create a suitable range and then market and display it appropriately.

“Light RTDs tend to be consumed in social occasions and have a ‘party’ skew,” says Virginia Woodger, Group Marketing Manager RTDs, Spirits & Sponsorships, Asahi Premium Beverages. “It’s all about convenience of shopping and breadth of range.

When looking at dark RTDs, regular ABV products

“RTDs over-index in impulse purchase so to disrupt path to purchase, deliver cold product and add value to the purchase.”

– Stuart Reeves, Brown-Forman tend to be consumed in lower tempo occasions, while high ABV products tend to be consumed in more social settings and party-type occasions. It’s important for retailers to cater for these differing needs and to offer the right pack formats to suit the consumer needs. We are seeing growth in single bottle/can sales for example, so it’s important for retailers to have a clear offering in this space.”

SPIRIT-LED The craft distilling trend is a global phenomenon and something into which Australians have bought with considerable excitement. While the trend has created a more diverse spirits category, it has also highlighted the specific taste profiles of different spirits and heightened their relevance. This has had an effect on the RTD consumer as well. No longer are the spirits in an RTD merely an alcoholic addition, now customers want those unique flavours coming to the fore.

“With dark premix, it’s the bar serve offering that is the biggest growth driver for the segment as people look for less mixer and more cut-through in flavour,” says Hayden Abercrombie, Head of Innovation at Diageo Australia. “In 2010, traditional RTDs such as those with cola mixers made up 86 per cent of the category, today it now makes up 69 per cent with the growing popularity of premium RTD offerings like Tanqueray & tonic or more authentic bar serve offerings that have less mixer. Premium RTDs now make up 10 per cent of the category while RTDs that are more authentic bar serve styles with less mixer contribute 21 per cent of sales in the RTD category.”

The growth of craft spirits and the continued explosion of cocktail culture has allowed for even more innovation in many RTD ranges. For the majority of people, cocktails are considered difficult to make in the living room, back garden or beach, but that doesn’t make them any less desirable.

Providing an easily pourable alternative can take the premiumisation of RTDs to the next level. “(The RTD) is now back as Bottled Cocktail Beverages with more crafted liquids and premium packaging – and it does look to be the right time for consumers to be offered more cocktail-led expressions,” says Fraser Lockwood, Marketing

BROWN-FORMAN IDENTIFIES KEY RTD TRENDS – I ncreasing appetite for more of a whisky taste - more robust taste profiles (higher ABV segment (6%+) is growing solidly – currently at a rate of 6.2%. (IRI, value, MAT).

– Propositions with lighter mixers are also doing well – ginger taste profile would lead the trend (+15.4% in value, MAT, IRI).

– From a small base, mindful consumption is also increasing its traction (no-sugar (+29.3%, MAT, IRI) and mid-strength propositions are growing.

– I nnovation in light spirits are bringing new SKUs to the table driven by its on-premise success (gin & tonic, pink gin).

– Wine in the can is the latest disruption to the category.

– US whiskey & cola remains dominant, making up one in every two dollars spent.

– Vodka and dark rum are fighting neck and neck for the second place, making up around 15% each.

– Ginger-based flavours are on the rise, and we have introduced Double Jack & Dry, and Jack Daniel’s & Ginger Beer to the family to offer exciting new opportunities how to enjoy Jack Daniel’s.

NOW THAT’S REFRESHING. L I V E F R E E LY. DR I N K R E S PONS I BLY.

NATIONAL LIQUOR NEWS MAY 2019 | 41

RTDs

FAST FACTS • RTD is the fastest alcohol industry

growing segment within the

up about 15% of sales value (IRI) • RTD is worth $2.5b (IRI) • MAT March 2019 contributed $96m in incremental growth (IRI) • Jack Daniel’s RTD is the most valuable trademark • RTDs make

The array of RTDs available at Thirsty Camel A Tanqueray Gin & Tonic

in RTD category (+2.1% value, MAT) carving 17% of the value of the total RTD market (incl. light RTD) (IRI)

(Provided by Brown-Forman) Director of SouthTrade International. “We launched our first last year with the Starward (new) old fashioned in a 500ml format, and we have Starward Red Manhattan (in collaboration with Adelaide Hills Distillery) launching in May. We’ll continue to evolve this category with Starward Whisky as a lead though I’m sure there’s plenty of opportunity for some pre-batched espresso Martinis and negronis too.”

Another driver of higher ABV RTDs has been a desire among consumers to reduce their sugar intake. Less cola means less sugar, which has allowed the category to broaden further, giving retailers and customers even more options to play with. In addition, the size of serves has also been evolving, whether through pressure from Container Deposit Schemes or customer preferences.

“Pack-size innovation has also driven the category, as well as vessel size, with standard single serve RTD options ranging from 200ml to 510ml offering consumers a plethora of choice for any occasion,” says Glenn Mitchell, Retail Promotions Manager at Thirsty Camel. “The CDS is affecting pricing across the country, so we can expect pack-size innovation to continue over the next 18 months to counteract this, for example new 18-can pack formats will soon to hit the market, designed to reach specific consumer price points.”

DRIVING TRADE It is clear that innovations will continue to drive the category, with fresh alternatives appearing on the scene all the time, with canned wines another revelation. There will be more evolutions before the year is out, creating further opportunities. The key for retailers is to avoid getting swept up in all the excitement and ending up with a saturated range.

“Given RTD is the fastest growing category, RTDs should be presented at a prime location within the store,” adds Reeves.

“Category management is an important consideration in the mix and the best practice is to represent each segment based on its value size. At the moment, too much space is dedicated to brands with low awareness that add clutter to the shelf, making it hard to shop and a less enjoyable experience.”

Retailers need to recognise that these different RTDs will appeal to different people in different states of mind and at different days of the week. Each of the RTDs in your store needs to be targeting particular customers in a way that the others aren’t. Identifying price points and points of difference will give your range genuine variety. It is also critical to constantly examine which brands are selling and consider which placements will work best for each trend-driven product.

“For retailers to maximise the appeal of RTD instore they need to ensure their RTD offer is well communicated with appropriate shelving, signage and ticketing,” says Mitchell. “Most importantly, as RTD are a convenience product they are generally destined for quick consumption and need to be cold, therefore adequate refrigeration space for the category is critical.”

42 | MAY 2019 NATIONAL LIQUOR NEWS

SouthTrade’s Fireball RTDs Southern Comfort and Cola

SAY HELLO. TWICE.

WELCOME TO THE FAMILY. DOUBLE JACK & DRY NOW AVAILABLE. C R A F T E D W I T H C A R E . E N J O Y T H E S A M E WA Y. D O U B L E J A C K & C O L A A N D D O U B L E J A C K D R Y 6 . 9 % A B V ( 1 3 . 8 P R O O F ) . J A C K D A N I E L’ S A N D O L D N O . 7 B R A N D A R E R E G I S T E R E D T R A D E M A R K S . © 2 0 1 9 J A C K D A N I E L’ S .

CANNED UNDER LICENCE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN-FORMAN AUST. PTY. LTD. JACKDANIELS.COM

WINE TASTING

CABERNET SAUVIGNON

THE PANEL

1. Daryl Fisher, General Manager, Fisher Fine Wine

4. Tom Lynar, Key Account Manager, Fine Wine Partners

2. Nigel Burton, CEO, Burton Premium Wines

5. Elizabeth Schoen, Sales Manager NSW/ACT, Samuel Smith & Son

3. Alexander Stamoulis, Store Manager, Corkscrew Cellars, Rose Bay

6. Michael Park, Wine Merchant, Dan Murphy’s Kingsford

THE PANEL’S PICKS P eter Lehmann Mentor Cabernet Region: Barossa Valley VIN: 2013 LUC: $31.45

“A complete wine. Great fruit and excellent oak regimen.

Needs time or a big steak.”

– Michael Park Distributed by: Casella Family Brands

McGuigan The Shortlist Cabernet Sauvignon Region: Coonawarra VIN: 2016 LUC: $17.20

“Herbaceous notes on the palate, a hint of blackcurrant, cloves and hazelnut. Long length and good intensity.”

– Elizabeth Schoen Distributed by: Australian Vintage Limited

T amburlaine On the Grapevine Cabernet Sauvignon Region: Orange VIN: 2017 LUC: $11.35

“A mix of primary and secondary characters, blackcurrant, cocoa and hazelnut.

Medium body and length.

Consistent from start to finish.”

– Elizabeth Schoen Distributed by: Tamburlaine Organic Wines

THE SYSTEM 95-100 Classic: an exceptional wine

44 | MAY 2019 NATIONAL LIQUOR NEWS

90-94 Outstanding: a wine of remarkable character

85-89 Very good: a wine with impressive qualities

WINE TASTING LUC $24 AND OVER A uswan Creek Master Selection Old Vine Cabernet Sauvignon Region: McLaren Vale VIN: 2016 LUC: $25.32 “Good, strong Cabernet. Lots of spice and long and true.”

– Michael Park “Mushrooms and tobacco leaf nose with black cherries, plums and cocoa. I went back a few times to this wine.

Great complexity.” – Elizabeth Schoen

Distributed by: Swan Wine Group

Brown Brothers Patricia Cabernet Sauvignon Region: Milawa, Victoria VIN: 2015 LUC: $38.80 “Great structure and winemaking. Fruit is a little closed, it needs time to show.” – Michael Park “Black fruits dominate the palate with hints of cocoa, coffee and cloves. Good balance and intensity.” – Elizabeth Schoen

Distributed by: Brown Family Wine Group

A ngullong Crossing Reserve Cabernet Sauvignon Region: Orange VIN: 2015 LUC: $29.03 “Brick red hue. Leather with wood ashes, plums and raspberries with hazelnut and charred wood notes on the palate. Full bodied, with a long length.” – Elizabeth Schoen “Super wine… Incredible complexity. Red fruit builds to savoury spice, wrapped up in firm tannin and juiciness.”

– Michael Park

“I noticed I enjoyed the McLaren Vale Cabernets the most. Big varieties in fruit characteristics across the board.”

– Alexander Stamoulis

Distributed by: Angullong Wines

Bortoli Melba Vineyard Cabernet Sauvignon De Region: Yarra Valley VIN: 2015 LUC: $99.65 “Truffles and leather aromas develop as earthy black cherry and hazelnut notes on the palate. This wine needs good company and cheese.” – Elizabeth Schoen “Finishes incredibly strong. Mid palate a little hollow. Very complex and leathery, earthy notes to the fore.”

– Michael Park

Taylors The Visionary Cabernet Sauvignon Region: Clare Valley VIN: 2012 LUC: $107.50 “Barnyard, earthy, plums and blackcurrant, as well as chocolate. It’s ageing well. Complex and with big oak.”

– Daryl Fisher “A well-aged wine with lots of fruit left. Great length.”

– Tom Lynar

Distributed by: Taylors Wines Distributed by: De Bortoli Geoff Merrill Reserve Cabernet Sauvignon Region: Coonawarra/McLaren Vale VIN: 2012 LUC: $30.10

DID YOU KNOW? • The top 10 branded products within bottled Cabernet Sauvignon make up almost half of the value of the varietal.

• In total Cabernet Sauvignon contributed 21.3 per cent of the total value growth to the bottled red category.

• The value of Cabernet Sauvignon growth exceeded volume growth 3.7 per cent to 3.3 per cent.

“Grippy tannins and fruit. Long lasting acid and big oak.” – Nigel Burton “High, grippy tannins. Full bodied and very rounded. Barrel work for sure.” – Alexander Stamoulis Distributed by: Young & Rashleigh (NSW/ACT), The Wine Company (QLD), Options Wines (SA), Prime Wines (VIC), Thomas Chin (NT)

THE SYSTEM 95-100 Classic: an exceptional wine

90-94 Outstanding: a wine of remarkable character

85-89 Very good: a wine with impressive qualities

NATIONAL LIQUOR NEWS MAY 2019 | 45

WINE TASTING LUC $14-24 M cW 660 Reserve Cabernet Sauvignon Region: Hilltops VIN: 2017 LUC: $15.48 “A fascinating wine. Lovely, complex flavour, well structured and with good length.” – Michael Park “Blackcurrant, black cherries and blackberries. Smoky notes with nutmeg and cloves. Chewy tannins and texture.”

– Elizabeth Schoen

“Increasing and increased fruit weight and balance.

Pleased to see so much varietal characteristics even at the cheaper end.”

– Nigel Burton

Distributed by: McWilliam’s Wines Group

N epenthe Altitude Cabernet Sauvignon Region: Adelaide Hills VIN: 2017 LUC: $16.25

L econfield Coonawarra Cabernet Sauvignon Region: Coonawarra VIN: 2017 LUC: $23.44

“Lighter in colour. Capsicum, green olive and coffee notes.

Grippy tannins. Medium acidity and good length.”

– Elizabeth Schoen

“Eucalypt, capsicum aromas, with a good mix of spices, including nutmeg and cinnamon. A cooler style.”

– Elizabeth Schoen”

“Creamy, sweet upfront with a growing savoury oak backbone that defines the finish. Soft and long. Very good.”

– Michael Park

“Nice complexity. Clean and pure and very juicy.”

– Michael Park

Distributed by: Australian Vintage Limited

Distributed by: Leconfield Wines

B riar Ridge Big Bully Limited Release Cabernet Sauvignon Region: Wrattonbully VIN: 2016 LUC: $21.50 “An expansive, big wine with nice berry, but a little subtle.

The points are in the finish.” – Michael Park “Vibrant blackberry notes on the nose follow through onto the palate with earthy, toasty, cassis notes. Good tannin structure and length.” – Elizabeth Schoen

Distributed by: Free Run Distributors

SHARE OF TOTAL BOTTLED RED WINE (VALUE) 1. Shiraz – 39.1 per cent (up 0.1 per cent vs YA) 2. Cabernet Sauvignon – 19 per cent (up 0.1 per cent) 3. Pinot Noir 11.3 per cent – (up one per cent)

B eresford Classic Cabernet Sauvignon Region: McLaren Vale VIN: 2016 LUC: $14 “Plush cassis with some very expansive oak characters.

Great length.” – Tom Lynar “Good quality oak, lovely vanilla nose, ripe fruits. Great wine, heaps of oak, but good oak.” – Daryl Fisher

Distributed by: Vok Beverages

T aylors Estate Cabernet Sauvignon Region: Clare Valley VIN: 2017 LUC: $15.48 “Big aroma, toffee. Bit of stalky caramel. Massive tannins. A big, complex wine.” – Daryl Fisher “Spicy menthol and blackberries on the nose with a savoury palate and great mouthfeel. Good length.” – Tom Lynar

These gains were at the expense of Cabernet Merlot (-0.6 per cent), Merlot (-0.4 per cent) and Cabernet Blends (-0.2 per cent).

Distributed by: Taylors Wines

THE SYSTEM 95-100 Classic: an exceptional wine

46 | MAY 2019 NATIONAL LIQUOR NEWS

90-94 Outstanding: a wine of remarkable character

85-89 Very good: a wine with impressive qualities

WINE TASTING LUC UNDER $14 Elliott Estate Victoria Old Vine Cabernet Sauvignon Region: Coonawarra VIN: 2016 LUC: $11.69 “Funky, cherry, cola, old wood, coffee notes. Charred, complex and rich”. – Daryl Fisher “Vibrant, bright fruit. Well balanced structure with a good length.” – Tom Lynar

DID YOU KNOW? • Sales of Cabernet Sauvignon were $304.6m – MAT 03/03/2019, with 18.07 million litres sold.

• Australian Cabernet Sauvignon is 99.2 per cent of total bottled sales value.

• Cabernet Sauvignon is the third largest varietal behind Sauvignon Blanc and Shiraz.

Distributed by: Swan Wine Group

McWilliam’s Hanwood Estate Cabernet Sauvignon Region: Riverina, NSW VIN: 2017 LUC: $8.81

Pepper Tree Wrattonbully Cabernet Sauvignon Region: Wrattonbully VIN: 2016 LUC: $13.44 “Good fruit intensity with subtle spicy characters and a medium length.” – Tom Lynar “Cedar, blackcurrants, dark fruit. Rich, spicy with black pepper.” – Daryl Fisher

“Clean, fresh nose. Classic Cabernet characters.

Herbaceous with a good length.” – Nigel Burton

“Medium bodied wine with a medium finish and some firm tannins.” – Alexander Stamoulis

Distributed by: Déjà Vu Wines

Distributed: McWilliam’s Wines Group

“I was impressed by with the strength of the bracket.

There wasn’t a wine I didn’t think was true to its varietal origins.”

– Elizabeth Schoen

Berton Reserve Cabernet Sauvignon Region: Coonawarra VIN: 2016 LUC: $11 “Bright cassis with menthol characters. Fresh acid structure with slightly unbalanced tannin structure.” – Tom Lynar “Pepper, spice, cloves, blackcurrant. Firm, assertive acids.

Complex.” – Daryl Fisher

Distributed by: Berton Vineyards

Taylors Promised Land Cabernet Sauvignon Region: South Australia VIN: 2017 LUC: $10.32 “Rounded and elegant, with developed flavours. A nice finish, juicy and coating tannins that support length.”

– Michael Park “Red fruits dominate the nose and palate. Strawberries, raspberries and black cherries. Slightly grippy mouthfeel with an earthy finish.” Elizabeth Schoen Distributed by: Taylors Wines

Briar Ridge Cold Soaked Cabernet Sauvignon Region: Orange VIN: 2016 LUC: $12.70 “Perfumed, floral, violets, a bit of capsicum. Chalky tannins.”

– Daryl Fisher “Brambles to dark berries on the nose with a medium to full bodied palate with powerful tannins.” – Tom Lynar

Distributed by: Free Run Distributors

THE SYSTEM 95-100 Classic: an exceptional wine

90-94 Outstanding: a wine of remarkable character

85-89 Very good: a wine with impressive qualities

NATIONAL LIQUOR NEWS MAY 2019 | 47

EVENTS

1. GAME OF THRONES SINGLE MALT SCOTCH WHISKY COLLECTION LANDS IN AUSTRALIA To celebrate the eighth and final season of Game of Thrones appearing on our screens, Diageo has released a range of seven single malt Scotch whiskies themed around the principal houses in the series, as well as The Night’s Watch. House Stark is represented by Dalwhinnie’s Winter’s Frost; House Tully by Singleton of Glendullan Select; House Targaryen by Cardhu Gold Reserve; House Lannister by Lagavulin 9 Year Old; The Night’s Watch by Oban Bay Reserve; House Greyjoy by Talisker Select Reserve; and House Baratheon by Royal Rochnagar 12 Year Old. The range was unveiled at a tasting event on 3 April at Mjølner, Sydney, where guests had the opportunity to taste the limited edition collection. More tasting experiences were held in Mjølner’s Sydney and Melbourne venues.

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2. DEAD RABBIT IRISH WHISKEY LAUNCHED AT BURROW BAR An exclusive trade event held at Burrow Bar in Sydney on Wednesday 3 April saw the launch of The Dead Rabbit Irish Whiskey into the Australian market. Named for notorious Irish street gang The Dead Rabbits, active in New York City in the late 19th century, the new whiskey is a collaboration between The Dublin Liberties Distillery’s Master Distiller Daryl McNally, and Jack McGarry and Sean Muldoon, co-founders of New York bar The Dead Rabbit Grocery & Grog. “This is a great opportunity to welcome The Dublin Liberties Distillery to the market and contribute to the growth of the Irish whiskey category in Australia as consumers continue to seek brands with unique stories,” said Jon Prew, SouthTrade International Brand Manager.

48 | MAY 2019 NATIONAL LIQUOR NEWS

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3 EVENTS 3. SEEDLIP MASTERCLASSES AT MAYBE SAMMY An assortment of the trade, drinks media and other influencers recently spent an afternoon at new Sydney bar Maybe Sammy, where they learnt about Seedlip – the world’s first distilled non-alcoholic spirit. Seedlip founder Ben Branson entertained attendees with the fascinating story of the brand, while the experienced bar team at Maybe Sammy – led by former Diageo World Class Australian winner Andrea Gualdi – mixed up a selection of cocktails using the three SKUs which currently make up the Seedlip range: Spice 94, Garden 108 and Grove 42.

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4. BEER GARDEN RECEIVES HOEGAARDEN MAKEOVER Iconic Sydney pub The Observer Hotel received a ‘Hoegaarden Beer Gaarden Blitz’ and saw its beer garden transformed by landscape designer Jamie Durie.

The Hoegaarden team and Jamie Durie aimed to bring nature and simplicity to customers at The Observer Hotel without them ever having to leave the city. An overnight turnaround on Tuesday 2 April saw the venue ready for a big reveal event on the evening of 3 April. Hoegaarden beers were on offer as guests had the chance to see the lush new space filled with giant topiaries that gave shade to built-in custom tables wrapped around them. In addition, over 80 trees and plants were introduced, including Espalier Orange Trees as a nod to Hoegaarden’s traditional recipe.

NATIONAL LIQUOR NEWS MAY 2019 | 49

Shop Talk WE TALK SHOP WITH JIM MONAGHAN FROM THE BOTTLE-O AND CATHY STANILAND FROM COOPERS.

Meet...

JIM MONAGHAN Owner, The Bottle-O Wilberforce in New South Wales

CATHY STANILAND Area Manager, Coopers/Premium Beverages

Jim Monaghan and Cathy Staniland

Q ABOUT US: JIM: I’ve been in the liquor industry for nearly my entire career. After 30 years with one of Australia’s largest broad range liquor wholesalers, I decided to move into retail. I’ve owned the Wilberforce Bottle-O for the past five years and have enjoyed every minute.

CATHY: I’ve always worked in sales. I have 15 years’ experience as a sales representative in the liquor industry, with national and multinational companies, and now Coopers/ Premium Beverages.

Q HOW ARE YOU FINDING THE CURRENT MARKET? JIM: Liquor retail can be a challenging industry but my shop has found its niche in what is a relatively small community. We have loyal customers who support us and we’re finding that people in our area genuinely want to spend their money with local businesses. We are seeing good returns on the use of social media and local advertising and sponsorship.

CATHY: The market’s ever-changing. There are always new challenges and opportunities. While there is an increasing need for products to be cost competitive to convert into sales, there is still high levels of loyalty to brands.

Q WHAT ARE THE BIGGEST CHALLENGES YOU ARE FACING? JIM: Like many small businesses, one of our biggest challenges is contending with the larger stores, but we have been able to compete with them on price and service. Despite the rise of online shopping for liquor, our business continues to grow and we regularly have new customers in the store.

CATHY: With customers’ increased focus on price, we need to look at innovative ways to

50 | MAY 2019 NATIONAL LIQUOR NEWS

retain their brand loyalty, such as creating additional value in their purchase with giveaways. Cost of living in the eastern states is also impacting discretionary spending on beer, wine and spirits but our strong market share can help overcome this.

Q WHAT DEALS OR PROMOTIONS ARE WORKING FOR YOU AT THE MOMENT? JIM: Our store has been able to leverage Coopers’ sponsorship of the Supercars and The BottleO’s sponsorship of Tickford Racing’s new Ford Mustang, which has resulted in strong growth in sales of Coopers Mild Ale. Gifts with purchase and in-store giveaways also work well with our customer base, as they appreciate the extra value. We have also been able to take advantage of supplier discounts to offer great deals that still provide solid sales margins.

CATHY: ustomers to discounted products. We have also leveraged our Supercars sponsorship in stores, securing floor stacks and displays in exchange for gifts with purchase.

“DESPITE THE RISE OF ONLINE SHOPPING FOR LIQUOR, OUR BUSINESS CONTINUES TO GROW AND WE REGULARLY HAVE NEW CUSTOMERS IN THE STORE.” – JIM MONAGHAN, THE BOTTLE-O, WILBERFORCE Q WHAT DO YOU ENJOY MOST ABOUT WORKING WITH EACH OTHER? JIM: I’ve enjoyed a long-term relationship with Cathy. She is a fantastic sales rep, one of the best in the industry as far as I’m concerned, and really understands the opportunities and challenges we face in retail. She provides genuine support and is able to add real value to our business.

CATHY: Jim is very likeable and wellrespected in the industry. He is receptive to our suggestions and always willing to trial new promotions and products.

Q WHAT DO YOU ENJOY MOST ABOUT THE JOB? JIM: Interacting with sales reps, customers and my staff is one of my favourite parts of the job.

I’m a people person and have always stressed the importance of excellent customer service. Sharing stories with customers and making friends is a great part of working in liquor retail. It’s a bit of a family affair in my stores too, with many of my family members working for me.

CATHY: I’m passionate about the beer industry and love my job. I get a kick out of seeing my work convert into sales growth and the sense of accomplishment that comes with building the brands within the Coopers / Premium Beverages portfolio.

Q HOW DO YOU APPROACH THE RETAILER/ REP RELATIONSHIP? JIM: I’ve always believed in supporting sales reps, because what you give to them you get back in return. My relationships with sales reps are built on trust and friendship. We understand we both have jobs to do and KPIs to meet, but ensure there is mutual respect for each other’s work.

CATHY: I’m always in contact with my retailers, via phone or email, and try to visit their stores as often as possible. It’s important not to take a onesize-fits-all approach as a sales representative, as no two stores are the same. I work hard to understand my retailers and get to know their business goals.

Cans weren’t around when our founder added

spices to whiskey, But he’d be into these...

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