National Liquor News September 2019 by The Intermedia Group

AUSTRALIAâ&#x20AC;&#x2122;S LEADING LIQUOR INDUSTRY MAGAZINE

vol. 38 no. 8 - SEPTEMBER 2019

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EDITOR’S NOTE

Editor’s Note

elcome to the September issue of National Liquor News. This issue is all about innovation, with a flurry of new product development (NPD) and the launch of a new crucial innovation summit for retailers. Australia’s first cross-liquor innovation summit is coming to Sydney in October. In this issue, the event’s curator, Paul Wootton, reveals how in a challenging, changeable market, innovation is the prime route to profitable growth. You can read all about it on page 16. And while we’re on the topic of innovation, in this issue we look at an array of exciting new products that are hitting retailers’ shelves this month. From William Grant & Sons (WG&S), Sailor Jerry has made its first foray into the ready-to-drink category, launching two new RTD products in 375ml cans. This innovation was driven by retailer and consumer demand and has ambitions to bring younger legal aged drinkers into the rum space. You can read all about Sailor Jerry’s bold move into cans on page 23. Meanwhile, Bombay Sapphire has recognised the opportunity to premiumise the RTD space with the release of Bombay Sapphire Gin & Tonic. With premium spirits booming and the gin category in massive growth, there really was no better time to launch and you can read all about it on page 24. Over in Western Australia, Matso’s has been busy brewing up the Matso’s Hard Lemon, a sparkling alcoholic lemonade that was soft launched in June and will be taken national as of this month. Also aimed at that elusive millennial market, the Matso’s Hard Lemon was created in response to demand for ‘better for you’ drinks. The 330ml bottles are available nationally as of this month and you can read all about them on page 28. Next we’ve got an entirely new category with alcoholic kombucha brand, K.Booch. There are two different ways of creating alcoholic kombucha, in one instance, the alcohol is added to the kombucha and in the other, the alcohol is produced in the secondary fermentation process. On page 29, K.Booch Founder

Nick Coggar explains this process to us and tells us why K.Booch is so unique. Moving on, in this issue we’ve caught up with the new heads of Australian Liquor Marketers (ALM), Alcohol Beverages Australia (ABA) and Thirsty Camel, Victoria. We had to opportunity to speak with Chris Baddock, the new CEO of ALM, and were truly inspired by his point of view when he said, “we have an amazing opportunity to truly fight for independents, as we believe that independence is worth fighting for”. You can see the whole conversation beginning on page 18. There has also been a change of guard at ABA with the appointment of a new CEO, Andrew Wilsmore and earlier in the year, the appointment of Kerri Osborne as Media and Communications Manager. On page 20, we caught up with Wilsmore on his incoming role, what’s top of mind for him and the challenges and opportunities he sees in the next 12 months. Lastly, we had a chat with the new General Manager of Thirsty Camel, Victoria, Adrian Moelands, and hear all about the business’ plans for ‘on the go’ retailing and being “winners in convenience”. You can find this article on page 15. We also have our regular contributions from Retail Drinks Australia, Spirits and Cocktails Australia, DrinkWise, Independent Brewers Association, as well as NZ Winegrowers and Wine Australia, and Shane T Williams reports on the Independent Liquor Group’s (ILG) international conference in Vienna and Budapest. You can keep your feedback coming through djackson@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, Deb Deborah Jackson, Editor 02 8586 6206 | djackson@intermedia.com.au

top reads 34 Artificial Intelligence – The Future is Now 52 The Rise of the Independents 40 Space Management Matters National Liquor News is the official trade publication of Retail Drinks Australia

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CONTENTS

Contents September Wine 30 Winemaker Profile: We catch up with Jacob’s Creek Winemaker, Trina Smith 31 Wine News: All the latest releases and wine news 36 Rosé Promotion: The Rosé category offers up great opportunity for retailers 44 Wine Australia: Peter Bailey takes a look at the premiumisation of the wine category 45 New Zealand Winegrowers: New Zealand wine is enjoying its 24th consecutive year of export growth 62 Canned Wine: The format is shaking off its less-than-premium reputation 68 The Prosecco Report: What does the future of the category look like? 76 Wine Tasting Review: All the results from our Pinot Noir tasting

48 Independent Brewers Association: 5 reasons why independent beer is right for you 74 Beer Tasting: We taste a selection of new release beers

Spirits 12 Non Alcoholic: Lyre’s gets a boost from Amazon Launchpad 22 Spirits: The latest releases, news and promotions from the spirits category 23 New Release: Sailor Jerry enters the ready-to-drink category 24 New Release: Bombay Sapphire launches Gin & Tonic RTDs 46 Spirits & Cocktails Australia: Growing Sydney’s night time economy 56 Premium Gin: Gin is one of the fastest growing categories in Australia

Brews

Retail Focus

26 Brewing: What’s new in the world of beer? 28 New Release: Matso’s Hard Lemon goes national 29 New Release: K.Booch alcoholic kombucha launches

16 Drinks Innovation Summit: A crucial summit for retailers launches 18 CEO Profile: We chat with ALM’s new CEO, Chris Baddock 20 Alcohol Beverages Australia: ABA’s new CEO Andrew Wilsmore outlines plans for the association

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34 Shopper Insights: Norrelle Goldring dives into the world of Artificial Intelligence 40 Merchandising: Why space management matters 42 Retailer Profile: We chat with Nathan Pieters from Liquor Barons Marmion 43 Retail Drinks Australia: Dealing with the scourge of customer aggression and violence 47 DrinkWise: Driving change through collaboration 50 Leasing: Marianna Idas of eLease Lawyers talks about repair and maintenance obligations 52 Independent Liquor Group: Shane T Williams reports on ILG’s conference in Vienna and Budapest 82 Shop Talk: We talk shop with Decante This and Tighes Hill Cellars

Regulars 14 News: The latest liquor industry news for retailers around the country 80 Events: An exclusive peek at last month’s launches and parties

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COVER STORY

Lyre’s gets boost from Amazon Launchpad The Amazon Launchpad platform will help bolster non-alcoholic drinks brand Lyre’s into the public eye, and Co-founder Mark Livings is understandably delighted.

omegrown non-alcoholic spirits brand, Lyre’s, is one of the first local start-ups being given a leg up through the newly launched platform, Amazon Launchpad. Lyre’s Co-founder, Mark Livings, is understandably thrilled by the partnership and told National Liquor News that it will put the brand “years ahead” in terms of marketing. “We get access immediately to Amazon’s captive and engaged audience. To build one from scratch is an incredibly expensive and time-consuming exercise. Amazon Launchpad overcomes this immediately and puts us years ahead in terms of helping us get the word out about Lyre’s, especially to Amazon’s users who are keen to support smaller businesses and local brands,” he said. In terms of driving brand awareness and trial, the Amazon Launchpad platform is invaluable. With Amazon Launchpad, local start-ups and entrepreneurs can use Amazon’s retail expertise and infrastructure to share their stories and grow their businesses, overcoming many of the challenges associated with bringing products to market. At launch, more than 150 local and international brands will feature on the Australian Amazon Launchpad store. Participants will benefit from custom product pages on the new Amazon.com.au Launchpad store, marketing support and access to Amazon’s local fulfilment network including Amazon Prime.

Livings continued: “It also means that given that we’ve got a mature, efficient way to deliver our product D2C via Amazon, we can channel our precious marketing funds into marketing, rather than having to undertake a complex and expensive e-commerce build of our own on day one.” Lyre’s is one of two drinks brands being featured on the Amazon Launchpad platform. The other is naturally sugar free drink brand, Nexba. Lyre’s and Nexba sit alongside other homegrown brands like Salt Gypsy, Vitaman and Soda Shades. Rocco Braeuniger, Country Manager for Amazon Australia, said he’s excited to give local businesses more freedom to focus on innovation. “Australian inventors and entrepreneurs are responsible for some of the most innovative consumer products in the world from the electric drill right through to Vegemite. We’re excited to work with the next-generation of local entrepreneurs on bringing their innovative products to millions of customers – from Lyre’s Non Alcoholic Sprits Co, through to sustainable swimwear brand, Salt Gypsy from Byron Bay. “We know that product creation is only one part of the equation in launching a product and that marketing, logistics and finding an audience can be just as challenging. With Amazon Launchpad, we have a program that will help ease some of these challenges for startups and entrepreneurs alike, allowing them to focus on growing their businesses and freeing

12 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

up time for future innovation.” Livings hopes that the Amazon Launchpad platform will help bolster Lyre’s to the front of what is a quickly growing drinks category. “We’re a new brand, in a fast-growth, disruptive category that’s not yet been embraced in full by some traditional retailers and by many on-premise operators here in Australia. “With the traditional channels moving far slower than the rate of consumer adoption, there’s a clear availability gap. We’re still seeing data from the US that shows the e-commerce sales of non-alcoholic spirits are dominating traditional retail and on-premise sales by over 300 per cent in volume terms. That’s an incredible statistic, and as such for Lyre’s, it’s very important to us that we remain available and that people can find us, particularly given the amount of focus and attention our brand and the category generally are getting. “Amazon’s richer product listing capabilities through Launchpad gives us additional tools to separate our brand from the pack. We get to uniquely make use of video and our brand is given a dedicated mini-site within Amazon; both are really important for us so we can help people understand how to use the product, and aid them in exploring our range.” Lyre’s is continuing to gain momentum in Australia and more information about the range is available on the Lyre’s Spirits Co website and the range is available through Swift & Moore.

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NEWS

Bayfield Hotels raises $3m for Children’s Cancer Institute

First Choice Liquor Market wins at ARA Awards Coles’ First Choice Liquor Market has been awarded Best Store Design and Fit-Out at the Australian Retailers Association Retailer Awards. The award recognises retailers who are progressively developing their retail offer to meet evolving customer trends and behaviour with a particular focus on efficiency. Coles launched the retail liquor brand, Liquor Market in 2016, and since then it has been converting a number of First Choice stores into the First Choice Liquor Market model. At present, 33 First Choice stores have been converted, which is one-third of the total fleet, and a further 12 stores are set to be converted before Christmas. The First Choice Liquor Market model offers a broader range of products while retaining a low cost operating model. In its third quarter sales figures, Coles showed solid sales growth and detailed a strong performance by the stores it had converted into the First Choice Liquor Market model. In 2018, Coles decided to combine the best of the Liquor Market offering with First Choice to create First Choice Liquor Market, offering a hand-selected range of wines, beers and spirits sourced from some of the best producers across Australia and around the world, including exclusive products not available from any other Australian retailer. Cathi Scarce, Coles Liquor’s Acting CEO, said: “I am extremely proud that First Choice Liquor Market has taken out this prize. It’s a brilliant acknowledgement of the outstanding work of the team over the past two years.”

Bayfield Hotels played host to the annual Bayfield Liquor Industry Charity Luncheon last month at the Belrose Hotel, raising a record $214,656 by auction for the Children’s Cancer Institute (CCI), bringing the total funds raised to date to $3,088,811. Bayfield Hotels COO Kaine Bayfield confirmed the CCI is a charity close to the Bayfields’ hearts, having pledged the role of benefactor when publican and CEO Wayne Bayfield was first introduced to the charity in 2000. Guests were encouraged to dig deep during the subsequent auction, which saw everything from media packages, Vintec wine fridges, holidays, and even a private stash of Penfolds Grange up for auction. Hosted by Wayne and Kaine Bayfield, guests included longstanding local partners. “We quickly identified a shortfall between what the government funds in terms of monetary support,” says Wayne Bayfield, “and what the CCI requires in order to effectively contribute to the life-saving work they provide to children and families in need. It is an honour to support our charities and local communities wherever we can, and this is one we are very passionate about.” “Our hope is that all childhood cancers will one day be a thing of the past” says Wayne, “it’s not a case of if, but with continued support and funding, it’s just a matter of when”.

L-R: Wayne Bayfield and Andy Gerry

Revenue and earnings increase for Coles Liquor Coles Liquor has reported another strong year of growth with increases in sales revenue and earnings before interest and tax (EBIT) increasing by 1.9 per cent and 8.4 per cent respectively. Liquor sales revenue was $3.1bn for the year with comparable sales growth of 1.2 per cent. For the fourth quarter, Liquor sales revenue increased by 2.2 per cent and comparable sales growth was 1.5 per cent, private label sales and the roll-out of the new format of First Choice Liquor Market (FCLM) have helped drive the result. In its results announcement, Coles said: “Liquorland continued to grow during the year, albeit at a lower rate as its renewal program neared completion. FY20 will see the commencement of the next evolution of the Liquorland renewal program. “The refreshed FCLM format is generating some early wins, with sales performance being

14 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

ahead of the rest of the fleet. Progress has been made in developing a Vintage Cellars trial store concept which will commence the renewal program for Vintage Cellars, expected to launch in the first half of FY20. “At the end of the year, 23 Liquorland and 29 FCLM conversions were completed. “Across all banners, Exclusive Liquor Brand (ELB) sales in the wine category continue to be strong with ELB sales growth more than double the rate of the rest of the Liquor business. There were 64 new Exclusive Liquor Brand lines launched and a total of 189 medals and awards received over the year. “Gross margin increased by 41 bps to 22.3 per cent due to margin improvements from Exclusive Liquor Brands and improved supplier collaboration.” In terms of its store network, 27 new stores (all Liquorland) opened and 16 stores (one FCLM, two Vintage Cellars and 13 Liquorland) closed, resulting in a total of 910 Liquor sites at the end of the year.

NEWS

New payment system gives time back to retailers L-R: Peter Peck, CEO, LSA WA, Timon Andrijasevic, Liquor Barons Nedlands, Chris O’Brien, General Manager, Liquor Barons

Liquor Barons joins LSA WA Liquor Barons has announced that it has joined forces with the Liquor Stores Association of Western Australia (LSA WA) as a gold level partner. The independently owned and operated retail liquor co-operative has more than 75 stores around Western Australia. Liquor Barons General Manager, Chris O’Brien, said he’s been delighted to see what the LSA WA has been achieving over the past two years, and he is excited by the new partnership. “As a Western Australian independent retailer, we need an organisation to lobby for what’s right for our industry. We applaud the results that LSA WA has achieved in the last 24 months and are excited to come on board as a gold level partner,” he said. “We believe the services provided in human resources, advocacy, legal and liquor licensing are second to none and are happy to have these important services available to our own store owners.” Peter Peck, the CEO of LSA WA, said the addition of Liquor Barons reflects the association’s advocacy, purpose and ongoing commitment to keep the industry thriving. “There are industry associations who are there to offer their members discounts and services. Then there are those that have your back, advocating to cut government red tape,” said Peck. “The LSA WA has been operating since 1952 and we’ve been doing both.” Peck added that LSA WA has been playing a critical role alongside AHA WA in the implementation of the Banned Drinkers Register (BDR) trial in the Pilbara region of Western Australia and said that he hoped the BDR would be in trial before the end of the year. “Without the support of our members, like Liquor Barons, we would not be able to work on projects like the BDR trial which are game changers for the entire industry.”

Westpac has partnered with cloudbased technology firm, Kounta, to create a faster and more streamlined instore payment experience for retailers. The partnership connects Westpac’s Presto Smart to Kounta’s point of sale (POS) system, delivering a more efficient payment solution. It enables automated end-of-day reconciliation, faster in-store transactions, and removes room for keying errors as customer orders sync directly from the Kounta POS to Presto Smart. Jim Tate, Chief Product Officer Business Bank at Westpac, said as Australia moves towards a cash-free society, hospitality and retail businesses must ensure they build infrastructures that can scale and support the future of payments. “It is important for businesses to consider investing in payment technology from the outset to improve operations, allow instant access to funds, drive productivity and remain competitive. As the digital payment space continues to evolve and the need for physical forms of payment is reduced, our goal is to ensure we support businesses with the right payment solutions to meet customer expectations. “At present, Presto Smart offers real-time, in-depth terminal health monitoring, meaning if a merchant’s Presto terminal encounters an issue, it can be solved remotely by a member of Presto’s support team in most cases. In August, we will launch proactive terminal health monitoring to remotely identify issues, a first in merchant services. Gone will be the days when a business can’t take a payment due to a battery glitch or poor connectivity,” Tate said. Nick Cloete, Founder of Kounta said that the collaboration unlocks instant benefits for retailers. “On average our customers with integrated payments and accounting save four hours per week on reconciling cash, completing banking and data entry - that’s an extra 108 hours a year to focus on what really matters to these guys.”

SA’s online delivery changes welcomed Proposed changes to online alcohol deliveries in South Australia have been welcomed by Retail Drinks Australia. The Liquor Licensing (Miscellaneous) Amendment Bill 2019 was introduced into SA’s Parliament last week and should it be passed online alcohol deliveries (direct sales transactions) in the state will be permitted between 8am and 10pm. This represents a one-hour extension on the current timeframe and restrictions on the time of dispatch for alcohol deliveries will also be removed. Retail Drinks’ CEO Julie Ryan, said: “We welcome the introduction of this Bill into Parliament and thank the SA Attorney-General for supporting Retail Drinks’ recommendation to extend direct sales transactions of alcohol across the state until 10pm, and to remove restrictions on the time of dispatch of deliveries.” Ryan added that Retail Drinks was pleased to be able to collaborate with state and territory governments to help deliver positive outcomes in

the online alcohol sale and delivery sector on behalf of retailers and consumers. “Through our close collaboration with various state and territory governments, we have recently launched an industry-wide, voluntary Code of Conduct to complement existing legislation for online alcohol sales and deliveries. “The Code is designed to equip liquor retailers across the country with the information and resources they need to participate in the online alcohol sale and delivery sector in a safe and responsible way. “We are also promoting the Code and the benefits of becoming a signatory through our Small Business Digital Champions project in partnership with the Federal Government to assist small liquor retailers in ‘going digital’. “We look forward to continuing our proactive consultations with Australian governments around the issue of online alcohol sales and deliveries whilst upholding our commitment to promoting safe and responsible retailing in this space.”

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 15

NEWS

Thirsty Camel Victoria appoints new GM Adrian Moelands has been named the new General Manager of Thirsty Camel, Victoria, replacing Mia Lloyd who is now the Head of Exclusive Liquor Brands at Coles. Moelands has a strong background in the liquor and convenience space, having most recently spent 18 months looking after the Victorian field team at Mars Confectionary and before that he spent 10 years at CUB where he was instrumental in the launch of its specialist Adrian Moelands craft beer team, The Beer Collective. Speaking of his appointment, Moelands told National Liquor News: “The industry knowledge and diversity of experience I have gathered along the journey, have set me up for success as far as understanding what we require as a business at Thirsty Camel in a changing market”. “The opportunity for us is to really win in convenience and own ‘on the go’ retailing. We do liquor really well, however there is opportunity to increase our offer in other categories to fulfil shoppers needs for all occasions, such as food and confectionery – so we’re not just known as a purely a liquor store.” Thirsty Camel Victoria has begun the trial of its ‘Perfect Store’ program, which aimed to better utilise space in stores by moving ambient products into fridges, creating room for tasting areas in-store and a greater shopping experience. So far four stores have undergone the Perfect Store refit, and Moelands said whilst its only early, results have been positive across all categories. Over the next 12 to 18 months, Thirsty Camel will look to roll the learnings from the Perfect Store program to further stores. Another focus for the business will be the launch of version two of its Hump Club loyalty program. “Our loyalty program is definitely our big play for the next 12 months,” said Moelands. “Hump Club version two is launching, which is a truly 100 per cent loyalty program where you’ll be rewarded for every dollar you spend in-store. We will also be broadening the core range with a greater focus on craft beer, health and wellbeing. “We’re working to increase our range to ensure Thirsty Camel is relevant for all consumers, whilst we are strong in beer & RTDs, we believe the opportunity to expand our offering in all categories. In the better for you space we look to capitalise on trends like kombucha, organics and low/zero alcohol beer. As consumers become more health conscious, we need to adapt our offering. Thirsty Camel Victoria will hold its second annual Summit in Byron Bay on 9 September, and National Liquor News will chat with Adrian Moelands once again after that date to bring you the outcomes of the Summit.

Wine most popular drink, but beer is still the volume king Roy Morgan has released its Alcohol Consumption Currency Report June 2019, which questioned more than 15,000 consumers regarding their alcoholic drinking habits and has presented some interesting findings. For the two-thirds of Australians that do drink alcohol on a regular basis, wine is the most popular choice with 41.3 per cent of Australians drinking wine in an average four weeks compared to 37.6 per cent that drink beer. In addition, 37.6 per cent drink another type of alcohol including at least one of spirits, cider, RTDs or liqueurs. Although wine is the most popular alcoholic drink in terms of the number of drinkers, beer is clearly the top in terms of volume (based on glasses). The research also shows that two-thirds of Australians aged 18+ (66.3 per cent) consume alcohol in an average four weeks and over one-in-eight Australians (12.8 per cent) consume not only beer and wine, but also at least one of spirits, RTDs, liqueurs or cider in an average four weeks. However, despite the one-in-eight Australians that drink beer, wine and something else, the overall incidence of alcohol consumption has continued to decline gently over the last five years. Michele Levine, CEO, Roy Morgan says: “Despite wine being more widely drunk, it is beer which dominates the overall volume of alcohol drunk in Australia. Beer comprises a 45.3 per cent share of the volume of alcohol drunk in Australia compared to 29.2 per cent for wine, 13 per cent for spirits, 5.8 per cent for RTD and 3.5 per cent for cider. “Although the incidence of alcohol consumption among Australians has fallen there are a significant 12.8 per cent of Australians who like to drink several different types of alcohol including beer, wine and at least one (or more) of spirits, RTDs, liqueurs or cider in an average four weeks. “Being able to identify and profile who these one-in-eight Australians are and where to find them is of vital importance to any alcohol retailers and distributors looking to shore up their market share in a market which is reaching a declining proportion of the population.”

Kaufland approved for more Victorian stores German hypermarket Kaufland is stepping up its Australian expansion efforts, with more sites approved in Victoria. The retailer has received approval for two further sites, bringing its total approved locations to five. They’re showing no signs of slowing down though, announcing another nine planned stores to be reviewed by an independent Advisory Panel. Total investment in Australia is set to cost the company more than half a billion dollars, and create a potential 2,400 jobs. Kaufland Australia Managing Director Julia Kern said that they are eager to start growing into Australia. “With five approved stores, as well as the additional nine sites under review, we are committed to our long term, sustainable growth across Victoria. We look forward to creating thousands of jobs and creating opportunities for local businesses,” said Kern.

16 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

The latest two approved sites are located at Oakleigh South and Coolaroo, with the further nine submitted to the Advisory Board at Highton, Braybook, Coburg North, South Morang, Narre Warren, Lyndhurst, Pakenham, Warrnambool and Kennington. Kaufland has also begun construction on two test stores in Australia, one of which is in Dandenong. “Our Dandenong store marks a tremendous milestone in our development here in Australia, and we are very happy to break ground for our first store in Victoria,” Kern said. “To the community and our stakeholders, we are grateful for your feedback and support, and we will continue to partner with you to create a truly customercentric shopping experience here in Victoria.” Kaufland is part of the German owned Schwarz Group, the fourth largest retailer in the world.

DRINKS INNOVATION SUMMIT

Crucial summit for retailers launches Australia’s first cross-liquor innovation summit is coming to Sydney in October. The event’s curator, Paul Wootton, reveals how in a challenging, changeable market, innovation is the prime route to profitable growth.

he Australian alcoholic drinks market is ranked in the world’s top 10 based on consumption in litres per capita. It was valued at $28.89 billion in 2017 and is expected to reach $32.44 billion by 2025. From sweeping changes in consumer tastes, demographic movements, technological advancements, new market trends all the way through to emerging, innovative brand entrants, disruptive digital and social media innovations and smart and intelligent packaging, the Australian liquor market is going through one of the most radical – and challenging – periods the industry has ever seen. Paul Wootton is curator of the Drinks Innovation Summit and publisher of National Liquor News and he believes the summit will ensure visitors are at the forefront of the next wave of success.

Who is behind this new innovation summit? Leading publisher Food and Beverage Media, which owns National Liquor News, The Shout, Australian Hotelier and Bars and Clubs, in collaboration with Retail Drinks Australia, the national industry body for liquor retailers.

Why are you launching the summit? As publishers of some of the key liquor trade titles in Australia, we’ve witnessed and shared the news about how the industry is rapidly evolving. We know first-hand from our contributors, readers and advertisers that these are challenging, sometimes daunting, times. With so much change it can feel overwhelming trying to keep up. That’s why we’re bringing

“Quite simply we’ll have the most impressive speaker line-up you’ve ever seen in liquor retail.” – Paul Wootton. the innovators and change-makers from across liquor together for one inspirational day. No other summit currently offers this opportunity for such compelling networking and tangible results for your business.

Who will be attending? Key stakeholders and industry leaders drawn from the Australian drinks supply, retail, wholesale and distribution sectors, the Drinks Innovation Summit will showcase a multitude of pertinent perspectives, emphasising the importance of innovation in driving liquor sales, marketing and production excellence.

Who will be speaking? Quite simply we’ll have the most impressive speaker line-up you’ve ever seen in liquor retail. We’ve drawn on our deep connections across liquor to deliver an incredibly focused event. For the first time, visitors can hear from the very top of Diageo, Bacardi Martini, Coles, ALM, Lion and others about how they’re leading change within huge, international organisations. But we also have the innovators and entrepreneurs at the dynamic forefront of the digital era – e-commerce represented

by Alibaba, the founders of Boozebud and Vinomofo, plus others with immense experience outside of liquor but with direct relevance within it. There will be over 40 speakers delivering a mix of national and international keynote presentations, panel discussions, clientcase studies and fireside chats. Plus you can customise your own programme along category lines since we’ll be running multiple streams through the day. We know that these focused streams are really valuable to visitors short on time. The event also incorporates the Liquor Retail Summit, hosted by Retail Drinks Australia and featuring a panel discussion with the CEOs of three major banner groups along with retailerfocused ‘category-immersion’ rooms.

Why is it worth attending? If not for the impeccable speaker line-up, the focused and varied program, or the opportunities to connect with individuals and brands that can take your business to the next level, then to discover what your competition will be doing next.

Key information for the Drinks Innovation Summit When: Tuesday 29 October 2019 Where: Hyatt Regency, Darling Harbour, Sydney Who for: Retailers, suppliers and distributors Tickets: visit www.drinksinnovation.com.au

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 17

CEO PROFILE

A new champion for successful independents On taking over as CEO of ALM, Chris Baddock has told Deb Jackson that he is well equipped to “truly fight for independents”.

hris Baddock has officially taken over as CEO at Australian Liquor Marketers (ALM) after being announced as Scott Marshall’s successor back in October

Chris Baddock

last year. Baddock is a well credentialed executive with more than 25 years of experience, many of those in liquor, with a background on both the supplier and retailer sides. National Liquor News caught up with Baddock to find out a bit more about his background and what his plans are for ALM moving forward. NLN: Chris, congratulations on your appointment. Could you tell us a little bit about your background and how it will benefit you in your new role? CHRIS: I’ve had 17 years in liquor, both as a supplier with Lion in beer and spirits, and looking after the independents, chains, and national operators. With Lion I also moved across to Fine Wine Partners where I was Managing Director for three years. That was my first GM role and it was a great opportunity to run a business with the backing of a company like Lion. I also spent seven years on the Lion executive team, this was the beer, spirits and wine executive team, this was good, early crossfunctional experience. It was five years ago that I moved to Endeavour Drinks Group (EDG), which of course in those days was Woolworths Liquor. Woolworths is obviously an accomplished retailer, so in those five years I learnt a huge amount. During that time, I was running Pinnacle, which is the owned and exclusive brand business. It also included Cellarmasters, New Zealand Wine Society, their export business, into China and around the world. I even had a stint in the digital technology team, which reported to me. I’ll never say that

“I am taking the attitude that being independent is a true competitive advantage.”

I ran it, they just reported to me, but this team was responsible for building and maintaining EDG’s digital businesses, including Dan Murphy’s and BWS. I was also lucky enough to sit on the group executive team at Woolworths, which was a broader team across all retail groups, so I got a lot of learning out of that as well. So, to answer the question in one sentence, to have senior leadership roles in both retail and supplier gives me the unique opportunity to bring broad perspective to the role so that we can support our retail partners. NLN: What will be your key focus for the next 12 months? CHRIS: At four weeks in I’m still well and truly in a ‘seek to understand’ mode. But the key focus for me is to really embrace and mobilise purpose, passion, and partnership. What I’ve learnt is that our core purpose of championing successful

18 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

independents really helps me to get up, and get out of bed every day with passion. To know that that purpose is supporting locals serving locals, and therefore helping build small businesses and the communities they operate in, I am taking the attitude that being independent is a true competitive advantage. And we’ve got to embrace and celebrate that. We can only do that through partnership with suppliers and retailers. So strategically, any strategy that we put in place I am always going to check it against our purpose of championing successful independents. NLN: Can you tell me a bit about ALM’s partnership with Complexica and how that’s progressing? CHRIS: It’s exciting. We’re in phase one, and phase one is going to ensure that we optimise the promotional programming for our retailers.

CEO PROFILE What it’s really doing is focusing on what the consumers are purchasing today, that will help us understand what’s emerging regarding categories. And through literally hundreds of thousands of lines of data, understand what the correct mix is for both the consumer and the retailer. So, it’s giving us the optimal mix and we’ve already scoped phase two and three. That is where artificial intelligence (AI) will help us build even more effective promotional programming. NLN: What will that programming look like across your IBA network? CHRIS: There will be slight changes in the promotional programming between banners as we move forward. We’ve got Porter’s, which is a premium wine focused banner, so of course, the data that it’s receiving, will make sure that it’s focused towards that kind of consumer. It will also look at the adjacencies in regards to baskets, for example, the person who buys Riesling might also buy a certain type of whiskey – so I don’t know what that example would look like but that’s the kind of information that AI can bring to the fore. It’s tied into consumers based on what their purchasing habits have been, and when consumers allow you to take their data what they expect is that you use it to give them the best proposals for that individual. As we build digital platforms and loyalty, which is going to be a focus into the future, we need to make sure that you’ve got AI helping you. It’s very difficult these days to put consumers into broad segments, because as a consumer in that one moment you’re in a segment of your own. That’s what technology helps us do. NLN: Shoppers seem to be moving away from mainstream brands and looking for more a personalised offering. What are your thoughts on that? CHRIS: I certainly believe that the consumers’ repertoire is growing. Some would call it repertoire, and some would say that consumers are being more promiscuous. But I would say that 10 or 15 years ago, we segmented consumers into broad segments, and it might have been half a million consumers in a segment – but trying to do that today is dangerous. You must understand the consumer as an individual, and having personalised offers is probably something that is an answer to the previous question. But I think it does roll into understanding the consumer – where they’re shopping and why they are shopping. Who would have thought five years ago that gin and pink gin was going to be growing at double digits? Who would have thought that you’d have a full bay of rosé 10 years ago? The consumer is changing, their habits are changing, and you need to keep up with those. Regarding private label, I really do believe that there is a well-worn formula that the consumer needs, and that is that the quality is superior

Kilmore Cellarbrations, Victoria and it’s at a great price. I think that’s where own brands come to their fore. We certainly have a private label strategy, I want to make sure that we drive that strategy, and we need to do that with support from retailers but also very much support from the suppliers – using their expertise, their brands and their equipment to be able to bring to life private label and exclusive. That’s why I say suppliers are so important, I think that the independents have a true unique competitive advantage and they can take advantage of the private label business. Why? Because they can pick and choose which areas in their individual store needs owned and exclusive brands. It also creates more loyalty in the store. When a retailer has got something that nobody else has, it creates a destination for the consumer – that can be done with private label, it can be done with exclusives. But it can also be done with ranging locally in the store. And I think that is a unique competitive advantage for the independents, that they can go and do that without a head office coming over the top of them. And I want to take advantage of that. We’re so excited by it that on Monday, we’ve got a new employee starting in private label, and he will be an individual who will be focused on the portfolio; what we’re missing, what we need, and work with the retailers to bring more exclusives and own brands to life. NLN: At last year’s IBA Conference, the wine category was highlighted as the biggest value growth proposition for retailers. What is your strategy for continued growth in this area? CHRIS: It’s very much about locals and building a core range of products using the competitive advantage of the independent retailer, to have local products or a range that targets their store. Again, I keep on saying that being independent is a competitive advantage, but I truly believe it, because

“In my view, we have an amazing opportunity to truly fight for independents, as we believe that independence is worth fighting for.” when you’re standing behind the counter and you’re the owner of the store, you really get to know your customers, and you do that over weeks, months and years. So again, using the competitive advantage that the independents bring; local ranging, localised service, and locals serving locals and supporting their communities, is what we’re really focusing on. NLN: What do you foresee will be the biggest challenges in your new role? CHRIS: That’s easy – focus. There are so many opportunities that we could pursue, and of course you can’t do it all. We must start with the purpose of championing successful independents, and then get the team and our supplier partners to always keep that front of mind. There’s no end of advice in a role like this, we just need to make sure that we are focused on delivering what the consumer wants through the independent retailer. NLN: Is there anything else you’d like to add? CHRIS: Just that purpose is core to engaging people. Having this builds meaning into an individual’s work day. In my view, we have an amazing opportunity to truly fight for independents, as we believe that independence is worth fighting for.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 19

ALCOHOL BEVERAGES AUSTRALIA

Andrew Wilsmore, Chief Executive Officer, Gohar Yazdabadi, Policy and Research Manager, Kerri Osborne, Media and Communications Manager, Athina Paris, Office Manager

Andrew Wilsmore takes the helm at ABA National Liquor News chats with Alcohol Beverages Australia’s new CEO, Andrew Wilsmore, about his new role and how the ABA will continue working for the industry and consumers. There has been a change of guard at Alcohol Beverages Australia (ABA) with the appointment of a new Chief Executive Officer, Andrew Wilsmore and earlier in the year, the appointment of Kerri Osborne as Media and Communications Manager. We catch up with Andrew on his incoming role, what’s top of mind for him and the challenges and opportunities he sees in the next 12 months.

world for its warm hospitality, and the amazing quality of our local produce. It is an honour and privilege to assist ABA in ensuring the drinks industry maintains its vibrancy and sustainability. I am also committed to making sure the industry provides ongoing career opportunities for the many people who rely on it for their future.

Q Can you expand on that a bit more? Q Andrew, congratulations on your appointment, what’s exciting for you about it? ANDREW: This is a fantastic industry that I have been fortunate to be a part of for most of my working life. It’s gifted me with the opportunity to meet and work alongside many talented people that have made our industry famous around the

ANDREW: Vocal public opponents of our industry are attempting to make a case that even a sip of alcohol can harm you and they are attempting to shame people who drink moderately to feel bad for their behaviour. It’s vitally important for our team at ABA to provide balance and be the voice of reason in important

20 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

public and political discussions on consumption of alcohol that’s backed up by research that has a sound evidence base. Our industry has demonstrably shown it has a sustainable role in Australian society. And our collective efforts have led to significant improvements in Australia’s relationship with alcohol that is often overlooked and underappreciated, especially when a sensationalist headline is in the offering. A variety of Government data supports this view. Only in July, the Australian Institute of Health and Welfare released its latest figures showing that alcohol consumption and alcohol harm is steadily declining and we are drinking per person at the lowest level in more than 50 years.

ALCOHOL BEVERAGES AUSTRALIA

“We need to activate our consumer and reinforce that having a drink is still socially acceptable. But it must be much smarter than just a call to arms for arms sake.” – Andrew Wilsmore

Andrew Wilsmore

Q What needs to happen for the industry to be

Q So, what are the key challenges for you then?

Q And what are opportunities?

assured of a sustainable future? ANDREW: Our best advocate is presently silent, and largely disengaged. And this is our consumer – all 18 million of them. They pop their heads up now and then in letters to the editor or reply to negative articles on social media. We need to activate our consumer and reinforce that having a drink is still socially acceptable. But it must be much smarter than just a call to arms for arms sake. Our role at ABA is to stop playing our opponents’ game which only sees the world through alcohol harm and engage in a refreshed and positive way. We need to chart our own path and remind decision-makers and the public of the industry’s importance. The national dialogue is looking for an industry sector to take an economic leadership role. There is none better than ours. We are the future economy, in that many of our jobs are in the service industries of hospitality and retail, but we are still connected to blue collar working roots in our production facilities and logistics, and with primary production through wine grapes, wheat, hops and barley. We have a great story to tell and can be a leader in economic debate.

ANDREW: We know that for some people drinking can cause harm. We have a social licence to ensure this is minimised and I think it is very important that our members continue to support individual and government-led targeted education, awareness and prevention programs that focus on at-risk communities. Our biggest challenge will be fending off blanket policy proposals that impact everyone, while not solving the stated problem. Warning labels are a classic example: no Australian or visiting tourist wants to spend quality time with their friends and family with a wine bottle carrying a massive health warning label, but our opponents have heroically produced dubious research showing the public to be in favour of such proposals. It will be important to demonstrate upfront what the unintended consequences are of such policies. With the benefit of hindsight, I think the Government of NSW would have made a different decision about imposing lockout laws having seen the devastating impact they have had on the night-time economy, and the deterioration of the international reputation of Sydney. We will ensure the impacts of narrow “health” or “police” policy decisions are carefully considered against the wider ramifications they will have for the whole-of-government.

ANDREW: I see the opportunities as having good and open dialogue with Australians about our industry, our achievements and ensuring these are represented appropriately. I embrace the conversation we need to keep having about harm, but the bigger picture is getting lost. The industry is vibrant and contributes enormously to our economy – in export dollars as well as tourism, in employment too – nearly 600,000 people are employed in the sector – and our products are a key part of the fabric of our social life. I have seen the industry from many different angles – from making, to retail and hospitality and everyone involved in our industry has the consumer at the heart of their operations. No one who has gone to the trouble of investing their heart, souls and livelihoods into crafting an alcoholic beverage wants it abused. They want it to be enjoyed and for the consumer to respect the efforts which went into making it and serving it to them. On behalf of those producers and servers, I want to ensure we continue to have a sustainable, vibrant industry for many years to come, and consumers have reasonable and sensible access to the products they want to consume as part of living life in Australia.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 21

SPIRITS

A new range of Japanese spirits arrives in Australia Combined Wines is bringing a new range of award-winning handcrafted Japanese spirits to Australia, with Fuyu Whisky, Etsu Gin and Eiko Vodka having just hit our shores. Fuyu Whisky is distilled on Honshu Island by three (top secret) distilleries. It is distilled from malted grain and mash corn before resting in American white oak barrels. Its rich flavours of oak and cooked fruit with a hint of smokiness make it perfect for cocktails such as an Old Fashioned or a Manhattan. Etsu, which means ‘pleasure’ in Japanese, is a gin distilled on the Northern island of Hokkaido in Japan. The main botanicals are yuzu, green bitter orange peel, coriander, liquorice and angelica roots. All three products will retail for around $95 and have been available in Australia since mid-August. Joe Molinari, the General Manager at Combined Wines, says that demand has already been high for the trio of Japanese spirits and it’s a more “experimental” millennial age group that is being targeted. “The presales before stock even arrived has been enormous,” he said. “Japanese whisky has become very popular as younger drinkers are looking for something different,” he said. “UK/Irish whiskeys can be a little too traditional. These products are award winners, high quality, very reasonably priced at sub $100, and have very modern packaging. “Demand initially started with whisky but has now expanded to gin as popularity for this spirit grows. Vodka is just starting to become popular but there are many vodkas on the market from different countries, why not Japan?”

Kollaras secures new rye whiskey deal Kollaras & Co has secured exclusive distribution rights for renowned American whiskey company, Templeton Rye, marking its entry into the Australian market. Kollaras will be bringing Templeton Rye’s four-year-old, sixyear-old and barrel strength straight rye whiskies to Australia, which is part of Templeton Rye’s global roll out entering 26 international markets over the past 16 months. Kollaras & Co’s Commercial Director, Doug Misener, said: “We are thrilled to be collaborating with Templeton Rye – a historically rich and innovative brand. “This relationship creates new opportunities to support our customers desire to provide their shoppers with proven high-quality brands that are truly unique to the independent channel.” The popularity of rye whiskey continues to surge in Australia as both a cocktail and straight drinks, with some suggested drinks for Templeton Rye including the Bootlegger – with Grand Marnier, Champagne and bitters; as well as a Mule and an Old Fashioned. Shane Fitzharris, Templeton Rye’s Executive Vice President Global Sales, said: “We are delighted to be entering the Australian market for the first time in conjunction with such a strong and distinguished distribution partner as Kollaras & Co. “It is an exciting time for Templeton and American Whiskey in general. We believe our partnership positions us perfectly to help stimulate category growth in Australia.” Templeton’s heritage dates back to the 1920s, with the brand being reborn in 2006, the distillery’s success has seen the recent opening of a 34,500 square foot distillery plus a 55,000 square foot maturation warehouse, visitor centre and museum. Misener added: “Templeton Rye delivers increased strength to Kollaras & Co’s award-winning portfolio and further consolidates our position as a sought-after brand distributor. We look forward to working together to establish this proven brand in the Australian marketplace.”

Diageo acquires majority stake in Seedlip Diageo has significantly increased its stake in nonalcoholic distilled drinks brand, Seedlip, which it initially had a minority investment in through its funding program, Distill Ventures, back in 2016. Seedlip was launched by entrepreneur Ben Branson in 2015, whose mission was to change the way the world drinks while continuing his family’s 320-year-old farming legacy. Over the last three years, the brand has grown significantly, with a presence in more than 25 countries, and its three variants (Spice 94, Garden 108 and Grove 42) are stocked in more than 7,500 of the world’s best bars, restaurants, hotels and retailers, including the majority of the world’s 50 best cocktail bars and more than 300 Michelin Star restaurants. Independently run, Distill Ventures receives funding from Diageo to support entrepreneurs as they launch and grow innovative drinks brands. This new investment sees Diageo

become the majority shareholder in Seedlip, which is the first non-alcoholic brand to be acquired by Diageo through Distill Ventures. Branson said that Diageo’s investment is another step towards achieving the goals he set out to achieve with Seedlip. “We want to change the way the world drinks and today’s news is another big step forward to achieving this. Distill Ventures’ and Diageo’s shared belief in our vision has enabled us to build a business that’s ready for scale and I’m excited to continue working with Diageo to lead this movement,” he said. John Kennedy, President Europe, Turkey and India at Diageo said: “Seedlip is a game-changing brand in one of the most exciting categories in our industry. Ben is an outstanding entrepreneur and has created a brand that has truly raised the bar for the category.” Shilen Patel, Co-Founder and

22 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

Non-Alcoholic Lead of Distill Ventures said: “It has been a privilege to collaborate with an entrepreneur as inspiring as Ben in launching Seedlip and we look forward to watching Seedlip continue to thrive around the world. Supporting the vision of founders is what Distill Ventures was set up to do, and we’re proud of the impact Ben has had on our industry in such a short period of time.”

NEW RELEASE

Sailor Jerry makes a bold move into cans The new range of Sailor Jerry RTDs will be available nationally from mid-September.

riven through retailer and consumer demand, Sailor Jerry is launching its first range of RTDs, with the Sailor Jerry Rum & Dry and Rum & Cola to be released nationwide from midSeptember. Sailor Jerry’s foray into the RTD space is in line with consumer research that says drinkers are having an increasing appetite for more robust taste profiles and premium products that offer them convenience and moderation at the same time. Andrew Skehan, the Marketing Manager at William Grant & Sons (WG&S), told National Liquor News that expanding outside of full-sized bottled spirits (FSBS) and into the RTD space, allows Sailor Jerry to appeal to that wider range of consumers and in more drinking occasions. “Our retailers and consumers have been asking ‘when are you going to bring out Sailor Jerry in RTD format’,” said Skehan. “They knew there was a market for it, we’ve been listening to that request, and now we’re coming back to that with our solution.” Sailor Jerry is Australia’s number one spiced rum (June Simtac) and that same liquid is being used to produce the new RTDs. Today’s consumer, and in particular millennials, are looking for more than just a great tasting beverage. It’s often the provenance or story behind how a drink is produced that grabs their attention, so the team at WG&S have very deliberately chosen to proudly display ‘Spiced Caribbean Rum’ dominantly on the front of the cans. “Spiced rum has become a relatively flat category, a way to reignite a flat category is through innovation,” said Skehan. “Innovation and recruiting for the category is really important for the overall health of spiced rum, not just for Sailor Jerry.” The Sailor Jerry RTDs are in 375ml cans that feature the trademark Sailor Jerry hula girl. They are six per cent ABV with an RRP of $26 per four-pack or $58 per 10-pack. With the Sailor Jerry FSBS having a lot of fans in the slightly older demographic, the intention of the new RTDs is to bring in the 18 to 25-year-old drinker, and in different occasions, specifically daytime drinking occasions such as barbecues, house parties and festivals. Sailor Jerry Brand Manager, Hannah Ellerkamp said: “We really wanted to disrupt the category, so when we first started looking at our designs, we had to look at the competitive space and found a lot of it to be black. It was clear in our consumer research, as well as with our design, that it really stands out on shelf. To celebrate the launch, Sailor Jerry will be running a series of promotions over summer, aimed to really tap into those daytime drinking occasions. The “bold and smooth as hell” Sailor Jerry RTD is the first in a host of innovations from the brand in Australia, with another Sailor Jerry innovation called Savage Apple also earmarked for release soon.

5 key facts for Sailor Jerry: • Sailor Jerry is Australia’s number one Spiced Rum (IRI 2019) • In FSBS Sailor Jerry outsells the next nearest spiced rum two to one (May Simtac) • Sailor Jerry has the highest awareness to conversation of the spiced category • Sailor Jerry Over indexes in high energy occasions (2018 Brand Health Tracker) • Spiced Rum is outperforming the rum category (IRI 2019)

Sailor Jerry brand story: “The undisputed father of the old-school tattoo, Norman ‘Sailor Jerry’ Collins built his reputation tattooing in Hawaii’s brawling Hotel Street district of Honolulu. He was a master craftsman of unflinching integrity and in his name, we make our rum. We expertly blend our Sailor Jerry Caribbean Rum with dry ginger/cola flavours to give you a refreshing drink that is ready to go straight from the can.”

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 23

NEW RELEASE

There’s a new way to Bombay Bombay Sapphire has recognised the opportunity to premiumise the RTD category with the release of the Bombay Sapphire Gin & Tonic.

remium spirits are booming, outpacing the growth of total spirits by double over the past two years. Consumers are choosing better quality drinks and gin is the spirit of choice, with Bombay Sapphire leading the way. The gin category is growing at a massive 40 per cent versus last year, driven by the premium and super-premium segments, plus innovation. We know that consumers are living increasingly busy lives and are looking for convenient high-quality options on the go. Last year, one in three people purchased an RTD product with the category worth 14 per cent of total liquor value sales. There are more people experimenting with gin for the first time than ever before. The RTD format plays a key recruitment role into glass spirits, increasing gin penetration and basket spend among shoppers. Gin RTD grew by 64 per cent in retail sales over 2018/2019 alone. Bombay Sapphire has recognised the opportunity to premiumise the RTD category with the release of the Bombay Sapphire Gin & Tonic 4-pack, which hit the market on 2 September retailing at $26 and positioned as “A new, ‘Easy Way to Bombay’, wherever you are”. It contains the perfect balance of gin and tonic, with an ABV of 5.4 per cent. Bombay Sapphire has used the same premium juniper-led gin from Laverstoke in the UK, to bring an expertly blended G&T served in its iconic Bombay-blue glass bottle. Mauricio Vergara Herrera, Managing Director of Bacardi-Martini Australia said: “Consumers are looking for premium drinks in convenient formats that fit their lifestyles. With the explosion of gin and premiumisation in Australia it’s exciting to see this innovation from Bombay Sapphire as the leading premium gin. “To drive further growth, we’ve designed Bombay & Tonic to inspire consumers to discover gin through a great tasting drink in a premium bottle, perfect to start the night or sharing with friends on the go.” Bombay Sapphire RTD is a modern, refreshing tasting twist on the world-class gin, best enjoyed chilled straight from the bottle or elevated a step further when poured over ice in a glass with a garnish of lemon or lime.

24 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

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SINCE STEPPING INTO THE ROLE IN MID-2016, DO YOU FEEL YOU’VE SETTLED IN AS CEO? I’ve had a year now to settle in and with the assistance of a great leadership team and talented people across all areas of the business I’ve been able to have a transition that’s not only been fun but a very rewarding experience. We are lucky to work in such a dynamic industry and having people around you like the teams we have at McWilliam’s gives us the ability to react and respond in a way to build and deliver brands that people love.

WHAT WERE SOME OF THE HIGHLIGHTS FOR MCWILLIAM’S IN 2017? One standout for the year would definitely be our relocation from Chullora to our new home in Pyrmont. It’s really revitalised the team to be in such a dynamic precinct like Pyrmont/ Darling Harbour and being so close to new up-and-coming culinary hubs like Barangaroo is invaluable for our on-premise team. It was also where McWilliam’s established its first Sydney operation in the 1940s which is an extra special coup for our family.

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McWilliam’s has always been considered a great innovator in the wine industry and we work hard to find new ways to excite consumers and give a wider offering to our customers. We also work with some fantastic brands overseas that have a similar mindset and for 2017 we’ve been able to introduce two great wines from our distributor partner Henkell. We introduced a fusion of fashion and function in November with Henkell Blanc de Blancs. Offered in a stylishly white painted (not sleeved) bottle, this elegant wine is more than just a pretty face. Henkell Blanc de Blancs is a premium offering created from white grapes sourced from famous European wine growing regions. And through French processes and German engineering, Henkell Blanc de Blancs is a high quality premium sekt that is ideal as

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WITH INNOVATION AND NPD SO IMPORTANT TO MCWILLIAM’S, WHAT ARE SOME OF THE NEW PRODUCTS LAUNCHED IN 2017?

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an aperitif or an excellent accompaniment to a light dinner. The other wine that we have introduced is the Henkell De-alcoholised sekt, a wine that has been 20 years in the making for the Henkell Group. It took them many years to finesse the process in which they make a high quality sekt and then remove the alcohol while still retaining the fresh fruit flavours and characters from the winemaking process without the alcohol. We’ve thought this was a great innovation with the shift we’ve seen towards people being more health conscious and with that, considering their alcohol intake. We feel this is a premium offering for those who want to enjoy the pleasure of drinking sparkling wine without alcohol.

WHAT WERE SOME OF THE CHALLENGES THAT YOU HAVE FACED IN 2017? There has been a lot of change for us throughout 2017 but we’ve come through it as a team really well and finished with strong results. I really value how hard the teams across the business have worked to keep the McWilliam’s portfolio top of mind within the market and I’m excited to build on this drive for the year to come.

WHAT DO YOU SEE AS THE MAJOR OPPORTUNITIES FOR MCWILLIAM’S IN 2018? I think there are some big trends globally that we at McWilliam’s are looking to build upon but also local trends that we feel have great potential for growth. Firstly, the rosé trend is alive and well and for those looking for a more luxurious option, Champagne rosé is really taking off. We are putting particular focus on Champagne Taittinger Prestige Rosé which has been made with 15 per cent still Pinot Noir sourced from Grand Cru vineyards lending itself to the elegant forest fruits taste and striking pink hue. This, in conjunction with the Chardonnay-dominant style of the house makes for a refreshing wine that is something quite special. We are also introducing Mionetto Prosecco to Australia in time for summer for on-premise and select independent retailers. We’ve seen

that the Australian culture of dining has become more and more European in style and in turn the aperitif is becoming more integrated within a meal. Prosecco has been a longestablished aperitif in the Italian market and with Mionetto’s elegant and refreshing flavour profile makes it the perfect way to start a meal or your evening.

WHAT DO YOU SEE AS THE BIG WINE TREND FOR 2018? I think the movement of sparkling wines becoming more than just an occasion-based wine into something that can be enjoyed every day is a great opportunity for some of our distributor brands in 2018 (Champagne Taittinger, Henkell and Mionetto). People are embracing celebrating simple pleasures and everyday moments with great wine instead of hiding them away for just the right occasion, and sparkling wines are the perfect fit for this. They come in so many different styles and price points that make them accessible for everyday and every taste.

86 | FEBRUARY 2018 NATIONAL LIQUOR NEWS

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WHAT WERE THE HIGHLIGHTS FOR ASAHI PREMIUM BEVERAGES (APB) IN 2017? We had an extremely busy year with a number of highlights that filled the 2017 calendar. Vodka Cruiser continues to go from strength to strength and we launched a number of variants under the Vodka Cruiser originals campaign which gained enormous traction on social media. We also welcomed Vodka O, VDKA 6100, Tequila Blu and Spice Box to our portfolio when we purchased the Artisan Spirit Merchants (ASM) brands. This has been a great inclusion into our portfolio with Vodka O giving us a platform to build a strong spirits portfolio. We then followed up in October with the inclusion of Peroni and Grolsch which continues to build on our premium international beer portfolio. Peroni is a fantastic brand that will assist our growth in the on-premise channel. In October we were also announced joint winners at the 2017 ALIAs as Off-Premise Supplier of the Year. As you can see, it has been a big year at Asahi.

WHAT ARE THE MAJOR OPPORTUNITES FOR APB’S BEER PORTFOLIO IN 2018?

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We want to keep the growth momentum going in both premium international beer and craft beer – so our approach is very much about improving category performance so that we all benefit. In craft beer, we believe that there is a tremendous opportunity for us all to improve category performance. The choice offered by the expansion of craft beer is mind-boggling. While some consumers revel in this choice, others are quite confused by the plethora of offerings. The opportunity for suppliers and retailers is to help consumers navigate the category and choose something that meets their needs. We believe that the opportunity for retailers in 2018 will be to consolidate their craft beer offerings, making sure they have a full range of the leading products and top selling craft beer brands – including APB brands of Cricketers Arms and Mountain Goat of course. Some retailers are already

successfully doing this and seeing healthy stock turns and return on investment. And it doesn’t need to be boring – there is always a role for seasonal or local rotations to keep the offering looking fresh for regular customers. In premium international beer we all see a lot of focus on price as a way for retailers to attract customers. APB now has five brands that can command a premium in the market with Peroni, Asahi Super Dry, Pilsner Urquell, Grolsh and Estrella Damm as our super-premium offerings. In 2018 we will be working with retailers and on-premise operators to ensure we increase category value for all. Initiatives include investing in unique packs and promotions and ensuring marketing improves consumer demand without the need for significant price levers. There is no one quick fix to realising healthy market prices, but focus needs to be on creating overall value for consumers, so prices are a secondary consideration.

IN WHICH AREAS DID YOU SEE THE MOST GROWTH? The consumer trend of seeking better quality beer continues to drive our premium international beer brand’s performance. The Asahi brand continues its strong growth momentum, up 32 per cent MAT (IRI September 2017) and craft beer continues to perform as the ‘new premium’ category with Mountain Goat up 36 per cent and Cricketers Arms up 20 per cent. We are also pleased to see continued strong growth of both Woodstock (plus five per cent MAT) and Vodka Cruiser brands (plus six per cent), driven by our continued brand renovation and NPD. In particular, we are excited about the growth potential of Woodstock Easy Roller, our new refreshing twist on Bourbon, pairing Woodstock Bourbon with a delicious ginger beer mixer.

WHAT CHALLENGES DID APB FACE IN 2017? We have grown our portfolio substantially during the 2017 period with the inclusion of Peroni, Grolsch, Pilsner Urquell, our new spirit brands and some NPD, and such rapid growth

“We want to keep the growth momentum going in both premium international beer and craft beer.” presents challenges with portfolio management and ensuring that we have established the appropriate communication and training programs to assist our staff with selling a larger portfolio. We will always face regulatory challenges, and the burden that imposes on our operations. The forthcoming introduction of the Container Deposit Scheme (CDS) in NSW is an example of where we had to deploy a number of internal resources away from our core business as well as employ external expertise to assist us with the new legislation.

WHAT DO YOU SEE AS THE BIG TRENDS FOR CRAFT BEER IN 2018? The trend towards easier drinking craft beers, while well established, will continue to drive growth for retailers in 2018. Beers like Mountain Goat Steam Ale, Mountain Goat Summer Ale and Cricketers Arms Scorcher Summer Ale all play to this trend. Ensuring these offerings are readily available both on- and off-premise will enable retailers and on-premise operators to trade up as many customers as possible to these higher dollar margin offerings. Another trend worth noting is the rise of mid-strength craft beer. We have been pleased by the popularity of our recently released Cricketers Arms Session Ale. It is a triple hopped full flavoured refreshing ale with ABV of 3.5 per cent available in a 375ml can. There have been a number of similar beers in this space, which again provides retailers with the opportunity to trade consumers up from other lower value options.

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BREWING

Broo signs 2 million litre agreement in Queensland Broo Ltd has entered into a binding heads of agreement with East End Hotel Group, a Queensland independent wholesale network based in Bundaberg. The agreement provides East End with exclusive Queensland distribution rights over Broo Premium Lager 4.2 per cent 330ml packaged bottles, a new Broo product that has been developed in collaboration with East End specifically for the Queensland market. “They approached us about potentially having a different SKU in the 4.2 per cent ABV,” Kent Grogan, Executive Director of Broo, said. “Our standard offering is in the 375ml bottle at 4.6 per cent. We’ve all seen the staggering growth of Great Northern, and this will feed into that segment as well. “This product has been developed to really compete with those lower alcohol products. It

will still be based on our existing recipe for Broo lager, but it will just have a lower alcohol content. “The brands we have there are really geared towards that mainstream sector. We have some beautiful craft brands as well, but the main game for us in that side of things is mainstream brands.” Broo currently makes its beer at its Mildura brewhouse, which has an annual capacity of 1.6 litres. In order to meet this new demand from Queensland, the company is finalising agreements with Australian contract manufacturers in NSW and Victoria. The agreement is a welcome shot in the arm for Broo, which is still in the planning stage for its Ballarat brewery, which Grogan conceived 10 years ago as ‘the world’s greenest brewery’. While there were reports that the brewery was considering selling off its 14 hectare

Coopers launches 2019 Vintage Ale Coopers has launched its 2019 Vintage Ale, which is the 19th in the series of annual special releases by the brewery. The beer contains barley grown in the Murray Mallee region of South Australia and as ever a new combination of hops which the brewing team at Coopers have put together especially for the Vintage Ale. Speaking at the launch in Sydney, Dr Tim Cooper said: “As with last year we now have the advantage of being able to malt a specific barley from a specific area. So this year we decided to take the Compass barley that was grown in the Murray Mallee region. “It’s an important barley growing area, and the Compass is a very hardy variety that copes well with drier conditions and it’s also a high yielding variety. So it’s a good variety to choose, being high yielding and giving good extract, it’s a good variety to use with Vintage Ale.” Dr Cooper added: “We also add some Crystal malts which helps the ale to have its nice reddish hue, which is a traditional colour we have for the Vintage Ale.” The process of choosing the hops for the Vintage Ale is something the brewing team at Coopers likes to call Hop Idol, and this year that process saw Mosaic and Cascade hops chosen, with some Centennial hops added in the kettle. “In the brewhouse we are putting a lot more hops in the beer than we would with something like our Pale Ale,” Dr Cooper said. “Each year we change the hop regiment, so we are looking to add different hops each year.” Like all Coopers ales, the 2019 Vintage Ale undergoes secondary fermentation and natural conditioning. Coopers 2019 Vintage Ale retains an alcohol level of 7.5 per cent ABV. Coopers Marketing and Innovation Director, Cam Pearce, said only a limited quantity of kegs and cartons were available and Vintage Ale lovers should act quickly to ensure supply. Coopers 2019 Vintage Ale is priced from around $90 per carton, or around $30 per six pack of 355 ml bottles.

26 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

plot of land in Ballarat, Grogan has stated that instead, Broo is in discussion with the Victorian government to purchase an additional 10 hectares adjacent to it. “That’s just to really execute the full vision of the project and get additional land for tourism and things like that,” says Grogan. “It’s a huge project and without any doubt, it’s beyond our financial capabilities at the moment. We’ve been engaged with numerous parties on discussions and opportunities. We need someone in on this. We need the right partner.”

Asahi’s spending spree continues with Green Beacon The spending spree of Asahi Holdings has continued after the Japanese brewing giant confirmed one of the longestrunning rumours in the industry and acquired 100 per cent of Brisbane-based craft brewer, Green Beacon Brewing Co. The Green Beacon purchase comes just one month after Asahi agreed a $16bn deal to buy Carlton & United Breweries, a deal which is expected to be completed early next year, subject to the ACCC’s approval. Green Beacon was founded by school friends Adrian Slaughter and Marc Chrismas in 2013 and has cemented its position in Australia’s craft beer market thanks to winning Champion status at the Australian International Beer Awards three years in a row. Slaughter, Co-founder and on-going General Manager at Green Beacon, said: “Green Beacon has grown from just myself and Marc to 40+ team members across the nation in just eight years. “We want to continue growing and maintaining the quality and integrity of our beers, while ensuring all Australians are kept amply supplied in great beer. Partnering with Asahi to deliver this is truly exciting and provides security and opportunity for our customers, consumers and wider Green Beacon family. “Our goal has always been to make the best beer and to get it into as many people’s hands as possible. In Asahi, we have a partner who shares this commitment and can support us in achieving this goal.” Peter Margin, Executive Chairman, said that Asahi was looking forward to working with the Green Beacon team and to growing the brand further. “This is a very exciting time for our business, as we add this great brand and great business to the Asahi Beverages family,” Margin said. “We are looking forward to working with Marc and Adrian to help grow the Green Beacon business and bring their great tasting beer to more consumers.” With this deal and subject to the CUB deal going ahead Asahi now owns several Australian craft beer brands including Mountain Goat, 4Pines, Pirate Life and Green Beacon.

Jamie Cook steps down as CEO of Fermentum

Coopers to release Sparkling Ale in cans Coopers Brewery has added Sparkling Ale, one of its foundation beers, to its portfolio of cans. The brewery has kept the similar design that it has used for its other canned beers, with Sparkling Ale being bold red, and the 375ml cans are now available in liquor outlets across Australia coinciding with the release of Coopers XPA in cans. Sparkling Ale and XPA join Coopers Original Pale Ale, Session Ale and Mild Ale in cans. Coopers Marketing and Innovation Director, Cam Pearce, said the can format for crafted beer is becoming increasingly popular. “Every year, the Great Australasian Beer Spectapular (GABS) event goes out to beer lovers with the GABS Hottest 100 Aussie Craft Beer survey. The results from May this year, with a record 31,000 people casting votes, was that 77 of the Top 100 beers in the survey were available in cans, compared with only four in 2014,” he said. “Coopers Original Pale Ale, Session Ale and Coopers Sparkling Ale all made the Top 100.” “Can preference is no longer driven by occasion only, as we see that cans are now a preferred format for many beer drinkers, particularly within the crafted segment. “Since we launched Coopers Original Pale Ale in cans, there has been a groundswell from consumers for the release of Sparkling Ale in cans as well. “We listened to the calls and have responded accordingly.” Sparkling Ale has been part of Coopers’ portfolio of beers since the birth of the brewery in 1862 and is acclaimed for its distinctive balance of malt, hops and fruity characters. It has an ABV of 5.8 per cent and 30 international bitterness units (IBU).

Co-Founder of Fermentum and Stone & Wood, Jamie Cook has revealed his plans to step back from day-to-day executive duties and retire to the role of Chair of the Fermentum Board in December this year. Fermentum has asked Stone & Wood Managing Director, Ben Summons, to step into the CEO role at Fermentum, and he has accepted that offer. Cook said that while he is looking forward to “lots of adventures and travel both in Australia and overseas”, he would be remaining in his role as Chair of the Independent Brewers Association (IBA). “There’s a lot to do at the IBA,” he said, “and this will give me a little more time to focus on it.” In speaking about his decision to step down, Cook said: “Many years ago I made a promise to myself that I would use this milestone to reset my priorities to give more time to myself, my family and adventure whilst winding back from a day to day working life – or adjusting the ‘blend’ in my ‘work life blend’ so to speak. “In keeping with this promise I will be stepping back from my day to day executive duties at Fermentum.” He added that the Fermentum board was delighted to see Summons take on the new role. “In the three years Ben has been the Managing Director of Stone & Wood Brewing Co he has developed a highly engaged team who have developed and executed their plans which has seen that business grow by 100 per cent over that period. He is now well prepared to step into the broader role of leading the entire family of Fermentum businesses. “The Stone & Wood/Fermentum chapter of my working life has provided me with the most challenging but rewarding 13 years of my career. I am so fortunate to have shared this journey with Brad and Ross as cofounders and the whole team as traveling partners. “Sharing these exciting last years of my full-time career with an awesome family of dedicated hard working people filled with youthful enthusiasm has kept me younger than my years and made it an absolute pleasure to come to work every day. “My role as a founder was to embed my knowledge, wisdom and passion into the foundation stones of the business, and as I step back, I look forward to seeing everyone else in the team to continue to build upon that foundation.” Summons’ move means that he won’t be remaining in his role as the Managing Director of Stone & Wood. Cook added: “We are yet to work through the changes that will be made as a consequence of his move at year end. Any further changes as a consequence of Ben’s appointment will be worked through over the coming months and will be communicated once they are finalised at year end.”

Calls for beer tax cuts as CPI hits again The Brewers Association has said that a mere freeze of Australia’s beer tax rate is not enough, with the latest data revealing that Australians are paying the fourth highest beer tax rate in the world. Research also shows that, compared to countries with similar economies, Australians are paying the highest proportion of their incomes in beer tax. And once again that beer tax rate has increased courtesy of the automatic CPI increase that hits beer drinkers every August and February. “It’s already a hefty tax at $2.19 per litre for packaged beer,” said Brett Heffernan CEO of Brewers Association of Australia. “The CPI increases may not sound like much, but these six-month Government increases in beer tax are really adding up. Tax is already the biggest cost in the price of an Australian-made beer, accounting for almost half (42 per cent) of the price of a typical carton of full-strength beer. Of the $51.00 retail price, $21.35 is tax. “Along with Norway, Japan and Finland, Australians pay the highest beer tax in the world. We then pay another 10 per cent in GST, including GST on the beer tax itself, at the retail end. “Calls for a mere freeze in the six-monthly CPI hikes to beer tax just won’t cut it. All that does is lock-in the unreasonably high taxes Aussies are already paying. It gives punters no price relief. “Only by addressing the rate of beer tax, which is way out-of-whack with the rest of the world, can Australians get the relief they deserve.” “Last year Aussie’s coughed up over $3.6bn in beer taxes – excise and GST,” says Heffernan. “That headline figure is huge, and the day-to-day tax burden worn by Australians enjoying a drink is over-the-top. “Too often it is forgotten that 84 per cent of the beer sold in Australia is made right here by Australians. Local beer production supports the full-time jobs of 103,000 Aussies and it generates over $16.5bn a year in economic activity. “While we lament the decline, and in some cases death, of domestic manufacturing, it should be recognised that beer production has bucked that trend to see Australians making Australian beers for the Australian market.”

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 27

NEW RELEASE

Matso’s

Hard Lemon goes national Matso’s Hard Lemon was created in response to consumer demand for ‘better for you’ drinks. It launches nationally this month through Good Drinks.

roome’s Matso’s Brewery has added Matso’s Hard Lemon to its range, and it will be available nationally from September. Matso’s is best known for its Ginger and Mango beer varieties, and its new addition is a sparkling alcoholic lemonade. Hard Lemon was soft launched in June and was “met with very positive feedback and strong sales,” says James Purcell from Matso’s Brewery. So as of September it will be available nationally through Good Drinks – just in time for the warmer months. Matso’s Hard Lemon was created in response to consumer demand for ‘better for you’ drinks. Consumers, particularly millennials, are looking for healthier drinks alternatives, with low carb and low sugar product sales growing by 36 per cent, according to DrinkWise. Australians have health concerns about sugar. Forty-five per cent are concerned by their sugar intake, with another 42 per cent monitoring how much sugar is in their diet (IRI MarketEdge). “Most drinkers, particularly those in their twenties and thirties are sick of ‘bad stuff’ in their drinks. Things like artificial colours, fake flavours and lots of sugar,” says Purcell. “Some are even drinking less alcohol because of those concerns, and we know that being vegan friendly and having a low gluten count is important to more and more consumers too. “For those reasons, we wanted our new alcoholic lemonade to be a guilty pleasure.” Matso’s Hard Lemon is made with Australian lemons. It contains no artificial colours or flavours, is vegan friendly and low gluten. “Best of all, it’s got less than half the sugar of lemon premix drinks (2.9g per 100ml), so it’s

“It’s got less than half the sugar of lemon premix drinks (2.9g per 100ml), so it’s a great alternative to RTDs or ciders for those who like less sugar.” – James Purcell a great alternative to RTDs or ciders for those who like less sugar,” says Purcell. “I watched what my friends and family were drinking, as well as people out and about. Many people are searching for something that’s a bit of fun, but wasn’t going to make you feel too ‘unhealthy’ at the same time. “The thing that you’ll love most about Hard Lemon is that it tastes like old school, homemade lemonade that your Grandma probably used to make. It’s bursting with fresh lemon aroma, has a dry and effervescent mouthfeel and finishes crisp and tart. “We were able to make a drink that we feel people are really excited to share, whether it’s bringing it to a picnic or BBQ to share with friends.” Matso’s Hard Lemon launches nationally in September, get in touch with your local Good Drinks Brand Ambassador for details and orders.

28 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

About Matso’s Hard Lemon: • It’s bursting with fresh lemon aroma, has a dry and effervescent mouthfeel and finishes crisp and tart. • When poured into a glass, the fluffy white head on the pulpy yellow lemonade looks like a freshly cut piece of lemon meringue pie. You can see the natural Australian lemon inside, so always roll your bottle before opening to awaken the flavour. • Before creating Hard Lemon, the Matso’s team spoke to their customers who all overwhelmingly said they’d love Matso’s to create an alcoholic lemonade – that became part of the driver for this product.

NEW RELEASE

Brewing kombucha Through secondary fermentation, K.Booch has produced a new alcoholic kombucha for the Australian market. We talk to founder Nick Cogger about the process. Q: What is K.Booch? What was the inspiration behind it? Last year (2018), I saw kombucha and started drinking a lot myself. I went from drinking kombucha at breakfast to drinking it in the afternoon, in the sun with gin. This spurred a thought that I might be able to secondary ferment the ‘Booch’, so I dusted off my old brewing books and developed a proprietary technique over the summer of 2018/2019 to secondary ferment kombucha.

Q: How do you make K.Booch? We start off with tea and sugar, and we blend that together. We then do a first fermentation with what’s called a ‘mother’ or a Scobie, which is a mix of yeast and bacteria. The bacteria portion is fed back through the enzymes, and the ethanol is created by the yeast and the tea, which leaves you with that vinegary tart drink which is abundant in probiotics. Once we’ve done that, we strip out the original mother and yeast, and re-pitch with a fresh strain of yeast and some dextrose to create an alcoholic kombucha. After that we blend it with various different juices and extracts to create a more palatable flavour profile. The yeast will eat all the sugar, so we essentially have a zero-sugar product, then when we add in our juices, the juices have natural sugars and that’s where we get the sweetness and the sugar from. They’ll sit around 100-130 calories and have a four per cent ABV.

Q: What’s special about K.Booch? I think that main selling point for us it’s a transparent labelled product. People know what they’re drinking and it has a flavour profile that’s appealing. It’s a new category. A new category gives venues something to talk about, something new, something to market. Consumers at the moment are drinking less; they’re drinking better products that they know and trust. We are currently being ranged in the

RTD fridge, but it’s our opinion that as we are a fermented product we are more like a ginger beer or cider, even a craft beer.

Q: What flavours do you have? The Pineapple and Watermelon, that’s an entry level kombucha for us – super easy drinking flavour. Rosé and Berry is that ‘frosé’ vibe, so rosé, raspberry and strawberry. Blood Orange is sour and tart. And then a Ginger and Lime, with heavy ginger and fresh lime.

Q: What are your future plans for K.Booch? We’ll have a native Australian release heading into summer using native Australian fruit and botanicals. And then we will be looking at doing some higher ABV stuff. We haven’t had a full summer with this range yet so we’ll just push through this range for the summer and then we’ll do those seasonal ones. That will be trialled out through our taproom program where we’ll be popping up a taproom along the east coast of Australia towards the end of this year, so we’ll be able to run a core range and trial some different products as well.

We’re in 330ml bottles. We’ll be in cans in the next two months. We’re going to use that for festivals and events, then later in the year we will make them available to the off-premise market. And we’re going on tap in my venue (Frontbeach Taphouse), and later in the year we’ll start looking at growing our on-premise presence.

Q: What are your hopes for secondary fermented kombucha? We’re creating an entire category which five years down the track will be in most bottle shops with a variety of alcoholic kombuchas, and we expect to be at least the size of 10 per cent of the cider market within three years. That’s where I think the category can go just through the growth in the supermarkets with the non-alcoholic varieties and also just seeing the strength of it over in California with the alcoholic version. We want to be the captain of industry for the alcoholic kombucha market. We want to build the category as much for us, but we do need other people in the category creating a secondary fermented product that builds the category in general.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 29

WINEMAKER PROFILE

Trina Smith Jacob’s Creek

We caught up with Trina Smith, the Group White and Sparkling Winemaker for Jacob’s Creek, and find out about her 20 years in winemaking and what we can expect from vintage 2019.

Q. You’ve got more than 20 years of winemaking experience. What changes have you noticed in Australian wine over that time? TRINA: The rise of rosé has been a huge change and one that we can still see in affect today. There is still a love for sweet wines out there however this is slowly diminishing. Premiumisation is happening across all sectors and people are not just looking for varieties and regions anymore, it’s becoming more about styles and drinkability. However, there is still plenty of love for the traditional varieties but ones that are well made and precise.

Q. And who have been some of your biggest influences? TRINA: The biggest influences are two of my previous bosses. Terry Barnett (Brown Brothers) who gave me my first full time role in Australia and especially instilled a love for great Australian sparkling wine, but also gave me the opportunity to work with both big commercial blends alongside smaller premium parcels from cooler regions. Second is Charles (Chilly) Hargraves who I worked with at Treasury Wine Estates, Chilly cemented my love for Australian sparkling but also allowed me the opportunity to look at fruit from a few different regions throughout Australia such as Tasmania, Tumbarumba, Yarra etc.

Q. How has this year’s vintage been? What are you expecting? TRINA: For many of the regions where we source quality grapes from in South Australia, Victoria and NSW, the vintage has been influenced by the very dry conditions of winter and the extreme heat events of January and February 2019. In the south east of South Australia rainfall was much closer to the long-term average with key physiological ripening periods being less impacted by heat, so the style of wines will be different

from regions further north. The dry conditions in mid-2018 followed by extreme heat particularly in South Australia has meant that some varieties, have had lower than average yields resulting in richer styles of wines across both reds and whites.

Q. What have been the highlights of your time at Jacob’s Creek? TRINA: I’m currently the Group White and Sparkling Winemaker for Jacob’s Creek, Australia’s number one bottled wine brand by volume exported to over 80 markets around the world. I’m lucky enough to make wines for consumers around the world who drink more than one million glasses of Jacob’s Creek every day. I lead a team of six winemakers to look after our portfolio of white, sparkling and rosé wines. Ultimately, the most important thing for me and my team is to make wines that people love to drink and it’s an honour to do so for a trusted global Australian brand. One of the most rewarding parts of being a winemaker is receiving recognition from peers within the industry. I’m incredibly proud to say that over the past 12 months, our white, sparkling and rosé wines have collectively been awarded nine trophies and 36 gold medals.

Q. The Jacob’s Creek Le Petit Rosé has enjoyed great success and received many accolades since it launched (included being named Best Rosé at ALIA). What is it that sets the Le Petit Rosé apart? TRINA: In the current global rosé revolution, I’m particularly proud of the success of our Jacob’s Creek Le Petit Rosé. When making this wine, we aim to ensure the carefully selected varieties are at the optimal ripeness to create a beautiful dry French-style rosé with vibrant fruit flavours. Restrained and well balanced, the dry palate is savoury and chalky, with vibrant fruit flavours.

30 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

Q. Do you expect the rosé category to continue to gain popularity with consumers? TRINA: Le Petit Rosé grew to be the number one rosé in Australia within six months of launch. With this year’s trophy wins at both the Sydney Royal and Queensland wine shows, Le Petit Rosé is a testament to the global appeal of Jacob’s Creek, and is now being enjoyed by consumers in 11 markets.

Q. Have you been noticing any other emerging wine trends? TRINA: Low-alcohol and organic wines are certainly on the rise, however also wines that are more sessionable such as medium, lighter body red blends.

Q. How can winemakers work with retailers to achieve the best results for both businesses? TRINA: It’s important for winemakers to spend time and get in at the retailer’s door in order to understand the demands and everyday challenges they are facing. This includes working with them and listening to what emerging trends they are seeing in their specific region not just on a national or even global scale.

Q. Is there anything else you’d like to mention? TRINA: We’re incredibly proud of the success of Jacob’s Creek Le Petit Rosé both at wine shows and with the feedback we receive every day from our customers. We source fruit to ensure this wine meets the lighter style with grapes from Pinot Noir, Grenache and Mataro with careful winemaking in order to create a wine with structure and longevity. While Le Petit Rosé has been a tremendous success, we still have huge demand and support for our Classic wines such as our Jacob’s Creek Classic Shiraz Rosé and Classic Riesling, which also just picked up a trophy at Sydney Royal. All our wines represent great quality and a good price.

WINE NEWS

Neil McGuigan resigns as CEO of AVL

Agnew Wines announces new distribution deals Agnew Wines is strengthening its market position with the announcement of two new exclusive distribution deals. The new brands include Plan B from Western Australia and Fowles from the Strathbogie Ranges in Victoria. These are in addition to Allinda from the Yarra Valley which came on board earlier this year, and complement Agnew’s owned brands; Audrey Wilkinson, Cockfighter’s Ghose and Pooles Rock. Rohan Beale, Head of Sales and Marketing at Agnew Wines, said: “The further expansion of our portfolio highlights our strategy of delivering greater options for our restaurant and trade customers. “Our most recent additions to our portfolio include Fowles Wines which are an innovative family owned Victorian brand, most notably known for their super premium Ladies Who Shoot Their Lunch wines, which is well established in the market. Another exciting addition is Plan B wines of Western Australia which is a highly decorated wine brand and was just announced as one of the Dark Horse of the Year 2020 by James Halliday.” Agnew Wines has enjoyed “exceptional growth” of its owned brands, and with its dedicated in-house sales and marketing team, efficient next day logistics, and these new distribution deals, it is looking to round out 2019 “stronger than ever”.

Neil McGuigan has resigned as the CEO of Australian Vintage Limited (AVL) and will step down following the company’s AGM in November. He will commence a new role as AVL’s Technical Advisor and will be replaced by Craig Garvin, who joins the business as CEO Neil McGuigan Craig Garvin elect in September. McGuigan said: “I have thoroughly enjoyed my time as CEO, working with our talented team to create fantastic brands that are enjoyed around the globe. Being able to continue contributing to the company in the future, building on what my brother Brian started when he established the business in 1992, is very gratifying.” Richard Davis, Chairman of AVG, added: “Neil has a great passion for the wine industry and has done a tremendous job as CEO of this company. During his time as CEO he has transformed it into a well-respected branded wine company with a clear focus on developing world leading quality wine. We thank him for all his efforts in the role of CEO.” Garvin has been CEO of Parmalat for the last nine years, having previously held senior positions at Star City Casino, Campbell Arnott’s and Lion Nathan. AVL described Garvin as “an experienced CEO with a demonstrable trackrecord of building strong and sustained business growth”. Garvin said: “I am looking forward to working with the executive leadership team to keep developing and empowering the talent at AVL. I’m excited to build on Neil’s successful transformation of this company and to support the existing strategies into outcomes that generate long-term profitable growth for the company and our shareholders.” McGuigan’s new role as Technical Advisor will see him consulting with the winemaking team and continuing to forge relationships with customers globally for 10 weeks each year.

Elderton announces its new winemaker Former Pernod Ricard winemaker, Brock Harrison, has joined the winemaking team at Elderton, answering a question his dad, a neighbour of the winery, asked back in 2002. At that point Dean Harrison saw the winery being built and asked his new neighbours, “Are you going to give our kids a job?” It may have taken a few years but the question has finally been answered positively. Brock went on to study Oenology at Adelaide University and worked at the Elderton Cellar Door to help fund his way through his winemaking degree. Speaking about Harrison’s time with the winery, Elderton said: “When it came time for Brock to undertake his first vintage in 2005, which is mandatory as part of the winemaking degree, Cameron and Allister (the second generation brothers who run the company) knew he would work out well in our cellar. “He was enthusiastic throughout vintage and won our inaugural ‘Broken Shovel Award’, given to the hardest working cellar hand. He was the person that broke the shovel in eagerness to set a record time for digging out a nine tonne open fermenter full of Shiraz skins.” After graduating, Harrison joined the Pernod Ricard team and spent 13-and-a-half years at the company. The team at Elderton added: “We are very excited to have Brock aboard and know that he will work in harmony with Julie Ashmead to create the next generation of stunning wines.”

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 31

WINE NEWS Lyndey Milan

De Bortoli adds to its Woodfired range De Bortoli has added to its Woodfired range with a Heathcote Cabernet Shiraz joining the popular Heathcote Shiraz from the family-owned winery. Chief Winemaker Steve Webber has sourced the grapes from De Bortoli’s vineyard at Corop in Northern Heathcote and has created a wine in the Woodfired style of being dense and complex with ripe dark fruits, cedar-wood and balance. Speaking about the wine, Webber said: “There is a renaissance to charcoal cooking and woodfired oven cuisine. We are always looking for wines to match and our new Woodfired Heathcote Cabernet Sauvignon strikes all the right notes. “The climate and deep red ancient Cambrian soils of Northern Heathcote are ideal for producing the perfect red wine to accompany chargrilled meats and artisan pizzas.” The tasting notes for the wine read: “Intense dark colour red with purple edge. Ripe blackberry and blueberry characters, cedar-wood and liquorice. Soft, rich, mouth coating, balanced tannin, hints of classic Cabernet and authentically Heathcote.” The wine has started life well, taking out the ‘Best Cabernet’ trophy at the 2019 Heathcote Wine Show. It is presented in a tall claret bottle, has a $22 RRP and will be available at leading independent liquor retailers.

Lyndey Milan named NSW Legend of the Vine Lyndey Milan has been named as the 2019 NSW Legend of the Vine in front of many of her wine industry associates and colleagues at the WCA Sydney Royal Wine Show Trophy Winners Lunch. The Legend of the Vine Award was created by the WCA, to recognise an individual who has made and outstanding contribution to the Australian wine industry. In naming Milan as this year’s Legend, co-Chair of the NSW WCA, Brian Olson told those at the lunch: “The 2019 Legend of the Vine is a familiar face for those who love to watch and read about Australian food and wine. “This person is a gastronomic icon bringing their joy of the Australian food and wine scene to people around the world. “Our Legend’s generosity is an example to us all, supporting numerous causes and charitable organisations. Our winner today has boundless energy, her passion for Australian food and wine is paramount and it is with great pleasure that we announce the 2019 NSW Legend of the Vine is Lydney Milan.” In accepting the award, Milan said: “I love that it was a surprise. This event, Wine Communicators and Sydney Royal Wine Show are so close to my heart, it’s just in me. “I think accolades in your life, when they are a surprise, are even more meaningful. This is awesome. Thank you to everyone in the room and to the Wine Communicators of Australia.” Milan is the seventh person to be awarded Legend of the Vine status in NSW, and joins a prestigious national list that includes Huon Hooke, Clive Hartley, Iain Riggs, Rob Hirst and David Lowe.

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WINE NEWS

Warren Randall

Seppeltsfield’s ‘statement acquisition’ Seppeltsfield Wines has made what it calls a ‘statement acquisition’ buying another 800 acres of Tanunda Hill vineyards in the Barossa Valley. The purchase means Seppeltsfield now owns 4000 acres and Executive Chairman Warren Randall said the acquisition represents a “very powerful statement of intent from our business”. “It is two clear statements of intent; our belief in the importance of the Barossa as Australia’s premier winemaking region, and our strong desire and commitment to supply the burgeoning demand for luxury Australian red wine in China,” Randall said. “The acquisition of another 800 acres now brings our total vineyard holdings in the Barossa to 4000 acres, the largest ever vineyard holdings by a single producer in the Barossa Valley since vineyards were first

planted by European settlers in 1843 (176 years ago). “This brings Seppeltsfield holdings to 20 per cent of the Barossa’s total red vineyards, putting us in a strong position to consistently supply in excess of 12 million bottles of Barossa luxury red wine to the world.” Seppeltsfield has also recently recommissioned its 1888 Gravity Cellar, which enable gentle colour and tannin extraction and Randall said all the fruit from the new acquisition would be made into luxury wine in the Gravity Flow Cellar. The most recent acquisition complements our famous Seppeltsfield Barossa Estate, which was recently recognised as one of the ‘Top 50 Vineyards in the World’ alongside Chateau Mouton Rothschild, Chateau Margaux and Veuve Clicquot.

Wicks Estate unveils elegant new packaging Wicks Estate in the Adelaide Hills has unveiled an elegant new look for its Estate range that reflects the high calibre of the wine and appeals to its trendy target market. The premium, cool climate wines from the Adelaide Hills have grown to be recognised as some of the finest the region has to offer through dedication to excellence from its co-Founders Tim and Simon Wicks. In October last year, two of Wicks Estate’s popular Estate Range enjoyed an early-reveal at the 2018 Adelaide Fashion Festival; an event Wicks Estate have partnered with for the past 11 years. The Wicks Estate Sparkling and Wicks Estate Rose were both revealed to a fashion-savvy crowd who hailed the new look. The full range includes the 2019 Wicks Estate Sparkling, Sauvignon Blanc, Pinot Gris and Rosé, all grown and crafted on Wicks Estate’s Adelaide Hills property. Wicks Estate Sparkling, Sauvignon Blanc, Riesling, Pinot Gris and rosé retail for a recommended $20 per bottle, while the Wicks Estate Chardonnay and all red varietals retail for a recommended $25. The Wicks Estate wines are available at all leading liquor merchants around Australia.

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RETAIL INSIGHTS

Artificial intelligence – the future is now Not just about robots, artificial intelligence is being used by retailers across the entire product supply chain and customer service cycle, writes Norrelle Goldring.

irst coined in 1956, the concept of Artificial Intelligence (AI) has been the subject of a slew of sci-fi movies. But it’s only recently with the advent of data analytics and cloud computing that its applications beyond robots or Skynet, including for marketing, have become clear. According to Forbes, AI’s impact on marketing alone is predicted to reach nearly US$40 billion by 2025. An August 2018 Capgemini survey of 400 global retail executives indicated AI could save retailers as much as US$340 billion annually by 2022. But what is AI and how does it differ from Big Data? How can it best be used in a retail context?

What is AI, and how is it different to Big Data? As outlined in my article in last month’s National Liquor News, Big Data refers to computational analysis of large datasets to reveal patterns, trends and associations. It can be used for predictive analytics, which makes assumptions and tests in order to predict future scenarios. AI, and in particular machine learning, automates analysis. It makes assumptions, assesses models and re-evaluates data to provide detailed predictions at speed and scale, without human intervention. It learns from itself, with predictions therefore becoming increasingly accurate and more specific over time.

How can AI be used in a retail context? A January 2019 IBM survey of 1,900 retail and consumer goods executives across 23 countries identified six main ways the industry plans to utilise AI: 1. Supply chain planning (85 per cent) 2. Demand forecasting (85 per cent) 3. Customer intelligence (79 per cent) 4. Marketing, advertising, and campaign management (75 per cent)

5. 6.

Store operations (73 per cent) Pricing and promotion (73 per cent).

Key retail areas in which AI is being used include sales and CRM, customer recommendations, payments, manufacturing, logistics and delivery. Capgemini estimates that 80 per cent of the $340 million in savings would stem from more efficient processes for supply chains and returns. Marketing: AI predicts shopping habits based on patterns identified in an individual’s shopping behaviours. Rather than simply sending promotions for items a shopper has previously bought, retailers can offer related products and items based on data from both the individual and the broader customer set. Pricing and Promotion: AI can determine the best price for individual items using data including seasonality, price elasticity customer product preferences and purchase histories, along with real-time inputs on inventory levels and competitive products and prices. This results in more specific discounts or marginal price increases on individual SKUs to increase demand and maximise profits. Metcash’s ALM last year announced a partnership with AI provider Complexica for standardising and optimising its promotions by using its PCM capabilities to plan and analyse campaigns, along with predicting and optimising their effectiveness. Product Recommendations: In a physical store example, US liquor retail chain BevMo has created interactive ‘smart aisles’ to assist in product selection. The AI aisles take information provided about consumers’ whisky preferences based on asking questions, and narrows down to three choices, reading descriptions and product names, and directing shoppers to the recommended bottles using LED lighting.

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Assortment Optimisation: AI models look at factors including historic sales, store display space, local trends, online behaviour, and predicted weather to determine which products would be the best fit for an individual store location. This prevents out of stocks by sending more stock to stores where products are most needed, including re-routing stock between stores. It minimises discounts by ensuring products are on display where they can be sold at full price. Customer Service: AI can improve customer service and retention and reduce customer complaints by personalising online experiences. Customer facing AI functions, such as chatbots and self-checkout services are expected to enhance customer satisfaction. When Star2Star Communications implemented its Conversica-powered sales rep ‘Rachel’ it saw a 30 per cent email response rate within hours. The customisable sales assistant software is also used to cross-sell or re-engage existing customers.

Other uses: Security: Fraud detection and prevention. Retail and payment firms have used AI to spot fraudulent charges. Product Development: Swedish Distillery Mackmyra has created the first whisky designed by AI using recipe sets and product process data combined with customer preferences. Australian retailers are adopting AI. In January Woolworths announced a focus on a large scale, enterprise wide ‘conversational’ (voice enabled) shopping experience platform. In July, Coles announced a partnership with Microsoft to adopt the enterprise platform Microsoft Azure to deliver personalised customer experiences, supply chain efficiency and stock management, and price optimisation.

Over the past few years Prosecco has taken the world by storm. Gently savoury with fine bubbles, this delightful Prosecco from the King Valley is perfect on its own or mixed with an apĂŠritif and soda water for a lively and refreshing spritz. For more information, please contact your De Bortoli representative.

/DeBortoliWines debortoli.com.au

The rosé category offers up great opportunity for retailers. Here’s a selection of what’s hot on the market right now.

McW 480 Estate Tumbarumba Rosé Region: Tumbarumba VIN: 2019 LUC: $12.04 It’s no surprise that Rosé is on the rise, with delicious new drops like the McW 480 Estate Tumbarumba Rosé fresh on the market. Vibrant pale salmon in appearance, this rosé offers delectable aromas of lifted strawberry, watermelon and a subtle mix of fresh wild herbs. On the palate, it is refreshingly dry with light red fruits, fresh acidity and a mineral texture.

Simon Tolley Rosé

Innocent Bystander Rosé

Region: Adelaide Hills VIN: 2018 LUC: $17.09

Region: Yarra Valley VIN: 2018 LUC: $14.62

The Simon Tolley Rosé was a Trophy winning wine at the Cowra Wine Show. Fifth generation grape grower Simon Tolley knows that great wine is made in the vineyard. A dry rosé picked in the cool of night to preserve freshness and flavour. Soft with bright acidity, hints of strawberry, musk and flowers with a crisp dry finish.

Made with 100 per cent Yarra Valley Pinot Noir, Innocent Bystander Rosé has exceptional pedigree with the most recent vintages receiving 95 and 91 points respectively in the Halliday Wine Companion. A combination of tank and barrel ferments ensures brilliant fruit and freshness supported by structure, texture and a long, dry finish. A classy rosé equally well suited to the deck or the dining table.

Distributed by: Fisher Fine Wines Simontolley.com.au

Distributed by: McWilliam’s Wines Group Mcwilliams.com.au

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Distributed by: Brown Family Wine Group Innocentbystander.com.au

ROSÉ PROMOTION

De Bortoli Rosé Rosé Region: King Valley VIN: 2019 LUC: $12.45 Multi-award winning De Bortoli Rosé Rosé, was included in the recent 2019 AFR BOSS Most Innovative Companies List for being at the forefront of Australia’s pale dry rosé movement. From the label design to the bottle style and wine quality, this rosé has intense fruit aromas of peach and pomegranate – dangerously fresh, generously textured, a touch of spice and brimming with sophistication. Distributed by: De Bortoli Wines Debortoli.com.au/we-love-wine/discover-ourwines/de-bortoli-rose-rose/

Trentham The Family Sangiovese Rosé

Maschio Dei Cavalieri Rosé

Region: Murray Darling VIN: 2019 LUC: $10.21

Region: Italy VIN: NV LUC: $9.95

A highly aromatic wine showing notes of strawberries and cream, rose petal and lavender. The palate is brought to life with juicy red fruits, layered with rhubarb. The salmon blush colour, coupled with its new packaging, makes this wine the perfect spring accessory. Enjoy with an antipasto plate or seafood platter as we head into the warmer months.

Rosé – it’s the versatile wine with the global following that borders on obsession. Italy’s Maschio Dei Cavalieri Sparkling Rosé taps into this vibe, combining two of the most popular growth categories – rosé and Prosecco and presents high margin and upsell opportunities. Crafted by one of the top 10 wine producers in the world, the Maschio Dei Cavalieri Rosé is a premium quality drop, with an affordable price tag.

Distributed by: Bacchus Wine Merchant (VIN/ NSW); Dave Mullen Wine Agency (WA); Terrific Boutique Wines (QLD) Trenthamestate.com.au

Distributed by: Kollaras & Co Kollaras.com/brands/maschio-dei-cavalieri/

Shot at The Watson’s Bay Hotel

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 37

ROSÉ PROMOTION

Lanson Rose Label Region: Champagne VIN: NV LUC: $69.88 One of the first Rose Champagnes, it recently received 92 points from Huon Hooke, Rose Label exudes delicacy and purity. Its soft pink colour, together with hints of fresh, succulent summer berries makes this Champagne the perfect accompaniment to any spring or summer occasion. Delicious on its own or served with fresh red berry desserts. Distributed by: Young and Rashleigh Youngandrashleigh.com/

Shot at The Watson’s Bay Hotel

Leconfield La Sevillana Rosé Region: Coonawarra VIN: 2019 LUC: $16.88 The pure style and elegance displayed in every facet of the Leconfield La Sevillana Rosé provides captivating shelf presence and exceptional value for money. Its classy packaging highlights a refined pale pink colour that delivers a burst of flavour encapsulating the essence of Coonawarra’s rich and famous Terra Rossa soil. Refreshingly dry with soft acidity, this outstanding rosé finishes fresh and crisp, particularly when served lightly chilled. Distributed by: Veraison Wines (NSW); Italiquore (QLD); Santé Wines (VIC); Options Craft Liquor Merchants (SA); David Johnstone & Associates (TAS) Leconfieldwines.com.au

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La La Land Rosé Region: Victoria VIN: 2019 LUC: $10.54 La La Land Rosé is a pale, dry, vegan friendly Pinot Noir Rosé crafted from family estate vineyards near Mildura in north west Victoria. This eye catching rosé is made in the saignée style with minimal intervention, and has loads of juicy red berry flavours with hints of toffee apple. Light and refreshing, it’s the perfect summer drinking accessory this season. Distributed by: red + white Lalalandwines.com.au

ROSÉ PROMOTION Brown Brothers Prosecco Rosé Region: King Valley VIN: NV LUC: $12.36 Brown Brothers continues to lead the Prosecco category as the number one brand and with the Prosecco and rosé categories on fire (the number one and two fastest growing categories in wine*) Brown Brothers Prosecco Rosé is the perfect wine for the Spring/Summer season. With 73 per cent growth vs YA* (and ahead of the category) its popularity is getting stronger than ever before and Brown Brothers continues to invest to drive Prosecco Rosé now and in the future. Blush in colour with vibrant notes of berry and citrus, Brown Brothers Prosecco Rosé is a refreshing sparkling wine to be enjoyed now while it’s light and delicate.

Leftfield Rosé 2019

Jacob’s Creek Le Petit Rosé

Region: Hawkes Bay VIN: 2019 LUC: $13.98 New and exclusive to independents, Leftfield Rosé has been crafted for ‘Creatures of Curiosity’, independent thinkers and the nonconformists. A blend as unique as it’s imbiber, Merlot, Pinotage and Arneis from Hawkes Bay combine to create a wine that bounces off the walls with brightness & freshness, while it’s more serious side advocates a sophisticated and slightly drier personality. Distributed by: House of Fine Wine Leftfieldwines.com Insta: @leftfieldwines

Region: South Eastern Australia VIN: 2018 LUC: $11.07 A fresh and delicate rosé showcasing a modern Australian approach and premium fruit from selected blocks of Pinot Noir, Grenache and Mataro. The aromatic nose shows red currant and spice. Restrained and well balanced, the dry palate is savoury and chalky, with vibrant fruit flavours. Enjoy with a variety of light savoury dishes, from charcuterie, quiche or souffle to seafood, salad and pasta. Distributed by: Pernod Ricard Australia Jacobscreek.com/en-au/le-petit-rose/le-petit-rose

*MAT 30.06.19.

Distributed by: Brown Family Wine Group Brownbrothers.com.au

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MERCHANDISING

Space management matters Stephen Wilson, the Category and Insights Manager at Strikeforce, discusses how to best utilise the finite space in a bricks and mortar store.

planned approach is vital. Optimal use of the finite space available in a bricks and mortar store is mandatory for all off-premise retailers regardless of the size and scope of their business. Inefficient or ineffective use of this prime real estate, whether on the shop floor or in the fridge, can make the difference between maximising your return on investment or an uphill battle to keep the doors open and the lights turned on. Space management is central to developing a winning strategy that meets or exceeds your customer’s expectations.

“Understanding customer needs and converting these to sales is contingent on making sure you have the right product, in the right space at the right time.” – Stephen Wilson

Right place, right space Range aligning with demand. Shoppers are spoiled for choice with literally thousands of items available in each category making it complex for retailers to know what products to range. Shoppers expect to find items and find them easily when they shop so it is critical to ensure that they are both visible and easily accessible. Shifting consumer preference continues at break neck speed meaning that often what was on trend 12 months ago no longer excites or engages shoppers to the same level. As demand falls away for a particular brand or item it is critical that the space allocated is adjusted accordingly and reallocated to a brand or item that is in growth. Space planning is central to ensuring that the right mix of product is available, in the right shelf position and apportioned aligning share of shelf to share of shopper demand. This planned approach reduces the likelihood of empty shelves resulting in lost sales particularly during peak sales times. The space management process also enhances inventory management and supply chain to vastly reduce the instance of out of

stocks or unrealised revenue from access stock sitting in the store room.

Which shelf is most important? Every shelf serves a purpose. The approach in most off-premise liquor stores is to lay out the store by category to make it easier for shoppers to navigate their way around the store depending on their particular shopper journey. Beer shoppers tend to spend less time instore and want a quick and easy transaction compared to a premium wine shopper who dwells longer at the fixture, as they seek more information to make their purchase decision. Once the shopper has reached their in-store destination it is just as important to assist them with their evaluation of available alternatives to make their purchase decision before heading to the counter to finalise their purchase. This is where space planning comes into its own heavily influencing the shopper’s decision.

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While there is no absolute formula to guaranteeing that a brand will be purchased from a particular shelf there are some basic principles that can be adopted by space planning experts. Top shelf: Smaller or regional craft brands. Differentiates these brands from bigger mainstream brands with larger shares helping them to attract category explorers. Bullseye: Mainstream and on-trend brands. Prime location, usually the second and third shelves down from the top. Big brands, higher stock turn demands more shelf space. Secondary brands seeking to benefit from the halo effect from leading brands can also be found here. Bottom: Fourth and fifth shelves down usually dedicated to oversize and bulk items. Depending on the retailer strategy private label brands can often be found here.

Shoppers have choice Liquor shoppers have a multitude of destination stores to choose from based on their individual needs ranging from large big box formats to small neighbourhood stores. The right mix of products and depth of range is critical to attracting and retaining regular foot traffic regardless of the size of store footprint. Engaging with an experienced space planning team is central to achieving the optimal return on investment for your business. Understanding customer needs and converting these to sales is contingent on making sure you have the right product, in the right space at the right time. Combined with shopper and market insight, space planning ensures that you will satisfy shopper needs, reduce lost sales and out of stocks and match your offer with liquor growth trends.

URE T A N Y B - L I MITED

RETAILER PROFILE

Liquor Barons Marmion

We catch up with Nathan Pieters, the Owner/Operator of Liquor Barons Marmion in Perth Western Australia.

Q Tell us about your journey to becoming a liquor retailer: NATHAN: I have grown up around my family’s businesses and am a third-generation liquor retailer. My grandfather and father owned numerous hotels, taverns and liquor stores around Perth going back to the early 1960’s. I remember counting coins from the pool tables and amusement machines (after hours), bagging ice, you name it. When I turned 18, I started working casually in the drive-through bottle shop after graduating from school and studying, I found a passion for retail liquor. Fast forward 20 years and after a very long apprenticeship, I have just recently been fortunate enough to take on a liquor store in Marmion under the Liquor Barons banner.

Q What have been some of your key successes over the past 12 months? NATHAN: We have a strong focus on craft beer and local wines in our store and strive to give our customers something different and interesting. We like to support smaller, local producers that have a similar focus and mindset to ourselves. We have had good success connecting with our customers on social media in recent years through regular Facebook and Instagram posts to announce new products and store promotions. Also, knowing our customers personally is a huge benefit and has helped us to build a solid database.

Q What trends have you been noticing in the current market? NATHAN: We are seeing a shift towards customers being very informed of new trends and product launches through the effects of social media platforms. We are also experiencing our customers’ willingness to explore new premium ‘craft’ options across all

“We are seeing a shift towards customers being very informed of new trends and product launches through the effects of social media platforms.” – Nathan Pieters liquor categories, whether it be craft beer, wines or spirits. I also feel that there has been a shift to consumers seeking a more personalised customer focused service experience in-store.

We are seeing a shift towards consumers wanting a smaller convenient shopping experience. We believe that people like to shop local and are loyal to their local communities and support local business, myself included. We are about to undertake a refurbishment of our new Marmion store which we hope will bring new life (and customers) into a bright rejuvenated specialist liquor store.

Q What are the main challenges you face as a liquor retailer in Western Australia? NATHAN: The biggest challenge we face is the discussion around price point and heavy discounting by competitors in the marketplace. If we can shift the emphasis from price and provide an outstanding in-store experience with great product offerings and service this may reduce the price conversation. Also, finding new ways to connect with our customers is challenging with the emergence of online liquor retailing.

Q What do you expect to be the big drinks trends in 2019? NATHAN: I believe we will still see a growing trend towards premiumisation across all categories. The craft gin category still seems to be riding a wave in the market, as is the summer spritz, Proseccos and lighter Provence style rosé options coming on the market. Having said that, craft beer shows no sign of slowing down either. We have also noticed a shift towards more health-conscious consumers seeking different wine options with minimal sulphur, vegan friendly and organic varietals.

Q What plans/initiatives do you have in store for 2019? NATHAN: We see the most important part of our business is the personalised service and relationships we build with our local customers.

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Q What are the benefits of being a part of a group such as Liquor Barons? NATHAN: I am proud to be a part of the Liquor Barons Group. We have traded under the Liquor Barons banner for 20 years this year. We enjoy the benefits of being a WA-owned and operated liquor group with more than 70 stores individually owned state-wide. We have access to a large amount of resources from our head office team, led by General Manager Chris O’Brien, who understands our local market and gives us a tailored offering from promotional activities and buying opportunities to marketing/ social media support and in-house IT services. They provide an enormous amount of support which allows us to concentrate on other parts of our business and the day-to-day running of our store without disruption.

RETAIL DRINKS AUSTRALIA

Dealing with the scourge of customer aggression and violence Retail Drinks Australia is launching new initiatives designed to assist store-owners in managing both employer and employee mental health, says CEO Julie Ryan.

t is an unfortunate reality of the retail liquor industry that many staff members often find themselves subjected to verbal abuse and in some cases, physical violence from their customers. At the most serious end of the scale of these incidents are armed hold-ups and robberies which can be particularly traumatic for the staff members on duty at the time. Liquor stores are especially vulnerable to armed holdups as there may only be one staff member present in the entire store, making them easy targets for would-be criminals. For the staff members present during these events, the physical and mental health consequences can be life-changing, with mental health disorders such as anxiety and post-traumatic stress disorder (PTSD) firmly on the rise. Perhaps the most frightening aspect of this is the alarming frequency in which these incidents are occurring. While statistics specific to the liquor retail industry are hard to come by, the data provided to Retail Drinks from one of its members showed that there were over 873 incidents including assaults, armed robberies, thefts, and threats in the electorate of Melbourne alone over the previous three financial years. That’s an incident every 1.3 days. The latest available data from Crime Statistics Victoria also

shows that the total number of robberies is on the rise, increasing by 6.4 per cent over the last 12 months, from 2,511 to 2,671. While it is impossible to entirely eliminate these incidents from happening, one of the most important things a liquor retailer can do is to ensure that staff are trained in how to respond to such incidents and that they have adequate access to mental health services and resources if they need it after such an event. In many cases, the nature of running a small business means that owners lack the necessary infrastructure to respond to these incidents in a way which minimises the mental health impacts on their staff as well as themselves. Promoting positive mental health outcomes and employee well-being is often deprioritised in favour of more immediately pressing tasks such as servicing customers and paying suppliers. This is despite the fact that poor employee mental health costs the Australian economy more than $60 billion a year according to the National Mental Health Commission. Retail Drinks is cognisant of the gap which exists among many liquor retailers in regards to mental health initiatives, particularly among smaller retailers who have extremely limited time and financial resources. There is also a concerning lack of resources allocated to crisis care.

“Liquor stores are especially vulnerable to armed hold-ups as there may only be one staff member present in the entire store, making them easy targets for would-be criminals.” – Julie Ryan That’s why Retail Drinks will soon be launching new initiatives designed to assist store-owners in managing both employer and employee mental health and well-being both during and after a crisis, as well as on an ongoing daily basis. Retail Drinks members can expect to hear more about these initiatives on the presentation of Retail Drinks’ strategic plan at its AGM on 29 October 2019.

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WINE AUSTRALIA

The premiumisation of wine Peter Bailey, Manager Market Insights at Wine Australia, talks about one of the most influential drinks trends globally, premiumisation.

remiumisation is arguably the most significant trend influencing the global alcoholic drinks market. When we discuss premiumisation, it’s a reference to people shifting towards consuming less alcohol but spending more on the alcohol that they choose to consume. Premiumisation is competition to offer higher-quality items that consumers value. It is the opposite of commoditisation, which is competition to lower prices for a standard level of quality. Commoditisation is driven by consumers who view products as much the same and purchase primarily based on price. This causes prices to fall and quality to be cut to a minimum acceptable level. Premiumisation occurs in a product category, market or industry where customers are willing to pay more for higher quality. Premiumisation sparks competition to produce higher quality items with average prices rising over time.

Trading up Consumers in established markets are consuming less frequently, but pay more per bottle. Generally, most markets worldwide have seen wine consumers trading up to higher value products across a wide range of categories. In 2018, 13 per cent of the volume and 36 per cent of the value of wine consumed around the globe was premium wine (defined as US$10 per bottle and above), according to International Wine and Spirits Record (IWSR) data accessible via Wine Australia’s Market Explorer (marketexplorer. wineaustralia.com). The share of value has grown from 33 per cent in 2013, indicating a

growing trend towards premiumisation. The Global Compass 2019 report published by Wine Intelligence shows that in more established markets, consumers continue to pay more per bottle while consuming less frequently, moving from quantity to quality. They suggest that a combination of increasing concerns about health, the growing variety of higher priced products available on the market, and alternative forms of packaging where consumers can now purchase premium wine in smaller formats is driving the trend.

USA – the world’s largest premium wine market Interrogating the Market Explorer shows that the USA is by far the biggest premium wine market, with 89 million cases of premium wine consumed at a value of US$17.6 billion in 2018. The volume of premium wine consumed in the USA grew at a compound average rate of seven per cent per annum over the five years to 2018. It is forecast by the IWSR that by 2023 the USA market will need an extra 23 million cases of premium wine (US$10 per bottle and above) to meet demand in this segment, with sales forecast to grow to 112 million cases. Australia currently holds a two per cent volume share of the premium wine segment in the USA and thus there is a large opportunity to grow the share of this market segment in the next five years.

Australia’s domestic shift to premiumisation Wine Intelligence classifies Australia as a ‘mature’ wine market, which means that wine has reached a point where consumption is at a stable or declining volume. International

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markets such as France, Germany and the United Kingdom are also defined ‘mature’, whereas the USA is a ‘growth’ market. As a ‘mature market’, while volumes may be stable, Australian wine consumers have shown a shift towards premiumisation. In its latest Australia Landscapes 2019 report, Wine Intelligence confirmed there has been a ‘significant long-term increase in the average spend per bottle for every on- and offpremise occasion amongst Australian regular wine drinkers’. The opportunity for Australian wine is that premiumisation does not necessarily refer to an expensive product – it means different things to different consumers and is more about the value that it represents to the consumers who wish to consume it. What one person perceives to be a premium product might be very different to what another person thinks, and the opportunity for brands is to develop their hook in a way that will continue to appeal to consumer interests. Euromonitor International’s Top 10 Global Consumer Trends 2019 report indicates that consumers are searching for authentic, differentiated products and experiences that allow them to express their individuality. Consumers in developed economies are re-evaluating their spending habits, moving away from overt materialism to simplicity, authenticity and individuality. As emerging economies develop further around the world, the same pattern is likely to emerge, with consumers tiring of generic products and starting to place more value on higher quality, unique and differentiated offerings, which convey a certain level of status.

NEW ZEALAND WINEGROWERS

A record year for New Zealand wine Natalie Grace, the Manager in Australia for New Zealand Winegrowers, tells us why New Zealand wine has recorded another year of continued export growth.

he latest New Zealand Winegrowers annual report statistics indicates New Zealand wine is celebrating its 24th consecutive year of export growth. This year’s export results again reflect the industry’s strengths, with total export value for the year ended June 2019 up six per cent on the previous year to $1.83 billion and volume up five per cent to 270 million litres. At a retail level, this translates to more than $7 billion dollars of New Zealand wine sold around the world annually. The UK and USA led the growth, with value growth outpacing volume growth in both markets. The premium reputation of New Zealand wine has translated to real value in its major markets where the country remains either the highest or second highest priced wine category in the USA, UK, Canada, and China.

Vintage 2019 The wonderfully warm summer contributed to the harvest quality being touted as exceptional from top of the North to bottom of the South Island and the six per cent increase follows the third smaller-than-expected harvest in a row with 413,000 tonnes of grapes harvested during Vintage 2019. New Zealand Winegrowers expects volume growth will continue to be constrained as a result. Over the whole country, New Zealand’s producing vineyard area grew this year by 607 hectares – a little over 1.6 per cent – to 38,680 hectares, with each of Hawke’s Bay and Marlborough recording growth of over two per cent. Sauvignon Blanc, Chardonnay, Pinot Noir and Pinot Gris recorded the largest vineyard area growth. Based on

plantings yet to come into production, the national organisation estimates total growth in productive vineyard area to continue at around one per cent for at least the next two years.

Bragato Research Institute (BRI) It has been an exciting year of consolidation and progress for New Zealand Winegrowers’ wholly-owned national grape and wine research centre — the Bragato Research Institute. BRI made and reported on developments in each of its three largest research programmes — Vineyard Ecosystems, Lighter Wines and Pinot Noir and currently has 23 separate research projects on the go. The centre also successfully completed its first vintage using its newly-designed research fermenters and 2020 will see the build of a new research winery facility alongside key industry and research partners, allowing wine research of a kind and scale never possible before in New Zealand.

At a glance: • Total wine exports in 2019 were 270 million litres with an average price of $6.76/litre. • Australia is New Zealand wine’s third largest export market with exports to Australia remaining at 56 million litres and valued at NZ$367 million for the year to the end of June 2019 (unchanged to 2018) • The national vineyard now covers 38,680 ha, up by 1.6 per cent • The average yield of grapes per hectare in 2019 was 10.7 tonnes, down from 11.0 tonnes. • Total number of wine producers increased 2.7 per cent to 716. The 2019 Annual Report can be accessed at nzwine.com.

Reacting to market changes Following five years of no growth for New Zealand wine sales in Australia, the local office was closed in August and activity in the market reduced to focus on two areas: Wine Tourism and supporting the on-premise. Research indicates that international wine tourists spend more, stay longer and visit more regions than the average international visitor to New Zealand which is great news for wineries, particularly those that rely more heavily on domestic sales. Expanding the focus on Wine Tourism activity in Australia

All dollar figures represented are in New Zealand dollars.

will see the testing of new initiatives, hosting local travel media, working more closely with New Zealand Inc. partners including Tourism New Zealand and Air New Zealand as well as the execution of event activations with a Wine Tourism theme.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 45

SPIRITS & COCKTAILS AUSTRALIA

Growing Sydney’s night time economy Alec Wagstaff, the CEO of Spirits & Cocktails Australia, says the hospitality sector has a key role to play in the continued growth of Sydney’s night time economy.

he NSW Government is currently conducting an inquiry into Sydney’s night time economy. Spirits and Cocktails Australia welcomed the opportunity to make a submission to the inquiry and to appear before it to give evidence. In a highly charged environment following the tragic deaths of two young men as a result of criminal assaults in the Kings Cross area, specific drinks restrictions and the restrictions on opening hours were introduced. There is general agreement, even by those advocating change, that something needed to change at the time but also that the world itself has changed significantly since then. Young people in particular are consuming alcohol more responsibly than ever before and at the same time our economy is evolving towards more flexibility of lifestyles and associated expectation of 24 hour availability of goods and services. Sydney’s night time economy is the strongest and most concentrated in Australia yet lags behind comparable global cities, such as London and Berlin. For instance, the night time economy in the United Kingdom comprises six per cent of their overall economy, while Australia’s amounts to just 3.8 per cent, representing a $16 billion opportunity gap that could be exploited through further development of Sydney’s night time industries.

The hospitality sector has a key role to play in the continued growth of Sydney’s night time economy. The food and drink sectors currently contribute a combined $20.1b per annum to Sydney’s night time economy and directly employ 185,117 people, and there is strong consumer interest for continued growth of these sectors. In an attempt to minimise rapid intoxication, specific restrictions were introduced on the service of spirits after midnight on licenced premises. These restrictions ignored the science that alcohol is alcohol and that the key factor in avoiding intoxication is how a drink is consumed, not what that drink is. Imagine if in your liquor store you had restrictions about what forms of alcohol you could sell at certain times of day. We all recognise the importance of the responsible service of alcohol and the legal requirements to not sell to minors or intoxicated people. That’s why Spirits and Cocktails Australia’s submission specifically called for the removal of these restrictions on the sale of spirits while simplifying Liquor and Gaming NSW’s guidelines to licensees so they focus on behaviour rather than beverage choice. We believe guidance and RSA should focus more precisely on targeting irresponsible behaviour and discouraging excessive/rapid consumption across the board, regardless of the type of alcohol or the vessel in which it is served.

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We also support Retail Drinks Australia’s recommendation that standard trading hours for packaged liquor licensees should be extended from the current 5:00am to 11:00pm to 5:00am to midnight (Monday to Saturday). This one hour extension would have a positive effect on the city’s night time economy both from an economic and employment standpoint with the potential to positively impact other businesses participating in the night time economy through a flow on effect. As Retail Drinks points out, this extension would have no adverse impact on incidences of alcohol-related violence – the Callinan Review published in 2016 found that “the sale of takeaway alcohol, whether before or after 10pm, makes little or no contribution to violence and anti-social behaviour in the Precincts, even less so when it is home delivered”. The challenge of protecting community safety and promoting vibrancy is not unique to Sydney. It is a challenge shared by all global cities and other global cities have met this challenge with innovative approaches to planning and regulation. We believe that Sydney can and must do the same. 1 Deloitte, ‘Imagine Sydney: Play’ (Report, 2019) 29. 2 Committee for Sydney, ‘Sydney as a 24-Hour City’ (Report, March 2018) 13 3 Deloitte, ‘Imagine Sydney: Play’ (Report, 2019) 34.

DRINKWISE

Driving change through collaboration Simon Strahan, DrinkWise CEO, says that collaborating with industry and the government has allowed DrinkWise to significantly increase the reach and value of its programs.

ncreasingly, we are seeing companies recognise the importance of going beyond profit to ensure that they are making a positive contribution to society. In How companies, governments and non-profits can create social change together (Harvard Business Review, 2018), Buffett and Eimicke talk to the importance of embracing “collaboration as a guiding principle”, with partnerships between business, government, philanthropy and community “lead[ing] to more equitable and inclusive solutions”. Since our inception, DrinkWise has emphasised the importance of a sustained, multi-faceted and inclusive approach as the most effective and efficient way to bring about positive cultural change in the Australian drinking culture. This is inherent in the unique structure of our organisation, with our Board bringing together respected leaders from the community and the alcohol industry. The involvement of industry is shown not just through the collective funding of DrinkWise by market-leading producers and suppliers, but also by the availability of industry-owned assets for DrinkWise messaging. This includes point-of-sale, whether that be at retail outlets or cellar doors, which have been used over the years to educate consumers about the importance of moderation, responsibility and not drinking while pregnant.

“Since our inception, DrinkWise has emphasised the importance of a sustained, multi-faceted and inclusive approach as the most effective and efficient way to bring about positive cultural change in the Australian drinking culture.” – Simon Strahan A great example of the partnership approach has been the DrinkWise Fetal Alcohol Spectrum Disorder (FASD) awareness program. Additional funding from several DrinkWise contributors allowed DrinkWise to extend this important message to millions more Australians each month. Coupled with a grant from the Federal Government, it has allowed for the creation and placement of several educational videos in rural and regional medical practices across Australia. Results from a survey of medical practice staff showed that the purpose and materials resonate, with 100 per cent agreeing that it is

important to educate the community about alcohol and pregnancy. With one quarter of medical centre staff also reporting that as a result of the video messaging, alcohol consumption during pregnancy had been raised by their patients, it is clear the message resonates. The success of these resources is evidenced by the government providing in-kind support for the initiative, beyond the funding of materials. The Federal Department of Health has agreed to feature the videos on the newly created Aboriginal Health TV Network, which will allow the videos to reach an additional one million patients, carers and family members each month. Extended versions of these videos have been produced for school programs, to educate students about FASD, peer influence and the importance of not drinking alcohol before they turn 18. The videos have been well received, with the Queensland Department of Education making these materials available for use in state secondary schools. Collaborating with industry and the government has allowed DrinkWise to significantly increase the reach and value of its programs, exposing millions more Australians to these important messages. We will continue to practice and promote this inclusive approach, to reduce alcohol-related harms across the country.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 47

INDEPENDENT BREWERS ASSOCIATION

5 compelling reasons why independent beer is right for you Now’s the right time to grab your own slice and join in on the fun that is independent beer, writes Independent Brewers Association (IBA) President, Jamie Cook.

f you’re not supporting independent Australian beer in 2019, you are missing out on a high margin product, with high growth, that is exciting drinkers and food lovers while creating a legion of loyal fans. They are out there championing small business and local produce.

High growth in a waning market Indie beer is growing at 25 per cent year on year in a flat to declining beer market. It’s no secret that beer is a product on the decline when it comes to volumes. In fact, almost all categories of alcohol are in decline. Independent beer? That’s growing at 25 per cent year on year. Let’s look at the numbers: According to a 2013 Roy Morgan Poll, 44.6 per cent of the population had at least one glass of wine in the four weeks prior to being surveyed. In 2018, that number had fallen to 43.3 per cent. Beer in the same period went from 38.9 per cent to 38.4 per cent. The .05 per cent drop doesn’t sound like much, but that represents a fall of 2.9 per cent in volume. Independent beer, on the flipside, has gone up. From a one per cent share of volume in 2011, to an incredible 5.9 per cent in 2018. As we await the numbers for this year, we are confident we’ll see it jump again. Independent beer represents everything we love about modern food and drink. People are excited by food and drink and looking for experiences. No doubt the popularity of shows like MasterChef, My Kitchen Rules and the

growing catalogue of food and drink shows on streaming services is helping that. Independent beer is a way to bring that discovery of small producers and unique and diverse products, right into your establishment. Beer is a drink designed for experimentation. From the classic four ingredients (water, hops, malt, and yeast) to herbs, spices, fruits, and even shellfish. Beer has always been a vessel for experimentation, seasonality, and good old fashioned fun. Brewers regularly team up with restaurants, local and international, to create one-off and special releases that tie into modern food culture. You can bring that experience to your customers every night of the week.

Great margins for everybody Independent beer has better margins. It’s as simple as that. With 5.9 per cent of volume, it has 10 per cent of total spend. We believe it represents a little indulgence to a lot of drinkers, and that directly benefits your bottom line. Even in an increasingly expensive world, the days of the hordes wanting dollar pots on a Monday night are far behind us and people are looking for the small luxury of great beer.

Independent beer great for employment Sixty-six per cent of indie brewers are regional. The amount of people power needed to make great independent beer means for 5.9 per cent of volume, independent brewers create 40 per cent of the employment in the Australian beer industry. That doesn’t even include the

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growing army of people and businesses that are employed in connected industries: food trucks, marketing companies, social media agencies, education partners and more. Plus there’s all of the agriculture and manufacturing. Australian hop and malt growers are increasingly in demand not only by local brewers, but by the international brewers as well. Brewers even team up with farmers to find new life for fruit and vegetables that would be otherwise destined for the bin. What better way to use them than in a local product that supports local businesses (and the end result is a delicious beer).

It’s about small business and local families The thing when you are dealing with indie brewers is that many of them are run by family, friends and small groups of passionate business people. It’s not unusual for the person who made the beer to be the one who walks into your bar or shop, with a sample in hand, hoping you will take a chance on a small business. It’s not glamorous work starting a brewery and very few people do it for the money. They do it for the love of the product. By tapping into that, you are tapping into a network of small businesses who want to be part of something bigger than just a cheap beer from a big multinational that is headquartered in another part of the world. It’s local, fresh, and exciting. It’s independent beer, and hopefully you aren’t missing out.

LEASING

Repair and maintenance obligations Marianna Idas, the Principle Solicitor of eLease Lawyers, outlines your rights and responsibilities when it comes to the maintenance of your lease.

here are no specific laws on what your obligations are in relation to repair and maintenance under your lease. Your lease will thus contain terms which outline your responsibility in this respect. Each lease is different but generally you are required to: • Keep the premises clean and tidy; • Tell the landlord about any damage to the premises as soon as possible; • Leave the premises in a condition as you received it at the start of the lease, except for fair wear and tear; • Not to damage the premises wilfully or negligently – you are responsible for damage by anyone you allow into the premises; • Not to add or remove any fixtures without the landlord’s written consent. As the lease is normally drafted by the landlord’s lawyer it is likely to contain terms which are more favourable to the landlord. Thus, it is always advisable to obtain the help from a lawyer to explain what your rights and obligations are under the lease. The lawyer can also negotiate amendments to the lease to help save you money in the long run by minimising your obligations to repair and maintain the premises. In some states the lease is taken to provide that if the landlord fails to rectify any breakdown of plant or equipment under the landlord’s care or maintenance, or in the case of a shop within a retail shopping centre fails to adequately clean, maintain or repair the centre, and the landlord does not rectify the matter

as soon as reasonably practicable after being required in writing by the tenant to do so, the landlord is liable to pay the tenant reasonable compensation for the loss or damage suffered by the tenant as a consequence. For example, if there is a leak in the premises caused by an issue with the structure of the premises then it is the landlord’s obligation to perform this repair. If the landlord does not rectify this leak within a reasonable time after you notify them in writing, then you may be able to seek reasonable compensation for the loss or damage you have suffered. Examples of where compensation may be payable to you is if the landlord: • Inhibits the tenant’s access in a substantial manner; • Substantially alters or inhibits the flow of customers to the shop; • Unreasonably takes action that causes significant disruption of trading; • Fails to take all reasonable steps to prevent or put a stop to anything that significantly disrupts or adversely effects the tenant’s trading and that is attributable to causes within the landlord’s control; • Fails to rectify any breakdown of plant or equipment; or • Fails to adequately clean, maintain or repair any common areas, and • And fails to rectify the matter as soon as reasonably practicable after being requested in writing by the tenant.

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A retail shop lease may include a provision preventing or limiting a claim for compensation in respect of any particular occurrence if the likelihood of the occurrence was specifically drawn to the attention of the tenant in writing before the lease was entered into. Thus, it is recommended to review the Disclosure Statement issued by the landlord under a retail lease as this may contain representations that identify any likely disturbances you may experience during your lease. Having a right to obtain compensation does not mean you can withhold rent as this can result in a breach under the lease and subsequent termination by the landlord. The best course of action is to firstly notify the landlord and negotiate a settlement sum for compensation and if this is not agreed then take further action. In conclusion, you should: • Be aware of what is noted in the lease regarding your obligation to repair and maintain; • Negotiate to limit your obligation to the minimum reasonably required; • Be aware of the landlord’s obligations to repair and maintain; • If the landlord breaches these obligations notify them in writing and give them the opportunity to remedy the breach within a reasonable time; • Seek legal advice if the landlord does not comply and see what type of compensation you can obtain, if any.

W E N

New Zealand Wine

Made for creatures of curiosity.

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INDEPENDENT LIQUOR GROUP

The rise of the independents The ILG family meets in Vienna and Budapest

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Delegates had dinner at Fishermanâ&#x20AC;&#x2122;s Bastion, Budapest overlooking the Danube and the Hungarian Parliament

INDEPENDENT LIQUOR GROUP

The 2019 Independent Liquor Group (ILG) Conference visited Vienna and Budapest this year, and Shane T Williams was in attendance. Here he reports on the performance of the Co-op and the state of play in independent liquor retail.

ore than 100 Independent Liquor Group (ILG) members and key suppliers travelled to Vienna and Budapest in July to mix business and pleasure in the surrounds of two great European cities. The conference was an opportunity to meet new and old friends from the Co-op, as well as to better understand insights and trends from key suppliers to help them run better retailer outlets, pubs and clubs. It was also an opportunity for CEO Paul Esposito to update members on how ILG was performing as a group. Delegates enjoyed the old world charm of Vienna before taking the imperial train of Austria-Hungary, the Majestic Imperator, to Budapest. Program facilitator Peter Hall and ILG’s Maria Limsico successfully guided delegates through two business sessions as well as a cruise on the Danube while watching the State of Origin, dinner at a traditional Viennese wine village, as well as spectacular dinners at the Fisherman’s Bastion and Museum of Fine Arts in Budapest. CEO Esposito kicked off the conference in Vienna with a breakfast briefing to update members on the performance of the Co-op.

CEO Paul Esposito’s update to delegates Esposito told delegates that sales revenue, sales volume and membership were in growth and that service levels for members were at 98 per cent while membership growth is 13 per cent up on last year. While the fundamentals at ILG look good, Esposito told delegates, “we need to continue to evolve otherwise we’ll lose our relevance in the marketplace”. Esposito plans to futureproof ILG by focusing on the continuation of premiumisation, buyers’ own brands, working with suppliers for members’ exclusives and supporting new product development (NPD). “The challenge is to continue to grow membership as well as grow volume and value in the business. The difference between us and our opposition is that everything we make goes back to members. We’ve got fixed costs and infrastructure, if we can write more business, then that gives us the ability to offer members better pricing, and give more back in rebates,” Esposito told delegates. “Writing more business is the key to future proofing ILG,” said Esposito. And the announcement of new ILG banners in Victoria will increase the scale of the business and give ILG a true east coast footprint. “Aside from the banners, the Bacchus Marsh site which opened last November, will operate

The ILG gala dinner held at Museum of Fine Arts, Budapest

“Independents are in the right space and time at the moment as there is a huge shift to buying local.” – Paul Esposito both as a retail store and has the capacity to operate as a warehouse to service Victoria.” Esposito also believes that on current performance, “Queensland in the next three years could be a bigger market than NSW. ILG has successfully managed to win a number of new accounts in Queensland recently,” he said. “Across all states, introducing Pubmart, and focusing in the clubs area will also help drive new business. There is a shift back to local and community support and ILG will restructure both banners to accommodate the changes.” Esposito spoke of the importance of store foot traffic and supporting NPD. “A large percentage of growth in the liquor industry is driven by new products and over the next three months there is going to be a lot of NPD. We need to encourage members to support NPD and be first to market to encourage foot traffic into stores. Not supporting NPD can drive foot traffic away to other stores”. Esposito also spoke about how the market has moved away from being price driven and how the focus needs to be on ‘being better and different’. By aligning with new NPD, and members’ exclusives, this will play a key role in bringing foot traffic back into stores. He highlighted the familiar trend of premiumisation across categories and how this will align with ILG’s new banner group, Fleet Street. “All suppliers are focusing on premiumisation and the data shows that people are drinking better and are prepared to pay more for premium products. In full bottled spirits, ILG is experiencing double digit growth

and in the wine category, we are certainly seeing huge growth in the $14 to $25 bracket. “Independents are in the right space and time as there is a huge shift to buying local. We need to focus on making our stores more shoppable. The data shows that people are looking for convenience; and we at ILG need to adjust our programs as consumers move away from big box stores,” said Esposito. He said that consumers are researching online then heading down to their local liquor outlet to purchase. Esposito spoke about harnessing premiumisation with the Fleet Street banner, telling delegates of the new Fleet Street store that opened recently at The Commodore Hotel in McMahons Point. A second store has opened at Bella Vista, while three more stores will soon open at Collaroy, Mona Vale and North Avalon. The aim is to have 12 premium Fleet Street bannered stores up and running over the next 12 months. Keenly anticipated at every ILG conference are the business sessions. Key Account Managers including Treasury Wine Estates’ (TWE) David Wright, Diageo’s Riley Fisher as well as Lion’s Richard Matthews and Robbie Jurcevich shared their industry insights and trends with delegates.

ILG Member Reminder: What: The ILG Brands Conference & Family Reunion When: Sunday 20 October to Wednesday 23 October 2019 Where: ICC & Sofitel Darling Harbour

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INDEPENDENT LIQUOR GROUP Macro and innovation trends: Convenience and frictionless shopping Consumers are researching online then coming in-store, so be ready. The increase in ‘click and collect’ across all categories is crowding out traditional in-store browsing, says TWE’s Wright. The challenge for retailers is when consumers come instore they need to provide a frictionless shopping experience and remove barriers to purchase. Esposito hammered home this point and said that retailers need to make stores more ‘shoppable’, less cluttered and to give consumers what they want. The whole local and craft explosion plays right into the hands of local family run businesses so retailers should take advantage of this trend.

Bobby McGhee and Garry Macdougall sharing a laugh on the first night Luke Van Staveren, Lisa Baker, Aaron Howarth and Luke Multari

No and low alcohol, health and wellbeing Changing demographics including the rise in the buying power of millennials, changing drinking occasions, an increase in immigration along with a general health and wellbeing trend has driven growth in no and low alcoholic drinks, as well as drinks with lower sugar and carbs. “We used to call this a health trend but it’s so much more, it’s now a lifestyle and more and more consumers are adopting it and it is here to stay,” said Diageo’s Fisher. No and low alcohol, lower sugar, organic and healthier drinks are here to stay and this pivot in consumer behaviour represents an opportunity for liquor retailers and also throws up a few challenges. Consumers are more aware of the drinks they purchase and want to know their origin, what’s in them, where they are made and how it will affect them. TWE’s Wright links the desire dimension with the health and well-being trend, “the more these consumers know, the more they tend to spend”. It makes good business sense to educate the trade and consumers to meet their desires and at the same time increase sales. “These consumers want to know the ingredients, is it organic, biodynamic or vegan and all this information needs to be communicated in-store. These consumers want to be educated and there’s margin and dollars to be made in the process.”

Mass luxury and premiumisation Mass luxury builds on premiumisation and will be a key growth driver over the coming years. In the past 10 years full strength bottled spirits (FSBS) with a luxury price tag of between $50 and $70 have grown from 24 per cent to 46 per cent of all FSBS sold. Diageo’s Fisher talks up ‘mass luxury’. “It’s like treating some of your luxury products like you treat your big movers,” he says. Mass luxury is about accessible, approachable and authentic brands on scale. Fisher points out that if 46 per cent of all FSBS are in the luxury price range, retailers should be taking advantage of this growing trend and allocate appropriate space in their spirit bays to drive luxury sales.

Drinking local – craft vs corporate With a greater focus on provenance, retailers are also placing more emphasis on products that resinate within their local demographic. From craft beers to local gins, more and more categories are weighted towards locally produced brands over corporate or multinationals. Having said that, there

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Delegates enjoy a walking tour of Vienna Megan Dessent, Geoff Jansen, Alan King and Amy MacDougall

Delegates journeyed from Vienna to Budapest on the historic Majestic Imperator.

Matthew Pryde, David Wright and Kirsty Caetano

INDEPENDENT LIQUOR GROUP

Brett Taylor, Ben Taylor, Phil Gibson and Paul Esposito

is still a place for the big end of town, larger suppliers are changing the way they do business by approaching brands from a more local perspective. “There is a massive push towards local, how we get more people involved from the local community and how we as suppliers and as venues can support the local community,” said Lion’s Jurcevich.

Occasion drinking

Vanessa Young, Suzie Farrell and Cathy Gibson Kirsty Caetano, Matthew Pryde, Alan Power and Margaret Power

No surprises on this trend, occasion-based drinking increasingly drives why, when and how consumers drink. There’s an increase in the number of consumers who only drink on special occasions or don’t drink at all. There’s also the ‘new-premise’ as opposed to the traditional bricks and mortar pubs and retail where the occasion is built around ‘pop ups’, festivals or markets and they are growing in popularity. TWE’s Wright suggested retailers reach out to local councils to work collaboratively around these opportunities. Retailers still need to plan for seasonal occasions such as Christmas, New Years, Easter and the footy finals. It’s really important to identify the key weeks through the year so you can plan your promotions and drive foot traffic in-store, said Lion’s Matthews. “A lot of people are surprised that Australia Day is the second biggest trading period over the course of the year,” he said.

The rise of the millennials

Robbie Jurcevich and Ripple Parekh, Kempinsky Hotel, Vienna Dinner at a traditional Viennese wine village

Rebecca Yeates, Damien Bottero and Luke Tubridy

ILG’s Maria Limsico at the gala dinner in Budapest

The 20 to 34-year-old millennial has a growing influence on sales in the drinks industry as their buying power increases. They over-index in terms of spending compared to any other age demographic and are more interested in experiences over assets. Five years ago they made up 16 per cent of shoppers in-store, today that’s 29 per cent. That’s nearly one in three shoppers in terms of foot traffic. Diageo’s Fisher touched on the four most important factors that influenced their buying decisions; they include premiumisation, enjoying their shopping experience, healthy choices and innovation. While innovation makes up half of the growth in the liquor industry, Fisher said that it’s the millennials that are driving it. He said that Gordon’s Pink Gin in the UK has just become bigger than its mother brand and the Australian market is expected to follow suit. “Over half of the growth we are seeing in value is coming from innovation. We know that innovation is the growth engine and those that don’t jump on board are leaving sales on the table or giving sales to the shop down the road,” he said. TWE’s Wright calls this the ‘pink explosion’, “everything pink is flying in all categories,” he said. From pink gins in the UK, pink ciders in the USA or pink Sangria in Spain, the pink trend is in full swing led by female millennials. “The ‘Instagrammability’ of pink drinks has helped drive this crosscategory growth and even the blokes are getting involved.”

Category blurring The rule book has been thrown out the window and retailers can take advantage of new products that meet new consumer demands. Category blurring is creating excitement and driving foot traffic in-store. TWE’s Wright highlighted Squealing Pig Pink Gin, and other examples include Jacob’s Creeks Double Barrell range of whiskey infused wines, as well as adult non-alcoholic drinks like Seedlip as well as alcoholic kombucha, such as K.Booch.

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PREMIUM GIN

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PREMIUM GIN

n i g age

Welcome to the

Gin is one of the fastest growing categories in Australia second only to ‘Contemporary Beer’, so in this issue Andrew Graham takes a look at what he has dubbed the ‘ginplosion’ and discovers what the future of gin looks like.

hether it’s sloe, (London) dry or pink, it has never been a better time to drink gin. That’s because we’re now in a golden age where gin is the fastest-growing category of any alcoholic beverage (up 8.3 per cent in 2018 according to AWSR stats) across the globe. Even in the home of gin, the UK, growth was up by 32.5 per cent, and in the Philippines – which many may not realise is the world’s largest gin market – volume is up eight per cent. Locally it’s no different, as Daniel Bone, Insights Director at leading analytics business IRI explains. “Year-on-year, gin is second only to ‘Contemporary Beer’ in actual dollar growth contribution retail liquor. “Gin’s accelerated annual dollar growth of 33 per cent – up from 22 per cent in 2017-18 – was derived from an additional 1.4 million units sold across retail liquor.” What this ‘ginplosion’ delivers is choice. Never before has the gin category enjoyed so many new quality products, so much innovation and so many more marketing dollars thrown at it. There is just one lingering challenge for retailers, which is simply how to target the crucial gin-loving millennials market segment, who are seen as the drivers of gin’s growth.

Going pink But the millennial challenge might already have an answer – pink gin. Unlike traditional London Dry Gin, pink and flavoured gins utilise a different process – one where flavours are infused after the distillation. This method delivers gins that are closer to liqueurs than they are classic gin, but with a huge scope for a diversity of flavours beyond traditional styles. Pink gin is the latest iteration of this trend and is the Instagram-friendly version of a flavoured gin that channels the vibe of rosé into spirit. It’s more about colour than flavour, but that distinct pink hue has already proven hugely successful. Gordon’s Pink Gin, as just one brand example, moved more than one million cases in the first year, responsible for over £75.2 million worth of sales in the UK alone last year. Research from analyst CGA suggests that pink gin is bringing new drinkers to gin too, many of whom haven’t previously drunk gin (54 per cent) and skewing female and younger than traditional gin drinkers (of legal age).

Bombay Sapphire leads the way with premium gin

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PREMIUM GIN

The Manly Spirits range of gins

Bathtub Gin launches in Australia The UK’s multi-award winning Ableforth’s Bathtub Gin, has launched in Australia with a bang at a bar takeover event at Black Pearl in Melbourne. Traditionally, ‘Bathtub Gin’ was a term used to refer to any style of homemade spirit made in illegal, amateur conditions. The term bathtub gin is believed to have originated in the 1920’s prohibition era because the vessel used to mix grain alcohol, water and flavourings had to be small enough for the operation to go undetected by the police and was often done in bathtubs, before being placed in bottles. Fast forward almost 100 years and thanks to Ableforth’s, Bathtub Gin is still going strong, although, it’s no longer made in a bathtub. The making of the Bathtub Gin is a hefty week-long operation involving a unique cold-compounding infusion process of juniper, coriander, orange peel, cinnamon, cloves and cardamom; rather than using the typical botanical distillation. The end result, a gin that is full of vibrant flavours. Ableforth’s Bathtub Gin is now available Australia-wide at RRP $64.99.

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Locally, the flavoured gin market has enjoyed phenomenal success, driven by some unique spirits. Glenn McPhee, Co-Founder of retailer The Gin Boutique has witnessed this first hand. “London Dry is still extremely popular but has been overtaken by the ‘Contemporary’ (or ‘New World’) gin category. The Gin Boutique’s three highest selling gins are all Australian, but none of these are classic London Dry gins,” he said. “With flavoured gins, I think we’ll continue to see more variants of sloe gin (where the gin is steeped in sloe berries) but using other fruits. Already we’ve seen the famous Four Pillars Bloody Shiraz gin, plus gins steeped with native Davidson plums, Semillon grapes, plus strawberries and other berries.” There’s an important distinction there. Historically, the classic ‘London Dry Gin’ style is built around juniper and a mix of botanicals, with a ‘juniper-forward’ character considered desirable. It’s the archetype by which most gins are classically measured. According to that measure, even sloe gin is considered more liqueur than gin due to its sweetness (from the sloe berries). Sloe gin at least has an extensive history and is treated with the same care as traditional dry gin, just with the fruit inclusion. By contrast, many of the pink gins may use additives and colouring rather than pure botanicals. These spirits are viewed suspiciously by many in the industry too, as Vanessa Wilton, CoFounder of Manly Spirits explains. “Pink gin is always a touchy subject with distillers,” she said. “From a production point of view, it is pretty hard to keep a gin ‘pink’ in colour naturally without fade out over time. “For many gins to play in this space they have to sacrifice the ‘natural distilled botanicals’ story. Many pink gins have become ‘pink’ which means they are way too sweet, artificial and nongin like.” Wilton acknowledges that while it may annoy purists, pink gin is still a great starting point. “The new gin drinker will tend to drift to pink,” she explains.

PREMIUM GIN The local connection Rather than going pink, some of the top gin makers are instead taking cues from wine production and introducing a little slice of terroir to give their gins the edge. We’re seeing this even on a larger scale. Bombay Sapphire has just launched its first new edition since 2015, the Bombay Sapphire English Estate. As Penny Sippe, Sponsorship, Experiential and PR Manager at Bacardi-Martini explains, it’s a gin that traces back to Bombay’s roots. “Focusing on our London Dry credentials, this new gin adds three extra botanicals from the English country around our distillery at Laverstoke Mill – pennyroyal mint, rosehip and roasted hazelnut,”’ she said. As Sippe explains, this push towards authenticity and classic styles rather than the potential gimmicks of flavoured gin gives established names like Bombay Sapphire an edge. “We’re always going to be a well-balanced, juniper-forward gin, where every botanical goes in for a reason and is of the highest quality,” she said. Brand-new regional NSW gin distillery North of Eden has embraced this ethos too, similarly utilising local flavours from the Bega area. The North of Eden gins are hand made in small batches in a copper alembic still, and feature ingredients from Co-founder Gavin Hughes and Karen Touchie’s orchards – including native Australian finger limes and locally foraged kelp. Still, the technology used is more than 1,000 years old, as Hughes explains. “We do everything by taste, and nothing is automated. It’s a very traditional way of making spirits and, in a way, every bottle of our gin is homage to those ancient alchemists and distillers.” At retail level, these hyper-local, small-batch styles are proving popular too, as gin-loving BWS Rundle Mall, Retail Store Manager, Sam Benham notes. “Local craft gin is flying out the door at Rundle Mall,’ he said.

The new RTD Gin & Tonic from Bombay Sapphire

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“We’re finding that customers are really enjoying discovering a new favourite craft gin that is being distilled in their own backyard. “From my experience, Australian gin consumers will happily pay more for a locally produced product.” Makers like Wilton have seen firsthand the success of that local connection. The Manly Spirits Australian Dry Gin (with locally foraged sea lettuce) won Best Australian Gin (London Dry Style) at the 2019 World Gin Awards. This gin and its companion Coastal Citrus Gin have been performing particularly well at Duty-Free stores, which is interesting. Wilton believes it is because tourists see this style of gin as “liquid memory of their visit to Australia”.

Gineration next One of the key advantages of gin production is flexibility. Unlike wine or whisky, gin can be produced within a relatively short time frame (just 24hrs) and nearly anything can go into the still. Again, this may upset purists, but it has helped fuel some truly innovative products in the contemporary gin category - many of which still fit in the juniperforward paradigm. At Archie Rose, they have recently released a small-batch of smoked gin featuring ironbark smoked water, juniper, native thyme, wattleseed, caraway and a small amount of distilled chocolate malt. But the real excitement for the Archie Rose team is what is coming next, with two gins scheduled to be released in October that are collaborations with “one of the world’s most significant cultural icons,” although the crew are tight-lipped about what this will be. Later in the year will also see the launch of the Archie Rose Tailored Gin offer, which allows drinkers the opportunity to go online and tailor their own gin blend choosing from 12 different botanicals or by visiting Archie Rose to participate in the Blend Your Own Gin classes.

“We’re always going to be a well-balanced, juniper-forward gin, where every botanical goes in for a reason and is of the highest quality.” – Penny Sippe, Bacardi-Martini Australia

PREMIUM GIN

Hendrick’s Gin Palace

Conversely, the future of gin might not be about the past. Barrel aged gin remains a small segment of the gin market, but promises spirits that offer both refreshment and complexity. What’s interesting is that, historically, gin was always stored, transported and often served from barrels – so hardly a new fad at all. At Tasmania’s McHenry Distillery they’re aiming to “recreate an authentic, pre-industrial age gin” that is matured in 200 litre American Bourbon barrels for 12 months. Made in ‘Australia’s oldest gin solera’ the result sits halfway between a smoky, barrelinfluenced young whisky and dry gin. Perhaps the biggest challenge with these barrel-aged styles is how to drink them. Rather than drinking gin with tonic, these gins are better served in a Negroni or an Old Fashioned. This begs the question about whether they’re gins at all. Speaking of tonic, mixers have become increasingly sophisticated too. The rampant success of Fever Tree has shown that there is more to tonic water than just carbonated water, sugar and quinine. More recently New Zealand’s Quina Fina has gained traction, with its recipe of organic lemon and cinchona bark viewed as a superior drier tonic. Locally, the StrangeLove Dirty Tonic has also proven popular, using raw, unrefined cinchona bark, rosemary, orange peel and sea salt. No matter whether it’s served with tonic or in a cocktail, there’s no doubting that gin is the hottest spirit on the market – thanks largely to an ever-expanding range of products. But where is the gin ceiling? When will we hit peak gin? According to McPhee, we haven’t seen the high water mark yet. “Without doubt, the number of Australian gins hasn’t peaked yet, and we’re hearing from new distilleries all the time. Conservatively, I’d put the number of different Australian gins, to be about 250 at present, possibly closer to 300,” he said. Wilton puts the state of the market in plain terms. “We believe premium gin is in a pretty healthy place at the moment.”

Forgot the tonic? Drink Hendrick’s Orbium Historically, part of the appeal of a gin and tonic was its medicinal qualities, with the ultra-bitter antimalarial quinine best served with soda water, sugar and gin to make it palatable. That mix then evolved into gin and tonic and the legend was born. But now Hendrick’s has released the Orbium, which is a quininated gin that turns it all on its head. Tonic? Who needs it. The Orbium is still constructed in the traditional Hendrick’s house style, just with quinine (from the cinchona tree) wormwood (found in vermouth) and then blue lotus blossom for fragrance. As Lucy Russell, Senior Brand Manager at William Grant & Sons, the distributors of Hendrick’s explains, there are several ways to serve it too. “There is a strong role for the Martini as the hero serve for Hendrick’s Orbium,” she said. “Of course, as the quinine is already instilled, it is perfect with just soda – and a slice of cucumber.” Look out also for Hendrick’s new Midsummer Solstice, a highly floral gin it is “instilled with a secret selection of floral essences that enhances the liquid’s existing botanical bouquet”. This gin is the first release from Ms. Gracie’s Cabinet of Curiosities, a “place of experimental botanic alchemy at the new Hendrick’s Gin Palace Distillery”. The Midsummer Solstice is due out in October.

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CANNED WINE

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CANNED WINE

I– the THINK I CAN rise of canned wine The can serve has always been contentious in Australian culture, but the format is shaking off its less-than-premium reputation, with the somewhat unlikely rise of canned wine. Ava Green explores the rise of the category and what it means for retailers.

hile Australians may have been the inventors of the wine in a can serve all the way back in 1996, which resulted in the patent of the Vinsafe tech that launched the concept globally in 2002, Australian drinkers have been surprisingly lax in their uptake of the trend. However, it seems that Australian wine fans are finally catching up with their UK and US counterparts and embracing this new serve, with the category now worth $8.5 million in Australia according to IRI figures. So, what is it about wine in a can that is such a compelling offering for Australian drinkers?

THE EXPANDING TREND According to Daniel Bone, Insights Director at IRI, in the 12 months to May this year, canned wine has been a bright spot in a waning wine category, which has seen softer sales annual growth recorded due to weakness in key segments like Champagne and Sauvignon Blanc. “Canned wine generated nearly $11 million in additional annual sales, with over 70 per cent of this value attributable to sparkling canned wine,” he says. At Brown Family Wine Group, Marketing Manager, Emma Brown says that the decision to explore canned wine came about because the company is committed to creating and sharing adventures in wine, and their canned Prosecco Spritz ticks all the boxes. “As part of our commitment we need to ensure that we are delivering products to the consumer and customer that align to changing needs and occasions,” she says. “Cans are a result of this commitment.” With more than 10 years of experience in various marketing roles in multi-national FMCG and the wine industry both in Australia and abroad, Brown is quick to point out the practicalities of the canned wine serve to market. “[We] also [know] that there are changing household structures in Australia with one in four households now single person, leading to more individual consumption occasions in the home, and less storage space for a traditional bottle of wine with smaller pantries and fridges,” she explains. Ben Culligan, Marketing Director ANZ at Treasury Wine Estates (TWE), believes that wine in cans has been an exciting entry into the Australian market. TWE has been one of the companies to embrace the burgeoning trend, producing the top four wine in cans sold in the country – including the Squealing Pig and the T’Gallant ranges. And he is keen to spread the benefits for retailers of the convenience serve, with the smaller serves removing potential barriers to purchase that the traditional 750ml wine bottle can present. “We had seen wine in cans take off in the USA and knew there would be similar opportunities in Australia,” Culligan continues. While premiumisation is always a buzz word in the liquor industry, the convenience factor cannot be discounted, says Daniel Bone, Insights Director at IRI.

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TWE’s range of T’Gallant canned wines

CANNED WINE

GLOBAL TRENDS While canned wine might be seen as in its infancy here in Australia, there is a global precedent for the convenience serve. In 2018, US canned wine sales jumped 69 per cent to more than $69 million in value, according to Nielsen data, and in California, the world’s first canned wine exclusive contest was held, with over 200 canned wines from around the world entering. In Texas, academics from the Texas Tech University ran the first blind taste test comparison of wine from a bottle and the identical wine from a can. While the full results are forthcoming, preliminary findings suggest that 51.1 per cent of total tasters either preferred the canned version, or indicated they saw no difference in flavour or quality between the samples.

“It is convenience first and foremost,” he asserts. “Canned wines are portable, durable, and chill faster – all of which are compelling usage benefits that support the growth of relaxed/casual and outdoor drinking occasions in Australia.” Brown agrees, saying: “Convenience is king. People are looking for items that fit in into their busy lives. Cans present a way for people to enjoy the wines they love with the utmost convenience.”

THE MILLENNIAL FACTOR While there is often still a certain amount of eye rolling at the term ‘millennial’, the fact is, the youngest millennials are hitting their mid-twenties, while the oldest are nearing 40. According to Culligan, canned wine is introducing wine to younger adult shoppers, 22 per cent of whom are new to the wine category, as well as opening the field to situations where glass, or an entire bottle, just aren’t what consumers are after. “[It is] new occasions – picnics, festivals, race meets, airlines, people who don’t want to drink a whole bottle or who would like to try different varietals in the one session,” he says. “With new consumers now enjoying wine in occasions not typically associated with wine, it is leading to a greater exploration of the wine category as a whole.” Brown points out that this landscape of new drinking occasions is being created by a new generation of drinkers that don’t necessarily play by the rules of previous generations. And that means lower ABV serves are at the forefront of their minds. “Young people are more likely than other generations to be conscious of their alcohol consumption and look to options to moderate and stay in control,” she says. “Smaller formats, such as cans allow people to stay mindful of their consumption when it comes to wine.” But that doesn’t have to make them dull – the Brown Brothers Prosecco Spritz is a convenient way to not only enjoy the spritz trend that Australians are still embracing with gusto, but also allows them to accurately track their alcohol intake.

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CHOOSE THE

O N E STAN DAR D D R I N K PE R CAN Refreshingly spritzed Moscato RosĂŠ and Moscato Available from September 2020 Contact your Brown Family Wine Group Area Manager or Customer Orders: 1800 001 515 18+

The Squealing Pig Spritzed Rosé

CANNED WINE

SUMMER RETAILING According to Bone, the rise in ‘repertoire drinking’ means that producers, and in turn retailers, can use cans as a way of making wine more approachable for consumers who may otherwise gravitate towards beer, cider or RTDs. “It helps get wine into the ‘consideration set’ across a wider range of consumption moments,” he says. “You only have to look at the longer-term success of Canadian Club’s marketing communications to think beyond beer to realise there is an opportunity to shake up routines.” Brown asserts that ensuring cans are both visible and chilled is key to both immediate and long-term success in retail. “More often than not, cans are being bought for drinknow occasions and it’s important that they’re chilled and ready to drink in an easy to find location in the fridge,” she says. Brown also notes that education is key when bringing in a new serve. “People are always sceptical of the new,” she explains. “Therefore, the more retailers can educate that premium wine can be found in a can format, the better.” Culligan adds that retailers have to consider that 22 per cent of can shoppers are new to the wine category when merchandising their stores. “It’s important that wine in cans are placed off location to not miss the opportunity of new category shoppers,” he says. “We recommend that retailers display wine in cans within the cool room to attract beer shoppers, near or within cider and low carb beer in the fridge, and in the wine fridge near sparkling, ideally Prosecco.” On the same note, Bone explains that the existing homogeneity in the wine aisle can be off putting for new drinkers. “Outside of rosé and Prosecco, there is very little pack design differentiation in a category that accounts for well over half of all SKUs sold across retail liquor,” he explains.

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IN WITH THE NEW While Brown Brothers Prosecco Spritz was new to market last year, Brown says that the company has a September launch set for a new product in the can category. “Brown Brothers will be addressing the mindful mindset with an NPD in the can category,” she hints. “This 250mL slimline can offer will come in two styles and allow consumers to enjoy the wines they love, while being able to moderate their consumption and stay in control.” Over at TWE, Culligan says that they are looking forward to the launch of new Yellowglen Minis cans in Crisp Bubbly and Spritzed Rosé styles, available in Star Liquor and IGA Ritchies stores. “With a bright, contemporary pack design and less than 120 calories per 250ml can, Yellowglen Minis tap into the refreshment trend and open up more sparkling wine occasions via Australia’s number one sparkling brand,” he says. “We are also exploring further innovation in cans that leverage refreshment, so watch this space.”

CANNED WINE “[Cans] create an aura of dynamism in a category that can seem too overly steeped in stodgy old-world values for Millennials and Gen Z.” He goes on to point out that BWS stores now prominently feature enticing canned wine impulse displays located near their checkouts. “This really helps to increase the ‘mental availability’ of the format among curious drinkers looking for new inspirations, and who do not necessarily have preconceptions of how products should be packaged,” he says.

RETAILER SUPPORT With any innovation, education is key, and Brown says that both the existing and new products in the can range will involve significant sampling programs over the warmer months.

“Sampling is key to education so we will be out sampling our products in can during the spring and summer period,” she says. “We will also be working closely with off-premise retailers to ensure wine is front of mind for these outdoor, convenience occasions and ensuring the cans are present in fridge for the drinknow occasion.” TWE is planning a strong out-of-store advertising program scheduled over summer, aimed at driving awareness of wine in cans and the benefits of the format. “In-store we have a summer program designed to drive trial and purchase. In January in independents we are partnering with a sunglass supplier to run a ‘spend and get’ promotion,” he adds. “We are also working with our other key retail partners to disrupt shoppers in-store.”

“Convenience is king. People are looking for items that fit in into their busy lives. Cans present a way for people to enjoy the wines they love with the utmost convenience.” – Emma Brown, Marketing Manager at Brown Family Wine Group

The Brown Brothers Prosecco Spritz is perfect for summer

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PROSECCO REPORT

Prosecco has been wineâ&#x20AC;&#x2122;s shining star in recent years, outperforming almost every other category and generating an additional $51.5m in growth, but what does the future of the category look like? Andrew Graham investigates.

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PROSECCO REPORT

or over a century, Champagne has been the celebratory wine of choice, the undisputed king of premium fizz, with only a wake of Champagne-like sparkling wines as competition. But, more recently, things have changed. Suddenly, Champagne – and the Australian sparkling white wine category – has seen the rise of a bubbly contender, one that has already taken a bite out of Champagne to the tune of 1.8 per cent volume decline over the last 12 months. Enter effervescent Prosecco. In recent years, this variety/style has outperformed nearly every category in the industry, with volumes increasing at apace. Daniel Bone, Insights Director of IRI has the numbers, saying that Prosecco has generated an additional $51.5 million in growth over the last two years – a 99 per cent increase. “Only rosé and Shiraz have recorded more significant dollar gain over this timeframe,” he said. Strictly speaking, Prosecco is not vying for the super premium mantle of Champagne – it’s not in that $40 price point. Rather, premium Prosecco has proven to be a viable option for consumers trading down from Champagne, with the best Prosecco viewed as having all the cache of imported Champagne, without the price tag. Indeed, it is one of the most hotly contended premium price segments that is proving most important for Prosecco, as Bone explains. “Products priced $15-$19.99 (+29 per cent) have accounted for the overwhelming majority of Prosecco growth for the past two years, followed by value orientated offerings priced at $8-$14.99 (+42 per cent),” he said. “Prosecco has generated significant sales momentum from a newfound social currency in today’s evolving drinking culture.” For all the love, for all the explosive growth, Prosecco is also under threat. Locally, the very name Prosecco is in danger, amidst a host of challenges globally that may impair long term growth. But are these just minor speed bumps for what is proving to be a new hit category?

King Brown Brothers If you want to look at one local producer who has taken a clear lead in the domestic Prosecco stakes, look only at Brown Family Wine Group (BFWG). Amy Van Bekkum, Senior Brand Manager, BFWG sets the scene. “Brown Brothers continues to lead the Prosecco category as both the number one brand and SKU,” she said. “Brown Brothers Prosecco NV 750ml is Australia’s number one and favourite Prosecco and the number five contributor to growth in total wine and number two in total Sparkling (inc. Champagne).” Given the Brown family’s famous commitment to innovative varieties and styles via their Kindergarten winery, it’s perhaps not surprising that they are both early adopters and market leaders. But the Prosecco connection goes deeper than that. Notably, BFWG is among a squad of King Valley producers who have championed Prosecco, setting up a winery trail known as the Prosecco Road. We’re now at the point where King Valley is labelled as ‘Australia’s home of Prosecco’. If you’re looking for another key driver of this initiative, you don’t have to go far into the King Valley to find Dal Zotto Wines. Now headed by brothers Christian and Michael Dal Zotto, this is the original King Valley Prosecco estate, with the brothers’ father Otto planting the Valley’s first Prosecco vines back in 1999. Otto himself grew in the town of Valdobbiadene, the birthplace of Prosecco, so it made sense that he would bring a little slice of home to the region. What started as 300 vines is now a hugely important part of the business, with the Dal Zotto Pucino Prosecco now a 50,000-case line. The family are also some of the most passionate supporters of Australian Prosecco and remain at the forefront of the battle to keep the name locally. For Dal Zotto, the secret to success has been an uncompromised approach, as Michael Dal Zotto noted recently. “We believe that quality is the answer,” he said.

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PROSECCO REPORT

“No matter what happens, we know that if we have great wines then people will keep coming back.” Dal Zotto now has a whole smorgasbord of different Prosecco styles, ranging from the pure and fresh Pucino right through to the complex Tabelo Col Fondo. The Tabelo is particularly unique as it has been made using a portion of dried grapes – a winemaking method used in traditional Prosecco production but to date has never been used anywhere else in Australia. Beyond the Valley, other makers are enjoying success with premium wine styles too. Domenic Torzi at Torzi Matthews makes a complex Prosecco that has serious appeal too, the quality as a result of an elevated site high up in the ‘Riesling country’ of the Eden Valley. Torzi believes that the site helps give a “textured mouthfeel and brininess” with some “sun baked exposed bunches (used) to produce a super charged dry wine base before secondary charmat ferment”.

Selling the DOC Of course, it’s not just local premium Prosecco that is on a roll. The original Italian Prosecco DOC was enlarged by 3,000 hectares back in 2016 just to keep up with demand, with 446 million bottles produced last year. That expansion hasn’t come without growing pains, however. Northern Italy’s University of Padua recently examined the ‘soil footprint’ of premium Prosecco and calculated that it is responsible for 74 per cent of the Prosecco DOC’s total soil erosion, with each bottle directly resulting in the loss of 4.4 kilograms of dirt. Interestingly in the UK, Prosecco’s popularity has also plateaued, with volumes dropping by three million bottles in 2018, leading to some predicting that the UK market has already passed peak Prosecco. Still, there is no doubting the ongoing popularity of imported Prosecco in Australia, across retail and on-premise. Notably, imported Prosecco price trends broadly follow those of local products too, with a range spanning affordable options to $25 premium products. Mark Singarella of wholesaler/retailer Vino Bambino has seen this firsthand, with one wine really sticking out. “Currently, the Salatin DOC Treviso Extra Dry NV is most popular as it’s the most affordable,” he said. “And the style has a little more residual sugar around 14 grams per litre.” But the choice according to Singarella comes down to demographics – with more upmarket areas choosing DOCG vintage Prosecco, while the bulk of drinkers still opt for the DOC NV. Indeed the defined levels of quality (and the centuries of history) are one way that Italian Prosecco has as an edge over local wines. From standard Prosecco DOC right up to the village defined ‘rive’ wines, this clearly identifiable hierarchy has helped push up prices for the best wines and encouraged premiumisation – something which the local industry struggles with. That’s born out in the figures too, as Bone notes, with the push for more Prosecco coming at the expense of price points. “Prosecco volume growth (both litres and units sold) has outpaced dollar growth over the past 12 months,” he said. “This accounts for the 2.1 per cent decline in price per litre, which contrast with the four per cent price per litre increase observed in the category’s largest growth driving varietal, rosé.”

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“Prosecco has generated an additional $51.5 million in growth over the last two years – a 99 per cent increase.” – Daniel Bone, IRI The Dal Zotto cellar door

Family winemakers since 1889

*Brown Brothers Prosecco Range and Prosecco NV Aztec Scan MAT 30.06.19

AUSTRALIAâ&#x20AC;&#x2122;S NUMBER 1*

PROSECCO REPORT

Make it pink Speaking of rosé, pink Prosecco could well be the next big thing. The ultimate segment winner with a possibility to mirror the success of other pink drinks (like pink gin). Technically, however, pink Prosecco is not even a thing yet, with Italian Prosecco producers unable to legally label their rosé sparkling wine as Prosecco (for now at least). That’s expected to change, with the The Prosecco DOC Consortium under pressure from producers to open up the rules amid estimates that the total production of rosé Prosecco could reach 30 million bottles per year. Locally, producers have been quick to capitalise, as Van Bekkum explains. “With both the Prosecco and rosé categories on fire (the number one and two fastest growing categories in wine) Prosecco Rosé really is the perfect wine,” she said. “Growing +73 per cent vs YA we will continue to invest to drive Prosecco Rosé in the future.” Globally others are excited by pink Prosecco too, with Henkell & Co. CEO Andreas Brokemper recently noting that this style ‘fits perfectly’ with the brands in his portfolio, with the Freixenet Italian Sparkling Rosé already proving particularly popular.

All in a name Sadly, the elephant in the room for any Prosecco discussions remains the name. In 2009, Italian producers registered Prosecco as a GI and changed the grape name to the deadly unsexy Glera. Naturally this infuriated Australian Prosecco producers who (rightly) see this as a land grab of the worst kind, with the Italians already losing in previous court cases trying to force local producers to stop using the name. But many fear that the name will be collateral damage with the signing of a new EU trade deal (due shortly). In opposition, producers like Michael Dal Zotto have been very passionate about standing up for Australian Prosecco, calling the potential threat to the name, noting in a recent interview with TheShout that “It’s been known as Prosecco since the beginning of time, so why all of a sudden should that change and why should we allow it to be changed?”. One proposal that is mooted – and shouted down as laughable by some local producers – is allowing the term ‘Prosecco-like’. What’s more obvious is that Prosecco will be used for local labelling and other terms for export, and some makers are planning ahead – Dal Zotto has already registered Pucino and will likely use that if all else fails. Torzi, too, “registered ‘Secco di Glera’ a number of years ago full knowing this would eventuate”. Still, it may not happen with Dal Zotto telling TheShout recently that “So far the trade ministers and negotiators have all held firm and we really hope that they continue to do so”.

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“With both the Prosecco and rosé categories on fire (the number one and two fastest growing categories in wine) Prosecco Rosé really is the perfect wine.” – Amy Van Bekkum, Brown Family Wine Group

PROSECCO REPORT Prosecco forward

The Dal Zotto family

The Brown Brothers Rosé Prosecco

Beyond the fiddling with the name, and pink Prosecco, the next frontier remains format – and especially Prosecco in a can. The numbers are already strong, as Bone notes. “The movement into canned wines observable across the category has delivered over $2 million in incremental dollar growth for the Prosecco segment, albeit from a near zero base,” he said. Yet this growth comes at a cost: “This has also played a part in more significant $/unit reductions of -4.6 per cent.” Viewed as a long-term strategy, however, the move into cans is understandable as it taps into the convenience market – edging out of wine and competing with categories like cider and even beer. Finally, one of the other crossover products enjoying recent success is the Prosecco Spritz, as Emma Brown from BFWG explains. “(Prosecco Spritz) is about unlocking growth in the Prosecco category through creating new occasions and appealing to refreshment trends.” With Jacob’s Creek also featuring in this category, not to mention spirit competitors like Aperol, the ‘aperitivo’ market promises to be hotly contested. Could the ultimate category fusion wine – a Rosé Prosecco Spritz be next?

Is vegan Prosecco the next big thing? De Bortoli has a notable USP on its Prosecco that could prove crucial – it is vegan. The De Bortoli team explains: “With growing consumer interest in vegan wines, our Prosecco is one of the few on the market that can make this claim.” That’s on the back of recent Roy Morgan research indicating that 12 per cent of the population are now eating all or almost all vegetarian, the numbers accelerating by some 400,000 people over the last year alone. De Bortoli is not alone here, however, with the Brown Brothers Vintage Release Prosecco being vegan too, as is the Chrismont La Zona Prosecco. Ultimately, this is a trend that is hard to ignore – consumers are looking for more ethical and sustainable products, and animal-based fining products are in the firing line.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 73

BEER TASTING TAG

The Panel Josh Quantrill

Neal Cameron

Judd Owen

Field Sales Manager, Capital Brewing

Director, Institute of Beer

Contributor, Crafty Pint

Cameron Flett

Keith Grice

Aaron Edwards

Manager, Warners at the Bay Bottle Shop

Head Brewer, Hunter Beer Co

Owner, Bitter Phew

John Elliott

Tom Evans

Craft Beer & Cider Specialist, The Oak Barrel

Joe Wee

Venue and Events manager, Batch Brewing

National Sales Manager, Akasha Brewing

Andrew Robson Head Brewer, Lord Nelson Brewing

O AS N

Liam Pereira

Matthew Denholm

Owner, Noble Hops

Operations Manager, The Taphouse

Craft Beer Reviewer

Rosemary Lilburne-Fini

CUS

What’s our Seasonal Focus? This issue, we’re looking at Lagers

THE BREW REVIEW In this issue our panelists tasted the latest new release beer and cider. Here are the results.

Yulli’s Dolly Aldrin Berliner Weisse ABV: 3.3% Style: Berliner Weisse This beer is very, very clean. There’s a lovely lactic element on the nose, accompanied by soft citrus, red berries and, of course, the added beetroot. The beetroot lends a brightness to the palate that is balanced with good nuances of earthiness, citrus and herbs. This is a good summer crusher of a beer. Yullisbrews.com.au

Billson’s Small Batch Alcoholic Ginger Beer ABV: 3.5% Style: Ginger beer Light in appearance with plenty of cloudiness, this ginger beer has good cleanliness as well. there is plenty of sweetness up front on the nose and on the palate. There’s a hint of ginger at the back of the scent, as well as some hint of spice profile and ginger bitterness on the palate. Well carbonated, it provides a refreshing mouthfeel. The ginger flavour is subtle throughout. After a sweet, slight ginger bite at the back, it finishes incredibly dry. Billsons.com.au

74 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

Felons American Pale Ale ABV: 6% Style: Pale ale Golden orange in colour with a slightly hazy appearance, the American pale ale storms through the nostrils in a big way. Big, punchy hop aroma – with Mosaic and Simcoe prominent – come blasting through with somewhat spicy additions. On the palate, there is a slight spiciness, but the flavours are dominated with big tropical fruits as well. The mouthfeel surrounds the mouth in flavour. That hoppiness lingers long after swallowing. Felonsbrewingco.com.au

Your Mates Larry Pale ABV: 4.8% Style: Pale ale This beer has good colour and good clarity with a honeyish hue. The aroma is solid – plenty of citrus, pine and weed on the nose. Take a sip and your tastebuds get hit by dank hop flavours, along with stone fruit. There is solid malt. For all that hop flavour, it is a little short on bitterness. There is a pleasing mouthfeel and leaves you with a lingering dryness. This was brewed as a drink for summer parties, as a wellmade and very drinkable beer, it certainly fits that description. Yourmatesbrewing.com

Hopsters IPA ABV: 6.5% Style: IPA There are plenty of powerful dank, hoppy aromas – think tobacco, pine and citrus on the nose. The bitterness on the palate is assertive, backed up by citrus fruit like oranges, as well as pine and resin. This is a very solid American IPA with resiny bitterness and a powerfully dank aroma. It’s wonderful to see a darker IPA with the promise of malt character that proves to play a very minor role. The resin and bitterness linger in a very pleasing way. Hopsters.coop

ABV: 6.6% Style: Doppelbock The nose is the best part of this beer – full of toffee, dried prunes and figs, as well as dark chocolate. Then there’s good fruit and soft spice on the palate. Full-bodied and super malty, the beer itself is lighter on booze and body than one might imagine. There’s also some spice, heat and sweetness. Wrongsidebrewing.com.au

ABV: 4.2% Style: Draught beer The beer looks great – a deep straw colour and a great head. It smells great, with aromas of melon and stonefruit are the start. Taste-wise, this is an easy-drinking beer with good grassy hops and soft fruits. There’s sweetness, a faint bitterness and a slight pineapple flavour, all brought together in a nice, spritzy mouthfeel. Goatbeer.com.au

ABV: 6.3% Style: Bock Rich copper and amber colours sit beneath a tan head. Toasty, caramel aromas mingle with earthy hops and a touch of cocoa. When it comes to first taste, it’s caramel from start to finish, with flashes of grapefruit in the middle. This is a well-bodied beer full of flavour and toasty caramelised goodness. Edenbrewery.beer

Style: West Coast IPA A little hazy, this beer is pale yellow to orange in colour. The aroma is as punchy and dank as you like, with some herbaceous notes and caramel added for good measure. Take a sip and you’re enveloped in hops – the smells are there, the bitterness is there, and the aftertaste lingers nicely. A great interpretation of a West Coast IPA. Hemingwaysbrewery.com

ABV: 5.7% Style: Stout A thick tan head sits atop this beer and stays there, offering strong aromas of coffee and roasted chocolate, along with essences of nuttiness and light smoke. Mediumbodied, the beer has some heat to it, along with a dry cocoa taste on the palate. It’s very nutty and chocolate, but there is a nice hop bitterness as well. A thoroughly enjoyable beer. Littlebang.com.au

Style: IPA A great American IPA, this beer is oozing tropical fruit, with a light malt bill to highlight the hops. Stonefruits galore on the nose, along with plenty of pine, while the palate is rich with orange, grapefruit, pine and yeast esters. A raisin-y mouthfeel is complemented by light hop bitterness. Yullisbrews.com.au

Style: Kettle sour The judges enjoyed the easy drinking nature of this dry-hopped sour beer that features cherry, mandarin colours on the eye, a great nose, and pleasant fruitiness mingled with a tart tang on the palate. Slightly hazy, it has a clean, good mouthfeel, a dry, long finish and an acidic aftertaste. Ballisticbeer.com.au

ABV: 7.4%

Little Bang Inside Voice Foreign Extra Stout

ABV: 6.7%

ABV: 4.7%

Hemingway’s The Endeavour

Yulli’s Amanda Mandarin IPA

O AS N

Ballistic Twang Kettle Sour – Hibiscus and Feijoa

CUS

Eden Argania Bock

Style: Pilsner There’s a slight haziness to this beer, but it is also showcases the brilliant brightness and lacing of a typical pilsner. The nose is bright with touches of pear, while the palate balances solid bitterness with sweet malts. Overall a very good, well-made lager that’s very easy to drink. Whitebrickbrewing.com.au

Mountain Goat GOAT

O AS N

ABV: 4.8%

Wrong Side Brewing Doppelbock

White Brick Petrie Pilsener

CUS

O AS N

BEER TASTING

CUS

Holgate Double Stout ABV: 8% Style: Double stout This is a properly dark beer, which keep things low key until you take a sip. Low key aromas of balanced vanilla, chocolate, liquorice and coconut are followed by an almost portlike flavour on the palate – with coffee, chocolate and dates – which is then followed by oaky, woody dryness. A mouth-filling, big beer, with lots going on and dominated by oak character. Holgatebrewhouse.com

Endeavour Amber Ale ABV: 5.2% Style: Amber ale Good caramel malt flavours come through nicely in this deep rich, red beer, backed with a pleasant bitterness. There’s an earthy nature to the nose. It’s a wellrounded example of an amber ale, with a balanced body. Endeavourbeer.com

This tasting was originally conducted for the Spring Issue 50 of Beer & Brewer.

NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 75

WINE TASTING

THE PINOT NOIR REVIEW

THE PANEL

1. Daryl Fisher, General Manager, Fisher Fine Wine

5. Christine Ricketts, Wine Educator, The Wine Quarter

2. Nigel Burton, CEO, Burton Premium Wines

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

3. Andrew Graham, Online Communications Manager, 7. Mark Bradstreet, Key Account Manager, The Wine Collective Joval Wine Group

8. Andy Milne, Brand Manager, SouthTrade International 9. Kristy Farrell, Wine Ambassador, Pernod Ricard Australia

4. Geoff Bollom, Retailer, Fennell Bay Cellars

THE PANEL’S PICKS Houghton Wisdom Pinot Noir Region: Pemberton VIN: 2018 LUC: $26.55

Giesen Limited Edition Organic Pinot Noir Region: Marlborough VIN: 2015 LUC: $21.50

“Sings from the glass. Top notes of cherry and berry. Glazed cherry sweetness buttressed by dark coconut oak. Very good.” – Michael Park

“Dark and broody. Intriguing nose, berries, and warm spices. Subtle tannins and acids. Good finish. Happy days.” – Geoff Bollom Distributed by: Oatley Fine Wine Merchants

O pawa Pinot Noir Region: Marlborough VIN: 2017 LUC: $16.66

“A lovely linear palate building in intensity from red, dark red fruit to more air dried meat and creamy oak.” – Michael Park Distributed by: Samuel Smith & Son

Distributed by: Accolade Wines

THE SYSTEM 95-100 Classic: an exceptional wine

90-94 Outstanding: a wine of remarkable character

76 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

85-89 Very good: a wine with impressive qualities

WINE TASTING LUC $23 AND OVER A lbert Bichot Moulin-à-Vent Domaine de Rochegrès Region: Beaujolais VIN: 2016 LUC: $26.50

R iorret Pinot Noir Region: Yarra Valley VIN: 2018 LUC: $29.92 “Young but so drinkable. Earthy, balanced. Drink now if you must but this will be fantastic in five years.” – Geoff Bollom “Earthy, good integration with wood. Well balanced. Ripe black berries softened by cherries. Cigar box. Great length. Will keep for a few years.” – Andy Milne

“Oak lifted nose, deep colour, mushroom notes with dried cherry and herbal hints. Great acid and tannin balance. Long finish. Savoury leather.” – Christine Ricketts “Such a dark colour for a 2016 wine. Maple, strawberry and oak on the nose. Cherry and mint characteristics.” – Kristy Farrell.

Distributed by: De Bortoli Wines Distributed by: Decante This S eppelt Drumborg Pinot Noir Region: Henty VIN: 2018 LUC: $31.51 “Incredible, complete Pinot. Savoury notes wrap up red fruit so well for a sublime long and juicy finish.” – Michael Park “Beautiful balance with this wine. Everything here is just nice. A very pretty wine.” – Mark Bradstreet

P HI Single Vineyard Pinot Noir Region: Yarra Valley VIN: 2018 LUC: $36.30 “Beautiful fruit sweetness balanced with hints of oak.” – Kristy Farrell “Clean mid-weight colour. Good balance on palate of varietal characters. Strong tonic finish. Wine of the day.” – Nigel Burton

Distributed by: Treasury Wine Estates Distributed by: De Bortoli Wines N autilus Clay Hills Pinot Noir Region: Marlborough VIN: 2015 LUC: $36.98 “Broad palate with blue and black fruits, plenty of oaky tannins and length.” – Mark Bradstreet “Beautiful structured wine. Initially pretty but builds cedar and almost sweet soy.” – Michael Park

D alrymple Pinot Noir Region: Tasmania VIN: 2017 LUC: $26.35 “Ripe fruit. Acidity feels high. Great structure. Silky flavour and texture.” – Andy Milne “Subtle fruits on the nose. Mushroom, herbs. Balanced. Very good and really well made. Enjoy now.” – Geoff Bollom

Distributed by: Samuel Smith & Son Distributed by: Samuel Smith & Son P epper Tree Limited Release Pinot Noir Region: Orange VIN: 2018 LUC: $25.80 “Rich dark fruits, leather, liquorice, Italian herbs. Good fruit and a complex finish.” – Daryl Fisher “Lovely spice, red fruit nose. Sinewy, sweaty and sappy, still very structured but shows great potential.” – Michael Park

A rtemis Close Vine Pinot Noir Region: Southern Highlands VIN: 2016 LUC: $31.35 “Violet, plum, cherry, vanilla, roasted nuts, smoke. Fresh but has a lot of layers. Very youthful.” – Christine Ricketts “Mid-weight colour and palate. Clean fruit and tannin balance. Cherry soufflé.” – Nigel Burton

Distributed by: Déjà Vu Distributed by: FrancAboutWine; Artemis Wine cellar door

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 SEPTEMBER 2019 | 77

WINE TASTING LUC $17-$23 A pricus Hill Pinot Noir Region: Denmark VIN: 2018 LUC: $19.35 “Wonderfully balanced with ripe red fruits, soft structured tannins and an acidity that complements a long finish.” – Kristy Farrell “Pleasant red fruits, dried herbs and cedary oak. Hints of mint. Good mouthfeel, fine tannins, integrated acid and oak in the back.” – Christine Ricketts Distributed by: Single Vineyard Sellers

“Cheaper brackets have improved so much in the past 10 years. Many did not show true Pinot character, more classic dry red, but they were well made, clean and drinkable wines.” – Michael Park

A llan Scott Estate Pinot Noir Region: Marlborough VIN: 2017 LUC: $21.50 “Sappy, leafy and very generous, beefy too. Has depth of flavour. A very serious wine.” – Andrew Graham “Earthy, mulberry, blackcurrant, a hint of vanilla, sweet spice on finish. Long, balanced finish. Great post-dinner drinker.” – Andy Milne Distributed by: Single Vineyard Sellers

“Great to see some of the

Y ealands Estate Single Vineyard Pinot Noir Region: Marlborough VIN: 2018 LUC: $19.78 “Fresh and light. Nice red fruit and oak balance, caramel hints and some meat notes. Effective.” – Michael Park “Stinky nose, slippery palate and silky finish.” – Mark Bradstreet Distributed by: Chace Agencies (SA); Off the Vine Distributors (WA); The Wine Company (VIC/QLD); Young & Rashleigh Wine Merchants (NSW)

‘value’ wines showing well. Previously it’s been difficult to find solid examples of this varietal at lower price points.” – Mark Bradstreet

B rockenchack Hare Hunter Pinot Noir Region: Eden Valley VIN: 2017 LUC: $22.00 “Fresh and vibrant on the palate and a medium finish of raspberry and nutmeg.” – Kristy Farrell “Oak dominant – spicy. Mouth filling – mix of fresh red fruit, stalky notes that balance it, firm tannins, supporting acid. Nice length.” – Christine Ricketts

Distributed by: Brockenchack Wines

C arillion Origins Five Clones Pinot Noir Region: Orange VIN: 2018 LUC: $19.90 “Perfumed violet, lavender, plum, vanilla and cloves/ cinnamon. Maraschino cherry, layers and lingering finish. Very youthful.” – Christine Ricketts “Deep red colour, barnyard flavour, cherry.” – Nigel Burton

A lbert Bichot Château de Dracy Pinot Noir Region: Burgundy VIN: 2016 LUC: $22.00 “Still needs time or food. Very complex and nicely weighted. Holds fruit and structure in a grip but balanced. Very good.” – Michael Park “Eucalypt, dark fruits and black cherries.” – Daryl Fisher

Distributed by: Free Run Distributors Distributed by: Decante This

THE SYSTEM 95-100 Classic: an exceptional wine

90-94 Outstanding: a wine of remarkable character

78 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

85-89 Very good: a wine with impressive qualities

WINE TASTING LUC $17 AND UNDER B aby Doll Pinot Noir Region: Marlborough VIN: 2018 LUC: $16.13 “Shows great potential and could really shine. Savoury notes buttress juicy red fruit. Elegant structure is evident with a swirl, but it needs time.” – Michael Park

S ilkwood Estate The Walcott Pinot Noir Region: Pemberton VIN: 2018 LUC: $16.13 “Fresh fruit, medium acidity, tight palate, medium finish.” – Kristy Farrell

“Dark berry and earthy aromas. Palate is broad and rich (for Pinot) but reigned in by high acidity.” – Mark Bradstreet

“Mouth filling youthful red fruit, integrated cedar oak and hints of clove and nutmeg. Lengthy finish.” – Christine Ricketts

Distributed by: Chace Agencies (SA); Off the Vine Distributors (WA); The Wine Company (VIC/QLD); Young & Rashleigh Wine Merchants (NSW)

Distributed by: Single Vineyard Sellers

W indowrie Family Reserve Pinot Noir Region: Orange VIN: 2017 LUC: $16.20 “Great texture. Lovely green leaf character backed with loads of red fruit. Long length, great balance. Firm but silky tannins.” – Andy Milne “Complexity on nose. Plums, boiled lollies, herbaceous. Balanced. Good finish. Great drinking now but will develop more.” – Geoff Bollom

“Flabby but with nice strawberry and raspberry. Good characteristics for under $15.” – Kristy Farrell “Dried strawberry, cinnamon and cedar. Medium body, fine silky tannins and balancing acidity. Pleasant red fruits on the finish.” – Christine Ricketts

Distributed by: Ferngrove Wine Co.

Distributed by: Define Wine

Z ilzie Regional Collection Pinot Noir Region: Adelaide Hills VIN: 2018 LUC: $11.28 “Good balance of fruit, acid and tannins and a lingering, pleasant finish.” – Christine Ricketts “Balanced acidity and structure with red fruits on the nose and sweet spice on the palate.” – Kristy Farrell

Distributed by: Fesq and Co (VIC/NSW/QLD/ACT); Options Wine Merchants (SA/NT); Distinctive Wines & Spirits (WA); Swallow Liquor Merchants (TAS)

D e Bortoli Villages Pinot Noir Region: Yarra Valley VIN: 2018 LUC: $15.73 “Velvet palate, a rich stalky finish, balanced and complex.” – Daryl Fisher “More oxidation and earthy in style, nice chewy tannins.” – Mark Bradstreet

Distributed by: De Bortoli Wines

F erngrove Independence Pinot Noir Region: Great Southern VIN: 2018 LUC: $13.98

Z ilzie Selection 23 Pinot Noir Region: Murray Darling VIN: 2019 LUC: $7.31 “Quite savoury and jammy. Very juicy acid defines finish of soft tannin and stewed red fruit and clove.” – Michael Park “Black cherry, raspberry, earthy. Good acids.” – Daryl Fisher

Distributed by: Fesq and Co (VIC/NSW/QLD/ACT); Options Wine Merchants (SA/NT); Distinctive Wines & Spirits (WA); Swallow Liquor Merchants (TAS)

S t Hubert’s The Stag Pinot Noir Region: Yarra Valley VIN: 2018 LUC: $16.05 “Clean varietal, even has some decent tannins. Solid wine for the dollars.” – Andrew Graham “Tight structure but well balanced. Needs some time. Fruit and acidity are well balanced. A nnice herbal, menthol note sits in the background.” – Andy Milne

Distributed by: Treasury Wine Estates

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 SEPTEMBER 2019 | 79

EVENTS

Nathan Jolliffe and Carlos Aviles

1. Patrón International Tequila Day Last month, Patrón Tequila hosted a VIP media event at Sydney’s iconic Museum of Contemporary Art to celebrate International Tequila Day in style. Focusing on the diversity of the spirit, guests enjoyed a range of simply perfect cocktails from Patrón’s flagship tequila, Patrón Silver and the aged tequilas, Patrón Reposado and Añejo that were matched to the three course dinner. Head of Patrón AMEA and NAPAC, Nick Cox hosted the dinner and special guest and friend of the brand, DJ Jimmy2Sox made a special performance on the evening.

DJ Jimmy2Sox

The Jacob’s Creek ‘Bring Your Australian’ pop-up

2. JACOB’S CREEK LAUNCHES ‘BRING YOUR AUSTRALIAN’

Jacob’s Creek Barossa Signature series

80 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

Jacob’s Creek has unveiled its latest global platform, ‘Bring Your Australian’ at its pop-up restaurant on Bennelong Point, overlooking Sydney Harbour and the Opera House. The ‘Bring Your Australian’ platform is the start of a new era for the brand, bringing all its wines under a single Masterbrand identity. It was brought to life at the launch event with three Australian storytellers sharing how their spirit and where they came from had shaped their lives. Chef Louis Tikaram spoke about his rise to culinary fame in Los Angeles with his restaurant EP & LP, and provided the menu for the evening. Adventurer Justin Jones shared his tales of conquering the wild, while five-time ARIA winner Katie Noonan serenaded the event with her dulcet voice. The new platform is a rally cry for wine lovers across the world to ‘share their inner Australian’ and enjoy Jacob’s Creek and will unite the brands marketing across its 80 markets.

EVENTS 3. THE WCA TROPHY WINNERS LUNCH The 2019 Wine Communicators of Australia (WCA) Sydney Royal Trophy Winners Lunch was held last month at Sydney Showground, giving attendees the opportunity to arrive early and sample some of the more than 2,200 medal winning wines from the 2019 KPMG Sydney Royal Wine Show. Lyndey Milan was honoured as the 2019 NSW Legend of the Vine, recognising her as “a gastronomic icon bringing their joy of the Australian food and wine scene to people around the world”. The WCA Sydney Royal Wine Show Trophy Winners Lunch is a highly anticipated event on the wine industry calendar, providing a chance to be immersed in this year’s award winning wines. Guests heard from the Chair of Judges, PJ Charteris and international wine judge, Rod Smith MW, while enjoying a three-course meal, featuring the Sydney Royal medal winning wines.

The 2,300 award winning wines

4. Grey Goose’s Vive La Vodka Advocacy Event Series

The Grey Goose Vive La Vodka series

4 5. Russell’s Reserve launches Australian exclusive private select whisky Wild Turkey’s Russell’s Reserve last month announced the Australian exclusive launch of Russell’s Reserve Private Select Limited Edition Bourbon, hand-picked by Master Distiller Eddie Russell. Each bottle is the product of five barrels, selected by Russell from the middle sections of the famed Kentucky rickhouses, exclusively for Vintage Cellars. Private Select limited edition is the second iteration in the Private Barrel programme. Russell’s Reserve Private Barrel Bourbon is 100 proof and non-chill filtered. By not chill filtering, the whiskey maintains higher levels of contributions from the barrel, giving the Bourbon more character. Russell’s Reserve Private Select limited-edition Bourbon is available exclusively through Vintage Cellars for RRP $85.

Across two days, 80 hand selected influential bar operators, bartenders and wholesaler retailers were invited to attend Grey Goose’s Vive La Vodka category and brand training events. Guests were hosted at Arc Dining in Brisbane and Elwood Bathers in Melbourne to participate in the immersive advocacy session followed by a three-course lunch paired with Grey Goose cocktails. This is the third year Grey Goose has offered the training, but this was the first year the events were held outside of NSW to widen the scope of trade invited to participate. The guest lists included trade influencers from Adelaide, Darwin, Hobart and Perth, who were flown in specially to attend the event. The educational events were led by Australian National Grey Goose Brand Ambassador, Georgina Mann.

Russell’s Reserve Daniele Pirotta Credit: Scott Ehler.

5 NATIONAL LIQUOR NEWS SEPTEMBER 2019 | 81

SHOP TALK

Shop Talk We talk shop with Leigh Dryden from Decante This and Collin Holliborn at Tighes Hill Cellars in New South Wales.

Meet... LEIGH W DRYDEN Chief Wine Officer and Director, Decante This

COLLIN HOLLIBONE Manager, Tighes Hill Cellars

L-R: Leigh Dryden and Collin Hollibone

Q About us: LEIGH: We are a Newcastle based Burgundy and Champagne specialist primarily featuring organic and biodynamic wines and Champagnes. The company was started in Zurich Switzerland in September 2009 and commenced operations here in Australia in 2012. COLLIN: Tighes Hill Cellars first started trading a liquor store in 1974 and its doors have been open ever since. Rob Richards purchased the store in 1999, it proved to be a stable investment but not without its own set of challenges. Around 2013, after noticing a change in his customers’ tastes across all segments, he adjusted his focus and began tailoring the store to meet the more modern demands of consumers.

Q How are you finding the current market? LEIGH: Great optimism as we are starting to see a significant swing towards wines which are biodynamic and organic in nature. There is an upswing in many younger consumers to seek out new drinking experiences with their wines and to explore regions and wines that they may have not engaged with. The market is very competitive, but quality will always outstrip anything else. COLLIN: We have found the market to be quite receptive of the changes we have made to the store and the services we now offer. We’ve been investing in strong marketing campaigns, making the customer aware that we are always working on a compelling offer for them. We also believe customer service and product knowledge are paramount to success.

Q What are the biggest challenges you are facing? LEIGH: The biggest challenge is education, pure and simple. The single greatest challenge we have is helping the trade and consumers to better understand what our wines are all

“We care deeply about the success of our clients and we are very much into the development of long-term mutually profitable relationships.” – Leigh Dryden about, why the wines of Burgundy are so unique and special and why Champagne is the most complex of all wine products. COLLIN: Keeping up with the demand for new products. We have a constantly evolving beer fridge which consists of 16 doors and takes a lot of effort to keep full. Beer, mostly craft, is 70 per cent of our business. However, with ever-increasing demand for quality products, our wine and spirits range have had to evolve to. This increases our admin hours, not to mention the costs of holding all the extra stock, but the results speak for themselves.

Q What deals or promotions are working for you at the moment? LEIGH: Our promotions really revolve around our masterclasses both for the trade and consumer in conjunction with a selected range of winemaker dinners. We find that this is the best platform to promote and engage with wine lovers rather than using a broader range of price incentives and merchandise to incentivise engagement. COLLIN: Consistent everyday pricing and finding products which over-deliver at a particular price point. We find that once people are aware of our structures around pricing they become return customers because they know just about every time they enter the store they know what they are going to pay. That is where developing trusted

82 | SEPTEMBER 2019 NATIONAL LIQUOR NEWS

relationships between reps comes in; we are constantly negotiating with our suppliers to make sure that we have access to consistent pricing so the customer gets the best deal at the pointy end.

Q What do you enjoy most about the job? LEIGH: Getting out of bed each and every morning and working with great people who care and are engaged. You cannot help to feed off their energy and passion about what they do, this keeps us focused and grounded. COLLIN: I love the challenge (a bit cliché I know) but it really is very rewarding when all the hard work put in pays off. Whether it’s talking about a new limited release with an excited regular or introducing some lovely Bourgogne wines through our enomatic machine to a new customer that is blown away with the services and range we offer instore. There is also the satisfaction of collaborating with reps to offer unique experiences with in-store events such as masterclasses.

Q How do you approach the retailer/ rep relationship? LEIGH: We might be small but our relationships with our clients both on- and off-premise are paramount to us. Without a very solid connection and understanding of their needs we are just another ‘box flogger’. We care deeply about the success of our clients and we are very much into the development of longterm mutually profitable relationships. COLLIN: With our increasing and diverse range of products, making time to accommodate our reps can be a challenge. We try our best to combat this by allocating selected days for our face-toface relationships. We deal with a lot of people with very large portfolios and some with just a few products. So we work on an understanding of what will work for us and encourage them to support their products through events, tastings and point of sale marketing.

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