AUSTRALIA | The Australian spirits industry has signalled its readiness to activate the Federal Government’s domestic manufacturing plans.
The spirits industry is expected to dominate submissions to the Inquiry Into Food and Beverage Manufacturing in Australia.
The House of Representatives Standing Committee on Industry, Science and Resources is undertaking the Inquiry following a referral from the Minister for Industry and Science, the Hon Ed Husic MP, on 18 March 2024.
The submissions highlight the huge growth experienced by the Australian spirits industry over the past decade, with 700-plus distilleries and manufacturing plants now operational, up from just 28 in 2014.
These businesses contribute AUD 15.5 billion in added value to the Australian economy and support 100,000 direct and indirect jobs throughout the industry’s supply chain.
However, the evidence before the Committee makes clear that the spirits industry’s future prosperity and expansion is being jeopardised by inefficient regulation, inability to access capital and an uncompetitive excise framework.
Spirits & Cocktails Australia chief executive Greg Holland said Federal Government intervention is urgently required if the Australian industry is to fulfil its economic potential.
“When Prime Minister Anthony Albanese announced the Future Made in Australia Act last month, he acknowledged that Australia is in a ‘race’ to attract the investment necessary to build a domestic manufacturing sector,” he said.
“In the case of spirits manufacturing, the simple fact is that the race to win global market share is already well underway, and Australia lags its global counterparts in joining the contest.”
Holland said the local industry is largely comprised of small and emerging businesses, which need capital to scale operations so that they can compete internationally.
“Foreign direct investment could fulfil this requirement, but as it currently stands, global spirits companies are understandably directing their capital to other markets where the policy settings are more favourable.”
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