Representatives from Spirits & Cocktails Australia and the Australian Distillers Association have emphasized the significant economic potential of Australia’s spirits manufacturing industry during a session with the House of Representatives Standing Committee on Industry, Science, and Resources in Canberra.
At the Inquiry into Food and Beverage Manufacturing, both associations underscored the critical need for prompt action by the Federal Government to prevent Australia from missing out on substantial economic opportunities inherent in its spirits manufacturing sector.
Paul McLeay, Chief Executive of the Australian Distillers Association, asserted that the Australian distilling industry should play a central role in the government’s Future Made in Australia policy. He criticized the current policy framework, citing its outdated nature and lack of action, which he argued has placed Australian-made spirits at a significant competitive disadvantage both domestically and internationally.
Holly Klintworth, President of the Australian Distillers Association and Managing Director of Bass & Flinders Distillery, emphasized the distinctiveness of Australian spirits, rooted in unique native ingredients and flavors not found elsewhere. She stressed the necessity of coordinated and targeted support to enable the industry to thrive domestically and globally.
Nicole Lestal, director of Spirits & Cocktails Australia, highlighted the disparity in Australia’s excise regime, pointing out that while Australian spirits account for 20% of alcohol consumption, they bear 50% of alcohol taxes. She urged the government to rectify this imbalance, which she argued hampers innovation and reinvestment in the sector.
Kylie McPherson, a member of Spirits & Cocktails Australia and Vice President of Public Affairs at Brown-Forman Australia, cited the example of changes in tax policy in the UK, which spurred significant investment in the Scotch whisky industry. She underscored the importance of providing certainty through favorable tax policies to attract investment and drive growth.
Mark Hill, Treasurer of Spirits & Cocktails Australia and Managing Director of Suntory Global Spirits Oceania, highlighted the positive impact of foreign investment in Australia’s food and beverage manufacturing sector, citing Suntory Oceania’s recent investment in a carbon-neutral facility in Ipswich, Queensland. However, he noted the lack of incentives for global companies to invest further in the Australian spirits industry due to uncompetitive excise rates.
Satya Sharma, Director of Spirits & Cocktails Australia and CEO of Lark Distilling Co, emphasized the vast potential for Australian spirits to become globally recognized for quality and innovation, akin to Japanese and Scotch whisky.
David Vitale, Vice President of the Australian Distillers Association and Founder of Starward Australian Whisky, lamented the lack of government support for the spirits industry compared to the wine sector, citing challenges in building an export market without coordinated assistance.
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