IRI in conjunction with Australian Liquor Stores Association arm Liquor industry with new insights to drive growth in 2016.

Key findings in the ALSA-IRI State of the Industry Report for 2015 confirm Australia’s retail liquor market continues to face many challenges. The report has found that Spirits and Cider are growing in a challenging retail liquor market, a continuing trend towards premiumisation and a shifting attitude in Australians towards alcohol and health. ​

SYDNEY – March 23, 2016
 – Australia’s vibrant, diverse and competitive retail liquor sector generated sales $16.2 billion in 2015. The industry has seen many changes with the market performance dynamics which has reflected a continuing trend towards premiumisation whereby more discerning, health conscious and moderate Australian drinkers are ‘trading up’ to upscale and specialty options. 

The shifting attitude towards alcohol and health, and trends in population growth are contributing towards the changes in the relationship Australians have with alcohol. Chief Executive Officer of the ALSA, Terry Mott said “More broadly, the findings show retail liquor is a $16 billion industry which is of vital importance to the Australian economy generating $5.2 billion through excise, wine equalisation tax, licence fees, payroll taxes and GST taxes, before personal income tax and company tax. The sector also underpins the employment of 165,500 people.”

The latest ALSA-IRI State of the Industry report details the economic and social contribution of the liquor sector in Australia, plus the composition and performance of the Australian Retail Liquor Industry. The report also offers insight into the consumption trends and challenges for liquor retailers with an increasing burden of regulatory issues.

IRI Australia’s Channel Development Manager, Hugh Edwards-Neil said: “The turnaround in glass spirits, both light spirits and dark spirits, is noteworthy – in 2014, this liquor category was in decline, but in 2015, spirits accounted for 50 per cent of all retail liquor growth by value.”

The report identifies many challenges and opportunities for ALSA’s retailer members to build on the continuing change in drinking habits away from volume. Terry Mott also said “Consumers are drinking less quantity in search of better quality, brand and product differentiation, with unique taste profiles, natural flavours and provenance in wine, cider, spirits and beer. Australians are far more health conscious than their parents and grandparents.”

The report reinforces the many voluntary, industry-led initiatives the retail liquor industry has in place to promote responsible consumption of alcohol, including:

  • “ID-25” – Any person who looks under 25 will be asked for photo identification;

  • “Don’t Buy It For Them” – Encourages adults to reconsider before purchasing alcohol on behalf of a minor; and

  • ALSA Product Ranging Guidelines – A check-list of issues for retailers to consider when making product ranging choices.

ALSA will be holding a free networking event where the report will be presented, and a panel discussion will be facilitated by Giuseppe Minissale, (ALSA President & GM of Porters Liquor Group) and will also include  David Reberger,  (LSA NSW President & GM of Kemenys), plus key beer, wine and spirits suppliers and Hugh Edwards-Neil (IRI).

The event takes place at the IRI offices in Sydney on April 5, from 9.30am to 12pm and is free, but those wishing to attend should register first. ALSA members and industry stakeholders are encouraged to attend and you can register via the ALSA or LSA NSW websites.

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IRI Contacts:                                                             ALSA Contacts:
Hugh Edwards-Neil                                                       Terry Mott
Channel Development Manager                                   CEO, Australian Liquor Stores Association Inc.
E-mail: Hugh.Edwards-Neil@IRIworldwide.com.au       Email: Terry.Mott@alsa.com.au                       
Phone: (02) 8789 4000                                                            Phone: 0418 557 290  

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