Australian craft whisky pioneer, Bill Lark says the Australian spirits industry is primed for a $1bn export boom, if the Federal Government supports the industry, in the same way that it does with the country’s win industry.
Lark, along with many others in the Australian spirits industry, believes that with the right support and coordination from the Federal Government, this country’s spirits can enjoy the same kind of export boom that wine industry enjoyed a generation ago.
“I have no doubt that Australian whisky can become globally recognised and sought after, just like Japanese whisky has over the last ten years,” Lark said.
“This would be transformative for Tasmania and other regional communities where many of Australia’s 700-plus distilleries are located.”
Lark Distilling Co, under the leadership of CEO Satya Sharma has embarked on its export journey and now has products available in Singapore, Indonesia, Malaysia and the Philippines.
But for Lark and other Australian distillers to fully realise their export potential, Sharma said Government support is crucial.
“Currently, each distiller is going out to each market on their own, trying singlehandedly to build the Australian spirits category,” Sharma said.
“What we are lacking is a megaphone, in the form of Federal Government investment to help raise awareness of the innovative liquid and authentic stories that we know will resonate with spirits consumers overseas.”
SPIRITS EXCISE
Spirits & Cocktails Australia Chief Executive Greg Holland highlighted how real that potential for growth as Australia ranks 29th globally for spirits exports, with total revenue of $112m in FY23.
“This compares with sixth place for Australian wine, which is a $2.1bn export industry, highlighting the differential treatment of spirits versus wine in this country,” he said.
“Spirits manufacturers are being held back by a tax that is already five times higher than that of wine, with another hike due on 3 February.”
Australian Distillers Association Chief Executive Paul McLeay added that the spirits industry’s export ambitions cannot wait for wholesale excise reform.
He said: “The Government can provide immediate support for our industry by working with us to accelerate spirits exports.
“Not only will this deliver on its trade diversification goals, but it will also support the current economic priorities of growing domestic manufacturing and increasing employment opportunities, particularly in the regions.
“The Federal Government must act now or Australian spirits will lose market share to other nations that have already recognised the urgency of these trade opportunities.”
See the video below for more from Australian distillers on the potential for Australia’s spirits industry:
