Australian Beverage Industry Digest no. 108

ALCOHOL POLICY
Cask wine sales curbed Ceduna, on SA’s west coast, has introduced restrictions on takeaway sale of still and fortified wines in casks (boxes) to two litres per person per day at its three licensed outlets. Sales will be monitored by new ID swipe units, provided by the town council; the sale of beer, bottled wine and spirits is not restricted. [From Adelaide Sunday Mail, Feb 26, 2012]

Meanwhile, in Alice Springs the NT Liquor Commission banned all takeaway sales of cask wine and fortified wines for three days from March 2, during NAB Cup games in the town. [From Adelaide Advertiser, Feb 28, 2012]

BEER & BREWING: Australia – general
Asahi plans Expanding the number of Asahi taps in Australian pubs is a key priority for new distributor, Independent Distillers, which says the brand can only benefit from its undivided attention. It will distribute Asahi from April 2, following the Japanese company’s acquisition of the distributor late last year, thus ending the brand’s relationship with Foster’s. Andrew Amarant, the newly appointed GM of Asahi Premium Beverages, said the draught product represents a major opportunity, because there are currently only 459 stockists nationally. [From The Shout, Feb 27 & E-Malt.ComFlash 09a, Feb 29, 2012]

Coca-Cola Amatil (CCA) hopes to return to the beer market in Australia at the end of 2013, MD Terry Davis said on February 22. CCA has spent the last four years developing expertise in the production, sale and distribution of alcoholic beverages and ‘this gives us a uniquely independent platform for the future distribution of domestic and international premium beer brands,’ he said and ‘I certainly have high expectations to be back in the beer business in Australia at the end of next year.’ CCA grew volumes of Peroni and Blue Tongue beer brands dramatically last year. [From E-Malt.com Flash 08a, Feb 23 & The Shout, Feb 22, 2012]

Review of 2011 consumption Roy Morgan Research single source volume data for 2011 ‘suggest that the picture for beer would be more bleak if not for the level of activity and consumer interest in craft and new styles of domestic beers, which appear to be taking over from imported beers in meeting the apparent desire for something new and different in the alcohol category.’The share of the beer market held by standard domestic brands fell from 81.6% in 2010 to 79.1% in 2011 but beer maintained a 44.8% share of all alcohol consumed in 2011. [From National Liquor News, Feb 2012]

Royal Sydney Awards Matilda Bay Brewing Co again took major honours at the Sydney Royal Fine Food Show, winning three of the seven Gold Medals awarded for beer with Alpha Pale Ale and Redback Original; other Gold winners were Illawarra Brewing Co (Illawarra Pale Ale & Kolsch), Hunter Beer Co (Hunter Pale Ale) and Redoak (Honey Ale). [From Australian Brews News, Feb 24, 2012]

BEER & BREWING: Australia – mainstream breweries
Coopers Having sealed the deal to exclusive beer rights for the Clipsal 500 and other prestigious national motorsport events this year, the company will promote Coopers Mild (at 3.5%abv) to ‘endorse the sport’s responsible use of alcohol message’. [From Adelaide Advertiser, Feb 22, 2012]

CUB SABMiller has criticised the previous management of its new subsidiary for failing to properly implement beer sales and marketing fundamentals and says it’s time to go back to basics. [From The Shout, Feb 27, 2012].

Lion The general decline of Australia’s beer market is blamed by Lion for a write-down of $213.2 m in its Australian liquor business, with a revision of the value of goodwill and brands on its balance sheet to reflect difficult trading conditions experienced during FY 2011. ‘Persistent poor global economic conditions have seen a sustained period of low consumer confidence and increased saving activity in Australia,’ the company said. [From MB News 128, Mar 2, 2012]

BEER & BREWING: Australia – craft & smaller breweries
National: 2011 summary It is estimated that last year 18 new small breweries started-up in Australia: nine in Vic, four in NSW, three in WA and two in Tas. There were several closures, including Scottish Chiefs at Geelong Vic. [From Australian Small Brewery Update #35, Mar 2012]

Move for excise relief Rob Oakeshott, the Independent member for Lyne (NSW), moved a motion in the Federal parliament on February 13, calling for the excise rebate for small brewers to be substantially increased. Currently, excise can be rebated up to $10,000 for brewers producing less than 30,000 L (300hL) per year; the limits were set by legislation in 2000 and recently the Australian Association of Microbrewers has campaigned for the rebate to be lifted to $500,000 to match the tax rebate available to small winemakers. [From Australian Brews News, Feb 27, 2012]
Round-up

NSW: Richard Adamson is in the final stages of setting up Young Henry’s in the inner western suburb of Newtown and hopes to get production underway in the 12hL brewery in the next few weeks. Young Henry’s will supply kegs of draught beer to pubs in the local area, as well as specialty venues in the CBD, and ‘longneck’ bottles to small bars, restaurants and specialist retailers. The aim is also to sell returnable two-litre ‘growlers’ direct to the public. Adamson was brewer and founder at Barons Brewing, but resigned long before that company’s eventual collapse. [From The Shout, Feb 29, 2012]

WA: Oz Brewing has experienced rough times since it was ASX-listed in December 2006, raising $1.5 m to establish a restaurant and microbrewery in Fremantle. It was placed into administration in September 2008 but was reinstated by ASX last year. In early February the company announced it had entered into a heads of agreement to acquire three resources projects, with further announcements pending. The new board includes Michal Safrata, a non-executive director of ASX-listed companies Oroya Mining and Mammoth Resources. Last year Oz Brewing said it had raised nearly $3 m in additional funds to pay outstanding creditors and secure ASX reinstatement. It said the capital would also finance a new joint venture with Swan Valley’s Ironbark Brewery, which would brew and retail Oz Brewing’s Mad Monk beers. [From MB News 128, Mar 2, 2012]

Despite recording a first half loss of $80,000, Gage Roads is still hopeful of achieving a full-year profit, driven by the continued growth of its brewing under contract for part-owner Woolworths. [From The Shout, Mar 02, 2012]

BEER & BREWING: International
Back to basics After two centuries of consolidation and closing down of small breweries, a counter-revolution is under way. Disappointed by a lack of variety and the control of large brewing holdings over their favourite drinks, beer lovers have taken their beverage back into their own hands, Oxford University Press reports.

All over the world, new beers and breweries are emerging every day. What started as the micro-brewery movement in the USA has spread to other countries and created a remarkable turnaround. For instance, in Belgium – famed for its influential beer culture – when consolidation threatened the availability of beer varieties, the fastest growing segment in the beer market is now beers brewed by monasteries and ‘abbey-style’ beers. [From BelgianShop WeekLetter 146, Feb 29, 2012]

Variable excise A perusal of beer excise duties applicable in Europe on February 1 shows that currently Norway has the highest rate of €268.00 per hL and Romania the lowest at €9.00. The UK rate is €103.70 but across the Channel in France it is only €13.20. [From a report of The Brewers of Europe, quoted by BelgianShop Week Letter 1461, Feb 21, 2012]

{The figures quoted above are presumably for standard full-strength beers. By my calculations, using excise rates prevailing in Australia from February 1 this year, a packaged beer at 5.0% abv now carries excise of $169.8/hL or approximately €212/hL. For draught beer at 5.0% the values are lower at $119.54/hL or approx €149/hL. JH.]

BEVERAGES: General
Private label surge Private label brands are now Woolworth’s liquor division’s second largest supplier by value, the retailer said, announcing that group liquor sales for the first half of 2011-12 had increased to $3.6 bn. [From The Shout, Mar 02, 2012]

CIDER, JUICES, RTDs & SOFT DRINKS
Black tea may lower blood pressure A six month study by scientists at the University of Western Australia (UWA), Unilever, and the National Health and Medical Research Council of Australia shows that people who drink black tea throughout the day may get the benefit of a slight reduction in their blood pressure. [From IFT Weekly Newsletter, Feb 29, 2012]

WINE & SPIRITS
Australian Vintage falters With underlying earnings down 3%, Australian Vintage has omitted its interim dividend, causing its shares to fall to 33¢ on February 28. The high Aussie dollar and continued market volatility were cited as reasons for the omission. [From Adelaide Advertiser, Feb 29, 2012]

SA wines for Clipsal 500 Only South Australian wines were available at Adelaide’s Clipsal 500 motor race carnival in early March – the wines were from Haselgrove, Serafino, and Tomich & Totino. [From Adelaide Advertiser, Mar 1, 2012]

Lion expansion Trans-Tasman beverage giant Lion is said to be buying Adelaide Hills Winery of Nairne SA, firming its commitment to the region and adding to its Croser, Knappstein, Petaluma and St Hallett brands. [From SA Business Journal, Feb 28, 2012]

Vintage forecasts Wine grape growers in SA originally hoped that the 2012 vintage would be one of the best for 30 years, with generally higher quality fruit attracting higher prices. However, growers in several SA regions are now concerned by potential damage from heavy rains in late February/early March and considerable damage has also occurred in vineyards in Vic and NSW. [From SA Business Journal, Feb 28, 2012 & other sources]

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