Home' National Liquor News : NLN APRIL 2018 Contents 6 | APRIL 2018 NATIONAL LIQUOR NEWS
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NATIONAL LIQUOR NEWS IS THE OFFICIAL TRADE PUBLICATION
OF THE AUSTRALIAN LIQUOR STORES ASSOCIATION (ALSA).
elcome to the April issue of National
There have been some pretty significant
changes within the industry over the
past month, none more so than Wesfarmers’ plans to
demerge Coles. If the demerger goes ahead, it would
incorporate Coles supermarkets, liquor and convenience
and Wesfarmers said it anticipates it would see the
creation of a new top 30 company listed on the ASX.
There have also been some pretty significant changes
within the senior management of both Metcash and
Coles. At Metcash Steven Cain stepped down as
the CEO of IGA and has taken up the position as
Managing Director of Coles. Scott Marshall, the former
CEO of ALM will take up his role and Rod Pritchard
will act as the interim CEO of ALM. You can read all
about these changes on our news pages.
Last month also saw the launch of the annual
ALSA-IRI State of the Industry Report. We will be
bringing you a full report of the launch in the May
issue, but in the meantime this is a snapshot of the
state of the retail liquor industry.
The report specifies what has been happening
in Australia’s off-premise industry over the last 12
months highlighting the value of the market, the jobs
the industry supports, the number of packaged liquor
licences and the taxes that the industry generates.
According to the report the annual retail liquor
sales in Australia total $17.5bn, which generates
indirect Commonwealth alcohol excise and WET
taxes of $6.2bn, before GST revenue, company taxes
and personal income taxes and before State and
Territory Payroll Tax or Liquor Licence fees.
The retail liquor industry also provides flexible
employment options for 48,000 people who are
employed directly across Australia. Further the 6553
packaged liquor licences underpin an industry which
generates employment for 166,000 Australians when
the additional indirect jobs are factored in.
The overall $17.5bn retail liquor market grew
by 3.4 per cent in 2017, versus 2.7 per cent growth
in 2016 with Australian produced products at the
core of this growth. The increased sales in 2017
amounted to an additional $570m in value, up from
a $452m increase in 2016.
That growth was underpinned by increases in
virtually all categories with beer, wine, spirits and
RTDs all showing value growth. The only category
to see a value decline was cider, which was down
by 0.8 per cent, although it did show some positive
signs with 0.4 volume growth.
The standout category was beer; the $6.5bn
category saw value growth of 4.1 per cent and
volume growth of 1.4 per cent, which was primarily
influenced by the success seen by Great Northern.
The glass spirits category also volume and value
growth with the $3.7bn category up by 3.7 per cent
and 1.7 per cent respectively. That value increase
amounted to an extra $119m in additional revenue
for the category. That growth has been driven by
on-going double-digit gains in malt Scotch, Irish
whiskey and spiced rum. There was also solid single-
digit growth in vodka and Canadian whiskey.
The RTD recovery has continued, with the report
highlighting 2017 as a “standout year for the $2.4bn
retail RTD market”. The dollar growth of 4.1 per
cent in 2017 amounted to $94m in added value, the
most significant expansion in the category in around
a decade. The category has been driven by five
consecutive quarters of quarter on quarter growth.
Overall the wine category slowed to levels below
the total industry average with the $4.5bn retail
wine market saw 2.4 per cent dollar growth which
was worth $104m, down from $146m in 2016. The
report details that 2017 was the year of rose, with
the segment significantly over-indexing by generating
$12m more than any other wine varietal.
The 0.8 per cent volume decline recorded by the
cider category was worth $4m in lost value and it is
the only category where value growth has consistently
lagged behind volume growth in recent years.
Domestic cider has been a bright spot for the category
having recorded double-digit in both 2016 and 2017.
In this issue we have got some valuable features
covering Premium Australian Beer, RTDs and our
annual Hunter Valley report that will hopefully help
you to turn a profit in your stores.
As always, keep your feedback flowing (djackson@
This is your industry magazine, so make sure that
it works for you!
Deborah Jackson, Editor
02 8586 6206 | firstname.lastname@example.org
Shane T Williams and Deb Jackson.
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