The Food and Beverage Manufacturing Roadmap released on Monday earlier this week was a welcomed plan by many. One company happy to see this plan is Alcohol Beverages Australia.
Teetotalism trends in the Asia-Pacific region are becoming increasingly prevalent, with approximately three out of four (71 per cent) of consumers drinking less alcohol in August 2020, according to a survey by leading data and analytics company GlobalData. However, the adoption of alternative soft drinks remains low, at only one in five consumers.
Social change organisation DrinkWise and Retail Drinks Australia has announced a partnership, which will see new moderation messaging displayed across the retail drinks industry nationally, as part of efforts to create a healthier and safer drinking culture across the country.
Global demand for citrus alcohol market is set to hover at nearly 5 per cent growth rate, as growing preference for craft beer, and rising alcohol consumption create fertile ground. A recent study by ESOMAR certified market research and consulting firm, Market Research Insights, analysed citrus alcohol growth in over 20 countries, building a holistic and comprehensive analysis of the market.
Increasing inclination among consumers towards craft spirits, owing to their unique and subjective taste is another key factor driving sales. Study opines that proliferating number of breweries across the world will drive demand in the long run.
The COVID-19 impact on the market will create short-term challenges through 2021-end, with steady recovery expected from 2022.
- Spirit will remain the largest selling category, capturing over 50 per cent market share.
- Glass bottles will hold nearly half of market value, owing to safety and minimal risk of leakage.
- Based on sales channel, specialty stores accounted for over one-fourth of market value in 2020 and will remain the most lucrative channel.
- Asia Pacific will remain the largest regional market for citrus alcohol, backed by the presence of a large young population base with high spending on alcoholic beverages.
- Europe and North America will collectively account for nearly 50 per cent market share, being the largest producers and consumers of alcohol.
The outbreak of COVID-19 has impacted operations in the food and beverage sector, thus creating a downfall in the volume produced in the first and second quarters of 2020. Moreover, supply-side difficulties such as hindered distribution network and closure of sales channels.
Furthermore, altered consumer priorities during the lockdown and high demand for essential products, while distribution and sales of non-essentials, including alcoholic beverages, have been deprioritized. On the back of these facets, the growth trajectory of the citrus alcohol market will experience fluctuations during the pandemic.
Scottish craft brewer BrewDog has announced that it has taken the unprecedented step to become carbon negative, and that it will remove twice as much carbon from the air than it emits every single year. Making it the first carbon negative international beer brand in the world, as it sets out to fight climate change and have a positive impact on the planet.
The move is founded in its belief that carbon neutral is no longer enough, and that businesses should be having a positive impact on the planet. To this end, BrewDog is unveiling a climate action program with AUD $55m (£30m) of green investments across its business.
As part of these efforts, it has also purchased 2,050 acres of Scottish Highlands just north of Loch Lomond, to create the BrewDog Forest, and plans to plant one million trees over the next few years. Meanwhile, BrewDog Australia is introducing a host of green infrastructure projects and sustainability initiatives, including the introduction of solar-panels, a partnership Carbon Neutral’s Yarra Yarra Biodiversity Project to offset all excess C02 emissions, and the creation of a sustainable drive thru.
The news comes as BrewDog Australia launches its first Brisbane-brewed headliner beers.
Over the past few months BrewDog has been working closely with lead scientific advisor Professor Mike Berners-Lee and his team at Small World Consulting. Berners-Lee is one of the world’s leading experts in carbon foot-printing and sustainability and has led the process of calculating BrewDog’s carbon footprint and been pivotal in the design of its carbon removal plan. The partnership has helped to direct over AUD $55m (£30m) of investment into green infrastructure to support the business in reducing carbon emissions.
In order to double remove all of its carbon, until it is able to begin planting the BrewDog Forest, the brewer will be working with offset partners on a series of projects. Each organisation has the highest standard of accreditation and has been additionally vetted by Berners-Lee and his team with each project deemed beneficial to biodiversity and local communities.
“Our Carbon. Our Problem. So, we are going to fix it ourselves. Huge change is needed right now, and we want to be a catalyst for that change in our industry and beyond. We fully acknowledge that we are a long way from perfect. However, we are determined to rapidly and fundamentally change everything as we work hard to ensure we have a positive impact on the planet.” James Watt, co-founder of BrewDog commented,
Mike Berners Lee, Founder of Small World Consulting continued,
“After decades of inaction we have a full-on climate crisis on our hands. The scale and speed of the change we now need is enormous, and cuts right across politics, business and every corner of society. The good news is that if we are smart about our transition, we can make our lives better at the same time as making them more sustainable. With the actions laid out in this report, BrewDog is giving some of the leadership the world so badly needs. They are raising the bar for the business world, both in their strong carbon cutting action and their straight talking. BrewDog beer can represent another small nudge for a better world.”
BrewDog Australia will soon be adding solar-panels to supply a significant amount of the energy demand from the brewery, taproom and restaurant and is providing all spent grain to feed local cattle in Queensland. Excess CO2 emissions are offset through Carbon Neutral’s Yarra Yarra Biodiversity Corridor, a multi-species native reforestation project located in Southwest Australia which is a global biodiversity hotspot. This Australian Native Reforestation Gold Standard certified project aims to remove existing carbon and improve the environment by planting native species of trees and shrubs to recreate a healthy, functioning landscape, restored after decades of habitat loss and degradation.
BrewDog Australia is also looking to work with green partners, all of which have the highest standard of accreditation, and has plans to launch a sustainable drive thru that will act as beer collection points, hubs for electronic vehicle deliveries and hubs for closed loop, zero waste packaging such as growlers, mini-kegs and returnable bottles. Further details on this will be announced in due course.
A spokesperson for Carbon Neutral said:
“Carbon Neutral is delighted to be working with BrewDog as part of its carbon offset strategy. BrewDog has done more than address our very real climate crisis; it has also acknowledged the need to halt biodiversity loss by funding native reforestation in the Outback of Australia. BrewDog’s approach shows a true awareness of our impact on the planet – by reducing its GHG emissions and supporting the Yarra Yarra Biodiversity Corridor, BrewDog is helping to bring life back to barren landscape.”
One of BrewDog’s primary reasons for investing in local brewing and opening a site in Brisbane is to significantly reduce the miles the beer travelled to reach the consumer. Having unveiled its state-of-the-art Australian Brewery and Taproom in Queensland’s capital city late last year, BrewDog can now offer fans across the country the opportunity to enjoy freshly-brewed BrewDog beer – dispatched the next working day.
The headliner range includes the beer that started BrewDog’s craft beer revolution, Punk IPA, alongside Hazy Jane New England IPA, Elvis Juice Grapefruit Infused IPA, and a West Coast classic Pale Ale.
Since opening in Brisbane last November, BrewDog has been working hard to establish strong Aussie roots – pouring the best craft beer from across the Sunshine State including Range Brewing, Black Hops, Brouhaha, Aether and Sea Legs at the taproom and restaurant. Having debuted its first Australian exclusive 3.5 per cent Easy Pale Ale back in January, the team is keen to create more small batch brews and show their commitment to supporting other Queensland businesses and collaborating with local distilleries like Beenleigh Rum to create exclusive Queensland-made products.
BrewDog’s expansion into Australia has been supported by the Queensland Government through the Advance Queensland Industry Attraction Fund and Brisbane City Council through Brisbane Economic Development Agency. The brewery is creating a breadth of new jobs for Queensland’s craft brewing industry, with a team of 50 and around a dozen more jobs expected before the end of the year, helping to boost economic growth in Brisbane. The team are also committed to making the business as environmentally sustainable as possible to help support Queensland’s unique environment.
Brisbane Lord Mayor Adrian Schrinner encouraged residents to get behind local producers, such as BrewDog.
“Brisbane is a clean, green city and council supports innovative businesses that take a proactive approach to environmental sustainability,” Cr Schrinner said.
“It is also great to see BrewDog beer being produced right here in our backyard for local and national distribution. This type of job-creating investment in key sectors such as food and beverage will help drive our city’s recovery and future growth as we climb out of the economic hole created by the global pandemic. It’s our civic duty; if we’re going to crack a brew on the weekend, make it local first.”
Total drinks industry M&A deals in Q2 2020 worth $706.92m were announced globally, according to GlobalData’s deals database.
The value marked a decrease of 86.9 per cent over the previous quarter and a drop of 85.8 per cent when compared with the last four-quarter average, which stood at $4.99bn.
Comparing deals value in different regions of the globe, North America held the top position, with total announced deals in the period worth $385.07m. At the country level, the US topped the list in terms of deal value at $385m.
In terms of volumes, North America emerged as the top region for drinks industry M&A deals globally, followed by Asia-Pacific and then Europe.
The top country in terms of M&A deals activity in Q2 2020 was the US with 12 deals, followed by the UK with four and China with four.
In 2020, as of the end of Q2 2020, drinks M&A deals worth $6.09bn were announced globally, marking an increase of 123.5% year on year.
Drinks industry M&A deals in Q2 2020: Top deals
The top five drinks industry M&A deals accounted for 100 per cent of the overall value during Q2 2020.
The combined value of the top five drinks M&A deals stood at $706.85m, against the overall value of $706.92m recorded for the month.
The top five drinks industry deals of Q2 2020 tracked by GlobalData were:
- Shanghai Yuyuan Tourist Mart’s $265.91m acquisition of Jinhui Liquor
- The $255m asset transaction with Constellation Brands by SazeracInc
- E. & J. Gallo Winery’s $130m asset transaction with Constellation Brands
- The $46.82m acquisition of Tianjin Heavenly Palace Winery by Tianjin Food Group
- PepsiCo’s acquisition of Rude Health Foods for $9.11
Diageo, the maker of Bundaberg Rum, Johnnie Walker and Smirnoff, has pledged to enable the creation of more than eight million bottles of hand sanitiser, by donating one and a half million litres of alcohol to manufacturing partners, to help protect front-line healthcare workers in the fight against COVID-19.
The world’s leading distiller will provide Grain Neutral Spirit (GNS) – a 96 per cent strength ethyl alcohol used primarily in production of vodka and gin – and make it available at no cost to hand sanitiser producers, to help overcome shortages in healthcare systems. This donation will enable the production of more than eight million 250ml bottles of hand sanitiser.
Diageo continues to engage with national and local governments across the many countries where the company has major distilling operations. The spirit will be made available in supply chains according to local circumstances, working with the relevant authorities and hand sanitiser manufacturers. This will ensure the donation is used for maximum impact in protecting health workers and patients and that sanitiser reaches the front-line as quickly as possible.
The plan includes:
· Australia: Diageo’s Bundaberg Distilling Co. to produce 100,000 litres of ethanol for the Queensland Government, to be forwarded to hand sanitiser manufacturers
· Brazil: Diageo’s Ypioca plant will produce 50,000 litres of spirit for the local health care system, in conjunction with the Ceara State Government
· India: 500,000 litres of alcohol to supply to the sanitiser industry across 25 States, for use in national healthcare systems and for consumers
· Kenya: Diageo’s East Africa Breweries Ltd will provide 100,000 litres of alcohol to supply to a local sanitiser manufacturer
· The UK and the Republic of Ireland: 500,000 litres of GNS to be made available for national healthcare systems and workers across the UK and Ireland
· The US: 250,000 litres of GNS to be supplied to meet local community needs
“Health care workers are at the forefront of fighting this pandemic and we are determined to do what we can to help protect them,” said Ivan Menezes, Diageo chief executive. “This is the quickest and most effective way for us to meet the surging demand for sanitiser around the world.”
Of the Bundaberg Distilling Co. ethanol donation for the Queensland Government, David Smith, Diageo Australia managing director said the company had a duty to support the community in this unprecedented time of need through its donation of ethanol.
Murray River Organics has announced up to $200 per tonne increase in prices for third party grower dried fruit as part of their Sunraysia Grower Water Support Package for 2020 Crop.
MRG chief executive Valentina Tripp said given the severe drought conditions in Mildura and the increasing expensive price of temporary water the Company wanted to provide Sunraysia growers with certainty for the coming season.
“We recognise the impact that the ongoing drought and water is having on growers in the Mildura area and as significant grower ourselves we understand the issues they are facing. As a result, at this critical time, we have decided to initially offer up to $200 per tonne on top of last year’s pricing increases to source irrigation water for key in demand varieties. We believe this will deliver much needed confidence to our growers.”
READ MORE: Dried vine fruit industry welcomes funding
Last year Murray River Organics led the industry when the Company increased prices to third party dried vine fruit growers by up to 25 percent as part of its plan to ensure a fair return for fruit commensurate with global pricing trends.
The price increases are part of the “Growing Together” program which has been very successful for MRG, with the intake of third-party grower dried vine fruit reaching 1240 tonnes in 2019, an increase of 15% on 2018.
This was a significant achievement considering the challenging growing conditions in Sunraysia in 2019 with many growers experiencing lower yields of up to 40 per cent.
Valentina Tripp said the current water issues in Mildura are still challenging for the agriculture industry with irrigation water from the Murray costing up to $950 a megalitre nearly double the average price paid last season.
“Encouragingly, demand fundamentals for dried vine fruit remain strong, with the global fruit market experiencing growth in demand.”
MRG is the largest dried vine fruit grower in Sunraysia with over 1000 hectares planted and is part way through a major transformation and turnaround journey. It has identified significant sales growth opportunities in Asia, Europe and the USA.
MRG’s Sunraysia Grower Support Package is open to Sunraysia Dried Vine Fruit Growers who sign up prior to Friday, 29 November 2019.
MRG also commits to hold 2019 pricing for the 2020 Harvest.
Wine companies are being encouraged to participate in Wine Australia’s inaugural Cellar door and direct-to-consumer survey to help develop best practice customer engagement.
Wine Australia chief executive officer Andreas Clark said that, in 2017, the small winemaker production and sales survey found that direct-to-consumer sales channels accounted for 43 per cent of total sales revenue for Australia’s 2000+ small winemakers, with cellar door the strongest growing channel.
“Wine businesses were found to be making significant investments in tourism-related offerings and developing a range of alternatives to traditional cellar door tastings,” said Clark.
However, there was very little in-depth information available on direct-to-consumer total sales, cellar door visits, conversion rates, wine club retention rates and other benchmark statistics that helped wineries develop strategies and assess their performance in these profitable and growing channels, he said.
“This survey delivers on an initiative of Wine Industry Suppliers Australia (WISA) and will be used to develop a series of key benchmarks and statistics to assist wineries in the development of best practice wine tourism,” he said.
“It’s important for producers to benchmark themselves to improve overall performance, make informed business decisions and manage factors that affect consumers’ demand, loyalty and preference for their wine brand. This survey will provide meaningful and actionable insights for wine producers throughout Australia and will be an essential tool when building long-term sales strategies,” said Clark.
WISA executive officer Matt Moate said the research was imperative to define the capability gaps in Australian direct-to-consumer wine sales.
“The supply sector will be able to utilise this data to deliver opportunities to accelerate producers’ knowledge and skills resulting in a new level of competitiveness in this space,” said Moate.
The survey incorporates and expands on Wine Australia’s annual small winemaker production and sales survey and respected social research company Harrison Research will undertake the inaugural 2018 survey on behalf of Wine Australia.
Wine companies will receive a link to the survey in mid-August.
The survey will be anonymous, with the information presented in a report that will be published using aggregated, de-identified data.
The report will be released at WISA’s inaugural wine industry impact conference in Adelaide on the 18th of October.
Continuing its vision to build a premium and strong local craft portfolio, SouthTrade International will have exclusive distribution of Australian craft spirit brand 666 Pure Tasmanian Vodka, from the 1st of October 2018.
This follows the announcement that Think Spirits will be taking over the distribution of Stolichnaya Vodka trademark in Australia.
Founder of 666 Vodka, Dean Lucas, said SouthTrade International was a business with fantastic energy and momentum as evidenced by recent brand additions.
“We are thrilled to be joining the SouthTrade family and what we consider to be the leading Australian craft portfolio. With the SouthTrade team’s knowledge, expertise and highly complementary portfolio, we plan to expand 666 Vodka with the next evolution of the brand inclusive of new packaging and product innovations,” said Lucas.
“The 666 Vodka brand transitions to SouthTrade after a period of strong growth over the last 12 months,” he said.
SouthTrade International managing director Ray Noble said joining future icon brands of Mr. Black, Starward Whisky and Adelaide Hills Distillery, SouthTrade was excited to expand and strengthen its local craft spirits portfolio with 666 Pure Tasmanian Vodka.
“[It] marries with SouthTrade’s vision of driving long-term success for premium local craft brands across Australia. While this is a fantastic opportunity for both companies, we would also like to acknowledge the great work Think Spirits has undertaken on the brand to maintain a leading position within the Australian premium vodka category,” said Noble.
“Established in 2007 and committed to sustainability, we were drawn to the brand’s authenticity using local ingredients and capturing the purity of the surrounding environment of Cape Grim and North West Tasmania,” he said.
Stockists of 666 Vodka include Dan Murphy’s, First Choice and Vintage Cellars.
New findings from University of Adelaide researchers, could help provide more stable brewing processes or new malts for craft brewers.
The researchers discovered a link between one of the key enzymes involved in malt production for brewing and a specific tissue layer within the barley grain.
The most important malting enzymes come from a layer of tissue in the barley grain called the aleurone, a health-promoting tissue full of minerals, antioxidants and dietary fibre.
The research showed that the more aleurone present in the barley grain, the more enzyme activity the grain produced.
Barley is the second most important cereal crop for South Australia and contributes over $2.5 billion to the national economy. This is largely due to its use in beverage production.
University of Adelaide school of agriculture, food and wine associate professor and project leader, Matthew Tucker, said barley grains had impressive features ideal for creating the malt required by the brewing industry.
“During the malting process, complex sugars within the barley grain are broken down by enzymes to produce free sugars, which are then used by yeast for fermentation. The levels of these enzymes, how they function and where they are synthesised within the barley grain are therefore of significant interest for the brewing industry,” he said.
“Until now, it was not known that this key ingredient in the beer brewing process was influenced by the amount of aleurone within the grain, or that the aleurone was potentially a storage site for the enzyme,” said Tucker.
The researchers examined the aleurone in a range of barley cultivars used by growers and breeding programs in Australia and found remarkable variation in the aleurone layer between varieties.
Tucker said breeders and geneticists could make use of this natural variation to select for barley varieties with different amounts of aleurone and different malting characteristics.
“This will be of potential interest to large brewers who depend on stable and predictable production of malt, and also the craft brewers that seek different malts to produce beer with varying characteristics.”
PhD student Matthew Aubert used the variation to examine levels of enzymes involved in malt production.
He discovered that barley grains possessing more aleurone had noticeably more activity in one of the key enzymes that breaks down starch and determines malt quality of barley, an enzyme called free beta-amylase.
Aubert said grains with more aleurone could have an advantage that allowed them to break down complex sugars faster or more thoroughly than grains with less aleurone.
The researchers are now trying to find the genes that explain this natural variation.
Aubert’s research was supported by the Australian Research Council Centre of Excellence in plant cell walls and the Grains Research and Development Corporation.
Australian company Dalefold Wines has had its licence to export grape products from Australia suspended.
The Board of Wine Australia suspended the licence in late-July after discovering the company was exporting grape products that were not approved by Wine Australia.
While the suspension remains in place, Dalefold Wines may not export wine from Australia.
Wine Australia is seeking further information from Dalefold Wines before deciding the length of the suspension and considering whether the licence should be cancelled.
Wine Australia last cancelled a licence in the 2015-16 financial year.
Wine Australia found out that Dalefold Wines exported three grape products from Australia for which an export certificate was not in force.
By doing so, Dalefold Wines contravened section 44 of the Wine Australia Act 2013 and the Wine Australia Regulations 2018.
The company also engaged in activity that aimed to leverage from the reputation of another wine brand in China through causing consumer confusion.
This was done to the extent that it could affect the export trade in all grape products from Australia by diminishing consumer confidence in the integrity and authenticity of Australian grape products in China.
It could also cause harm to the reputation of all Australian grape products, relations with importers, current promotional strategies or the marketability of Australian grape products relative to competitors.
Changes to the Wine Australia Regulations 2018 earlier this year mean that other exporters may not export wine on behalf of Dalefold Wines now that its licence has been suspended.
Wine Australia acts to protect the reputation of Australian wine by regulating export shipments, conducting audits of wine producers and ensuring the truthfulness of claims made on Australian wine labels in both the domestic and export markets.
There are currently 2298 active licensed exporters.
Wine cannot be exported from Australia without an export licence issued by Wine Australia, which has the power to suspend or cancel licenses when necessary.
Consumer group Choice has called for improved labelling on alcoholic drinks to help people compare their kilojoule options on beverages. Read more
New research has found that reducing alcohol consumption at the population level would lead to a reduction in cancer deaths in Australia.
The study found that there would be a significant preventive effect on liver, head and neck cancer deaths, particularly among men and older age groups as a result.
Published today by the Centre for Alcohol Policy Research (CAPR) and Foundation for Alcohol Research and Education (FARE), the report, Alcohol consumption and liver, pancreatic, head and neck cancers in Australia: Time-series analyses, provides the first suggestive evidence that a decrease in population level drinking could reduce the prevalence of liver, head and neck cancer mortality in Australia.
The long-term use of alcohol has long been recognised as a risk factor for cancer, and the relationship has been widely addressed in individual-level studies. However, the relationship of alcohol consumption and cancer mortality at a population level have rarely been examined.
The study revealed that across a 20-year period, a one litre decrease in annual alcohol consumption per capita was associated with reductions of 11.6 per cent in male and 7.3 per cent in female head and neck cancer mortality, and a 15 per cent reduction of male liver cancer mortality.
Lead author, CAPR’s Dr Jason Jiang sought to understand whether or not the trend of population-level alcohol consumption is related to the trend of population-level cancer mortality– a question not answered by individual-level studies.
CAPR Deputy Director, Dr Michael Livingston says the results suggest that a change in alcohol consumption per capita is significantly and positively associated with change in male liver cancer mortality.
“Alcohol is a major contributor to Australia’s burden of disease. The epidemiological evidence provided over the last several decades shows that alcohol contributes to the development of specific cancers. This study demonstrates that reductions in per-capita alcohol consumption would lead to lower rates of mortality for liver and head and neck cancers,” Dr Livingston said.
Compared with other age groups, stronger and more significant associations were found between per capita alcohol consumption and head and neck cancer mortality among both males and females aged 50 and above compared to younger age groups – reflecting the long-term effects of alcohol consumption on the development of cancer in the human body.
“This study has extended our understanding of the role that alcohol plays with respect to liver, pancreatic, head and neck cancers in Australia, and the importance of addressing the nation’s alcohol consumption levels,” Dr Jiang said.
The Australian Guidelines to Reduce Health Risk from Drinking Alcohol suggests that an adult should drink no more than two standard drinks on any day to reduce the lifetime risk of harm attributed to alcohol.
FARE Chief Executive, Michael Thorn says that the population-level study adds further weight to what we know about the links between alcohol and cancer.
“There is no doubt that alcohol-related cancers would be significantly reduced if more of the population reduced their alcohol consumption and followed the national drinking guidelines, yet a lack of recognition of the links between alcohol and cancer remains,” Mr Thorn said.
“The study exposes the need for improved public health education campaigns, better public health policies on alcohol, and more promotion of the guidelines – to reduce the toll of cancer-related diseases and deaths in Australia.”
New IBISWorld research has shown that the amount of alcohol consumed per person in Australia each year has increased for the first time in nine years, bucking a trend that has seen a steady decrease since 2006-07.
“The amount of pure alcohol consumed by each Australian over 15 years of age has increased from 9.52 litres in 2014-15 to 9.70 litres in 2015-16,’ said Mr James Thomson, IBISWorld Senior Industry Analyst. ‘IBISWorld research shows per capita alcohol consumption is expected to reach 9.72 litres in 2017-18. It’s an interesting result as we are seeing lower consumption rates among young adults, those aged 15-24.”
IBISWorld research found beer consumption was the driving force behind the recent rise in per capita alcohol consumption.
“Beer consumption is expected to rise from 3.76 litres per capita in 2014-15 to 3.86 litres in 2017-18. IBISWorld attributes this growth to the rising popularity of craft beer,” commented Mr Thomson.
The Australian craft beer production industry is expected to grow at an annualised 9.7% over the five years through 2017-18, outperforming the beer manufacturing industry, which is expected to grow at an annualised 2.1% over the same period.
“Craft beer’s popularity has been driven by consumers seeking variety and quality. An increasing number of small-scale craft breweries are opening to take advantage of changing consumer tastes, contributing to the expanding range of beers available in liquor retailers. Consumption of low-strength beer remained unchanged in 2015-16, while mid- and full-strength beer consumption grew,” said Mr Thomson.
Cider’s popularity has increased strongly, with per capita consumption expected to grow at an annualised 13.3% over the five years through 2017-18. However, this segment still accounts for a small portion of total alcohol consumption.
“Cider has grown in popularity due to its image as a refreshing alternative to beer, aided by savvy marketing and promotion. Conversely, per capita spirits and RTD consumption has declined over the past five years,” said Mr Thomson.
Per capita wine consumption is expected to decline marginally over the five years through 2017-18. According to IBISWorld research, the declining popularity of fortified wines, particularly among younger consumers, has contributed to this decline. Wine consumption as a share of total per capita alcohol consumption has increased over the past decade, and is expected to represent 37.7% of total per capita consumption in 2017-18.
“Despite a decline in per capita wine consumption in Australia over the past five years, IBISWorld research highlights the growing popularity of Australian wines abroad. Strong export growth, particularly to Asia, is expected to drive the wine production industry’s performance over the next five years,” said Mr Thomson.
Alcohol’s future fortunes
IBISWorld’s research found rising health consciousness, increased taxation of alcohol and anti-alcohol advocacy have contributed to a long-term decline in per capita alcohol consumption over the past decade – and that these factors will continue in the future.
Despite a long-term decline in alcohol consumption, a rising consumer preference for quality over quantity has contributed to consumers spending more on alcohol. Many participants in the sector have enjoyed revenue growth, tapping into the trend towards the ‘premiumisation’ of alcoholic beverages.
“Consumers are increasingly seeking artisanal and high-quality beverages, while also looking for authentic experiences, such as visiting small breweries, distilleries and cellar doors. This trend has contributed to strong revenue growth for many small-scale alcohol producers, such as craft breweries and boutique wineries,” said Mr Thomson.
“IBISWorld expects per capita alcohol consumption to continue its long-term trend and decline over the next five years. Increasing health consciousness and lower consumption rates among younger consumers are expected to contribute to this decline,” concluded Mr Thomson.
New technologies could see us eating algae-based sources of protein, developing allergenic-free nuts and tolerable varieties of lactose and gluten, and reducing environmental impact through edible packaging.
Speaking at the launch during the Australian Institute of Food Science and Technology’s (AIFST) 50th Anniversary Convention in Sydney, Assistant Minister for Industry, Innovation and Science, Craig Laundy , highlighted the importance of innovation and entrepreneurship in driving new economic growth in the industry.
Keeping a greater share of food processing onshore and better differentiating Australian food products are major themes across the Roadmap, which calls on businesses to act quickly or risk losing future revenue streams to the competitive global market.
Developed with widespread industry consultation and analysis, the Roadmap seeks to assist Australian food and agribusinesses with the desire to pursue growth and new markets.
Deputy Director of CSIRO Agriculture and Food, Dr Martin Cole said Australia was well positioned to act as a delicatessen of high-quality products that meet the needs of millions of informed and discerning customers both here and abroad.
“Australian businesses are among the most innovative in the world, and together with our world-class scientists, can deliver growth in the food and agribusiness sector amid unprecedented global change,” Dr Cole said.
“Less predictable growing conditions, increasingly global value chains and customers who demand healthier, more convenient and traceable foods are driving businesses to new ways of operating.
“Advances are already being made through the use of blockchain technology and the development of labels that change colour with temperature or time, or are programmed to release preservatives.
The Roadmap was developed in collaboration with the government-funded food and agribusiness growth centre: Food Innovation Australia Limited (FIAL).
Recently, FIAL launched their Sector Competitiveness Plan, which outlines the over-arching industry vision to grow the share of Australian food in the global marketplace and the necessary strategy to achieve the vision.
“With the growing Asian middle class, Australia is in the box seat to take advantage of the many emerging export opportunities,” FIAL Chairman Peter Schutz said.
“Consumers are looking for differentiated products that cater to their needs.
“This is especially exciting for Australian food and agribusinesses which have the capability to respond with customised and niche products.”
Currently, Australia exports over $40 billion worth of food and beverages each year with 63 per cent headed for Asia.
Dr Cole explained that Australia is a trusted supplier of sustainable, authentic, healthy, high quality and consistent products.
“We must focus on these strengths and enhance the level of value-adding to our products,” DrCole said.
“Recent Austrade analysis shows early signs of such a shift, as for the first time in Australia’s history value-added foods have accounted for the majority (60 per cent) of food export growth.”
The Roadmap outlines value-adding opportunities for Australian products in key growth areas, including health and wellbeing, premium convenience foods and sustainability-driven products that reduce waste or use less resources.
Five key enablers for these opportunities are explored in the Roadmap: traceability and provenance, food safety and biosecurity, market intelligence and access, collaboration and knowledge sharing, and skills.
These enablers align with FIAL’s knowledge priority areas that are central in helping the food and agribusiness industry achieve its vision and deliver increased productivity, sustainable economic growth, job creation, and investment attraction for the sector.
The Roadmap calls for improved collaboration and knowledge sharing to generate scale, efficiency and agility across rapidly changing value chains and markets.
“To survive and grow, the challenge facing Australia’s 177,000 businesses in the food and agribusiness sector is to identify new products, services and business models that arise from the emerging needs of tomorrow’s global customers,” Dr Cole said.
Drinking just one alcoholic drink a day can increase breast cancer risk, a new report by World Cancer Research Fund has revealed.
The report found strong evidence that drinking just the equivalent of a small glass of wine or half a pint of beer a day (about 10g alcohol content), could increase your pre-menopausal breast cancer risk by 5 percent and your post-menopausal breast cancer risk by 9 per cent.
World Cancer Research Fund estimates that about 12,000 cases of breast cancer could be prevented in the UK each year if nobody drank alcohol.
This robust scientific report evaluated all of the research worldwide on how diet, weight and exercise affect breast cancer risk. It also found that vigorous exercise that increases heart rate such as cycling, swimming or running can decrease the risk of pre-menopausal breast cancer and both moderate exercise, such as walking, and vigorous exercise can decrease the risk of post-menopausal breast cancer.
In addition the report showed that being overweight or obese increases the risk of post-menopausal breast cancer, the most common type of breast cancer. Being overweight or obese is also linked to several other cancers, including liver, pancreatic and bowel cancers.
Breast cancer is the most common cancer in women in the UK with over 55,000 new cases each year. It is responsible for more than half a million deaths worldwide each year.
The UK government recommends drinking no more than 14 units a week equivalent to seven drinks a week, spread across at least three days.
“To help prevent breast cancer, one of the most important steps women can take is to not drink alcohol or reduce the amount of alcohol they drink,” said Dr Rachel Thompson, Head of Research Interpretation at World Cancer Research Fund.
“Maintaining a healthy weight and getting enough exercise are also important for preventing breast cancer.
“It may be the most common cancer in women worldwide, but our evidence shows that there are steps that women can take to significantly reduce their breast cancer risk.”
Vantage Australia has just been awarded the silver medal in this year’s San Francisco World Spirits Competition (SFWSC).
More than 2,100 spirits were judged this year, the largest number of entries in the competition’s 17-year history with the botanical Vantage Australia taking home the silver medal in this year’s awards.
The San Francisco World Spirits Competition 2017 silver medal demonstrates that Vantage Australia is among the finest in the spirits industry, awarded for its ability to show refinement and finesse.
Vantage Australia was recognised for its multi-layered complexity, the smooth yet peppery mixture is made up of Australian botanicals, lemon myrtle, Tasmanian mountain pepper berries with a hint of mandarin oil from Australian produced imperial mandarins.
Complimented with zesty citrus notes, this unique premium Australian tipple has the ability to cut across traditional spirit genres, making it the perfect base for most mixers while also giving life to old classics, with an Australian twist.
Riding on its 2016 success, where Vantage Australia won Best Innovation-Best in Class 2016 from the Australian Drinks Awards, the Aussie spirit was also recognised for strong performance across key measures, including purchase intention, excitement, and relevance.
Vantage Australia was honoured with this prize for having the highest level of uniqueness, reflected through its inspiration of Australian native flora.
The complex flavour comes from only using natural bush foods to create a blend that blurs the lines between sweet and dry, giving this multi-layered spirit the uniqueness that it has been nationally and now internationally, recognised for.
“We are honoured by the international award Vantage Australia has received from the highly competitive San Francisco World Spirits Competition and now having been involved with this year’s TV Week Logie Awards, we appreciate the overwhelming domestic and international support our Australian owned and produced spirit has received,” said Bill Hargitay, Vantage Australia Owner.
A graphic advertisement showing how alcohol is absorbed into the bloodstream, increasing the risk of cancerous cell mutations is the most effective alcohol education advertisement in the world, according to a new study.
The study, published in British Medical Journal Open, tested 83 alcohol education advertisements from around the world and found that Western Australian advertisement ‘Spread’ (by The Brand Agency) was most likely to motivate drinkers to reduce their alcohol consumption.
The advertisement demonstrates that alcohol is carcinogenic, which Cancer Council Victoria CEO Todd Harper said is still widely unknown in the community.
“Our 2015 survey of Victorian men and women found that nearly half of the respondents either believed that alcohol made no difference or were not sure if it had any effect on a person’s risk of cancer,” Harper said.
“It’s worrying because alcohol is a Group 1 carcinogen – the highest classification available. It means that there is strong evidence that alcohol causes cancer at some body sites in humans.
Harper said that every drink increases the risk of cancer of the mouth, throat, bowel, liver and female breast.
“More than 3200 cases of cancer each year in Australia could be prevented if people limited their alcohol consumption,” he said.
“We recommend that those who choose to drink alcohol consume no more than two standard drinks on any day.”
Harper said the research highlights how mass media campaigns can be used to help the public understand more about the consequences of long-term alcohol consumption.
“We’ve seen how effective campaigns around drink driving and short term harms such as injury or violence have been in terms of changing our drinking habits, but in Victoria and the majority of the rest of Australia, we rarely see the long-term health effects of alcohol portrayed on our screens,” he said.
Cancer Council Victoria is hoping to use the top advertisement in a campaign later in 2017.
Arkadia Beverages has released a blend of high of turmeric, spices and organic panela sugar and called it Arkadia Golden Latte.
This turmeric blend is designed to be ready to drunk with hot or cold milk.
With no added dairy, vegan friendly and gluten and caffeine free, Arkadia Golden Latte is claimed to imbue the natural benefits of turmeric – often referred to as the most powerful herb on the planet for helping to fight a range of diseases.