Growth in premium products and pre-mixed drinks assists revenue.
Melbourne, Australia (PRWEB) August 29, 2012
The Spirit Manufacturing industry in Australia grew moderately in the three years ending 2007-08, buoyed by strong growth in consumption of ready to drink (RTD) spirits. This run of growth came to an end in late 2008, as the Federal Government increased excise on RTDs and a deteriorating economic climate caused sales of these products to slump. IBISWorld industry analyst Steven Connell says “the industry is expected to record modest growth during 2012-13, with the weak consumer environment and competition from other alcoholic beverages to weigh on sales”. In the five years through 2012-13, industry revenue is expected to increase by 0.4% per annum to total $570.3 million.
The Spirit Manufacturing industry in Australia is in a better position heading into the future, with demand from liquor retailers, restaurants, pubs and bars expected to increase as the economy returns to trend growth. Manufacturers should benefit from a number of trends in the next five years. “The rise of cocktail culture and the premiumisation of the beverage market will boost demand for pre-mixed cocktail drinks and higher value-added bottled spirits,” Connell adds. Possible changes to alcohol excise will have a major effect on industry participants. The growing presence in liquor retailing of supermarket giants Woolworths and Coles, and competition from cider, beer and wine, loom as the major threats to industry revenue over the next five years. Sales of Tasmanian produced whiskey are forecast to grow strongly as the state's reputation as a producer of premium single malts jumps. IBISWorld forecasts industry revenue will increase over the five years through 2017-18.
Spirit manufacturing in Australia is dominated by Diageo Australia, Independent Distillers (Asahi Holdings), Foster's (SABMiller), Coca-Cola Amatil and Bacardi Lion. A number of acquisitions have increased the market share concentration of asset ownership within the local industry. These acquisitions make the industry highly concentrated. Nevertheless, there are still some smaller players who cater to niche markets.
For more information, visit IBISWorld’s Spirit Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry purchases ingredients such as grapes, sugar and malt, which are fermented and distilled to produce spirit beverages including vodka, gin, whisky and liqueurs; industry participants also blend spirits. Operators buy glass bottles and paperboard containers to package these products. The spirits are then sold to alcoholic drink wholesalers and retailers. While the industry makes fortified spirits, it does not produce fortified wines.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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