drinks trade
Transcription
drinks trade
drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinksdrinks trade trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade 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drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade rinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade nks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade s trade drinks trade drinks trade drinks trade June/July 08 issue 5 drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade rinks trade inks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade rade drinks trade drinks trade trade nks trade drinks trade drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks drinks trade drinks trade drinks trade drinks trade drinks trade inks trade trade drinks trade drinks trade drinks trade nks trade drinks drinks trade drinks trade drinks trade drinks trade nks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade de s trade drinks trade drinks trade trade drinks trade drinks trade drinks trade your news, your views drinks trade drinks trade drinks trade drinks trade drinks trade drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade nks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks tradedrinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks tradedrinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade rinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade rinks trade trade inks trade drinks trade drinks trade drinks trade nks trade trade drinks trade drinks drinks drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade Welcome note CREDITS PUBLISHER Sandra Przibilla [email protected] PUBLISHING EDITOR Ashley Pini [email protected] EDITOR Katrina Holden [email protected] BUSINESS MANAGER Wendy Grabe [email protected] PUBLISHING ASSISTANT Stephanie Pentony [email protected] ART DIRECTOR Savina Rueda CONTRIBUTORS Australasian Associated Brewers, Australian Hospitality Academy, Australian Liquor Stores Association, Australian Wine & Brandy Corporation, Catalyst, Clutch, Clayton Ford, GS1, Holman Webb, Independent Liquor Group, Liquor Marketing Group, Liquor Merchants Association of Australia, Lauren Moorhouse, The Nielsen Company, Porter’s Liquor, Southern Cross Equities, Synovate Aztec, Thomson’s Liquor Guide, Wine Communicators of Australia Inc, Winemakers’ Federation Australia. T he topic of a 70 per cent increase on taxes on RTDs, naturally, has not escaped comment from several of our contributors. You’ll find various opinions on this topic contained throughout the pages of this issue – including from Doug McKay, Independent Distillers in his exclusive Insight interview with Drinks Trade (page 20); ALSA (page 64); Diageo Global (page 66); Southern Cross Equities (page 68) as well as our news summary (page 11). Even our group of brewing professionals who gathered in our first ‘Hop Shots’ panel were open to discussing excise increases and of course, what it may mean for the brewing industry (page 26). In this issue, you’ll also find inserted the Liquor Merchants Association of Australia annual on-premise survey. Please take the time to complete and return the survey, as targeted feedback can only assist in generating industry improvements to general business operations. The partner company which work with the LMAA to put the surveys together, Catalyst, have explained in detail on page 48 how the surveys are compiled and what the key objectives are. Changes to New South Wales liquor licensing are instated from 1 July – you’ll find an article on the reactions to the changes, along with answers to frequently asked questions from the Office of Liquor, Gaming and Racing on pages 45 and 46. If you missed it in our last issue, please be aware that Drinks Trade is currently holding a design competition for our front cover in 2009. You’ll find all the details at www.liquormerchants.org.au . Katrina Holden Editor Produced and contract published by Director: Ashley Pini HIP Media PO Box 311, West Pymble, NSW 2073 ABN: 64 762 520 181 All Enquiries to: The Liquor Merchants Association of Australia Suite 3 ‘Altura’ 11 Railway Street Chatswood NSW 2067 Locked Bag 4100 Chatswood NSW 2067 Phone: 02 9415 1199 Facsimile: 02 9415 1080 www.liquormerchants.org.au ABN 26 001 376 423 The views expressed in Drinks Trade are those of the respective contributors and are not necessarily those of the magazine or the Liquor Merchants Association of Australia. Copyright is held by the Liquor Merchants Association of Australia and reproduction in whole or in part, without prior consent, is not permitted. Printed by Quality Images Pre press: Andrew Archer W elcome to the June/July edition of Drinks Trade. The budget has been on everyone’s lips recently and as expected, threw up the greatest of challenges for RTD producers. The face of the industry once again changes, following vigorous debate in the political and public arenas. In this issue we’ve launched our HOP Shots segment, bringing together leaders in the brewing industry to discuss current and future trends as they see it. We were fortunate enough to be welcomed to The Australian Hotel in The Rocks, Sydney, for an afternoon of ‘beer talk’ - apt considering the quality of the venue and its commitment to serving quality beers. Our thanks to Richard Jacob and the Keystone Group for hosting us (see page 26). Drinks Trade has received great support from its inception, and as the industry gears up for the run into Christmas, we expect to once again be increasing our circulation. Currently the magazine circulation is 15,000; with the goal to be above 20,000 on and off-premise licenses by the next edition. Drinks Trade is now forging ahead into areas that have not previously been receiving trade communications of this nature. We welcome all new readers onboard with the common notion that Drinks Trade is industry owned; written by the industry for the industry. Your views, input, contributions and indeed, guidance, on trade issues is always welcome. Other Liquor Merchants Association of Australia publications include; Ashley Pini Publishing editor drinks trade 05 Are you in the liquor business? Discover new ideas at Australia's leading events for the liquor trade Come along and discover the latest retail technology, security and shopfitting trends. Perfect for liquor stores, bottle shops and hotels. 12-14 August Sydney Exhibition Centre www.retailexpo.com.au This is the show where buyers meet cellars. Sample new products and attend free seminars. Now located within the Fine Food exhibition. 22-25 September Melbourne Exhibition Centre www.wineandspirits.com.au Discover the latest food, drink and equipment from around the world at Australia's largest food and hospitality event. 22-25 September Melbourne Exhibition Centre www.finefood.com.au Special Deal. Drinks Trade reader’s can register free for these events. Visit the website and use priority code 500101 A diversified exhibition Contents June/July 08 issue 5 34 38 26 Drinks Trade insight 18 Dane Hudson, Australian Vintage Limited 20 Doug McKay, Independent Distillers 22 ave Higgins and Tony Stubley, D Southtrade International 64 T erry Mott, CEO, Australian Liquor Stores Association 64 Australian Wine and Brandy Corporation 66 C layton Ford, manager, responsible marketing and innovation, Diageo Global Features 66 R achel Kairuz, senior advisor, industry services, GS1 Australia 26 Hop Shots – Katrina Holden 67 Jonathan Casson, partner, Holman Webb Lawyers 34 New South Wales wine – Katrina Holden 68 M ichael Walton, executive director liquor services, Pacific, The Nielsen Company 38 Luxury spirits – Ashley Pini In focus – off-premise customers 57 Independent Liquor Group 60 Liquor Marketing Group 61 Porter’s Liquor Profiles and reviews 25 ‘Storm or sunrise?’ – presented by Warwick White, Coca Cola Amatil 68 A lexandra McPhee, senior analyst, Southern Cross Equities 69 M alcolm Ryan, business development manager, Synovate Aztec 70 M elissa Parker, vice president, Wine Communicators of Australia Inc 70 S tephen Strachan, CEO Winemakers’ Federation Australia Reports 45 New South Wales liquor licensing 36 N SW wine from Australian Wine & Brandy Corporation 48 LMAA on-premise survey 40 Luxury spirits from The Nielsen Company 51 H ow to pick up more customers – off-premise study by Clutch Perspective Regulars 8 Australian news 16 Global news 63 S tephen Swift, executive director, Australasian Associated Brewers Inc 63 P eter Hall, principal, Australian Hospitality Academy 73 New releases 76 Thomson’s new products & releases 81 Drinks Trade eye Contact your Drinkworks representative on: 02 9389 7266 www.drinkworks.com.au Drinks Trade News Australia News Diageo extends DRINKQ program Diageo has extended its DRINKiQ program internally and to external groups to further promote a responsible drinking culture. Within Diageo Australia, DRINKiQ is currently part of the corporate induction and now the business is extending the program to all 23,000 employees globally. Externally the program has been rolled out to partners including customers, marketing agencies, industry associations, and sporting clubs sponsored by Diageo brands. The aim is to generate wider discussion around responsible drinking and encourage these ambassadors to promote a healthy drinking culture across Australia. The AHA recently conducted a DRINKiQ program for its branch CEOs. Director national affairs, AHA, Bill Healey, said, ‘Everyone who participated was surprised at what they learnt. The program opened our eyes to the affects of alcohol and the benefits of monitoring consumption.” The virtues of a double marriage Whyte & Mackay’s master blender, Richard Paterson, recently toured Australia to officially kick off the launch of its five deluxe blends – Special, The Thirteen, Old Luxury, Supreme and 30 Year Old. In addition, a limited edition 40 Year Old Blend is available - part of just 1000 bottles released worldwide. Whyte & Mackay’s blended malts are particularly unique as a result of the company’s double marriage process, referring to its second stint in sherry butts to mature an extra year. Richard’s passionate presentation drew on his 38 years of experience with Whyte & Mackay, a third generation master blender from a family long established 8 drinks trade within the Scotch whisky industry. Richard’s knowledge and pedigree is well recognised around the whisky loving world. In 1994 Richard was chosen to blend the celebratory whisky for the 500th anniversary of Scotch. Tony Gapes, general manager spirit brands at Independent Distillers, commented: “We’re delighted to have Richard here for a couple of weeks to help spread the word about this exclusive range and to teach us all how to properly taste and appreciate whisk”’. Whyte & Mackay is to be distributed to selected liquor stores around Australia, to find out more contact Independent Distillers on 03 8369 0300 or visit www. independentdistillers.com Wine exports down The Australian Wine and Brandy Corporation says the climbing Australian dollar has impacted on our wine exports. AWBC figures show the volume of wine exported fell by 8.5 per cent for the 12 months until the end of April. While exports of bottled wine grew by 17 million litres, the overall volume of exported wine fell by 67 million litres. The United States remained the country’s second largest market despite falls of 18 per cent in volume and 15 per cent in value. New managing director at Diageo Australia Outgoing managing director of Diageo Australia, Eleanor Craig, will be succeeded on 1 July by Tim Salt. Tim has been with Campbell Arnott’s for the past five years, most recently in the role of general manager Arnott’s. He has also previously worked in the alcohol beverage industry, including with Lion Nathan as managing director, Lion Nathan RTDs. Tim will be introduced to the trade in due course. Eleanor served as managing director of Diageo Australia for four years and was instrumental in turning the business into one of the strongest in the Asia Pacific Diageo stable. She was also a key player in many industry bodies and associations, including as chair of the Distilled Spirits Industry of Australia and represents DSICA on the DrinkWise board. Customers to pay faster Shortly in Australia, most American Express, Diners Club, MasterCard and Visa cardholders will have a choice when authorising transactions, with the introduction of Personal Identification Number (PIN) for pointof-sale payment on these cards. The industry-wide initiative known as ‘PEN or PIN’ is the result of the collaboration of every major bank, financial institution and card scheme operating in Australia and has the L-R: Aiden Smith, Whyte & Mackay, regional director; Richard Paterson, Whyte & Mackay, master blender; and Tony Gapes Independent Distillers, general manager-spirits potential to change the way that nearly four million credit and debit transactions are authorised every day in Australia. The option to use PIN will be available from 4 June at many of the 600,000+ terminals across Australia that currently accept cards from the issuers involved. Cardholders will still be able to authorise transactions by signing if they prefer. These changes bring Australia more into line with many countries overseas where PIN is already accepted as authorisation. Visit www.penorpin.com.au. WSET wine course offered by TAFE TAFE NSW - Northern Sydney Institute - Ryde College has launched a new website (www.sydneywineacademy. com.au) for a new specialist wine academy, based in Sydney. The new operation will now deliver courses from the internationally recognised, London-based, Wine and Spirit educator. Winners receive a two-week educational tour to the Champagne district where they receive their medal from the CIVC and enjoy the legendary Champenois hospitality. Entry forms can be obtained from the Champagne Information Centre by sending a stamped A4 self-addressed envelope to:-PO BOX 621 ROZELLE NSW 2039 or by downloading forms from www.champagne-cic.com.au . Phone 02 9555 889. Essays are due Friday 25 July. Festival City The National Independent Liquor Wholesalers Association (NILWA) would like to make a change to information they supplied in the April/May issue of Drinks Trade, in the In Focus –Wholesalers section. Festival City now own Gollars and Frank Palumbo is the new contact. Phone NILWA on 02 4929 5866 for more information. Entrepreneur nominee Michelle Nugan, CEO of Nugan Estate, has been named a regional finalist in the global Ernst & Young ‘Entrepreneur of the Year Awards’ . Michelle has been selected as an eastern region (New South Wales and Australian Capital Territory) finalist in the awards which celebrates entrepreneurs who build and lead successful, growing and dynamic businesses, recognising them through regional, national and global award programs in more than 40 countries. The awards are conducted in five Australian regions culminating in the national awards on 27 November 2008, then the global awards held in Monte Carlo. Michelle’s business career began in 1986 when her Education Trust (WSET®), offering three levels of WSET® courses: Level 1 Foundation Certificate in Wines, Level 2 Intermediate Certificate in Wine and Spirit, and the Level 3 Advanced Certificate in Wine and Spirits. For more information phone 02 9448 6369 or visit www.sydneywineacademy.com.au. Michelle Nugan Vin de Champagne award Entires for the prestigious 2008 Vin de Champagne Award are currently open. The award is organised every second year on behalf of the Comite Interprofessionnel du Vin de Champagne (CIVC. The award is open to candidates in one of three categories; Professional, Amateur and Student. Entrants will be required to answer a number of essay questions on Champagne viticulture, terroir and history and are expected to have some knowledge of the administrative and marketing structure of the Champagne industry. State finalists will be flown to Sydney to undergo a final judging before a panel of judges in which they are required to show their skills in tasting a range of Champagnes selected from a number of styles. Judging of the award will be conducted by Huon Hooke; author, wine-writer and former professional winner; Peter Bourne, wine-writer and ‘wine-man’ former professional winner; and Bernadette O’Shea former amateur winner and Champagne Contact your Drinkworks representative on: 02 9389 7266 www.drinkworks.com.au Drinks Trade News husband died unexpectedly of cancer, when Michelle was forced to take over the family’s struggling fruit and vegetable business. She turned Nugan Group into one of Australia’s most successful agricultural enterprises with turnover in excess of $80 million. Michelle’s achievements have been widely recognised with her being named a NSW Telstra Business Women of the Year in 1996 and Australian Export Hero in 2000. Bacardi rolls out Michael Schumacher campaign Bacardi Lion have appointed Michael Schumacher to drive its global responsible drinking campaign, with a focus on drink driving. Schumacher has taken on the role as ‘Global Social Responsibility Ambassador’ for Bacardi and fronts the ‘Champions Drink Responsibly’ program to discourage drink driving. Initially rolling out across 40 countries, the Champions Drink Responsibly campaign was launched in Brussels, Belgium. The launch will see the unveiling of the program’s print and advertising concept featuring Schumacher, which will be supported by various activities including consumer engagements, public relations, POS and media. The elements of the campaign may be found at www.championsdrinkresponsibly. com and www.bacardilimited.com. Wine industry owned services body to form The Winemakers’ Federation of Australia voted unanimously at its April board meeting in support of the formation of an Industry-owned Services Body (ISB) as the structural model best placed to take the wine industry forward. The model is similar to that already employed within other Australian industry sectors, such as dairy, pork, meat and livestock, wool, horticulture and forestry. The WFA board passed a resolution to the effect that forming an industry-owned services body (ISB) that would take on the majority of functions of both the Winemakers’ Federation of Australia (WFA) and the Australian Wine and Brandy Glass: Collins / Highball Garnish: Orange wheel Method: Build over ice filled glass and stir Ingredients: 60ml Campari (90ml) Fresh orange juice to fill glass For further information visit www.campari.com or contact your local Suntory representative: Drink with Passion, Drink Responsibly. NSW/ACT T 02 9663 1877 VIC t 03 9329 5851 QLD t 07 3308 9100 SA/NT t 08 8351 5055 TAS t 03 6231 6255 WA t 08 9455 2477 RTDs – Ready To Diminish? The last few weeks have seen significant developments in the Australian liquor industry in relation to RTD drinks. Following the faederal government’s pledge to tackle youth binge drinking, which Prime Minister Rudd described as an “epidemic”, ready-to-drink (RTD) or ‘alcopops’ came under increasing scrutiny, with an apparent media and public speculation that it was these drinks which were the root of the problem in relation to teenage binge drinking. In late March, Lion Nathan Australia and Foster’s Australia announced they would each take immediate steps to cease production of the energy RTDs within their portfolio and would set a voluntary limit of two standard drinks per single serve. Lion Nathan Australia managing director Andrew Reeves said: “We recognise that there is a level of community concern about these products and therefore we have decided to remove them from circulation. We believe excessive alcohol consumption is a cultural problem, which is best addressed through a significant and long term investment in social marketing and intervention programs. Foster’s Australia, Asia & Pacific managing director Jamie Odell said: “We believe strongly that the real issue is not bad products, but rather poor drinking behaviour. However, we also acknowledge community concern that higher alcohol and added-energy RTDs may be particularly vulnerable to abuse.” Diageo applauded the move of introducing two standard drinks per serve, which it had implemented last year across its own portfolio. “I am delighted to see other producers of RTDs taking these steps,” said Eleanor Craig, Diageo Australia managing director. “Via our industry association Distilled Spirits Industry Council of Australia, we are lobbying for FSANZ (Food Standards Australia New Zealand) to extend the mandatory labelling of energy drinks to also include those ‘so-called’ energy drinks that contain alcohol. We applaud the decision that other producers are moving towards these measures.” But the voluntary move by these liquor suppliers did little to assuage the Rudd government’s focus on RTDs as a prime contributor to the binge drinking problem. On Saturday 26 April, without consultation with industry, the Federal government boosted taxes on RTDs by 70 per cent. The tax went up from $39 per litre of alcohol to $67 per litre and, after the Budget was announced, figures indicate it is expected to raise $3 billion in excise over the next four years. The move will impact revenues of the various RTD liquor suppliers, to varying degrees. But as Macquarie Bank analysts stated, some of the volume may shift to beer, which would see companies such as Lion Nathan Australia and Foster’s Group net beneficiaries. “The broader risk, however, is that the Rudd Government gets a taste for tighter alcohol regulation which would be a clear negative for the sector,” said Macquarie Bank. The Distilled Spirits Industry Council said the RTD excise increase was misguided and will only encourage teenagers to binge on other types of alcohol and The Australian Hotels Association said the government needs to educate parents on the dangers of binge-drinking. After the Budget, RTD producer Independent Distillers said in a statement on 14 May that despite the windfall, Budget papers reveal the National Binge Drinking Strategy, including advertising, early intervention and community partnerships, will be “met from within the existing resourcing of the Department of Health and Ageing”. “The fact that the RTD tax has not resulted in a single new dollar being spent on the issue of binge drinking, as well as the lack of industry consultation from the Government prior to imposing it, can only lead to the conclusion that the tax is solely a revenue rasing measure and not a serious attempt to address the important issue of binge drinking,” said Independent Distillers Australia executive chairman, Doug McKay. “Most drinkers would support an industrywide levy that directly funds programs to address the important issue of binge drinking, but a blatant tax gouge on a drink category that represents just 10 per cent of the Australian alcohol market cannot be justified,” said McKay. Meanwhile, The Australian Drug Foundation described the move as a big step in the right direction and The Public Health Association of Australia (PHA) said the price rise would have a major impact on drinking among young people, especially young women. Speculation began that a volumetric alcohol tax might be applied in the future, across the board, to all liquor categories. The reputation of RTDs have also started to elicit reactions in the trade. Sydney venue ‘The Steyne Hotel’ at beachside suburb, Manly, which was voted Sydney’s fourth most violent pub earlier this year by police, has banned RTD products from being sold in its venue. The ban also applies to its adjoining bottle shop (for sales after 8pm). The ban will be trialed for three months to see if it helps stop binge drinking and violence. “A simple ban on the sale of pre-mixed alcoholic drinks will not address drunkenness and antisocial behaviour,” said Stephen Riden from DSICA, who would like to participate in measuring the impact of the three month trial on the sale of RTDs at The Steyne. Contact your Drinkworks representative on: 02 9389 7266 www.drinkworks.com.au Margaret’s a feisty Barossan. So’s the Semillon. Peter Lehmann’s wife Margaret is a feisty supporter of all good things Barossan, especially Barossa Semillon. Her passion and commitment to the region and this variety are unparalleled. That is why this special release Peter Lehmann Barossa Semillon is named in her honour. And it too is feisty, having fought off stiff competition to win a swag of trophies at recent wine shows. At the 2008 Sydney International Wine Competition, it was awarded ‘Best Wine of Competition’. www.peterlehmannwines.com 3387_DT The PEOPLE, STORIES & WINES TH AT M A K E the BA ROS SA FA MOUS News Corporation (AWBC) would represent the most effective outcome. In essence, this model would see a new body formed as the peak group directing, driving and implementing strategy in the future. For more details, read Stephen Strachan’s column in this issue on page 70. Mix with Mozart and win Suntory has launched their annual Mozart Mix and Win Competition for 2008. This year’s major prize is a trip to the 2008 World Cocktail Championships in Puerto Rico. Bartenders from around the world simply submit their Mozart CHOCtail creation onto the Mozart website, where all the cocktails are judged by a panel of bartenders and industry experts. Enter your recipe via www.mozart-distillerie.com and be in the running to win a VIP trip to the 2008 World Cocktail Championships in Puerto Rico. Entries close 31 August 2008 and the winner will be contacted shortly after. The winner of the 2007 Mozart Mix and Win Competition was Daniel Gregory from Onyx Bar & Restaurant in Brisbane, Queensland. Tasting online The Australian Wine & Brandy Corporation (AWBC) has launched a new interactive wine-tasting website. Described as “virtual wine tasting”, The Regional Heroes Tasting Challenge has been designed to assist people to learn more about wine. Once at the site (www. wineaustralia.com – Discover your regional heroes), visitors can take a tour of a region and then attempt to select the appropriate characteristics of a regional wine style. Your wine knowledge is then ranked with a score and you receive tasting notes on that particular style of wine. You can also compare regional heroes, learn more about the wine tasting process and view a tasting chart of various regional hero wine styles. There are 20 regional hero wine styles to choose from. LMAA board changes The Liquor Merchants Association of Australia (LMAA) has welcomed Bob Powell, Australasian sales manager, to the board, representing Casella Wines. The board of LMAA also welcomes Neil Grant, general manager trade relations, Foster’s Group. Abolishing workplace agreements The Workplace Relations Amendment (Transition to Forward with Fairness) 2008 (the “Act”) has now commenced under the Rudd government, passing through both house of Parliament without opposition. The main purpose of the Act is to prevent employers from making new AWAs with existing or new employees. However, this is not yet the end of individual workplace agreements. Employers are now able to enter into Individual Transitional Employment Agreements (ITEAs) with their employees. The Act also reintroduces a ‘No Disadvantage Test’ to replace the abolished Fairness Test. The No Disadvantage Test will apply to all ITEAs and new collective agreements. This Act now begins the Government’s ambitious target to have individual agreements completely abolished by 31 December 2012, and creates the framework by which the substantial legislation implementing the Forward with Fairness policy will be introduced later in the year. In summary, no AWAs can be entered into after the commencement date of the Act (subject to a 14 day grace period); ITEAs will be available where an employer had at least one employee under an AWA as at 1 December, 2007; the Award Rationalisation process is to be completed by 1 January, 2010; the Fairness Test is now abolished and replaced with the No Disadvantage Test; and The ten National Employment Standards are to be incorporated into the government’s substantive workplace relations legislation later this year. Source: Lisa Honeychurch (partner) and Kristin Gamble (lawyer), Employment & Industrial Relations group, ClarkeKann Preventing alcohol-related violence The Liquor Licensing division of the Queensland Government has reported an increase in the number of ‘glassings’. According to liquor licensing officers and the Queensland Police Service, there has been a significant rise in incidents where glass has been used as a weapon over the past 12 months. While the fist is seen as the most prevalent and damaging weapon in alcohol fuelled violence, there is evidence that intoxicated patrons are not only using glassware, but stubbie and premixed bottles as weapons. The Liquor Licensing board advises that staff and licensees should identify problem situations involving patrons and try to defuse the situation as soon as possible. It is also essential to ensure staff follow responsible service of alcohol principles. By refusing service to intoxicated patrons and identifying punters who may cause trouble, staff can play a key role in reducing the number of incidents that lead to injury. In Queensland, there are over 100 trainers who provide Responsible Service of Alcohol (RSA) training. For a full list of trainers, visit the division’s website at www.liquor.qld. gov.au. The division remind licensees of their obligation to provide a safe environment for patrons at all times. John Casella honoured Winemaker and managing director of Casella Wines, John Casella, was recently awarded an Honorary Doctor of Business by Charles Sturt University (CSU) in April 2008. Dr Casella received the doctorate in recognition of his contribution to the Australian wine industry, particularly through the creation of new export markets, the economic health of the Riverina region of New South Wales, and to wine education and research programs at CSU. Founded in 1969 by his parents, Filippo and Maria Casella, Casella Wines dramatically increased production under Dr Casella, who also oversaw the launch of the [yellow tail] brand into the United States in 2001. The [yellow tail] brand is the most successful launch drinks trade 13 The original Crème de Cassis The original Kir Royal ® Pour 10mls of Lejay Cassis into a champagne flute and top with champagne For more information contact your Suntory representative: NSW/ACT 02 9663 1877 VIC 03 9329 5851 QLD 07 3308 9100 SA/NT 08 8351 5055 WA 08 9455 2477 TAS 03 6231 6255 News of an Australian wine brand in the history of the Australian wine industry. In addition to praise of his management of the family business, Dr Casella was honoured for his commitment to developing the skills and capacity of young people in the Riverina. He attended the CSU graduation ceremony in Wagga Wagga with his parents, his wife and four children. Stolen goods On or about 21 March 2008 a quantity of alcoholic products was stolen from McWilliam’s Wines premises in Homebush Bay, NSW. The stolen goods were: 720 x 12 x 750mL cases of Mateus Rose (Lot numbers 1732702 and 1735404) and 1260 x 6 x 1L cases Drambuie Liqueur (Lot numbers 07/8061/02, 07/8089/03 and 07/8084/03. In normal Australian trade, 1L bottles of Drambuie Liqueur are only distributed through duty-free outlets. Any members of the licensed trade being offered opportunities to purchase quantities of the abovementioned products from other than normal suppliers are requested to contact Suzy Harle at McWilliam’s Wines on 02 9722 1214 or detectives at Flemington NSW Police on 02 9646 8708. Heads up Daniel Redman has been welcomed into Redman Wines as the fourth generation Redman wine maker. Daniel has worked in central Victoria, Barossa valley and America and has now returned to Coonawarra to work the 100th vintage of the Redman family. He worked his first Coonawarra vintage in 2001, taking after his great Grandfather Bill Redman worked his first vintage in Coonawarra 100 years earlier. Email: [email protected] ph: 08 8736 3331 Katherine Ward has been appointed as the new global public relations and communications manager for McWilliam’s Wines. Katherine will be responsible for corporate strategies and communication in all markets, internal communication and brand initiatives in international markets. Email: [email protected] ph: 02 9722 1200 Bernadette Knight has been appointed as brand communications manager for McWilliams’s Wines. Bernadette has been with McWilliam’s for three years. She will be responsible for the overall management of brand communication activities in the Australian market and will be the main point of contact for all brand related media enquires. Email: [email protected] ph: 02 9722 1200. Paul Heinicke has joined Barossa Valley Estate winery as brand development manager. Paul has had fourteen years experience in both domestic and export markets in the wine industry working with Palandri, Angove’s and Gapstead wineries. Most recently Paul was the director of his own marketing consulting company until joining Barossa Valley Estate. He will be responsible for further increasing brand awareness and position on the winery’s premium brands. Email: [email protected] ph: 08 8562 3599. If you have a recent staff appointment at your organisation that you wish to convey to the trade in ‘Heads up’, please email details, including the relevant staff email address and phone number, along with a high resolution image to Katrina Holden, editor, at [email protected] Contact your Drinkworks representative on: 02 9389 7266 www.drinkworks.com.au Drinks Trade News Global News Absolut-ly sold Pernod Ricard has won the auction for Vin & Sprit, beating Fortune Brands to the Absolut vodka trademark. The French company secured the acquisition of Vin & Sprit from the Swedish government for EUR5.63bn (US$8.88bn). The US company Fortune Brands was thought to be in the lead for the acquisition, given its current distribution relationship with V&S through marketing and distribution company, Maxxium. As a result of the acquisition, Pernod will need to end its distribution contract with Stolichnaya vodka. Pernod also said that it will pull V&S’ brands from the Maxxium distribution joint venture within two years from closing “for a low contractual cost”. The purchase does not include V&S’ 10 per cent interest in Beam Global Spirits & Wine, Inc. Then end the sentence and delete the rest of that red text. Pernod Ricard said it will now become the co-leader in the global wine and spirits industry with spirits volumes of 91m cases. Pernod also has plans to sell Plymouth Gin and Fris Vodka as part of its deal with V&S. Following the acquisition, worldwide questions have been raised including did the company pay too much and what does the future hold for Maxxium? In Australia, distributors Maxxium and Coca-Cola Amatil confirmed it would be ‘business as usual’ until final conclusion of the deal. Constellation profit forecast Constellation Brands Inc., the world’s largest winemaker, posted a full-year profit forecast that exceeded some analysts’ estimates on higher planned sales in the U.K. and Australia. The company is counting on consumers not to switch to cheaper wines, despite the weakening economy. Constellation has shed labels that run for less than US$10 a bottle and aims to promote higher-priced brands to bolster sales. That plan includes the UK and Australia, where higher vineyard production has reduced revenue. Bacardi release Mojito RTD In the United States, Bacardi has launched a RTD mojito cocktail. The 15 per cent ABV Bacardi Classic Cocktail Mojito will be rolled out in 1.75-litre bottles, followed by a 750ml size. The Bacardi Classic Cocktail Mojito will retail at US$19.99 and upwards for a 1.75-litre, with a 750mlsized version to follow in due course. More alcohol taxes The World Health Organisation is calling for higher taxes on alcohol and more regulations on its sale. Jeremy Beadles, chief executive of the Wine and Spirit Trade Association, UK, said, “The health lobby admit they want everyone to pay for the sins of a few. This is wrong and consumers will see it as an unfair attack on the innocent rather than a practical step to solve the problem.” “Alcohol misuse does cause problems. That’s why we should all focus our efforts on educating and treating those who misuse alcohol. We should not punish millions of ordinary hard working families by increasing the financial burden they already face.” Diageo’s Irish brewing investment Diageo will invest EUR650m (US$1bn) in its brewery infrastructure in Ireland. The company announced it will need to close two of its breweries as a result. Paul Walsh, chief executive of Diageo plc, said, “This will be the single biggest capital investment made by Diageo in its supply infrastructure since the company’s creation 10 years ago and will enhance the cost competitiveness of our global beer operations. It represents a major vote of confidence in our beer business and in Ireland as a global brewing centre of excellence for our company”. The St James’s Gate brewery will be upgrated to produce Guinness primarily for the Irish and British markets. A new brewery will be built on a suitable site close to Dublin, due for completion in 2013 16 drinks trade when it will be Diageo’s biggest brewery and the largest in Ireland. It will produce Guinness to meet growing export demand as well as ales and lagers. When the new brewery is commissioned in 2013, all production from existing breweries in Kilkenny and Dundalk will be transferred, resulting in the closure of those facilities. “No roadblocks” to Heineken As reported in just-drinks, the head of United_Breweries has said that there “shouldn’t be any roadblocks” in his company’s negotiations with Heineken over a stake in the Indian company. Just-drinks said that reports out of India in the last few months have suggested that Heineken, which will inherit Scottish & Newcastle’s 37.5 per cent stake in UB when it completes its purchase of S&N in the coming months, could face hostility from UB over the change of ownership. Heineken jointly operates Asia_Pacific_ Breweries with Fraser & Neave. The joint venture operates in 11 countries in the region, including India, a fact that has reportedly caused UB some concern. “We have already indicated to Heineken that they cannot be part of competing structures in India,” a senior UB official told local reporters last month. Speaking exclusively to just-drinks on 15 April, however, Vijay Mallya, the owner of UB, said negotiations between the two companies remain ongoing. “Scottish & Newcastle had a preferred shareholder status (within UB), which included representatives on the board,” Mallya said. “That has now fallen away - Heineken does not inherit that status. Heineken becomes an ordinary shareholder. I think they would, understandably so, want to have a preferred shareholder status with us. That’s what we’re negotiating right now. When asked if there is any uncertainty over Heineken’s stake inheritance, Mallya said: “There’s no issue at all. They’re still in the process of completing their takeover of S&N, so it was rather premature before even the shareholders voted for it, which was only at the end of last month. “It’s early days yet,” Mallya added. “But I have an excellent relationship with (Heineken CEO) Jean-Francois van Boxmeer. There shouldn’t be any roadblocks.” Source: just-drinks Australia’s leading importer of premium alcoholic beverages. For sales and support call your Southtrade representative or call Dave Higgins on 0419 589 620, or visit www.southtradeint.com.au for more information. Drinks Trade Insight A fine vintage With a recent name change and sale of one of its wineries under its belt, Australian Vintage Limited is looking to grow their brand and business. Katrina Holden spoke to CEO, Dane Hudson. Drinks Trade: What were the reasons behind the name change from McGuigan Simeon to Australian Vintage Limited earlier this year? How has the name change been received in the trade and has there been any unforeseen ramifications? From the time I started with McGuigan Simeon a few years ago, we’ve always been of the view that it made sense to change the name, and the reason behind that was McGuigan is one of our brands. Really the name McGuigan Simeon is a combination of two companies that merged, with McGuigan being the brand that Brian McGuigan first started. But since then, we’ve acquired and grown a number of other brands and having just one brand in our name did not make sense. We decided we would make our name more consistent with what we are, which is one of Australia’s largest wine companies and so we came up with the name Australian Vintage Limited which we already owned. It also made the whole transition a lot easier and has been received very positively by the company, our customers and people around the industry. One of the reasons is that it provided me an opportunity to launch the business with a new vision 18 drinks trade and set of values. It also gave me a reason to tour around the country, meet with our people and say this is really what our company is about now. I think that flowed well into the organisation and from a customer standpoint, I think people really understand. As I said, McGuigan Simeon was a merger between two companies and Australian Vintage was probably a better description of it because we have branded product, we have private label product plus we also sell some bulk wine. There have been no issues with the name change. DT: In February at the announcement of your financial results, the company said overall sales had increased in the first half as you’ve moved towards more higher-value branded wines, exporting 33 per cent more branded bottled wine than the prior corresponding period. Is this reflective of a change in strategy for the business? No not all. When I started with the company, the board and Brian McGuigan had always said that one of our key objectives was to grow our brand and business, so this is a continuation of that approach. One of the things I’ve done to be investing a reasonable chunk of this back into our business to make sure that we stay at the forefront of technology and productivity. DT: How did the 2008 vintage fare for Australian Vintage Limited and was that in line wit.h your expectations? Our tonnage was 183,000 tonnes which is 15 per cent up on last year’s 158,000 tonnes so that’s good. But one of the drivers there is that we purchased quite a lot of water which meant that we had good yields out of our own vineyards. DT: You have stated in the past that the company’s future growth would be achieved through three strategies - to increase exports, to build and buy defendable brands and to be the lowest-cost producer of quality wine. Is the company on track with each of these strategies and what are the main market challenges you expect to face this year and next in attempting to meet your goals? is to be very specific in what my three strategies are – to grow export, to grow the brand and business and to maintain our low cost position. Each of these points has been a consistent focus for McGuigan Simeon for many, many years. What I’ve done I suppose is to be a little more focused in driving us ahead. DT: How will the company use the proceeds from the $60m sale of the Loxton winery to Indage Holdings Ltd? Are there plans for any future acquisitions? I think we’ve been consistent in saying we would like to grow our brand and business and if that means there’s an opportunity out there for an acquisition, we would seriously consider it. We continue to look at other brands but there is nothing imminent to announce. We do think it would be worthwhile for us to own another one or two brands that either add from a geographic standpoint or are in the right price points where we hope to grow. I anticipate that of the $60m from the Loxton sale, around $40m will be used to pay down debt and probably around $20m will be invested in the Mildura area and our packaging facility etc. We’re going I’m very pleased with what the team has achieved over the past year. We have been specifically focused on our three strategies and see significant progress across them all. On the export side, we’ve established some very good international relationships with new distributors around the world and we’re beginning to see the fruits of that in terms of total sales but also more importantly, in terms of branded sales. Having the right partners is critical to growing your branded business and I feel confident about where we are from an export and branded standpoint. On the domestic side, I’m very pleased with our progress as well. We’ve been investing in our brands and doing more consumer based promotions which are having an impact. So I’m pleased with our branded business, both domestically and internationally. In terms of maintaining our low cost position, it’s historically been a strategic advantage for McGuigan Simeon so it needs to be an absolute priority for Australian Vintage going forward. The sale of Loxton Winery will help us embed our operations around the Mildura area which creates simplicity and will ensure we really do stay as one of the lowest cost producers in Australia. In terms of hurdles, clearly the high Aussie dollar is a challenge. We have a very big business in the UK and a smaller business in North America but obviously the Australian dollar has increased against the Pound as well as the US dollar. So that does create some challenges. That’s one of the headwinds that we face. The weather is another big issue for us. We still haven’t received the rain that we need in the key growing areas so I anticipate there are a lot of people out there like us who will need to buy more water in 09 vintage. A lot can happen in the next few months and we’ll keep our fingers crossed that it starts to rain in the right areas but as we sit here today, the ongoing drought is a concern for us all. It definitely is a level playing field but with that said, we export 60 per cent of our product overseas. Maintaining low costs, that includes having efficient grape production, which is important. So while it’s a level playing field in Australia, it’s not necessarily a problem facing other countries, so it’s not really a level global playing field. That’s why I think that factor will remain as a headwind for us. drinks trade 19 Drinks Trade Insight Independently Douglas McKay, chief executive of Independent Distillers granted a rare interview to Katrina Holden at Drinks Trade to discuss recent changes to his business and the challenges facing the RTD category. Drinks Trade: Following the private equity buyout of Independent Distillers by CCMP Capital Asia Private and Pacific Equity Partners in December 2006, what changes has the company made to its business proposition? Since acquisition we have made a very successful change to the new private equity ownership of PEP and CCMP. What is fantastic is the Erceg family has also retained a significant double digit shareholding in the company as well. The ownership challenge has been to respect and leverage historical strengths but acknowledge and move on necessary change that can take the business to new levels of performance. I think we have and are achieving that. We have retained all the key management. This was critical as these people were the architects, along with Michael, of the company’s stunning success for 10 years previous and have a lot to contribute to its future. Warren Hignett is running Australia, Chris Tobin running NZ, Bob Lewis operations supremo and Richard Casey RTD marketing genius. They are all on board for the next phase of the journey and highly motivated to kick some goals. To this incumbent team we have added new executives including myself as CEO, Julian Davidson as CFO, Tony Gapes for full strength spirits, Robin Campbell for international and Jeff Busch for beer. All of the new players have extensive liquor industry experience. It’s a top team. Whilst retaining and building the exec group was a high priority, we wanted to do that in the context of preserving the culture of Independent - the things the company is renowned for like rapid and low cost innovation, speed to market, pushing the envelope, a unique sales culture and world class flexible operations. We have achieved this. For example we launched 34 new products in 2007, our first year of ownership. This was as many new products as the best years in the company’s history. While we have maintained the sales model we also restored our relationship with ALM and gained access to their superior cost to serve model and broadscale distribution capability. To leverage ALM’s access and strengthen our direct support model for those customers wanting flexibility of both from time to time, we have recruited 20 plus more sales people in Australia to drive our coverage and lift distribution. In NZ we have published for the first time a set of trading terms and volumetric buying breaks. While not a radical change, it builds off what was already strong in the company to make it even better. We haven’t had to do much at all on cost. We identified in our acquisition model some cost opportunities but we delivered those in our first six weeks of ownership effectively and the only priority since then has been to drive growth, and I know Michael would like that. Our growth prospects are very exciting. We have core brand development, duty free, exports, improved core business execution, new categories 20 drinks trade and brands such as Scotch with the recent signing of Whyte and Mackay agencies, beer where we have a 100 million litre brewery virtually unused in Melbourne, pricing and margin management, RTD brands and segments beyond our core value offering, contract packing at our two beautiful near new facilities and this isn’t all by any stretch. Another area of real change has been on core systems and the control environment. We have established a new set of accountabilities and key metrics and enhanced significantly our reporting capability around them. The business already had very good controls on sales but not so strong on other dimensions. For our banks, board and ultimately for our new future owners we needed to lift the game a lot here and we have. Financially we beat our year one goals end Dec 07, have a clean balance sheet and received an unqualified audit report form PWC. We were tidy for our start to 2008 and have now effectively put the acquisition phase behind us. I am very happy with year one. We have our next three to five years planned, with the team and resourcing in place to get there. DT: What are the manufacturing capabilities of your business and how is the export side of your business performing? Independent has specifically designed its state of the art production facilities in Melbourne and Auckland to rapidly respond to daily sales and market needs. Our plants can and do produce RTDs, spirits, beers, energy drinks, wine based drinks, wine, alcohol based milk and cream based drinks to meet the changing needs of our consumers. Our filling range covers bottles, cans, spirit/wine bottles, two and three litre casks and the innovative shots glass for 30ml and 50ml multi double flavoured drinks. We are capable of producing bottles from 200ml to 660ml at 1000 bottles per minute or cans from 250ml to 500ml at 1000 to 1200 cans per minute. We also have the slim line can filling from 200ml, 250ml and 300ml cans to meet specific consumer’s brands at 500 cans per minute. Bottles use quality self adhesive labels for body, back and neck labels as well as full bottle sleeving at full line speed. Packaging outer cartons can be provided to meet the price point required for our consumers in high quality graphics as well as standard shippers using quality graphics as well. All operational plants are certified to the highest quality standards to meet the rigorous standards demanded by our major customers before you can trade with them and these standards are audited annually by Independent auditors. We also have a green field can filling plant in Sydney that focuses on the New South Wales and Queensland markets for RTD cans only. DT: Has there been any changes to the structural organisation of the business, following any recent staff appointments? We have invested significantly and resourced up the organisation structure. We have resourced for growth essentially. New functions and capabilities include financial management, information technology, a new export and international division, new full strength spirits division, new beer division, enhanced trade and brand marketing, and increased number of sales people in both Australia and NZ. We are about right sized now for our ambitions and any future additions will come in our export and international area as we strike up new relationships in different countries. All these new people are of the highest calibre and are motivated by the private equity environment and by the responsibility to carry on Michael Erceg’s legacy. We aren’t big on adding staff functions – we want roles that do things and where we don’t have the internal capability, we will happily contract some of these requirements in. Michael had a lean organisation philosophy and we want to continue that, avoiding the corporate bureaucracy and politics that comes with it. It’s one of the cultural benefits that attracts new people to us. It’s quite interesting that we don’t have organisation charts, nobody could produce one from their files. I find this sort of approach very refreshing after a long career in corporates. For example, we rolled out a minimalist set of company policies the other day and the booklet was only as long as the introduction of Lion Nathan’s Policy Manual! DT: The Independent Financial Review quoted you in January as saying, “We need three to five years to deliver our plans and ambitions for the business...and when we do that the business will be a lot more valuable than it was five years earlier, and we’ll get a higher price for it.” Are you able to elaborate on your plans and ambitions for the business or if you are on track to achieve your goals? Independent is on track to achieve its goals. We see the potential for a quantum shift in sustainable earnings as we look to build distribution; continue to innovate and lead RTD category growth; international and export expansion; nurture three to four powerful consumer brand equities; realise the installed and latent potential in our beer and full strength spirit business. We won’t be changing our business model in Australia with the value segment being our core focus but we will place RTD brands selectively into segments where we currently aren’t or don’t have a position eg.Scotch whisky; and continue the culture of lowest cost base in the industry. I am unable to disclose specific plans and targets for competitive reasons but our vision is to become the best RTD company in the world. DT: With the ongoing national focus on teenage binge drinking and possible legislative changes facing the industry, some of the larger liquor companies have announced plans to cease production of energy RTDs and set a limit of two standard drinks per single serve. What is Independent’s position with regards to the energy component or ABV of the RTDs in your own portfolio? We all have to be concerned about binge drinking at whatever level you choose to believe it is occurring. But the latest massive tax increase on RTDs won’t fix Australia’s problems with alcohol abuse in particular and binge drinking specifically. That’s because there is no evidence at all to link RTDs with any increase in binge drinking in Australia. The evidence is overwhelmingly clear that per capita alcohol consumption is flat despite the strong growth of RTDs and numbers of young males and females at alcohol risk have reduced slightly between 2004 and 2007. Consumers are choosing to drink RTDs in a repertoire of products and have substituted out of beer, wine and spirits to do that. Given RTDs are same strength as beer for most products this growth in RTDs could arguably be reducing alcohol consumption from wine at 13 per cent and spirits at 40 per cent ABV. The government are either not aware of the evidence on RTDs or are choosing to ignore it. The tragedy here is this excise hike will do nothing to reduce binge drinking. Binge drinking is an all alcohol problem, young males preferred binge drink is beer first, and for females, it’s spirits and wine. Binge drinking is also a problem across all age groups, not just young people. Where is the sense in making the preferred binge drinking products relatively less expensive than RTDs, and when RTDs are lower strength products generally? International experience is also clear that tax increases on RTDs won’t change drinking culture. The UK government taxed RTDs in 2002 to the point of nearly destroying the category but has it changed the binge drinking culture in the UK? Of course not. Binge drinking is a complex issue and trying to pass off responsibility to a narrow segment of the alcohol market is dishonest and cynical. Binge drinking occurs across all age groups, all forms of alcohol, is about how and where we drink as much as what we drink, and is sadly part of our culture and history with alcohol. Simple solutions won’t work. We need evidence based, practical and cost effective solutions involving industry, government, health and community groups. Independent Distillers supports the two standard drinks limit and has nearly achieved compliance across its whole product range. We support clear labeling of alcohol content and would support an education campaign to attack the root causes of binge drinking. New Zealand’s industry funded ALAC has just launched a very powerful three TV ad campaign to do exactly that and early results are very encouraging. This campaign should be funded by a social responsibility tax across all types of alcohol rather than the discriminatory and ultimately ineffective tax in respect of reducing binge drinking just applied to RTDs which only represent 10-15 per cent of total alcohol consumption. The balance 85 per cent of industry in beer, wine and spirits should not get a free ride but contribute proportionally to the funding of education and any other revenue objectives the government has. There is still time to amend this tax accordingly before passing it in the senate. We would also support limitations on advertising content and restricted use of the media, and where it can be proven to make a difference, warning labels on products. We will also look to lift our level of industry engagement and dialogue in industry forums to contribute to finding solutions rather than band aids. What we would like from the Rudd Government is more engagement with industry and to acknowledge alcohol abuse is a problem across all alcohol types and that discriminatory taxes on RTDs is a flawed strategy to combat binge drinking. Alcohol, however you drink it, is still alcohol and should be taxed the same based on content. What is the justification for a five per cent beer to be taxed differently from a five per cent RTD? RTDs now will be taxed 50 per cent higher than pack beer, 80 per cent higher than tap beer and over 10 times higher than cask wine. Consumers will just switch to these cheaper alternatives. We would support changes to excise that apply to all alcohol types equally based on alcohol content, no matter what the source product. In this case a three to five per cent excise increase across all alcohol types would achieve the same tax revenue as the just imposed 25 per cent increase on RTDs, and be a lot more secure as on RTDs, there is no doubt this hike will lower volume significantly whereas a more modest increase across all alcohol would not. drinks trade 21 g n i k Ta t h g i l f Drinks Trade Insight Equal shareholders and directors of Southtrade International, Dave Higgins and Tony Stubley, have come a long way since starting their business together six years ago with Green Fairy absinthe. Here they discuss their business and talk to Drinks Trade about the latest brand to join their growing portfolio, Patrón. By Katrina Holden. I t’s been six years since Dave Higgins and Tony Stubley founded their business Southtrade International, importers of premium alcoholic beverages, but the memories are fond of those early days. The pair started off door-knocking to pubs and bars in Sydney’s Oxford Street and Kings Cross. Dave would say to the proprietors, “Hi, I’m Dave and this is my partner Tony and we’re selling the Green Fairy”, to which they would be met with a very camp and enthusiastic, “Well come on in boys!” This year, the company expects to turn over close to $7 million – a target that will be partly attributed to the newest product to join the portfolio of approximately 30 SKUs – luxury white spirit, Patrón (pronounced Pat- Rhone). Dave and Tony, together with visiting brand principal Chris Spake, global brand manager The Patrón Spirits Company, who was in Sydney from the US, spoke with Drinks Trade magazine. DT: What distribution strategies does Southtrade use to take its products to market? With a growing portfolio, does Southtrade plan to occupy a bigger space in the Australian liquor industry? Tony: Our whole aim is to bring new and unusual things to the liquor industry and spirit enthusiasts. Out of that whole portfolio, there are some that we are looking to build into significant volumes, and others that are doing quite nicely with smaller volumes. The key brands we are really growing are Green Fairy, which we built the business on, and now, very much Patrón. We think it has the potential in the next couple of years to outsell Green Fairy. Third is Alize – three brands that we’re really investing in and building. On top of that, then you’ve got Pusser’s British Navy rum which is something we will also invest in and it won’t be a huge, mainstream brand but it is something we’re targeting with its naval connections. Since our service is to bring new things to the liquor industry, we are constantly launching new things e.g. City of London Gin – a brand we will build as a firstpour brand on-premise. Where it is now, with Beefeater repositioning upwards, vacating that position, and with City of London created by the family that created Beefeater - that will give us a bit more presence in the volume area. Dave: One category we’re fascinated with is the rye whiskey category. When 22 drinks trade Tony and I were at Jim Beam, we said that bourbon has had its day but the next thing could be rye whiskey. If you look at the brand that won best whisky in the US last year, it wasn’t Irish, Scottish, American or Tennessee - it was Rittenhouse 21 year old which won whisky of the year and the 23 YO just won a gold medal at San Fransisco and we’ve got that in our portfolio - it’s starting to go off. All the bartenders are using them in their Old Fashioned cocktails. Green Fairy was the cornerstone that built our company but it’s all the little niche products that we’ve picked up that the bartenders now say ‘You’ve got a sexy portfolio’. DT: How do you decide which events or sponsorships to put your products behind and what value do they offer your various brands? Tony: We have to look back at our whole reason for existence which is to service the bartenders because they are our salesman. It’s all about relationships with them. Most of our business now is on-premise but we’ve done it all by having bartenders behind us. You’ve got to remember that when you’re starting a brand too, with bartenders, it’s not just what they’re serving over the bar but they have a huge influence with all of their friends. They are really big opinion leaders in the whole liquor category so when it comes to events, it’s all about what is going to help us develop our relationships and connect with them. We’re making a real strategic change this year. We were in the very first Bar Show which was great as we were the underdogs with absinthe. As we grew, we developed our stance as Australia’s leader of premium imported alcoholic beverages so we started to project a more professional image. Now, we’re not doing Bar Show this year for the first time because there are so many people attending that event who are not the key decision makers. Now, we only want to connect really strongly with the influential, key people. So we’ve brought a luxury cruiser and every month we take out key industry people and where possible we tie that in with visiting principals. It’s making a big statement and the bartenders don’t often get treated to this. We’re pulling away from the more mainstream events and focusing on more targeted activities. Something we’ve got over the big boys is that we operate off fairly small volumes and fairly good margins and that margin means that we can firstly employ and pay reps who are really good and we can keep them. They’re incentivised largely by commission but they get fairly healthy commissions compared to the rest of the industry. So they have to put up with a lot of difficult things in a growing company but they put up with it because we treat them well and pay them well. They can walk into any situation and do training on any one of the brands we represent – not as well maybe as the brand principal but very close. L-R: Tony Stubley, Chris Spake and Dave Higgins. Chris Spake: They’re good – I’ve been listening to them all week and they’re the best I’ve seen. It sends chills up my spine. It’s not just their expertise either - it’s the breadth of the relationships they have with all the right people. DT: With a new acquisition to your portfolio, the high-quality ‘Patrón Tequila’, what are your plans for building brand awareness and driving distribution of Patrón in the Australian market? Dave: The reason this will move and the way we’re going to push is that we’re not selling tequila – we’re pushing a luxury white spirit and that’s the way it’s been promoted in the US. We see this as the driver of our company going forward. We’ve had three big brands – Green Fairy when it first launched was a banned product and it has a cult following. Then along came Alize which has a cult R&B following with a captive market and now Patrón which is like a tiger with a tail - it’s 1.6m cases and is the 19th most valuable brand in the world based on retail turnover and volume. Tony To answer your question of ‘how’ do we do it, it’s getting into that actual A list and it’s quite easy to do because the first steps have been set in the states and we do tend to follow the US with these type of drinks. DT: Chris, what were the reasons behind your decision to partner with Southtrade International as your distributors here in Australia? What are you hoping they will achieve for the Patrón brand in Australia? I like these guys. That’s first and foremost about having a trust and a relationship between a brand principal and the boys that run the business. Their experience and what they’re doing with their current brands and the way they run their company, their staff etc. For us, this is a people business more than anything and we’ve got to have people that we trust who have strong capabilities. It is not our strategy to be in a big company because I need to focus on education and training. We’re taking a consumer who thinks that tequila is a shooter and a slammer, or something that kills you the next day, and we’re taking them from that to a place of a luxury spirit that you can sip on the rocks, it costs $100 a bottle and we’re doing that with people who the first thing they say is ‘I don’t drink tequila’. In order to do that, I need the expertise of the type of people who work here. This is a story we have to tell account by account, then consumer by consumer. It’s taken us 20 years in America to do this and it wasn’t easy at first but because of what we’ve done there, we’ve created the luxury tequila category and so now we have momentum and that momentum, we’re now exporting. So it’s not going to take us another 20 years to do this in other markets. It’s going to take a couple of years and we’re on a roll right now. Southtrade has sold more Patrón since January than our previous wholesaler sold in the entire, previous year. We’re not really selling a category of tequila, we’re selling a luxury lifestyle white spirit that happens to be a tequila. That’s the message I want to get out – yeah, it’s tequila, it’s really good but it’s positioned beyond the category. I don’t want the brand to be pigeon holed into a category where people say ‘It’s like Don Julio’ or it’s like this or that – I don’t want to be compared to other tequilas. I want to be compared to Louis Vuitton, to Cartier – that’s how we’ve positioned Patrón. That’s how we’re going to be selling it. DT: Patrón is available in over 75 markets. Which of those are emerging markets showing the strongest growth potential and why? Chris: Canada is our most developed market after the U.S. Dan Ackroyd, the actor, and John Pol Degoria – the owner of Patron are good friends and sort of started a partnership as a hobby and it has turned into a very valuable brand. He and Dan formed a partnernship and Dan Ackroyd is the ‘Southtrade’ of Canada – he goes around and promotes Patrón at hockey games, on morning shows and he’s really the most popular Canadian celebrity. We have a lot going for us in that market. The UK has had the brand for a long time and it’s also well developed there. Patrón does well in Ireland per capita and our partners there are killing it – it’s everywhere. I think in terms of volume potential, Australia will be the biggest country in Asia but right now Singapore is, and Hong Kong would be second and Japan third, Korea fourth. Russia is really into luxury goods right now and they have a lot of cash. We think Russia has huge potential. Right now, we’re looking at Shanghai and maybe Beijing at the end of 2009. DT: What is your overall perspective and observations during your trip of the Australian liquor trade? Chris: The on-trade bar staff rank really high in terms of their knowledge and expertise, internationally. The barmen here are right up there with the UK, where it probably all started. I had 60 odd bartenders at my session in Sydney the other day and their level of understanding of how to make things was very in depth and impressive – they get it here, and these are all young kids in their mid 20s. I was a bartender in my mid 20s and all I knew was how to make a Mai Tai – I didn’t know how the rum was made! The off-trade is very well developed too. There seems to be chains for every segment of the market. The Vintage Cellars store I was in had a wonderful selection of single malt scotches. The guy in the store knew a lot about his Scotch and I was real impressed with his knowledge. There’s a high level of brand awareness and knowledge here in the trade and I’m just really encouraged by the reception Patrón has got with the people I’ve seen. They just needed someone to come in and tell them that we’ve got partners here now who aren’t going to run out of stock, we’re going to present it at a reasonable price and here’s how you should use it. Tony: The prices we’ve put on Patrón are down by about 30 per cent from where it was previously eg: the Grand Platinum, we’ve taken $120 off the bottle. DT: Dave and Tony, what does the future hold for Southtrade and to what do you attribute your success to date? Tony: Dave and I have been together now, in one shape or form for 20 years. And we both believe that the business has to be led from the top but to make that happen, it comes right down to our relationship. We’re equal shareholders and equal directors – we don’t have a managing director or any of that – we are two guys who can sit down and make decisions because we trust each other. Of course we don’t’ agree all the time but it comes down to a solid relationship at the top that makes everything work. That’s why we have good people who also have solid relationships. That’s what the success of the business comes back to – trust, respect and friendship. Dave: We’re just about to start exporting to the U.S. Green Fairy has just been legalised in America from late last year. We’ll be exporting to the US – as we own the absinth brands Green Fairy, Dabel and Koruna. It shows how the business has grown from those early days of knocking on doors in Oxford Street. Tony: We were incorporated on April Fool’s Day and we’ve been laughing ever since! drinks trade 23 The Bottle-O group is committed to deliver genuine value to our local customers. It’s all about recognising our local community, and working hard to make sure you get a fair deal. The Bottle-O is a true independent bottle shop, and we want to make sure you feel welcome every time you step through our door. For more information about our brands or how to join IBA, contact one of our team members QLD 07 3489 3951 NSW 02 9741 7240 NT 08 8922 5300 SA 08 8152 8700 TAS 03 6274 4004 VIC 03 8368 6300 WA 08 9256 2077 National office 02 9741 7222 or visit our website www.iba.net.au Industry outlook Storm or sunrise? Whether you see the future of the Australian liquor industry as gloom or doom is your choice, according to Warwick White, managing director Australasia, Coca Cola Amatil. Mr White addressed a gathering of industry at a briefing hosted by the Liquor Merchants Association of Australia. By Wendy Grabe and Katrina Holden. “ We have a choice,” says Warwick White, regarding how one views the challenges facing the liquor industry today – is it a storm or is it a sunrise? “We can take advantage of opportunities,” said Warwick. An economic slowdown is imminent, says Warwick, citing that consumer confidence is at its lowest level in 15 years, since September 1993. And while the situation fluctuates from day to day in East Asia, “bunking down is usually not the answer”. CCA, said Warwick, had learnt to make a choice in many corporate affairs issues. The choices faced include perception versus fact; reactive versus proactive; threat versus opportunity; and company versus industry. “Just being reactive doesn’t work,” said Warwick. “Companies are judged more by their actions than by their words.” Take the example of obesity, which is not yet affecting the liquor industry but more significant in the soft drink beverage sector. The expert predictions were that over the next three to four years, in Australia, the US, UK and other western countries, obesity would drive public health costs through the roof. “They’re now saying the death rate from obesity is lower than previous generations,” said Warwick. To demonstrate the point, Warwick used the example of how public perception is that soft drinks are the key drivers, or solid contributors to obesity, particularly childhood obesity. Yet a graph that takes into account the kilojoules, fat and carbohydrates of fruit juice, flavoured milk and soft drinks reveal soft drinks to contain the lowest measurements. Further, a graph sourced from the Australian Beverage Corporation and from National Health Surveys found that from 2002, while the Australian obesity rate grew, total soft drink kilojoule consumption declined. A reactive move undertaken in the UK to tackle obesity was the UK ‘traffic light’ labeling system on foods. In Australia, a proactive approach has been made with the Australian Daily Intake Guide which is supported by an industry education campaign and so far, over 400 products have been labeled. Similarly, the ‘threat’ facing CCA recently was a push to ban soft drinks. Out of this, Coke Zero was conceived. “We are now looking at portion control. The smaller products wanted in schools is opening up new customer bases,” said Warwick. “We’ve learned to respond differently to understand the issues better. A former ‘head in the sand’ attitude has been replaced with knowing the arguments and understanding the issues and engaging with stakeholders early, as well as going direct to the public to counter incorrect perceptions,” Warwick said. One of the biggest issues facing industry was also covered by Warwick during his briefing – management of packaging waste, where again, perceptions and reality vary. The perception is that beverage packaging is ruining the environment, where in actual fact, beverage packaging makes up less than 20 per cent of total packaging. Similarly, a recycling deposit system is perceived to be a good idea by consumers but the reality is it would cost consumers over $400m to run per year in handling fees. “Some players in the industry have taken a compliance approach and not contributed to industry programs. Proactively, industry leaders such as Foster’s, Lion Nathan, Schweppes and CCA have, with their packaging suppliers, funded over $70m programs over the last 20 years. The National Packaging Covenant, is a unique Australian approach delivering good results at a very low cost. Recycling rates under the covenant have increased from 48 per cent in 2003 to 56 per cent in 2006. The national target is 65 per cent by 2010. We would have to pay ten fold as much if we operated on the European system and the U.S can do their own thing. We need to work together as industry. Are we facing the perfect storm or a sunrise? It’s time to collaborate and innovate.” drinks trade 25 Beer forum Hop shots 26 drinks trade Publishing editor of Drinks Trade magazine, Ashley Pini, invited a number of brewing specialists to our first ‘Hop Shots’ session, to discuss the key issues facing the industry today. Report by Katrina Holden. 2 3 1 4 6 7 8 5 The panel: 1. Richard Adamson, brewing baron, Barons Brewing 2. Glen Cary, director, Byron Bay Beverages 3. Richard Jacob, general manager, The Australian Heritage Hotel 4. Chuck Hahn, director and brewmaster, Malt Shovel Brewery 5. Ian Kingham, merchandise manager, Australian Leisure and Hospitality 6. Ashley Pini, publishing editor, Drinks Trade magazine 7. Marco Seminaroti, brand activation manager, Pacific Beverages 8. Ben Summons, group marketing manager, premium brands, Foster’s Australia F or the inaugural Drinks Trade ‘Hop Shots’ session, our panel of beer professionals convened at The Australian Heritage Hotel in The Rocks, Sydney – an iconic pub dedicated to the fine service of beer, where above the bar sits a beer list of beers available by state. One of the first topics open for discussion was the rising commodity prices and in particular, the rising costs of barley, which has risen in cost by 40 per cent. Chuck Hahn: The biggest single issue at the moment is excise. Brewers are paying three times as much for hops as they would like to. We won’t have to double the price of beer. We won’t have a beer shortage. The cost will be passed on to customers. A lot of it is controlled by the Grain Corporation. We get most of our barely out of Tamworth and for our darker malts, we get it out of Ballarat. We all have different suppliers but they’re all quite competitive. Ben Summons: Every year we budget for cost of goods increases around two to four per cent – sometimes it’s higher, sometimes it’s lower. Chuck makes a relevant point that it’s not going to dramatically change the cost of your beer because of other significant factors. The most significant cost is exactly the excise. Chuck Hahn: Where it really hits us is craft brewers who don’t use mainstream hops but specialty hops and those prices have tripled. Richard Adamson: We’ve forward ordered for the year, our hops which we get out of New Zealand. For us, it’s hard to predict because we’re growing so quickly as well which makes it a difficult scenario in terms of working out what we need. I’m a lot more concerned about hops than malts – the pricing has come up as of May 1 and we have to pay extra but it’s not a huge cost to us. Excise is something that as a small producer, hits us heavily. We pay just as much excise as the big boys do and we have to pay it as drinks trade 27 Beer forum soon as it leaves the brewery. We’ve been pushing for WET tax equity for a long time but in the current climate it’s fairly difficult with some of the resistance we’re seeing towards RTDs and the Democrats trying to push that law through. Chuck Hahn: We can’t win the battle about commodities. I spent a lot of time back in 1988 and 1989 with Willie Simpson and Blair Hagan down at Parliament House talking to Paul Keating and his mob down there when he was treasurer and they did bugger all and the small brewers are still fighting and I feel sorry for them. Ian Kingham: Yes it’s very challenging for smaller brewers. For larger brewers, as a major retailer, we find that twice a year you obviously have your CPI increase in cost of goods and what we find and probably why barely is an emotive topic, is that with barley, not only is CPI passed onto us through product but what we’ll receive is any other cost adjustments. So twice a year we’ll get a price rise in beer which will have a CPI component but it will have another component in it also, to offset the general costs of doing business. For major brewers, on major SKUs, a lot of that can offset itself pretty quickly but for the smaller guys, their economies of scale are a lot harder. We experience it, whether you’re a major retailer or a small retailer. For major retailers, twice a year it becomes an interesting discussion on how much cost should be passed from a brewer into retail and then ultimately, how much of that can be passed on to a consumer? Ideally we want to pass it on but there’s a range of different market forces that will decide when it gets passed on and who passes it on first. Someone chooses to pass it on and someone else doesn’t. Again we find that the competitive forces in the market place, which is great, will mean that consumers are ultimately the great winner out of it and retailers tend to absorb a component very early on. Ashley Pini: So what are the opportunities and growth factors in beer do you think over the next 12 months? I’ve noted Radler beer launched and lighter beers launched over the summer and beers attractive to the female drinker; infused beers – is there a niche just around the corner we’re yet to hear about? Ian Kingham: I think flavoured beers are going to have a greater impact in this market than what people have predicted. We’ve seen this market and have been waiting a long time for it to mature. Finally I think a lot of consumers are ready to embrace this and experiment with different brands. We’re seeing that in all sorts of ways from extremely complex beers to simpler, sessionable beers. I think craft will continue and I think we’ve got a society that’s more health conscious so things like ‘preservative free’ will become of greater interest. Where I think flavoured beer in particular will win is the legislation of Kevin Rudd and the excise increases because I think what we’re finding is a lot of the RTDs have played in that ‘sweet beverage’ space, and I think beer will benefit from that. Glen Cary: I agree, 100 per cent with that. Ian Kingham: One thing in this country that no one has really experimented in, and I don’t know how it will go, but somewhere I think there’ll be more of a play on malt beverages. You see in the US it is at the value end that malt beverages tend to be very sweet and I wouldn’t be surprised if we see some of those emerge. Probably not in the next year or two but after that, I would expect to see malt beverages come into play. Chuck Hahn: On the other hand, you see craft beer is running in the states at four and a half per cent of the total beer market. What they’ve gone for is really rich flavoured beers with higher alcohol and hop levels. Some of the biggest sellers are still there, for instance the biggest selling beer in America is Budweiser Light which is carbohydrate modified and four out of the top five US beers are all carbohydrate modified. I launched a carbohydrate modified beer ten years ago and it was a great beer but it didn’t catch on. Ben Summons: It was before its time. Chuck Hahn: The food standards code really limited us and what we could say about the beer – it didn’t allow us to really to talk about the benefits of carbohydrates and calories. I think we’ll continue to see growth in low carbohydrate beers and different flavours. We can’t entice our beers, we can’t enrich our beers like the Americans by adding more alcohol or we end up paying through the nose in taxes. I make an ale that has seven per cent alcohol and I pay $17.83 per case in excise which is more than it costs me to make the beer! So that will limit us. I think we’re going to go for more flavoursome beers. Glen Cary: I think as a group, what you guys have done is the direction that we need to go. We need to get the younger adult consumer to mature their palate earlier. Today, 14 and 15 year old kids are drinking these candy drinks because they’re designed for their palate. The beer industry needs to get the consumer, that’s old enough to drink, to start looking at beer as a taste that they feel good about which is trendy etc. Start focusing on the way we market our product. As an industry, we have to talk to younger people and enhance the quality of the beer that’s being produced. Ben Summons: I think there’s a high chance of that happening and I think a lot more younger adult drinkers are starting on premium beers. #ONTACTYOUR$RINKWORKS REPRESENTATIVEOM www.drinkworks.com.au drinks trade 29 Beer forum Glen Cary: I think what’s happened recently is going to be good for premium beer producers. Ben Summons: I would suggest the young adult drinkers are a lot more open to that and younger drinkers these days are a lot more savvy in terms of what they’re drinking, and what environment and what occasion. But in light of what you were saying Ian about flavoured beers, the lighter, sweeter style will certainly take off in the next few years. Glen Cary: We should focus on the female market also because their tastes are more directed at beer. Ben Summons: When you look at the shape of our market compared to overseas, often we follow the trends from the US and Chuck mentioned before that four out of five beers are still low-carb standard lagers, but craft is four or five times bigger than it is in Australia. So we tend to say that things like low carb is here to stay and it would also say that flavour exploration is here to stay. glass beer. It’s not just Corona, but Tooheys Extra Dry and Carlton Cold and Carlton Dry still hold a strong position in the market place and Boag’s St George. I think a lot of that is about how you can see the product, there is a nakedness with that. We might see some strange things happen. I could see potentially beer change colour in clear glass and I think we’ll see more experimentation. I don’t know if the market is ready for it though. Ben Summons: It’s about standing out from the crowd so whether it be your tap fonts, as we’ve seen the size of those grow in the last few years. It depends on who you’re really pitching at. You mentioned about the health factors with Pure Blonde but it’s also about presenting a contemporary European imagery which is popular with a late 20s to early 30s drinker. You can have a good beer but you’ve also got to have a good looking beer as well. Glen Cary: What’s in the bottle has to sell the product first. If the packaging looks great and attracts the consumer but if what’s in the bottle is crap, you’ll only get them once, not twice. Glen Cary: I think there’s a market growth there for us if we channel our direction correctly and encourage younger adult drinkers to come away from those soft-drink beverages over to a premium beer. Ben Summons: It’s getting more important because we’ve seen how much the beer industry is fragmenting and we’re seeing more and more brands. That’s great if you’re a drinker, but it’s harder for us to stand out. Ben Summons: I think that’s why you see beers like Corona being so popular because they’re easier drinking as a lighter-style lager. For a young adult drinker, quite often the image is more important than the actual taste in those early years. It’s the image that you’re presenting and gradually you’ll want to start exploring with taste and build up a bit of knowledge as well. Richard Jacob: I think from a retail point of view, it’s all very good to have all these different marketing aspects but unless the product is good, it makes it very hard for staff selling that product to the consumer. They know straight away and they have to have faith in the product they’re selling. Ashley Pini: That leads me to think about the packaging of the product and the image it presents. When looking at on-premise consumption of a drink, what sort of innovations can we expect to find in the packaging of products if it’s so cool to have a ‘brand in the hand’ there at the bar? Ian Kingham: If we come back to the consumers and why different styles are emerging, the packaging then ultimately will tell that story. So if you’re a lowcarb beer, you’re playing to health conscious consumers. I think we’ll probably start to see a move in beer packaging that is a little bit more minimalist with more highlighting on products, highlighting the fact it’s preservative free etc. If you look at craft, it will come more down to things like boutique-styled labels or different shaped bottles and dinner-serve packs, again something did ahead of PM his time. We’re whisky ad Chuck 19/3/08 9:11 Page 1 seeing huge growth right now in clear- Ian Kingham: RTDs has gone over that ground for us with companies like Independent Distillers that released everything. The market only takes that for so long. There are flavoured beers that will come out that will go horribly wrong. But ultimately, the consumer will decide. Ben Summons: You have to be brave and try new things. Pure Blonde is an example of that for us. You’ve got to have a go. We tried other low-carb beers in the past but the market wasn’t ready. Richard Jacob: Timing is essential. You’ve got an opportunity to capture a large part of an audience and it gets its own momentum and spreads virally. Those are the key elements. It all comes back to the product having to be good essentially. Chuck Hahn: Big brewers tend to think we have to have the Looking for Whisk(e)y? Scotch, Irish, Canadian, Japanese Australian... Scotch Ben Nevis Cameron Brig Monkey Shoulder Little Mill Bladnoch Rosebank Inverleven Ben Nevis Brora Cardhu Dalmore Edradour Glengoyne Glenturret An Cnoc Benromach Linkwood Bunnahabhain Tomintoul Caol Ila Port Ellen Glen Scotia Longrow and many more Welsh Penderyn Japanese Nikka Yoichi Nikka Miyagikyou Irish Wild Geese Red Breast Connemara Clontarf Greenore Knappoque Castle Canadian Crown Royal Hirsch Rye Australian Sullivans Cove Malt whisky glassware, education, ranging and menus. Barmania is your source to the world of spirits. Call us today. barmania! • syd 02 8338 0229 • mel 03 9013 9250 • adel 08 8425 9670 • per 08 6364 4965 • barmania.com.au • One of the fastest growing beers in Australia… OLDEN L A BRONZE RS CLA S 1G GE S Now on tap. NE 00 SY D 8 MEDAL Y R O YA L 2 The all natural brew. No preservatives, chemicals or added sugar. For trade enquiries contact Glenn Cary on 0418 244 658 or [email protected] STAND IN THE SPOTLIGHT Full strength, great taste, at a sensational price... and only available to independents! For further information see your ILG Business Development Executive or call (02) 9675 8400 16 Tyrone Place, Erskine Park NSW 2759 & 680 Boundary Road, Richlands QLD 4077 Fax: 02 9675 8479 Email: [email protected] Website: www.ilg.com.au THE INDEPENDENT LIQUOR GROUP C O - O P E R AT I V E L I M I T E D Beer forum million dollar launches but we do limited releases and it gives us solid market research without huge expenditure. Glen Cary: And it’s not uncommon now for people to drink four our more brands over the course of a day. Glen Cary: It’s about the power of going to market. Chuck goes to market direct and talks to the consumer. We need to tell them why they should drink our beer. That’s a niche that smaller brewers like Byron Bay have over the bigger guys. If we can get a team of soldiers out there, it works. Ben Summons: The mid strength market is strong in Queensland where it represents two thirds of the Queensland beer market. I think there’s an opportunity for craft mid-strength. Richard Adamson: Absolutely Richard Jacob: There’s no bigger asset that having a bartender on your side which spreads products through word of mouth. Ben Summons: And someone will always make up a story even if they don’t know it! Ian Kingham: I don’t agree about craft mid-strength. People can count and keep track of their drinks. For us, 37 per cent of our business is craft. People are looking for flavour. Chuck Hahn: I think we’re building a beer culture. Beer has been our culture but we need to develop a beer culture. Ben Summons: If you look at it from another angle, there is a lot more focus on the promotion of premium beers. Ian Kingham: This industry is very cyclic. I spoke to a publican from country Victoria recently who recalls in his pub in the 1950s and 1960s, there was a trolley by the bar with mixers and flavours that customers would add to their beers to create different tastes. So some of these trends we’re talking about, have all been done before. Glen Cary: Yes, I can’t remember the last time I even saw a light beer advertised. Chuck Hahn: And beer has opened up for women now too. A woman is not looked down upon if she orders a beer now. It’s socially acceptable for a man to drink wine and a woman to drink beer. And actually, women are much more sensitive to flavours than men. Ben Summons: Older drinkers will still want to explore though, there’s still potential. Richard Adamson: We’ve never targeted women specifically. Ian Kingham: It’s not understood here. I think it’s lost in this country. There are two markets in this country where mid is prevalent, WA and QLD and there are parochial reasons for that. Ian Kingham: We’ve seen a shift in hotel culture with smoking bans and gaming legislations. Hotels have had to get clever and change their pitch. The Irish-themed pubs were a great turning point for pubs. They offered food, a safe and comfortable environment for women where they can sit down and trial different beers, which sees more adopters of your products. Richard Jacob: That’s certainly true. Hotels are not just about beer. They can have good, safe environments where the patrons are purchasing not just for themselves but for the company they’re with too, which often includes women. Glen Cary: We as a micro industry can also play a part. We’re all struggling because of the smoking bans. We need to create a bit of something, a little bit of theatre, to get the emphasis off poker machines and smoking. Drinking beer can be something we can talk about. Ian Kingham: I still think though that there will always be those occasions for blokes when they just want to look at the game on the big screen at the pub and have a beer with their mates. There will always be a need and a place for that. Ian Kingham: We don’t promote light beer in our business, we’d sooner move towards mid strength. The craft beer market is growing and will fragment. Chuck Hahn: With mid strength, you’re still getting a little bit of a high. With light beer, you’re just going to the toilet a lot! Ashley Pini: What about the issue of beers brewed here versus their country of origin? Ian Kingham: It’s a big fundamental marketing question. At the end of the day, it’s about what that brand means to you. There’s a big risk that consumers will care because you’re playing with authenticity. As great as it is fresh, consumers are getting more mature and will feel more ripped off as they get aware of it, similar to how we are seeing reduced pack sizes. They haven’t voted with their feet yet but they will. Ben Summons: There are so many beers landing on our shores and we’re seeing massive price compressions at the retail end. Shorter product lifecycles will certainly impact those brands. Marco Seminaroti: It was a big disappointment to me when I landed here from New York and Italy just five months ago. I thought I would see Foster’s everywhere! Ben Summons: Fosters would only be on tap now in about 20 outlets nationally. Richard Adamson: I think there’s more of a beer drinking culture in Melbourne than there is in Sydney, but Sydney will probably catch up. Richard Jacob: We sold 40 cases of KB on Anzac Day – not just to diggers but to a whole mix of demographics. Ashley Pini: What about low-alcohol beer. Why is it declining? Ben Summons: That’s the old tried and trusted and retro factor coming into play! Chuck Hahn: I think it peaked. It got up to 20 per cent and now it’s on a downward trend. A lot of light beer drinkers are switching to craft which they can still enjoy, just not drink as much as they did of a light beer. Glen Cary: I totally agree. It’s not younger people looking for low alcohol beers, but the older generation who are still interested in low-alcohol beers. Ben Summons: I think people are a lot more savvy with how they mix their beers over the course of an evening. They’re going for quality over quantity. A big thank you to the staff at The Australian Heritage Hotel and in particular, general manager Richard Jacob, for the hospitality extended during our session. The Australian Heritage Hotel 100 Cumberland Street The Rocks Sydney NSW 2000 Ph: 02 9247 2229 www.australianheritagehotel.com drinks trade 33 NSW wine Putting itself on the map The New South Wales wine brand has been overhauled and now collectively, the regions are telling their stories in order to win over local support and build a stronger identity in the minds of wine drinkers. Katrina Holden looked into the strategy behind NSW Wine. Grape Food Wine Restaurant, Madew Wines, Lake George, ACT T he state is known domestically and internationally as home to some of Australia’s most iconic landmarks and structures, along with the country’s biggest capital city, but how well known are the wines and wine regions of New South Wales? Apparently, there is a lack of awareness and support of NSW wines within NSW, according to industry research which has been the catalyst for the recent launch of the New South Wales wine brand, a collective marketing strategy created to represent all 14 of the state’s wine regions and build a new identity for the NSW wine industry. President of the New South Wales Wine Industry Association (NSWWIA), David Lowe, explained the need for such a campaign. “The Restaurant & Catering Association were commissioned to do a survey about the representation of NSW wines. There were some alarming results and we thought to ourselves, this is ridiculous – either all the wines are crap or we have a serious image problem.” One finding from the survey was that only 13 per cent of the wines sold at Sydney restaurants came from NSW, even though the state produces 34 per cent of Australia’s wine. In 2006, the association had the state government’s support who up until that time, says David, had expressed minimal interest. The NSWWIA in the next five years would like to make the NSW wine brand recognisable in major markets throughout the world, but initially, the campaign is very much focused on getting NSW trade and consumers behind the wines from their home state. “We found that consumers were very pro NSW wine but the trade weren’t necessarily, they were the weak link, with the wholesalers, retailers and sommeliers. So the goal is to revamp our image, and importantly, increase availability. If it’s available, people will buy it,” said David. The first initiative in building the NSW wine brand was NSW Wine Week, held in March 2008, with Fairfax as major sponsors with a ‘Sydney Cellar Door’ in Hyde Park that attracted 20,000 visitors, 103 wine stalls (representing 25 per cent of the state’s wineries) and regional hero stalls from eight of the 14 regions to demonstrate the breadth of NSW wine. “We all knew we were under-represented,” said NSWWIA chair, Tiffany Nugan. 34 drinks trade “We’ve never marketed ourselves before. Victoria, South Australia and even Queensland do that very strongly and have done for a long time. So it was time to build a brand and to start to tell the stories,” said Tiffany. “The wine week has been very successful. We’ve had lots of requests from distributors and I’ve received lots of feedback from the participating wineries. All it’s done is turned the light bulb on. At the launch, I asked consumers to look for a NSW wine and try something new, they haven’t thought to in the past,” said Tiffany. Funding for wine tourism is New South Wales has lagged behind that of other states and no doubt has played a strong part in the lack of awareness behind NSW wines. “NSW lacks the same level of wine tourism funding and support as Victoria and South Australia who clearly have a lead on us,” said Darren Jahn, president of Wine Communicators of Australia Inc. “This is despite a number of key wine industry players, myself included (as WCA president), being on a now pretty much defunct Food and Wine Tourism Advisory Committee to the state government. They support a number of smaller activities but nothing like the food and wine trail promos that the other two states do so well,” said Darren. Depending on the venue, the customer, the wine list and of course, countless other factors, some Sydney restaurants do experience a distinct preference from their diners in wine from other states, rather than their own backyard. Simon Curkovic, sommelier at exclusive Sydney restaurant Catalina, winner of the 2008 Australian Gourmet Traveller Sommelier of the Year award and current Master of Wine student, said that for his clientele, NSW wines are a little too close to home. “Our customers often want to drink wines from further afield such as Margaret River or Marlborough,” said Simon. As a result, Simon admits that NSW wines are only represented minimally on his wine list, but does note that some regions are currently more popular than others. “Mudgee and Orange are emerging and improving, particularly in reference to Italian wine varietals. They’re doing okay, down here and people are leaning more to those wines. A lot of people seriously under-ride the Hunter Valley. I attribute that to what I call the ‘Pitt Street Farmer’ phenomenem, where a lot of small producers are weekend winemakers that aren’t making the best of quality wines and it can ruin all the hard work undertaken by medium sized firms such as Brokenwood and Tyrrell’s – they tend to suffer then as a result. A lot of Hunter Valley wines are very high quality,” said Simon. The tourists who visit Catalina however are often keen to try NSW wines. “I had a table of 30 Spanish guests in here the other day and I managed to get them to drink wines from the Hunter, Orange and Canberra. But for the locals, I don’t’ think the lack of interest is reflective at all of the quality of the wines, they just want more than a ‘local’ drop,” said Simon. But in the Sydney bottle shop, are the customers still finding NSW wines too close for comfort? According to Mike Bennie, general manager of Best Cellars in East Sydney, the regions are a little too spread and interestingly, too far from Sydney for Sydney-siders to have a strong connection. “I think that consumers are much more well-aware of longer established and premium producing wine regions. There’s a certain romance with the proximity of places that Yarra Valley and Mornington Peninsula have to Melbourne or that Adelaide Hills has to Adelaide, that Sydney doesn’t particularly have. I personally think that because there isn’t an established wine region proximate to Sydney means that our food and wine culture lacks a little in terms of parochial interest. There’s a really wonderful parochial quality about Melbourne and Adelaide in particular where people drink their own. A lot of people associate the Hunter Valley with the family holiday instead of the food and wine experience, although that is part of it. So I don’t think it’s that Sydney siders prefer to look further afield, but more there is not enough vital education from proximate regions to foster interest in NSW wines,” said Mike. Mike thinks the new NSW wine initiative is good and believes that the more people get behind NSW wines, it will bring more promotion, interest and more money into the NSW wine industry and the quality of wines will improve. “Then we can start really thinking of a local renaissance in terms of food and wine. But I do think that 14 regional heroes is a bit of a difficult ask because regionality hasn’t really been established in the minds are hearts of New South Welshman,” said Mike. But what makes someone choose a particular wine and how strongly does regionality factor into the equation? Of course it depends on the person and the circumstances, but as Professor Larry Lockshin, director Wine Marketing Group at the University of South Australia has researched, there are segments or groups of wine buyers. While all buyers start off with whether they will buy red or white, it starts to diverge from there. Around 35 per cent of wine drinkers are a more ‘involved’ group who start using combinations of region and grape variety but brand is only the third tier in the consciousness. The other 65 per cent of the wine drinking population are called ‘low involvement’ – they like wine but they’re not so concerned with all the details and tend to stick to a ‘safe’ repertoire as they’re not willing to take a risk and try something they’ve never heard of. “The issue in my mind, as a marketer, is that people don’t think when they buy a Clare Valley or Barossa wine, they don’t think South Australia – SA isn’t very meaningful. I don’t think from a consumer’s perspective, that there’s really any reason to do it. I think it’s a waste of money to try and make the ‘state’ a reason to purchase. Where it may be different however, is if you’re trying to develop a program to get your local people, within your state, to buy locally. That may be slightly different because people within NSW need to know what NSW wine is. Some of them may not know that Orange is in NSW for example. The promotion has always been based as a region. I don’t think SA consumers are somehow more loyal to SA wines at all. People say ‘Oh they’re very parochial, they only drink SA wines’ well I think it’s partly because we have three or four really well known regions and we have big making a bottling wine in SA and so its not surprising they’re in the stores. It’s not a state based policy by any means. I think NSW can focus on wine tourism, which I know they do, and I think they can focus on getting the regions to promote but I don’t think the choice criteria will ever be NSW – I think the choice criteria will be Mudgee, or Orange or Hunter. That’s how people buy – they don’t buy by state. The proposed 14 regional heroes is a big menu but a good idea from an advertising or communications perspective, but a really long term idea,” said Professor Lockshin. While the 14 regional heroes may be a good idea, there is the possible risk of pigeon-holing a region for only one varietal. Darren Jahn, president WCA and communications manager for Oatley Wines, based in Mudgee said that regional heroes will work better for some regions than others. “Whilst the Hunter may not want to be known only for semillon, the truth is they have a unique position with that variety so they should hang their hat on it. Other regions will be in a less envious position,” said Darren. Already, there appear to be some champions of the NSW wine brand who are doing their bit to promote their home-state wines. Mercure hotel group in April launched their ‘Grand Vins Mercure’ specialist wine-list that showcases NSW wines, as part of a national launch of Mercure Grand Vins in each state which has seen state-based specialist wine lists produced. The wine list has been divided into four families of flavours – tangy and tantalising; balanced and elegant; fruity and light; and spicy and full bodied, and aims to give customers a new way to discover wine. “Our hotels, as have a lot of other hotels, have probably ignored NSW wines to a large extent. You find a lot of Marlborough being ordered for example,” said Gaynor Reid, media relations manager, Accor Asia Pacific. ”But it’s great if people visiting a state can get to try different wines from that state. And all wines on the list undergo a rigorous selection process. We conduct exhaustive blind tastings, twice-yearly– to come up with a list that gives visitors to NSW a good cross section of wines. All wines are available by the glass and by the bottle, from as little as $6 per glass which is very affordable for hotel wines,” said Gaynor. In inner city Sydney, at the Glebe Point Diner, manager Andrew John is a proud supporter of NSW wines. All wines available by the glass are solely from NSW as well as two boutique NSW beers. All the NSW wines are highlighted on the list in bold so they stand out. Andrew is very interested in the environment, recycling and ‘carbon miles’ so it makes sense for him to support wines that are close, or closer, to his venue. There is also a desire to look after their customers as a lot of them have connections to or ties with wineries in the Hunter, Orange etc. As far as the success of NSW Wine Week, all indications from the participating wineries represent the thumbs up, with many committing to the event again next year. “We’ve had good results from wine week,” said James Kirby, chairman Hungerford Hill Wines. “We’re based in the Hunter but our big push is on our Tumbarumba wines. Wine week gave people an opportunity with regions like that which they haven’t tried before, especially sommeliers and big chains. We’re seeing a lot more interest and positive results and our distributors are getting good feedback. The trade has always been the big bottleneck. There are fans of our wines in ‘consumer land’ but we’re not always able to get it onto lists or in stores. There’s a perception that NSW wines are not as good as wine from other states but we’re battling that and it’s turning, but it will take a few years. We’re already seeing some doors and barriers coming down,” said James. Tom Ward from Swinging Bridge Estate, Cowra was also thrilled with Wine Week and says his winery will certainly be back next year. “It was one of the few trade shows that we didn’t lose money at,” said Tom. Swinging Bridge Estate was also involved in the regional hero chardonnay stand. “I was a little dubious about this concept originally but I was impressed at how well it worked. The consumer probably wasn’t quite aware of the regional hero concept and it probably will take time but it was a great lead in to involve tourism and the region. I know there’s been some criticism about a state-based initiative but for NSW, it’s positive to establish an identity. It’s too hard to get any leverage from the regional bodies. If we can get a state body going, that can only help most people,” said Tom. The work that’s already been undertaken by the individual regions will continue, as it seems unlikely that NSW wineries will place all their eggs in one collective basket. “It was nice to work as a region and promote the state as a whole,” said Darren Jahn of Oatley Wines, “I think it’s up to us (Mudgee) to sell our own unique story but to support the state activity too. It’s been a particularly good consumer promotion and could probably do with a more focused trade event, but overall seems to have been a tremendous first year kick off,” said Darren. Further plans for the year include a revamping of the NSW wine awards, held in October. ”We will be sophisticating and improving the awards this year,” said David Lowe. “They are expanding every year and we get more and more entries, which bucks the trend of other wine shows,” said David. Tiffany Nugan says the awards will have better focus on and reward regional heroes. There is also more trade and consumer events to come, to reinforce the NSW story. drinks trade 35 NSW wine New South Wales Summary New South Wales Summary Weighted Average Price Over Time 500 50 $1,000 400 40 $800 300 30 200 20 100 10 0 2000- 2001- 2002- 2003- 2004- 2005- 200601 02 03 04 05 06 07 $/Tonne Bearing Area ('000) Tonnes ('000) Production and Bearing Area $600 $400 $200 $- 0 200001 Financial Winemaking grapes tonnes YearBearing area hectares Tonnes 77 994 39 198 26 698 10 573 3 421 Red 85 038 42 124 9 885 4 682 10 986 Top Five Export Destinations (litres) MAT March 2008 United States Of America 56% Other 18% White 122 318 66 567 8 922 13 780 5 794 200607 Tonnes 366 936 75 170 56 296 40 580 36 515 Total production tonnes 207 356 108 691 18 807 18 462 16 780 Top Five Bottled Exports by GI Label Claim¹ (litres) MAT March 2008 Other 14% Hunter Valley 32% Mudgee 7% Central Ranges 14% United Kingdom 12% 200506 Total Australia Riverina 23% Canada 7% Notes and Definitions: 1. GI Label Claim – Australian exports in litres by GI region claimed on label. Sources: ABS Cat. 1329.0 Australian Wine & Grape Industry Jan 2008, 2007Australian Regional Winegrape Crush Survey, Australian Wine and Brandy Wine Export Approval System. For more information on Australian wine please visit www.wineaustralia.com 36 drinks trade 200405 Orange 10% Belgium 3% Germany, Federal Republic 4% 200304 White Chardonnay Semillon Colombard Muscat Gordo Blanco Sauvignon Blanc Top Five Producing GI Regions by Red and White 2006-07 Region Riverina Murray Darling - NSW Cowra Hunter Mudgee 200203 New South Wales Top Five Varieties Production 2006-07 Red Shiraz Cabernet Sauvignon Merlot Ruby Cabernet Pinot Noir 200102 A family of over achievers. Named in honour of Deen De Bortoli, the Deen Vat wine range won its fair share of them. The most recent accolades from the consistently over delivers on quality and value. The range is 2008 Sydney Royal Wine Show saw the 2006 Deen Shiraz and testament to Deen’s great passion for making quality, affordable 2006 Deen Petit Verdot awarded gold. If you’re looking for a wine. Season after season it continues to impress some of the well-priced wine that will exceed your expectations, these over toughest judges. No stranger to awards, the Deen Vat range has achievers represent excellent value. Visit www.debortoli.com.au Luxury spirits The luxe life The spirits sector has seen a trend toward the luxury segment, experiencing healthy and stable growth both in the on and now the off-premise. Ashley Pini spoke to some of the producers of premium spirits to find what’s driving the trend and what consumers are buying. T he growth of premium spirits follows on from the global trend of trading up to better quality products. Consumers are continuing to trade up and seek out accessible luxury products and the spirit category is meeting this demand with products of high quality, rarity, integrity, craftsmanship and rich provenance. Fifteen years ago the luxury segment was not the significant market player it is today. This realisation has been the result of consumer demand for accessible luxury. Today people work hard and many earn healthy incomes. Leisure time has taken on a new meaning and this same demographic can enjoy the fruits of their labour through accessible luxury experiences. Luxury spirits provide consumers with a higher quality and more memorable experience, while offering a point of difference for the outlet or venue. In addition luxury spirits provide a value growth proposition to the trade rather than a pure volume focus. Given the product is founded on outstanding quality supported by credible branding, there are opportunities to develop luxury SKU’s across more spirit categories – 10 Cane Rum being a perfect example. The trade can realise greater profit margins by adopting a focused approach to luxury spirit ranging and by driving luxury spirit experiences, particularly onpremise. Consumers are actively seeking to drink less but better, so promoting the provenance, heritage, value and appreciation of quality can assist in greater sales of the luxury segment. There is room for at least one luxury SKU in each of the major spirit categories because luxury is defined by unique character. Consumers are now appreciating the flavour nuances and characters in luxury spirits much like they have been with wine. There are more luxury spirits to choose from now than ever before. Driving the interest in this category is the focused approach leading companies are taking with the luxury brands in their portfolio. Diageo has long been involved with luxury spirits and is focused on developing the experience attached to the luxury spirit in question. Johnnie Walker Blue Label, for example, is now being served on-premise in the best available crystal brandy balloon with side serves of water and ice. The consumer is encouraged to take a sip of the water and then a sip of the whisky so both mingle on the palate. This way of experiencing Johnnie Walker Blue Label was created by the master blender, Dr Jim Beveridge with a main aim to reveal the luxurious quality of the spirit. The story behind these brands is key; the consumer is hungry to 38 drinks trade know more - where they come from, how they are made and why they are so special. So is it the experience and the theatre that confirms the products as luxury, or is it the price point? When is a product considered luxury, rather than just premium, or super premium even? The category itself has taken on a certain mystique and opinions are divided on what constitutes a luxury sprit. When asked what price point represents a luxury spirit, most suppliers referred back to the experience and the perception of the brand. In the case of Patrón (pronounced PAT-RHONE) the exclusive nature of the spirit virtually takes it out of its own category. On a recent visit from the US, global brand ambassador for Patrón, Chris Spake, retold stories of Patrón not being recognised as tequila, but as a category unto its own. This is not an isolated incident of course, though Patrón has been particularly successfully at leveraging the rapper lyricists and A-list celebrities driving consumer interest and the desire to be compared to other luxury products referred to in the same songs. Reserva De La Familia from the José Cuervo portfolio is an example of a luxury spirit extended from the market leading premium tequila –Jose Cuervo Especial. Alongside the luxury portfolio of whisky brands, Suntory has extended its range well into this market. Roman Vargha, brand manager for Suntory’s whiskies said, “Despite increases in fuel, interest rates and general living costs, persons in the high income bracket seem to have not been affected greatly as they continue to become savvy in the beverage market and willing to spend for these luxury spirits.” Consumers are continually demanding more in terms of quality and are looking for something that sets them apart from everyone else. When asked what differentiates his vodka from the rest, Bacardi Lions’ Demetrius Giouzelis said that, “Grey Goose provides consumers with the option to drink the world’s best tasting vodka, made in the fine epicurean tradition of the Cognac region and they are willing to pay more for that distinction.” The new luxury world is no longer just about price, it’s about the unique experience, the quality, the satisfaction achieved and even value, as such bringing rise to this notion of ‘affordable luxury’ . This is clearly apparent in the growth of champagne consumption over the past few years where at a $70 price point some brands have become part of consumer’s usual drinking repertoire. Fifteen years ago the luxury segment was not the significant market player it is today. Luxury spirits are not reserved to our traditional notion of each spirit category; recently launched with Think Spirits is the Brazilian cachaca named Sagatiba. Joe Milner, brand principal commented ‘Sagatiba is the first luxury brand of cachaça that has recognised this opportunity and invested in improved and proprietary production processes and backed that up with brand development worldwide.’ Clearly following in the footsteps of successful luxury brands with a strong story and brand history, Sagatiba will adorn the on-premise cocktail making scene with a rightful place among the well educated and increasingly professional bar professionals Australia has to offer. Cognac has always been in the luxury category and has seen many product transformations over the years. The category has enjoyed welcome recent growth, particularly following the glut of the nineties which threatened the growers and Cognac producers. “Elegance defines our products and the beauty of the packaging. It also defines the universe in which they are enjoyed, the people, the places and the moments, elegance is essential in today’s world”, states Cyril Camus, Camus marketing and development director. In a world forever on the move, adaptation essential and five generations of the Camus family have understood this and dedicated their efforts to the constant innovation in that most traditional of spirits – Cognac. When creating his new range, Cyril Camus was anticipating the consumers move towards a lighter and more elegant product and commented: “Elegance was the objective, letting the beauty of the cognac shine through.” The product has to deliver of course, but the atmosphere and service is the key to creating the luxury environment. Foveaux bar in Sydney has teamed up with Möet-Hennessy to do just that. “With the Belvedere Personalised Bartender Service, we have taken a vintage idea and served it up to our customers with a contemporary twist. It is all about engaging guests with an interactive drinks experience, offering Belvedere cocktails created to their exact tastes,” said Julian Serna, Foveaux’s drinks specialist. “It is all done with a touch of luxury, which is of course in line with everything we do,” he said. The common thread? Luxury is an experience. ‘Cocktail chef’ Ben Davidson is one of Australia’s most accomplished and respected bartenders, having been awarded Bartender of the Year three times. With 20 years experience behind the bar he has a reputation of being one of the most knowledgeable bar professionals in the liquor industry today. The self-styled ‘cocktail chef’ first brought a culinary sensibility to cocktails in the late 90s, using flavour combinations that you’d more likely see on a plate than in a glass. Ben has been a co-creator for the ‘elixir group’ since 2005 and is also the spirit ambassador for Pernod Ricard Australia representing the premium brands in the portfolio whilst driving the company’s on-premise training and education program. In the first of a series, Ben Davidson, gives us his view on the forces driving the cocktail revival. Drinks Trade: How do you see the development of premium and luxury spirits being embraced by the Australian bar scene? Ben Davidson: The evolution of premium spirits is well and truly being embraced by the bartenders of the land. This has a flow on effect in that customers are exposed to better tasting spirits in their drinks. The term ‘luxury spirit’ is still somewhat new to most bartenders and consumers alike. The true luxury spirits are ones which are beautifully and meticulously crafted, carefully aged and perhaps blended. They are very rare and very expensive. The idea of ‘affordable luxury’ applies to that next level down; super-premium spirits that can be enjoyed at the right time without being excessive. DT: What opportunities are there for bars to take advantage of the trend towards top shelf brands? Ben Davidson: A well stocked bar should have premium examples across drinks trade 39 Luxury spirits all spirit categories. The real skill lies in selecting the right balance of superpremium spirits that work within the framework of the business. It’s almost a case of being a bit spoilt for choice but it’s a healthy sign. The responsibility is on the bartender, however, to educate his or her customers so that they can move some of the super-premium and luxury spirits across the bar. (Barry Chalmers, Nick Van Teil, Matt Hewitt, Dean Callan, et al). These guys have a huge understanding of the whole ‘fine art of mixing drinks’. DT: What’s a luxury cocktail you can recommend for the winter months? Ben Davidson: This one I drank whilst celebrating World Cocktail Day. It’s a delicious heart warmer based in a Scotch Mist that combines Chivas Regal 18YO whisky stirred with crushed ice and a homemade apricot and butterscotch syrup with a dash of orange bitters. DT: What is your opinion of the knowledge level in the front line of Australian bars on these premium products? Ben Davidson: I’m very impressed with the level of knowledge of bartenders around the country. There has been coalescing of spirit and cocktail awareness of late, driven by a few converging factors. Spirit brands have been offering product training to bartenders, who in turn have been reading classic cocktail books and networking on a global scale. All of a sudden these guys are emailing legends like Dale De Groff and Gary Regan, networking at BarShow, travelling the world, soaking up spirits knowledge and becoming this new breed of super bartender Golden mist 60ml Chivas Regal 18YO 1 bar spoon of apricot and butterscotch syrup Dash of orange bitters Stir ingredients with crushed ice slowly in a cut crystal glass. Add more crushed ice and a shard of dark chocolate. Premium Bottled Spirits Premium Spirits Share of Bottled Spirits Australia, category retail value % share, MAT March 2008 MAT March 2008 Off Premise Retail Value Ɣ One in 4 dollars spent on bottled spirits is spent on a Premium Spirit. Ɣ Premium Spirits are worth a little over $500 million in retail sales annually and have grown by $50 million in the year to March 2008. Ɣ Premium Spirits are growing at Premium Spirits Growth Comparison Australia, % value change on year ago, MAT March 2008 10.6% which is over three times the total spirits category. Source: Nielsen Scan Track Liquor, May 2008. Copyright © 2008 The Nielsen Company Ɣ Premium Bourbon, Liqueurs and Scotch make up 74% of all Premium Spirits retail sales. Ɣ The fastest growing Premium Spirit types are Dark Rum, Gin, Vodka and Liqueurs. These account for 35% of total Premium Spirits. Ɣ Key Premium Spirits brands include Jack Daniels, Wild Turkey, Jagermeister, Johnnie Walker Black, Chivas Regal and Absolut. 40 drinks trade Top 3 Premium Spirits Types Value share of Premium Spirits & Growth Australia - MAT to January 2007 Value % Share Value % Growth Premium Bourbon 32 4 Premium Liqueurs 22 19 Premium Scotch 20 12 Other Premium Spirits 26 13 Source: Nielsen ScanTrack Liquor, May 2008 Copyright © 2008 The Nielsen Company NEVER HAS THE PEAR B E E N S O P E R F E C T LY C A P T U R E D . Presenting THE NUmBER ONE SUPER PREmiUm V O D k A i N A U S T R A L i A* N O w B R i N g S YOU gREY gOOSE LA POiRE - THE PERFECT COmPLimENT TO THE gREY gOOSE PORTFOLiO iNCLUDiNg ORigiNAL, L’ORANgE AND LE CiTRON To stock, please contact your Bacardi Lion territory manager, or call 13 15 13 -«ÊÀiëÃLÞÊUÊÜÜÜ°}ÀiÞ}Ãi°VÊUÊÀiÞÊÃiÊ>`ÊÀiÞÊÃiÊ>`Ê`iÃ}Ê>ÀiÊÀi}ÃÌiÀi`ÊÌÀ>`i>ÀÃÊ>`ÊÌ iÊyÞ}Ê}ÃiÊ`iÛViÊÃÊ>ÊÌÀ>`i>À° I-ÕÀVi\ iÃiÊ-V>Ê/À>VʵÕÀÊÊ/ÊÌÊΣÉäÎÉän°ÊÊ>Ãi`ÊÊÌÌ>Ê,9Ê""-ÊLÀ>`]ÊÊÛ>ÕiÊ>`ÊÛÕiÊÌiÀà A Drinks Trade promotion Quality drinks, quality tools Issues of responsible serving, and consumption, of alcohol have never before been so under the spotlight. Coupled with the rising costs of good, the frontline made up of our bar staff and retailers are under increasing pressure to protect the business and deliver quality service to the customers. Here are a couple of areas we can focus on to not only prevent stock losses, but protect the staff, the licensed premises and ultimately the consumer. it’s the later, it may be a while before you realise there are a couple of heavy hands behind your bar. The consumer meanwhile could be more than happy with his or her extra 5-15ml each time; but it’s more probable they would prefer to get the drink they ordered and have the confidence they know how much they’ve had to drink. Training & tools Stocktakes instituted regularly can be the alert management needs to variances between stock on hand and that which is sold; but rarely does it tell the full story on where, what or why these variances occur at the end of a trading period. Recorded errors, breakages, theft (freebies or cash) can make it hard to keep track. Whilst running a pretty tight bar operation to watch for such occurrences closely, there’s nothing potentially more demoralising to staff than to be accused of theft and freebies. As a bar manager or licensee, working closely with your bar staff is the key. Offering them the right tools, be it the pourers or the training, is essential in developing an efficient and accurate bar environment. It takes approximately three seconds to pour 30ml of alcohol, so the volume waste from a simple one second over-calculation by the bartender free-pouring can amount to 10ml extra in the drink, in literally a single second. That outcome is often from no intent from the staff member other than to ‘be seen to be doing the right thing’. Education is so important, but so are the right tools. Over-pouring: In establishments where the theatre of bartending and the operation of the bar means that free-pouring is the norm, over-pouring can constitute a serious issue for the licensed premise. These bars rely on the experience of trained staff to do the job properly, and so does the consumer. Bartenders working for tips do not want to be under-pouring, so when the correct 30ml nip is not met exactly, the likelihood is that it will result in an over-pour rather than an under-pour. These variances will be picked up either by a keen eyed bar manager or in your stocktakes. If 42 drinks trade A poor workman blames his tools? When playing with your bottom line and some significant stock losses it’s not about playing blame games, it’s about fixing the problem, and poor tools are a real problem. Consumers go back to particular places because they expect a certain level of quality, ambience and service. Australia’s bar scene is rich in bartending talent and quality bars, the danger being faced is that the bar is set high and once patrons start to experience inconsistency they often look elsewhere to have their needs fulfilled. Solutions Uber Bar Tools, an Australian design and manufacturing company, has spent over five years researching the issue of over pouring and finding solutions to this perennial problem. Michael Silvers, managing director, makes the following observations. “Yes, over-pouring is an unseen problem when serving alcohol, such accumulated stock losses have a detrimental effect on a venue’s profitability, particularly when operators are starting to look at all means to drive down costs in a tightening market”. Über Bar Tools are designed in Australia by ProDesign and are bar tools specifically designed for professionals. ‘Uber’ means super, extraordinarily good in German; ‘THE BEST OF THE BEST’. Much like a chef carries their own personal equipment, mixologists work with quality bar tools; tools that can and do withstand use in highly pressured commercial environments. The adage: “A tradesperson is only as good as the tools that they use” is just as true today in the 21st century as it was in the 18th century when the expression was first used. Good drinks start with good ingredients and great bar tools! Whether it’s the ProFlow™ pourer, ProJig™ multimeasure jigger, ProStirrer™ stirrer, ProCheck pour test kit; our products are built to last. Über Bar Tools are premium priced products; as excellence is not only an investment in long term value but the pleasure and enjoyment of owning something that helps get the job done, well. G r e a t To o l s G r e a t R e s u l t s ?hkhgebg^mnmhkbZel`hmh ppp'n[^k[Zkmhhel'\hf [^k[Zkmhhel distributed by: Synergy Merchandising Pty Ltd. Ph: 02 9417 6977 | Fax: 02 9417 6155 Email: [email protected] NSW liquor licensing New state of play Recent changes to the New South Wales liquor licensing legislation, due to take effect on 1 July, have been met with a mixed response, as Lauren Moorhouse reports. C hanges to New South Wales Liquor licensing laws have been greeted with applause by small businesses in Central Sydney, after a month of free forums were held around the state. Throughout April, the NSW Office of Liquor, Gaming and Racing has been holding open meetings to explain the amendments to the existing law with the hopes of quelling fears voiced by local business owners and local community that the changes will only cause more alcohol-induced violence and create an unfair playing field between hotels and small bars. “I attended the presentation of the Office of Liquor and Gaming last week and am confident that the draft reform will impact both current and future licensed premises in a positive way,” said Daniel Sofo, owner of the Firefly Winebar in Walsh Bay. Mr Sofo added, “There will be more competition, but competition is healthy. Competition means an improved standard, and more choice for the consumer.” The changes to the existing law mean that small bars will be able to obtain a licence to serve alcohol without having to provide food. It would also cut the licence fee down from $15,000 to $500 for a small bar and $2000 for a hotel. Antony Jones, manager of Bar Europa commented that “It will encourage people to come into the city and add to the economy to make the city more metropolitan, making them stay around instead of heading back to the suburbs.” Responding to opposition arguments that the reform would cause an uneven playing field, Mr Jones added, “If everyone worried about their competition, nothing would ever get done.” In addition to small businesses, reaction from other sectors has also been positive. The campaign to have the existing laws changed has seen supporters from all areas of society including parliament members and local ‘grassroots’ movements. Independent MP Clover Moore successfully campaigned in November last year to create a change in the liquor licensing system in Sydney. When news of the announcement broke, she said, “I strongly support the Liquor Bill 2007, for which there is overwhelming community support. People from across New South Wales lobbied hard in support of reform. Their message is that it is time for a change.” Jonathon Larkin was part of the team behind the online ‘grassroots’ movement, Raise the Bar, which asked the public to call local MP’s and let them know they supported the change. In one day, Raise the Bar managed to attain their target of sending 5000 ‘e-drinks’ to their local MP’s. “Obviously we’re happy,” said Mr Larkin. “People have really taken to the campaign quite whole-heartedly. We were trying to push for a bigger mix of venue sizes. We feel that smaller venues meant more responsible alcohol situations leading to more responsible enjoyment,” said Mr Larkin. One group that is against the proposed changes is the Australian Hotels Association (AHA). Speaking on ABC Radio after the announcement of the amendment, the AHA NSW deputy CEO David Elliott spoke of his concerns that the law change will not solve community issues of alcohol-related violence and create an uneven playing field between hotels and the new boutique bars. Recently, the AHA were contacted but declined to make further comments on the matter. Responding to critics of the reform, Mr Larkin added, “We disagree with the general idea of more licences will lead to more alcohol related violence. We are trying to change the type of drinking that’s occurring”. The amendment to the law takes effect on July 1, 2008. drinks trade 45 NSW liquor licensing New liquor laws FAQs From the NSW Office of Liquor, Gaming and Racing website aware of a liquor licence proposal and can discuss that with the applicant. The process will be relatively straightforward compared with the existing social impact assessment under the current Act – particularly where there are no local concerns about an application. Q: Off licence (retail) applicants are currently required to complete a Category A social impact assessment (where the applicant is applying to remove an existing licence within a certain distance and will not be increasing the licensed area by more than 10%) or a Category B assessment for all other applications. Will these requirements remain? Q: I have a restaurant licence with a dine-or-drink authority that was granted in the last 12 months. At this stage I have paid 25% of the fee, with the remaining 75% required to be paid after 30 June 2008. Will I be required to pay the outstanding amount? A: No. An application for a new packaged liquor licence (to operate a bottle shop) or to remove this type of licence will instead require a category B community impact statement (CIS). Community impact statements will be quite different from social impact assessments – for example, there will be no requirement for the applicant to produce statistical information. The same CIS process will apply irrespective of any change in the size of the licensed area of the bottle shop or how far the licence is being removed. A: No. From 1 July 2008, all current restaurants with a dine-or-drink authority will automatically become an on-premises licence (restaurant) and will be endorsed with a ‘primary service authorisation’ (under section 24(3) of the new Act). This allows on-premises licences in relation to a restaurant to sell or supply liquor for consumption on the premises otherwise than with, or ancillary to, a meal. Any remaining dine-or-drink authority fees due after 30 June 2008 will not need to be paid. Q: I operate a bed and breakfast and would like to serve alcohol to guests. When the new laws commence will I be able to apply for a liquor licence? Q: If I lodge an application for a restaurant licence prior to 1 July 2008 I understand that my application will be dealt with under the current Liquor Act. The application fee for that licence is $50 and the fee on grant is $450. Will I have to pay the $450 if the licence is granted after 1 July 2008? A: From 1 July 2008, bed and breakfast (B&B) establishments will be able to sell liquor without a liquor licence as long as they meet specified rules. A B&B is defined in the new laws as premises that provide temporary guest accommodation (but not dormitory-style accommodation) and where: the establishment is operated by the permanent residents of the establishment, and meals are provided for guests only. A general exemption from the need to hold a liquor licence is given for a B&B as long as the following requirements are complied with: w n o more than eight adult guests are staying overnight, w no service of liquor to minors, w the liquor being supplied has been purchased by the owner of the B&B from a retail source, w the sale or supply of liquor is ancillary to the provision of accommodation or a meal, w any person that serves liquor to a guest must have successfully undertaken RSA training and w the Authority must have been notified using the required form that alcohol is being sold. B&B operators who have more than eight adult guests staying overnight will be able to apply for an on-premise liquor licence to sell alcohol. Q: The new laws allow wine producers to sell their products at a producers’ market or fair. Clause 23 of the draft Liquor Regulation 2008 requires at least 10 stalls at such a market or fair. Does this number apply only to wine producers, or does it apply to all types of producers? A: The new laws will allow wine producers to sell or supply the licensee’s product at a producers’ market or fair that has a minimum of 10 producers displaying their produce. The use of the word producer here applies to all types of producers – not just wine producers. Q: I wish to apply for a licence to sell liquor by retail only via the internet and telephone. Do I require a “packaged liquor licence” under the new Liquor Act, and do I need to submit a community impact statement (CIS)? A: Yes. A packaged liquor licence will be required to sell liquor via the internet or telephone. The new Liquor Act requires a CIS for any application for a packaged liquor licence. The CIS process is designed to be simple and cost effective – while ensuring that key stakeholders (such as police, residents and local councils) are 46 drinks trade A: Yes. Any application lodged prior to 1 July 2008 will be dealt with under the current Liquor Act and the fee that is payable on grant will be required to be paid. Unlike dine-or-drink authorities (where the requirement is that at least a quarter of the fee is payable on grant) the full amount of the fee must be paid for the granting of all other applications. Draft guidelines on intoxication, liquor promotion and advertising Disclaimer: The draft guidelines on the definition of intoxication is at the consultation stage. The guideline will be implemented 1 July 2008 and you are invited to comment or make suggestions on the guidelines on June 20 2008. To comment, please contact Lucas Ho on 02 9995 0846 or email [email protected] It is against the law for a licensee to serve an intoxicated person alcohol on licensed premises. After drinking alcohol a person may be intoxicated if he or she displays sign/s that include: Speech - Slur words, talk in rambling or unintelligible sentences, are incoherent or muddled in their speech. Balance - Are unsteady on their feet, stumble or bump into people or objects, sway uncontrollably or cannot stand or walk straight. Coordination - Fumble to light a cigarette, have difficulty in counting money or paying, spill or drop drink, have difficulty in opening or closing doors. Behaviour - Become rude, aggressive, or offensive, are unable to concentrate or follow instructions, become boisterous or pester others. Unacceptable liquor promotions and advertising that will be prosecuted: w M ore than one free alcoholic drink per patron per visit, eg Ladies drink free, Games, challenges or like activities that involve alcohol consumption w or alcohol as a prize, eg Toss the Boss and Beer Pong, w Free alcohol for a period of time, eg Free drinks until first point scored [in a telecasted sports event] w Free alcohol with purchase, eg Two for One, Buy One Get One Free. 1MFBTFESJOLSFTQPOTJCMZ Puro espírito do Brasil. MULTIDISTILLED PREMIUM CACHAÇA fresh pressed from Brazil’s finest cane. For cocktail recipes visit www.sagatiba.com %JTUSJCVUFECZ5IJOL4QJSJUTXXXUIJOLTQJSJUTDPN Survey LMAA trade survey As the LMAA on-premise survey starts for 2008, here is a rundown on the status and develop of the LMAA surveys. Background In 2006, the Liquor Merchants Association of Australia (LMAA) commissioned the first in the new wave of trade surveys. The priorities were simple: Catalyst Research, the agency commissioned to manage the survey have strong expertise in survey design and analysis. Their key driver analysis enables sponsors to focus on the most significant factors underpinning trade satisfaction. 1. Obtain feedback from the trade as an input into supplier improvement initiatives How it’s done 2. Have an industry-driven initiative in order to w Reduce the number of surveys w Spread the cost across multiple sponsors The on-premise survey starts in July and off-premise in October. Sponsors submit lists of their top customers and these lists are consolidated into a single file. LMAA sends letters announcing the study and our field team contact customers to book appointments. We interview a cross section by geography and outlet type. Face to face interviews are held at the customer’s premise and150 of the biggest onpremise and 150 of the biggest off-premise customers will be interviewed in person. Feedback is also gathered via Drinks Trade magazine. On-premise businesses are asked to fill in the wine or beer/spirit/RTD survey (or both) in this month’s edition. The survey takes approximately 10 minutes and is a chance for on-premise buyers to have their say in driving industry improvements. Finally, LMAA and Catalyst Research are working with a number of trade and banner groups and associations to gather feedback via their conferences. This is an opportunity to collect feedback from a broader group of respondents and to share survey results with important customer groups. 3. Provide a platform to give respondent feedback on survey findings The liquor industry continues to evolve quickly. It is vital that suppliers obtain clear, independent customer feedback. That is what the LMAA trade surveys are all about. What’s different? There are a number of ways in which the LMAA trade surveys differ from other research. Firstly, this is an industry driven approach. Most of Australia’s major liquor companies are study sponsors. They have input into what questions are asked and who should be consulted. Sponsors are encouraged to help us ‘get it right’ and reduce the need for additional studies. Secondly, significant feedback is obtained via face-to-face interviews with Australia’s biggest liquor buyers. These customers account for a disproportionately high percentage of liquor sales. Face-to-face interviews are an ideal way to capture supplier ratings and obtain qualitative feedback on: w Which suppliers are best, and why w Where improvement efforts should be focused Most face-to-face interviews are conducted by experienced industry consultants who can gain access to senior buyers and understand the feedback they give. The interviewer team is lead by Eddie Fazal, who has management experience across beer, wines and spirits. Many respondents allow us to attribute their comments, which heightens the actionable nature of the feedback. 48 drinks trade What’s new this year The survey has been tracking supplier performance on encouraging responsible alcohol consumption for three years now. Our team is staying on top of industry developments by including a question on the new tax treatment of liquor products in the 2008 Federal Budget. We know that suppliers go to market in different ways to sell wine, beer, spirits and RTDs. The 2008 survey has been evolved to reflect this and to capture the right competitor set for each category. A new approach is also being taken to obtain even more specific company feedback on improvement opportunities. It will be an exciting year for the LMAA trade surveys. Stay tuned for more details. We’ve made Southern Comfort RTDs bigger so your customers will never go thirsty ® t Upsize your sales with the NEW 330ml SoCo t Longer lasting, more refreshing t NEW dynamic packaging t Available in Cola & Lemonade COMING SOON For more information contact your Brown-Forman representative or phone 1300 656 593 START AND END THINGS RIGHT. DRINK RESPONSIBLY. www.johnniewalker.com The JOHNNIE WALKER words, Blue Label, and the Striding Figure Device are trademarks. © John Walker & Sons 2008. Off-premise Picking up more often That’s the challenge so many of us face - how do we make sure we optimise sales opportunities and get the greatest return for our effort? Consumer behaviour experts, Clutch, explore the answers. M uch has changed in the off-premise landscape with the entry of many new trading banners, an onslaught of national chains and the increasingly battered independent bottle-o fighting to compete. When you look at the demands that the Australian consumer places on the offpremise channel, the chicken and egg argument is firmly in place. The expectation of consumers has been shaped by the aggression of many retailers and the constant trade offs consumers make between service, convenience and price. In the end, these expectations shape the very nature of demand in the channel. There are those consumers who opt for big box retail in favour of their range and price, those that enjoy the convenience and community aspect of their local bottle shop and those dedicated to the experience of driving through to quench a thirst. So what? The implications of you knowing the difference are purely financial. If you are a manufacturer or distributor the cost of misplaced stock is both economic and relationship based. For the marketer, misaligned support is wasted effort and money. This waste is not usually due to the retailer’s inability but rather a lack of clear direction and understanding of which market they are in and the expectations of their customers. Any successful retailer will tell you that the key to building a business is to: 1.Know what you are good at; 2.Know who you are good at it with; and 3.Improve the proposition, consistently over time. So who are some of the different consumers? We’ve had the opportunity to analyse the demand catchments of 9321 retailers across Australia and here is the answer. The analysis uncovered three clear consumer demand profiles that have a measurable level of influence over trading performance. For the purposes of simplicity these consumer demand markets are referred to as Leaders, Finders and Followers. drinks trade 51 Off-premise Leaders Leaders Characteristics and Attributes of Leaders Characteristics and Attributes of Leaders Brand Seek a superior and quality brand Brand Seek a superior and quality brand Range Looking for good value for money and a range of choices Range Looking for good value for money and a range of choices Product Usage Will tend to be buying for entertaining and social interactions Product Usage Will tend to be buying for entertaining and social interactions Price Savvy consumers, who will pay for quality, but know a margin stretch Price Savvy consumers, who will pay for quality, but know a margin stretch Promotion Offer an exclusive experience for them or to share with friends Promotion Offer an exclusive experience for them or to share with friends Number of Aligned Outlets in Australia to Leaders Number of Aligned Outlets in Australia to Leaders Independent Independent # of outlets (Metro Australia) 329 # of outlets (Metro Australia) 329 # of outlets (Non Metro Australia) 35 # of outlets (Non Metro Australia) 35 Integrated Integrated 2,556 2,556 756 756 National National 323 323 28 28 The Retail Outlets Best Aligned to Leaders The Retail Outlets Best Aligned to Leaders Independents Cellarbrations, Liquor Barons, Porters & IGA Independents Cellarbrations, Liquor Barons, Porters & IGA Integrated Booze Bros, Pubmart &, Sip n Save Integrated Booze Bros, Pubmart &, Sip n Save National Chains BWS, Liquorland & Vintage Cellars National Chains BWS, Liquorland & Vintage Cellars Finders Finders Characteristics and Attributes of Finders Characteristics and Attributes of Finders Brand Seek a superior and recognised brand Brand Seek a superior and recognised brand Range Looking for high profile and/or quality alternatives Range Looking for high profile and/or quality alternatives Product Usage Will tend to be buying for social events & home consumption Product Usage Will tend to be buying for social events & home consumption Price Attracted to specials and will often buy in bulk Price Attracted to specials and will often buy in bulk Promotion Offer price or “try before you buy” incentives Promotion Offer price or “try before you buy” incentives Number of Aligned Outlets in Australia to Finders Number of Aligned Outlets in Australia to Finders Independent Independent # of outlets (Metro Australia) 246 # of outlets (Metro Australia) 246 # of outlets (Non Metro Australia) 31 # of outlets (Non Metro Australia) 31 Integrated Integrated 909 909 624 624 National National 217 217 26 26 The Retail Outlets Best Aligned to Finders The Retail Outlets Best Aligned to Finders Independents Chambers Cellars, Bottlemart & Liquorstop Independents Chambers Cellars, Bottlemart & Liquorstop Integrated Bottlemart, Liquor King & Liquor Stax Integrated Bottlemart, Liquor King & Liquor Stax National Chains Dan Murphys, Woolworths & Safeway National Chains Dan Murphys, Woolworths & Safeway So what can you do now? When you know which consumers you need, your off-premise sales and marketing efforts become simple. Not only can you align the brand, price and promotion but you have a clear list of priority retail outlets that will give you maximum sales. As a manufacturer or distributor, the end result is about making sure that you are getting the most out of your field sales force; selling the right products, to the right retailers, with the right promotional support. As a retailer, it’s about ensuring that what you stock is directly aligned to who you are good at selling to. 52 drinks trade You want to sell more and this is a clear path for making sure you know what, where and how - removing the guess work and giving you better sales, faster. Research cited in this article has been provided by Dr Colin Benjamin of the Horizon Network. Contact: Vanessa Sheppard, Clutch Pty Ltd P: 1300 724 936 E: [email protected] W: www.clutch.com.au AMPLIFY YOUR SALES GE T THESE JAGER PROMOTIONS IN YOUR VENUE %NJOY2ESPONSIBLY <ehceh[_d\ehcWj_edfb[Wi[YedjWYjoekhbeYWbIkdjehoh[fh[i[djWj_l[ DIM%79JÅ&(/,,)'.--L?9Å&)/)(/+.+'GB:Å&-))&./'&&I7%DJÅ&..)+'+&++ M7Å&./*++(*--J7IÅ&),()',(++ THOMSON’S LIQUOR GUIDE DRINKS CATALOGUE 2009 NEW LOOK … NEW FORMAT … BETTER THAN EVER … MORE INFORMATION … NEW EASY CATEGORY TAB SEARCH ESSENTIAL BUSINESS TOOL FOR THE LIQUOR INDUSTRY KEEPING YOU AND YOUR STAFF IN-TOUCH AND IN BUSINESS PRODUCT, PRICE, PACKAGING & DISTRIBUTOR CHANGES IN A FLASH ON WWW.LIQUORGUIDE.COM.AU Thomson’s Liquor Guide, firmly established as the Australian Liquor Industry’s information bible, is now publishing its most comprehensive and updated catalogue to date. The exciting new look 320-page volume provides essential buying and sourcing across all categories on all brands, liquor suppliers, manufacturers, producers and distributors of liquor in Australia. Additional interesting facts, figures and listings will also form part of the exciting Thomson’s Liquor Guide format. Managing editor, Wendy Grabe, who has compiled the directory for the past six years, said the recent acquisition of the Thomson’s Liquor Guide by the Liquor Merchants Association of Australia (LMAA) has enabled the publication to forge ahead and capitalise on the powerful data collation synergies made available by the LMAA. “In essence, the catalogue has found its natural home”. With more than 12,000 local and imported products listed, including packaging, size, wholesale price and supplier details, Wendy Grabe believes the catalogue is the most comprehensive liquor catalogue available in Australia. The new layout of the directory will be as clean and uncluttered as possible, making it attractive and easy to use - especially for the professional in the industry who needs access to information without any fuss. Vital changing information pertaining to new products & releases, pricing, distributor and vintages are updated on a monthly basis via the supporting interactive Thomson’s Liquor Guide website, www.liquorguide.com.au, ensuring that users are kept current with changes in the industry, 24 hours a day. The only drinks catalogue to keep you updated on all products, prices and industry suppliers ‘Who supplies what’ and ‘Where to find it’ Beer, wine spirits, RTD’s The most comprehensive listing of products for the Australian drinks trade. Publication supported by a fully interactive website. WINE Orde Over 12,000 product listings r tod ay Comprehensive supplier and wholesaler directory BEER Wholesale price and packaging information Beer, wine, spirits, RTD’s plus other beverages by brand Industry statistics and tax guidelines Australian wine producers by GI Drinks services and supplies directory ITS SPIR Calendar of events Local and international top performers Interactive website www.liquorguide.com.au with rapid search and sort facility New products & releases updated on website every month including changes to price, package/size and vintage Principal product and price catalogue for hotels, pubs, clubs, liquor stores, restaurants and buying groups Thomson’s Liquor Guide Subscription Order Tax invoice (ABN 26 001 376 423) I wish to order one years subscription to Thomson’s Liquor Guide and Drinks Trade (six editions) with full access to Online LiquorGuide for $180* I wish to order one copy of the Thomson’s Liquor Guide 2009 annual catalogue ONLY for $110 including GST *(Includes current Thomson’s Liquor Guide plus a copy of the NEW 2009 annual catalogue release date December 2008) Prices include GST MR/MRS/MS PAYMENT DETAILS BUSINESS NAME: (PAYABLE TO THE LIQUOR MERCHANTS ASSOCIATION OF AUSTRALIA) POSITION: PAY ONLINE WWW.LIQUORMERCHANTS.ORG.AU OR ADDRESS: m MY CHEQUE FOR $ POSTCODE: IS ENCLOSED, OR m PLEASE DEBIT MY CREDIT CARD FOR $ PHONE: CARD NAME: FAX: TYPE OF CARD: m MASTERCARD EMAIL ADDRESS CARD NUMBER: MAIL TO: Liquor Merchants Association of Australia, Locked Bag 4100, Chatswood DC NSW 2067 or FAX TO: 02 9415 1080 www.liquorguide.com.au / www,liquormerchants.org.au For further information call 02 9415 1199 VERIFICATION CODE EXPIRY DATE: m VISA m BANKCARD m AMEX ________________ Enjoy rEsponsibly In focus off-premise customers Independent Liquor Group (ILG) Liquor Marketing Group DT: How and where do you sell liquor – e.g. through a retail store, mail order, internet orders, member catalogues and special deals, nationally etc? As a Group we sell liquor via retail outlets on a national basis and communicate our offers through various mediums ie print, television, radio, web and catalogues. Independent research indicates that we have the most comprehensive marketing package of all independent groups. DT: How many stores do you have? Across the various banner groups associated with LMG we have 1300 members Drinks Trade: How and where do you sell liquor? DT: What is your business strategy? ILG stands proudly in the liquor marketplace as a business with a large and loyal group of shareholder members who are supported by a financially strong organisation. ILG has over 1200 members throughout New South Wales and Queensland. Our liquor is distributed from our NSW warehouse at Erskine Park to over 1000 independent retail outlets throughout NSW. Our Queensland warehouse at Richlands supports over 200 outlets within Queensland and Northern NSW. We offer our bannered groups fortnightly promotions which are supported by advertising in mainstream newspapers, and catalogues offering special deals and bonus buys. DT: What is your business strategy? We will continue to find ways to deliver better pricing and services to independents in order to remain relevant. The best way to achieve this is to encourage independent operators to act collectively by joining major promotional banner groups and buying through a wholesaler like ILG. Banner Groups are an important area of our business and much work is currently being done on the review of current and future branding needs. Continued expansion into Queensland will be at the forefront of our plans for 2008. We are receiving requests almost daily from former NSW shareholder members who have relocated to the sunshine state and are looking to secure ILG as their preferred liquor supplier. Further expansion of our member-exclusive brands will continue in 2008 The focus also means we will provide quality service for our members, recognise their importance to our business. We believe this is a positive direction for the co-operative and will provide a cost effective distribution network that allows independents to effectively compete in today’s market. To increase the sales and profitability of our members via an extensive marketing program with strong retail execution initiatives. DT: What are the purchasing needs of your business and how are they met? Members purchasing needs are to obtain the required stock, on time and at a competitive price. To facilitate this we have our own warehouses in most states (HLW ) and are major shareholders in the SA warehouse (SALD ). This gives us greater flexibility to meet member needs. We also, through our strong supplier relationships, negotiate deals and promotional activity to ensure that we are both competitive and deliver the required margin to the members. DT: Who is your target market? Our target market is primarily young males (18 to 24) and as a secondary group 35 – 50 year old males. Our focus is on convenience and experience. DT: How is the purchasing of liquor managed within your store/group? Members either purchase through Group warehouses or directly from the supplier (principally beer). DT: What is your approach towards customer satisfaction? Our attitude is that member compliance to the promotional activity is paramount to delivering consumer satisfaction. We work with our members to deliver the best possible retail solution to enhance the shopping experience. DT: What are the key strengths of your business? DT: What is your approach to staff training? The co-operatives business structure is one that sees all profits returned to its members. It is obviously a fantastic opportunity for independent operators. They benefit from very competitive wholesale pricing as well as receiving annual patronage rebate of surplus co-operative funds. This is an area of our business I believe is not widely enough understood or appreciated but is something ILG intends to better convey to the marketplace going forward. The IT department within ILG has rightly won praise from all levels of the business community. Shareholder members and suppliers alike have benefited from our market leading technology that allows easier ordering over the internet as well as providing helpful information on a range of topics including invoicing history, current specials. This function is set to expand even more as ILG reinvests more resources into this import part of our business. We believe that staff training is critical to the success of any service business. We previously ran a comprehensive program called the Academy of Excellence which was attended by the majority of members at that time. We are currently compiling a ‘best practices’ manual for stores and are engaged in negotiations for an accredited retail training course. DT: What are the key strengths of your business? The overall strength of the national membership supported by strong retail banners with extensive marketing programs combined with a highly skilled team of people dedicated to achieving success. We are also a ‘not-for-profit’ organisation which ensures that we make maximum use of the funds on behalf of the members. drinks trade 57 Where would you go to find some IRELAND Kylemore Abbey, County Galway In April 2007, Suntory Australia inherited the reputable global brands, Glenfiddich, Grant’s and The Balvenie. The addition of these great whiskies strengthens the diversity of the Suntory portfolio which now includes Scotch from Speyside, Islay and Lowland regions as well as Japanese and Irish whisky. TULLAMORE DEW GLENFIDDICH THE BALVENIE Tullamore Dew can be traced back to 1829 when Michael Molloy founded the Tullamore Distillery in Tullamore, County Offaly. Ireland lays claim to being the inventors of whiskey as it is known today. It was the Irish monks that first distilled their “Water of Life” in the 6th Century AD. In fact the word ‘whiskey’ is derived from the Irish word ‘Uisce’ (pronounced ‘ish-kee’). William Grant always understood the inextricable link between good whisky and good water. That’s why, back in 1886, he only began building his distillery once he had secured a water source, the bubbling natural springs called Robbie Dhu. On Christmas day in 1887 the first spirit flowed from the stills and the “best dram in the valley” still flows four generations later. The Glenfiddich 12 Year Old is William Grant and Sons signature Single Malt Scotch Whisky, and continues to produce other award winning whiskies such as the 15YO & 18YO, with the fine and rare whiskies aging 21YO, 30YO, 40YO and the limited 50YO. In early 1892 work began to convert an 18th century mansion - Balvenie New House - into a distillery. The Balvenie New House had been purchased by William Grant in March of the same year. The building took fifteen months to complete and on 1st May 1893, the first distillation took place at The Balvenie Distillery. Tullamore Dew is typically aged for between four and seven years in used bourbon, port and sherry casks, this together with time, adds the final touch to the flavour. Tullamore Dew also has a 12YO in the range for the ultimate, smooth Irish Whiskey. Nowhere else will you find a distillery that still grows its own barley, still malts in its own traditional floor maltings and still employs coopers to tend the casks and a coppersmith to maintain the stills. The Balvenie is enjoyed in Australia through the 12YO Doublewood, Portwood 1993 and 15YO Single Barrel. FOR FURTHER INFORMATION VISIT CLUBSUNTORY.COM OR CONTACT YOUR LOCAL SUNTORY REPRESENTATIVE: NSW/ACT T 02 9663 1877 VIC/TAS T 03 9329 5851 QLD T 07 3308 9100 SA/NT T 08 8351 5055 TAS T 03 6231 6255 WA T 08 9455 2477 of the finest whisky in the world? SCOTLAND Eilean Donan Castle, Loch Duich JAPAN Kinkakuji Temple, Kyoto With the introduction of the William Grant & Sons Ltd portfolio, Suntory proudly distributes over 50% of the single malt whisky market in Australia*. So where would you go to find some of the finest whisky in the world? We would hope you would come to us. * IWSR 2006 BOWMORE LAPHROAIG YAMAZAKI Since 1779, Bowmore Distillery, one of the oldest in Scotland, has stood on the shores of Loch Indaal, on the Hebridean Island of Islay. Its close proximity to the sea is vital in determining the final character of Bowmore Islay Single Malt Scotch Whisky, as is the strict adherence to the traditional production methods handed down to Morrison Bowmore Distillers Ltd in 1963, by its four previous owners. Established in 1815, Laphroaig, pronounced “La-froyg”, is a Gaelic word meaning “the beautiful hollow by the broad bay”. In making Laphroaig, malted barley is dried over a peat fire. The smoke from this peat, found only on Islay, gives Laphroaig its particularly rich flavour. Laphroaig is best savoured neat, or with a little cool water. Roll it around on your tongue. Release the earthy aroma of blue peat smoke, the sweet nuttiness of the barley, the delicate heathery perfume of Islay’s streams. It is as unique as the island itself. In 1923, Shinjiro Torii, the founder of Suntory and the father of Japanese whisky, built Japan’s first malt whisky distillery in the Vale of Yamazaki. Using copper pot stills, the Yamazaki distillery was the first of its kind outside of Scotland. The distillery’s location on the outskirts of Japan’s ancient capital of Kyoto offered pure waters, diversity of climate and high humidity - the ideal environment for the maturation of good whisky. Currently we enjoy the Bowmore Legend and 12YO and from May this year the Bowmore 18YO voted Best of Show and Double Gold Medal Winner at the 2007 San Francisco World Spirits will make its debut in Australia. Laphroaig locally is offered in the beautifully smoky 10YO or deeper and more complex Quarter Cask expression. Today, Yamazaki 12YO is enjoyed by Australian’s and whisky connoisseurs the world over. In focus off-premise customers Porter’s Liquor DT: What is your business strategy? DT: How and where do you sell liquor – e.g. through a retail store, mail order, internet orders, member catalogues and special deals, nationally etc? To become Australia’s pre-eminent wine and liquor retailer by delivering drinkers of wine, beer and spirits a unique range of beyond the ordinary product as well as the major brands. Porter’s satisfies the needs of those customers with a level of knowledge and service which is unsurpassed and at value prices. ‘We Know…’ We know wine, beer and spirits. How they go together, what’s new, what’s classic and how you can get the best out of them. We know service, value and specials. How to treat our customers with the respect they deserve and how to go over and beyond for them. We are an independent banner group of NSW/ACT liquor retail outlets. DT: What are the purchasing needs of your business and how are they met? DT: How many stores do you have? We prefer our stores to purchase directly from suppliers. However, if it is not plausible then our business is tendered to various wholesalers. There are 26 stores within our group 60 drinks trade DT: Who is your target market? ensure our staff presents the right face and the ‘We Know…’ image of Porter’s. Customer service training and wine education courses are frequently offered. Staff is also welcome to attend the Porter’s monthly tastings to improve their wine knowledge. Drinkers with above average taste in wine, beer and spirits and looking for more than just the ordinary, but at value for money prices, and with sound and knowledgeable advice. DT: What are the key strengths of your business? DT: How is the purchasing of liquor managed within your store/group? Our stores do their own purchasing. It is up to them to decide how much they will need of products on promotion and to place their orders accordingly. They are free to purchase additional un-promoted products to adequately service their local area. Individuality is one of the strengths of our group. DT: What is your approach towards customer satisfaction? Without customers there is no success. Thus, we take customer service at Porter’s very seriously. Our strategic plan includes our customer pledge. Porter’s satisfies the needs of those customers with a level of knowledge and service which is unsurpassed and at value prices.’ ‘We know service. How to treat our customers with the respect they deserve and how to go over and beyond for them.’ Satisfied customers equals profitable business At our AGM in October 2007, the following points were noted by our members as the strengths of Porter’s; w w w w w w w w w w Experience Expertise Service Responsive Flexible Diverse Generally owner operated Premium without price Well presented Well rounded Woolworths Liquor, Coles Liquor, Independent Brands Australia, Mike Gordon Liquor Legends, Kemeny’s and Coogee Bay Liquor were also invited to answer our questions for this In Focus topic. They were unable to participate on this occassion. DT: What is your approach to staff training? Porter’s store staff is the face of the Porter’s brand for our customers. It is critical to Camus X.O. Elegance To create the rich palate and heady aromas of Camus XO Elegance, our Cellar Master called on eaux-de-vie from exceptional vineyards, with a strong presence of the signature Camus Borderies to reveal a unique bouquet of floral aromas, ringed with dried fruit, liquorice and spicy notes, with a persistent leathery finish. Camus XO Elegance is in perfect harmony with consumer demand for a richly flavoured, yet lighter and mildly oaked cognac. Camus Extra Elegance The beauty of the Camus Extra Elegance decanter is surpassed only by the myriad flavours and colours of this voluptuous blend of extremely old cognacs. Rich and highly complex, it marries hints dried violets with tobacco, leather and walnut notes, ending in a mellow, velvety finish of great depth. Camus Extra Elegance is a multiple award winning cognac on the international stage and satisfies every sense - the ultimate gift to oneself or someone close. Camus Borderies XO The Borderies region is the smallest in Cognac representing 5% of total production, but it is also the rarest. As an introduction to the world of the Borderies, Camus offer its single growth Extra Old (XO) drawn from the private family reserves of Borderies. On the nose, discover a delightful concentration of violets and hazelnuts, while the palate, persistent and lightly oaked, reveals delicious “patisserie”, spicy vanilla and “rancio” notes. Try a glass for a truly new cognac experience. mcguiganwines.com.au Perspective drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks t drinks trade drinks trade drinks trad Peter Hall drinks trad trade drinks trade drinks trade Hospitality Principal, Australian trade drinks tradeAcademy drinks trade drinks trade drinks trade Stephen Swift Executive director, Australasian Associated Brewers Inc drinks drinks trade trad drinks trade drinks trade drinks trade drinks t drinks trade drinks trad drinks trad drinks trade drinks trade drinks trade drinks trade Practical partnerships Points of difference I recently had the honour of addressing the International Convention of the Institute of Brewing and Distilling Asia Pacific, convened in Auckland, New Zealand. The convention attracted a wide audience including brewing and distilling industry representatives, advocacy groups, health and regulatory academics and government officials. As regulatory and policy issues become more prominent, it is forums like the Brewing and Distilling Convention that provide a perfect opportunity for the Associated Brewers, a policy-based organisation, to have our views considered by experts from a wide background. In light of several regulatory proposals currently being considered in Australia and New Zealand, it was fitting that I use my address to review the current state of alcohol policy and regulation across the two countries (copies of the full speech available from the Associated Brewers – contact details at www.aab.org.au). The wider alcohol policy debate can be fairly characterised as a struggle between two broad regulatory approaches: the ‘Command and Control’ approach and the ‘Practical Partnerships’ approach. Proponents of the Command and Control approach typically reject industry as legitimate stakeholders and believe that industry should be shunned by decision makers. Similarly, this approach focuses on onesize-fits-all population-based regulatory strategies as a cure-all, which inevitably fails to recognise that different issues require different solutions. A hallmark of the Command and Control approach is its belief that health policy should have automatic paramountcy over other sometimes competing ambitions, for example, trade, tourism or agriculture. Command and Control proponents reject the role of consumer choice, and frequently discount the importance of targeted education campaigns. Instead, the Command and Control approach shifts the focus from the ‘important’ work of education and constructing pathways to prevention to the ‘urgent’ matter of continuous inquiries and the usual threats of advertising, sponsorship, labelling and taxation. In contrast, the Associated Brewers advocates a Practical Partnerships approach to regulation and policy. We have a strong belief that many large and small businesses in the drinks and hospitality industry are legitimate stakeholders in any policy debate. We believe that shaping consumer choice is a realistic aim over time, and the drinking culture cannot be changed without a focus on consumers. Consumers are better informed than ever before and are openly cynical of language that preaches alarm and extremism. They will quickly disengage from any debate that fails to offer a clear, reasonable and balanced view of the true state of play; this applies equally to both sides of the policy debate. It is important to note that Command and Control and Practical Partnerships are not simply alternative ways of describing the health lobby and the industry lobby. Rather, they are true descriptors of an underlying attitude to regulation which can be held by individuals in either camp. There are many professionals in the population health field who believe in a Practical Partnerships approach as the most likely means to an end. An end which we – industry, government, bureaucracy and consumers –can all agree on: a safe, sustainable drinking culture. I’ve addressed this topic at many conferences and workshops, and, whilst rehashing old ground, it is not an area with which many businesses have truly come to grips. As we all become more marketing focussed it is interesting to see how the individual business manager comments on his or her own ‘point of difference’. Those self-same marketers will talk about a USP or unique selling proposition, that sometimes intangible fact or image component that differentiates us from everyone else. This whole conversation presupposes that we have a point of difference in the first place. Uniqueness hasn’t always been a thing that we have striven for – we are more often pushed either by ourselves or by convention into a style or type that in fact ensures conformity. At the retail end, being part of a banner group may well be seen as an essential business tool these days just to compete but if everyone does it, it isn’t a point of difference any more. There is no doubt that banner group strength lies in the conformity of its members not in its variation. In fact, a definition of banner group strength is that it is inversely proportional to the variation within the group. What does this mean? We are driven in part to conform, yet for marketing purposes we are driven to be different. How to find the balance is the real question. Think labeling, marketing, new products, communication with the customer and consumer from the supplier/wholesaler end. The key lies in understanding customer expectations. Have a think about what you require and expect when you are shopping/purchasing. You expect a minimum set of standards in any business premises – that creates the sameness. Then you ascertain what makes the business interesting to you as a consumer – that registers the differences. You then don’t remember the similarities unless that shop hasn’t conformed to your initial expectations. You can then see very easily how this operates – on two levels in fact. First, conform to the norm to get to first base. Then elevate your shopping/consuming public to new heights by creating the difference. However, don’t concentrate on the difference until you have set the base parameters for sameness – get it? Test yourself on this. Go out into any retail, service or indeed professional business and look at sameness and difference factors. You’ll find very quickly that you’ll assess the sameness characteristics first – it conforms, it is what I expect it to be and then maybe you’ll go “that was good” or “that’s looks great”. Now do the test on your own business, but over time – not solely on one visit. Do you conform on enough points to allow your customers to find the points of difference? Only then is it worth promoting these points of difference. If your stock range isn’t sufficient or your hygiene or presentation is poor, then forget the point of difference that you were considering; your real point of difference is how you vary from the base standard and that variation is downwards or negative. A general measure of consistency, and this is anecdotal rather than quantitative, is that consumers will allow a variation of 20 per cent from the norm and you can still be seen as consistent. However this will only work to your advantage when the variation is of interest to the individual rather than dropping the satisfaction levels of the consumer. Customers will still come in to see you when it’s busy (in many hotels, people are a necessary component of ‘atmosphere’) because they know that you will have things under control, will have the necessary staff and stock on hand. They will give you some grace (up to 20 per cent) because it’s busy, but not too much. What would you consider to be your points of difference? Looking at branding and liquor ads one would think that conformity rules rather than differentiation. drinks trade 63 Perspective drinks trade drinks trade Terry Mott Australian Wine and Brandy Corporation drinks trad trade CEO, Australian Liquor Stores Association (ALSA) (Wine Australia) drinks trade drinks trade drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade The big RTD tax hike – why? ALSA have been in discussions for around a year with manufacturers and other drinks sector members regarding the growing community disquiet and negative perceptions about youth drinking. While we accept that the link of any product category to the public perception of youth so-called ‘binge’ drinking may not be based on any well proven facts – it is none the less real in the eyes of the media and some sectors of the public. There have been several major government funded studies over the last few years that have indicated there is no increasing ‘epidemic’ of youth alcohol abuse however, these have been conveniently ignored over recent months. The perception has played into the hands of the Federal government giving them a reason to ‘blame’ RTDs for the perceived youth alcohol “problem” and apply a massive lift in the taxation on these products. Unfortunately just like all blunt instruments this alcohol tax could do little or nothing to curb any real problem – there are no quick fixes to discourage alcohol misuse particularly by young people. We suspect it will simply distort consumption into other forms of alcohol – some potentially riskier than the measured and labelled concentration of alcohol in RTDs. There has already been a surge in the sales of full strength bottled spirits and mixer soft drinks. This is a worrying trend as many young people do not take the care to measure the amount of alcohol, sometimes simply topping up a soft drink bottle which could yield variable strength drinks, without any real understanding or monitoring of what they are consuming. Some of the advocacy groups are now also realising that the very thing they had been pushing for, may result in greater harms than any misuse of any products already on the market. What can the drinks sector do to tackle any real problem and to demonstrate responsible behaviour? ALSA support a well coordinated consumer education and responsible service of alcohol campaign with governments and the drinks, retail and hospitality sector working together to build a healthy and safe drinking culture. We agree that more emphasis needs to be put by government on individual responsibility and enforcing penalties for individuals who act irresponsibly. ALSA are actively encouraging state and federal governments to educate consumers and the community on expectations of responsible alcohol use, adult role modelling and the expectations of consumers on and around licensed premises – including underage and secondary supply issues. ALSA along with other key drinks sector members in the National Alcohol Beverage Industries Council (NABIC), last week met in Canberra with Senator Jan McLucas the Parliamentary Secretary to the Minister for Health (Senator McLucas has alcohol policy responsibility in the new government) to make these very same points. ALSA will address these issues and more, in the upcoming ‘Embrace the Future’ ALSA Conference to be held at Palm Cove from July 20 -26. Come along and have your say on the important issues that will shape the future of your business. 64 drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade Chasing wine aromas The essence of wine lies predominantly in its colour, aroma and flavour. It is the seemingly endless diversity of these attributes that keeps the consumer fascinated with wine. Winemakers are therefore continually seeking new, and rediscovering old, techniques to enhance varietal character and to positively influence the sensorially diverse qualities of wine. Biological processes feature heavily among the many options available to the winemaker to influence how these factors develop. A case in point - Dr Leigh Francis, principal research sensory scientist - The Australian Wine Research Institute “From recent studies carried out at the AWRI on both white and red varieties, many consumers seem especially attracted to ‘sweet’ aromas such as caramel, confectionary, raspberry, vanilla or floral. There are some aromas that are liked by some consumers but disliked by others, such as tropical fruit flavours, while some aromas appear to be generally disliked. For most aromas there are at least several compounds acting together that give rise to the flavour. We have very good evidence that a tested set of consumers will not have homogenous likes and dislikes. There will be different groups of consumers within the total set that like and dislike quite different wines, and it appears that their preferences do not relate closely to demographics such as age, sex, income, or years of wine drinking experience. This type of information can be highly valuable to the wine industry as it shows proportions of consumers in a population who value specific wine attributes. While we don’t yet have reliable information on cross-cultural differences in preferences, it is very likely that consumers from different national backgrounds, especially those from non Anglo-Saxon cultures, would have a different mix of preferences.” Summary Consumers expect a safe product, made in an environmentally sustainable manner, which delivers an enjoyable sensory and social experience. The wine sector’s challenge is to respond to these consumer sentiments and deliver products at an ever superior quality/price ratio. Meeting these quality requirements in the future will require a better understanding of the biology of human perception, and the relationship between composition and the production of wine to an evolving market preference and specification. Checklist w Wine colour, aroma and flavour are defined by a suite of compounds derived from the grape berry (including sugars, acids and nutrients). w Aroma compounds in grape juice are modified by flavour-active yeasts and bacteria and the associated metabolic activity. w Primary fermentation, resulting from yeast activity, adds character to the varietal characteristics of the wine. w Secondary malolactic fermentation (MLF) de-acidifies and helps control the acidity and stability in wine and stabilise the liquid. w Research indicates that MLF influences wine aroma by interacting with the flavour compounds that distinguish varietal character. w Chardonnay grape juice (prior to fermentation) has been identified to have almost 200 different volatile constituents. w Research indicates that each of these 200 or more constituents is potentially contributing to wine aroma and complexity. w Contributed by Wine Australia, for more information on Australia: world class please visit www.wineaustralia.com/worldclass drinks t drinks trade drinks trad drinks trad drinks trade drinks trade drinks trade drinks t drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade drinks trade drinks trade If you work in the drinks industry then you need Drinks Trade. Ensure you and your staff keep in touch with everything drinks related. Drinks Trade is not a social reporting publication; it delivers business information for those involved in the drinks industry. From off-premise retailers to the latest bar, Drinks Trade offers you the insight into the products that your customers want. w Get the latest industry trends w Industry leaders opinions w Overseas news from respected agencies w Latest government guidelines w News from your industry w Consumer buying habits w Make sure you know what your competitors know; this is the magazine they are reading. Six editions of Drinks Trade the magazine - Just $75 including GST Subscriptions are payable annually in advance 78 Drinks Trade Subscription Order TAX INVOICE (ABN 26 001 376 423) m I wish to order one years subscription to Drinks Trade (six editions) for $75 - Australia only MR/MRS/MS: PAYMENT DETAILS (PAYABLE TO THE LIQUOR MERCHANTS ASSOCIATION OF AUSTRALIA) PAY ONLINE WWW.LIQUORMERCHANTS.ORG.AU OR BUSINESS NAME: m MY CHEQUE/MONEY ORDER FOR $ IS ENCLOSED, OR POSITION: m PLEASE DEBIT MY CREDIT CARD FOR $ ADDRESS: CARD NAME TYPE OF CARD: m MASTERCARD m VISA POSTCODE: CARD NUMBER m BANKCARD m AMEX ________________ PHONE: Verification Code FAX: CARDHOLDER’S SIGNATURE: EMAIL ADDRESS: MAIL TO: Drinks Trade, Locked Bag 4100, Chatswood DC, NSW 2067 or FAX TO: (02) 9415 1080 EXPIRY DATE Perspective drinks trade drinks trade Clayton Ford Rachel Kairuz drinks trad trade Manager, responsible marketing and innovation Senior advisor – industry services, drinks trade drinks trade GS1 Australia drinks trade drinks trade drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade RTD excise News of the Rudd Government’s astounding reversal of the Howard Government’s carefully considered alcohol tax reform has reverberated overseas as it has back home. Flying in the face of international evidence, the Australian Health Minister has promised that this move will address binge drinking by reducing the consumption of premixed spirits, yet also raise substantial additional revenue for future public health initiatives. Putting aside the questions as to the extent of, and any recent increase in, the problem of youth binge drinking in Australia, and what – if any - role premixed spirits plays in these questions, a recent review of the international evidence suggests the Health Minister’s faith is sorely misplaced. Cornelia Metzner and Luigi Kraus recently published ‘The Impact of Alcopops on Adolescent Drinking: a Literature Review’, in Alcohol & Alcoholism (Vol.43, No.2, pp.230-239, 2008). With regards to the singling out of premixed spirits for particular punitive treatment, they found that “the literature so far provides no evidence to underpin the arguments brought forward in public discussions pressing for a special treatment of alcopops”. They also looked at the experiences of Germany, France and Switzerland, that each increased the taxes on premixed spirits with the specific intention of reducing demand, generally among young people. Their research, perhaps unsurprisingly, revealed that: “Only for those adolescents who only drink alcopops and would not drink any alcoholic beverage if there were no alcopops, a special tax on alcopops would be reasonable.” Furthermore, that: “Even though tax measures have been proven to be effective, there is little evidence that the reduction of a certain drink will influence total alcohol consumption when the availability of other beverages remains unchanged” Not only did they conclude that singling out premixed spirits for punitive taxes had proved ineffective, but also regressive. “The alcohol industry has long since responded to tax measures with the manufacturing of alcopops which are wine or beer-based instead of spirit-based, in order to bypass the alcopop tax law. For example, this can be seen in the results of a pre-post investigation of the effectiveness of the tax increase on spirit-based alcopops in Germany: the drop in quantity of pure alcohol consumed in the form of spirit-based alcopops was for the most part compensated by the quantity of ethanol consumer in beer and wine-based alcopops. From a preventative viewpoint, this not only represents a lack of progress, but also a step in the wrong direction.” Not only does the international experience suggest that such a move is a step in the wrong direction, but also that the promised $2 billion additional funds for public health is illusory. The German experience showed that “due to the decline in turnover of spirit-based alcopops, tax revenue was considerably smaller than foreseen.” Considering that the ALP Shadow Cabinet, as recently as July 2004, committed to maintaining the RTD excise rate because “RTDs currently attract an excise at the same rate as full-strength beer which appropriately reflects alcohol content and taxing RTDs at a higher rate would be unfair”, and the overwhelming international evidence that their broken promise will fail to deliver its stated objectives, the industry is left to question the true motivation behind this tax slug, and the Rudd Government’s overall support for the hospitality industry. 66 drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade Diageo Global drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade Humble bar code has a big role to play Liquor suppliers and manufacturers may think a bar code is just something they need to have on packaging so retailers can scan their product at point-of-sale, but it also can play an important role in combating counterfeiting of products. The wine industry has become a prime target of counterfeiting, especially into the growing Chinese market, and even Australia’s iconic Penfold’s Grange has been the target of wine counterfeiters. Last year Italian police uncovered a massive international wine counterfeiting ring and in Georgia counterfeit wine posed a serious health hazard. In this environment product security and traceability is increasingly important and the Global Trade Item Number (GTIN) along with additional identifiers is the foundation of tracking and tracing products throughout the supply chain. The key to cost-effective and efficient traceability is to apply one global standard - the GS1 System is the most widely accepted global standard that allows all supply chain participants to communicate in one global language of business. You can learn more about the supply chain, GTINs and the role the GS1 System plays in your industry at a GS1 Australia education and training session. GS1 Australia offers four different training modes that are convenient even for the busiest of schedules. Members can select from: w Classroom training sessions Traditional classroom training sessions offer the opportunity to learn from expert instructors. Classes run throughout the day and allow new and existing members to gain better insight and understanding of the GS1 System. w Online courses For members who find it difficult to travel to a classroom, GS1 Australia training is as close as the internet. An online training tool, GS1 LEARN allows members to take a series of courses on essential supply chain concepts study anywhere and at their own pace, 24 hours per day, seven days a week. w Web-interactive training New members can take advantage of GS1’s web-interactive training, or ‘webinars’ for an introduction to the GS1 System and all the information and tools needed to print barcodes on their products. The introductory multimedia presentation connects participants with a GS1 expert live via a telephone conference call, while following the presentation on the web page. w Sessions at GS1’s Supply Chain Knowledge Centre Nothing can quite compare with the impact of a day spent at GS1 Australia’s Supply Chain Knowledge Centre, which delivers a number of supply chain learning programs specifically developed for small, medium and large enterprises. For more information on GS1 Australia’s education and training visit www.gs1au.org or telephone 1300 366 033. drinks t drinks trade drinks trad drinks trad drinks trade drinks trade drinks trade drinks t drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade drinks trade drinks trade drinks trade drinks trade Jonathan Casson, Partner drinks trad trade Holman Webb Lawyersdrinks trade nks trade drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade rinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade nks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade Enjoying the read? drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade drinks trade drinks trade drinks trad drinks trade drinks trad drinks trad drinks trade drinks trade drinks trade drinks trade Parallel importing Custom Magazine Publishing Importing and distributing a product legitimately produced overseas by traders who are not the authorised distributor of that product is known as parallel or grey importing. Reasons for increased parallel importing include: w globalisation w reduced freight costs w on-line activity. Price differentials in different countries make it attractive to parallel import where the importer does not bear the infrastructure costs, including for staff, advertising, warehousing and distribution channels. This leads to price cutting to an unsustainable level for authorised distributors. The high water mark for prevention of parallel imported liquor was the famous 1986 Baileys Irish Cream case. R & A Bailey prevented the parallel importation from the Netherlands of Baileys Original Irish Cream on the basis of breach of copyright in the label. Subsequent amendments to the Copyright Act mean that copyright owners can no longer rely on copyright in artistic works on labelling to prevent parallel importation, where those artistic works were used in the country of manufacture with the licence of the person entitled there to the copyright. In February 2008 the Federal Court held in the Polo/Lauren case that the embroidered polo player logo on the parallel imported goods was a non-infringing accessory and corresponding design, both defences under the Copyright Act. The case considered use of the embroidered polo player logo on the parallel imported goods and may have been differently decided if the logo had been printed onto those goods. There is also a defence to trade mark infringement under the Trade Marks Act if the trade mark was applied to or in relation to the goods by or with the consent of the trade mark owner. If the trade mark applied to or in relation to parallel imports is owned by, for example, the authorised Australian distributor, the distributor may be able to rely on an infringement action to prevent parallel importing. Such ownership by the distributor cannot be a sham, but must meet all legislative and common law requirements. For example, the distributor must exercise control over the trade mark. Any assignment from and/or conditions of a reassignment to the overseas trade mark owner must be carefully drafted to avoid any claim that the trade mark is not validly owned by the distributor. There may also be consumer protection and pure food grounds available to an Australian authorised distributor to prevent parallel importing (e.g. under the Trade Practices Act and the Australia New Zealand Food Standards Code). Consider this: w Is the packaging and labelling information on the goods complete? w Are the statements on the goods accurate in the Australian market? For example some goods may carry advertising for an overseas market which might be misleading in the Australian market. w Do the goods meet minimum Australian standards? For example the labelling requirements for imported wine (excluding New Zealand) include alcohol content and allergens (if any). New Zealand manufactured and labelled wines need only meet the New Zealand standards. In March this year the Council of Australian Governments agreed to implement the World Wine Trade Group Agreement on Requirements for Wine Labelling. The standardisation of wine labelling requirements in a number of countries worldwide will reduce the ability of authorised distributors in Australia to rely on labelling requirements to prevent parallel import of wine. At HIP Media we publish magazines that, above all else, achieve one thing: people read them. The content is original, entertaining and well targeted. We make it our business to know your audience and target your message accurately. Consultancy HIP Media can help you with all aspects of magazine production; constructing your internal business case right through to the finished, and delivered product. We help assess the strengths and weaknesses of your current offering and consult on the potential benefits should you be considering investing in a new magazine as part of your marketing communications strategy. Publishing services Clients can select from a full menu of publishing services including, editorial, photography, design, prepress, printing and distribution. HIP Media’s editorial expertise ranges from industry leading drinks magazines through to weekly newspapers. HIP Media : drinks industry communication specialists [email protected] 0410 600 075 Perspective drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade Intensifying regulatory risks Steve Carell is one of those overnight acting sensations. Except that he’s been in the acting game for a good 20 years before his current success. And despite his roots in comedy, he is developing into a compelling and versatile actor – as his latest role in ‘Dan in Real Life’ attests. Dan Murphy is also on everyone’s lips. An independent chain born in Melbourne of fiercely focused consumer proposition - price, range and some talented staff. Add locations that made parking a breeze and trolleys that allow you to roll the goodies to the car (or the restaurateurs van) and you have a compelling offer. So compelling, that Woolworths have bought the offer to the good folk of New South Wales, Adelaide, Queensland and now Western Australia. In Nielsen’s Liquor Shopper Trends released in May this year Nielsen asks the question - with all this extra exposure, how well have consumers responded to this Victorian independent walking a national stage in corporate clothes. We talked to over 1000 consumers, and then tested their attitudes and affinities with over 6000 of our inhome scanning panelists. And once we did that, we then compared what we learnt back to 2005 when we asked similar questions. The Rudd Government’s surprise 70 per cent increase in alcoholic RTD excise tax represents a considerable shift to the relatively benign regulatory alcohol environment in place under the Coalition. Although no additional actions were announced in the 13 May budget, equity markets will remain watchful given the potential for regulatory change over the next 12-18 months. Over the past month the Federal government has made it clear that there will be a formal review of Australian alcohol policy and tax. Three review committees are currently in place. Most notable among the reviews is the Commonwealth Department of Health’s Preventative Health Taskforce, which is mandated to deliver its blueprint for “tackling chronic disease caused by obesity, tobacco and the excessive consumption of alcohol” by June 2009. We learnt that just over one in four households nationally have shopped with Dan. The national numbers tend to mask potential however. In Melbourne where Dan spent its early years, two in every five households shop with him. And so strong is the offer that half of those households choose to spend most of their off-premise purchases with Dan. In Adelaide we might expect to see more formative figures - but with a solid footprint and well-formed offer these figures are already being matched. So what is the outlook for Dan Murphy? Outside Adelaide no other capital city or state matches this reach and conversion. Yet. Are they likely to? Our latest Nielsen research on consumer’s retail affinities suggests that there are little barriers to this. The implication is self evident - given real estate, we could expect that in regions such as Perth, a fifth of households will convert their main liquor shop to Dan’s. That’s a big fan-base, and some significant shift in the liquor retail structure. Meanwhile, other non chain stores remain popular. Remarkably they also enjoy very high conversion. One in three households nationally still do not shop with national retail banners, and one in five households choose to spend the majority of their alcohol dollars with non national banners. So, the supporting ensemble of retail trade still enjoys plenty of loyalty. The implication for suppliers? A broad ranging retailer like Dan, with reliable supply chain and strong consumer offer, offers strong opportunities. Align appropriate resources to it, define precisely the role it plays in the consumer portfolio of retail stores, and choose the talent in your portfolio that best reflects that position. Dan in Real Life? In a liquor retail landscape still full of options, an overnight sensation decades in the making. [email protected] 68 drinks trade 2020 Summit fuels disquiet The growing government and social pressure with regard to excessive alcohol consumption was also reinforced at the recent 2020 Summit. Of particular note was the fact that participants invited to the Long-Term National Health Strategy debate didn’t appear to involve any ‘high social cost’ industry members. That industry members didn’t have a seat is of concern. The associated commentary implied that these industries are likely targets to assist the funding of preventative health programs by means of additional taxation. From an equity market standpoint such commentary creates nervousness, in that forward earnings projections may be subject to future constraint. RTD move precursor to further constraints There exists a real risk for further regulatory and tax changes within the broader alcohol category, should the Rudd Government take a hard-line. The potential short and longer term constraints that could be applied include: w Mandatory warnings on beverage labels, possibly within 12 months. This issue is currently under review by COAG’s Australia / New Zealand Food Regulation Ministerial Council. w Sponsorship restrictions and or elimination. The ambition of the Long-Term National Health Strategy enunciated post the 2020 Summit is ‘a health policy focused on prevention … with zero tolerance of unhealthy actions’. w Additional advertising restrictions, particularly with regard to television. w Increased tax on beer and wine. w Introduction of volumetric-based wine tax. There have been increased calls for all alcohol to be taxed on a volumetric basis as alcohol regardless of type. Political advocates for change include the Australian Democrats and Australian Greens. Such a change would have a significant impact within regional Australia. w Zero tolerance driving limits for all drivers. Alcohol needs to be viewed as legitimate stakeholder The alcoholic beverage sector appears to have a significant challenge over the next 12-18 months. The sector must position itself as a legitimate stakeholder in the debate to tackle alcohol misuse. Failure to do so may limit the sector’s ability to continue trade, promote and advertise its products without undue regulatory constraint. As an example, feedback indicates the Government did not consult with industry prior to the recent RTD excise tax increase. drinks t drinks trade drinks trad drinks trad drinks trade drinks trade Dan in real life Room for growth drinks t drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade Michael Walton Executive director liquor services, Pacific, The Nielsen Company drinks trade drinks trade Alexandra McPhee drinks trad trade Senior analyst, Southern Cross Equities drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade Malcolm Ryan drinks trad trade Business developmentdrinks manager, nks trade trade Synovate Aztec drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade rinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade nks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trad drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade Growth of rosé and light red Australian consumers changing tastes continue to drive change throughout the wine industry. There have been a number of recent changes with one of the most significant trends over the past two years being the re-emergence of the rosé and ‘light red’ wine segments. Rosé was considered an older drinkers segment, dominated by the imported Mateus line from Portugal. But things changed during 2006 with a significant move towards ‘lighter, summer fun’ wines. Manufacturers were quick to react and now continue to drive this trend. As a result we have seen total rosé/light red sales increase by well over 20 per cent in 2007. During the summer months, the segment increased to over six per cent of the red wine category in both 2006 and 2007 with January recording peak sales. Over 50 new brands have now appeared since January 2006 as the segment accelerated. Clearly many products were developed targeting the summer influence on sales, with crimson and white shiraz and cabernet blends, as well as rosé blended with merlot, grenache and sangiovese. While Mateus of course remains a significant seller and remains in the top five lines, with Brown Brothers Cienna, Banrock Station variants and Jacob’s Creek rounding out the five. Cleanskins have had a big impact on the segment holding a strong position amongst the top sellers. A similar trend has appeared in the sparkling category with sparkling rosé and pink lines showing significant increases in consumer sales. While the rosé and light red wines flourished, consumers also moved from more traditional segments to the pinot noir offerings. Like rosé and light reds, pinot noir has seen an unprecedented surge in new brand introductions since early 2006. The number one selling pinot noir comes from Tasmania (Ninth Island) with three New Zealanders (Oyster Bay, Gunn Estate and Montana) also appearing amongst the biggest sellers indicating the strength of the cooler climate regions. Other major lines in the top selling group include Tyrrells, Taylors, De Bortoli, Rosemount, Wyndham and Long Flat brands. Other relatively lesser known brands such as Stoniers, Yarra Ridge, Sticks, Scotchmans Hill and Tamar Ridge round out the top sellers. The other significant move has been the steady growth of the shiraz viognier segment. Just two years ago only 20 brands existed however there has been a boom in the number of active entries now reaching 70. Yalumba brands initially led the sector, but newer launches from Taylors, Baily & Baily and more recently Wild Oats are making a big impact. While the segment remains relatively small but with such an explosion in brand choice consumers may well embrace these products in 2008. In each case such rapid consumer swings to these segments has placed pressure on overall wine ranging. Retailers continued to increase their product range across the board while reducing space for some of the bigger red wine segments as well as under-performing products. Those retailers with more sophisticated space management tools appear best able to manage this change by juggling their entire wine range and space. LMAA Year Book 2008 Now available! $550 inc GST Containing statistical information about the Australian liquor industry for the last 20 years Import and Export data for Beers, Wines and Spirits Liquor licence count by states and categories Excise and custom duties clearances Please contact the Liquor Merchants Association of Australia Ltd for details Phone +61 2 9415 1199 / [email protected] Available on CD-ROM or by e-mail Perspective drinks trade drinks trade drinks trade drinks tradee drinks drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade The NOS review Every year, due to popular demand, the Wine Communicators of Australia (WCA) brings together representatives from companies such as Nielsen and Woolworths to discuss consumer insights relevant to the wine industry. The quality and depth of this report makes it one of the most anticipated events on the Wine Communicators of Australia’s calendar. This year’s Annual Consumer Insights event focussed on ‘The Australian Wine Consumer in 2008.’ Presenting the topic were; Michael Walton, director of Nielsen Liquor Services; Monica Gessner and Trish Kelliher, account service directors of Roy Morgan Research; and Rebecca Geer, strategy planner of Passport DSN Pty. Ltd. Walton and Gessner/Kelliher presented updates on the current brand, distribution and consumption trends in the Australian wine market. They showed that the Australian wine market is changing at a faster rate and in areas markedly different from much of the wine industry’s current ‘received wisdom’. Geer presented an innovative approach to new product development and brand building through Open Source marketing. Key findings from Nielsen included a distinct drive to fresher, bright and breezier style wines and ongoing and sustained market share shifts from big company wines to small family owned and boutique labels. Mid to small labels are now better placed in retail compared to five years ago. Consumers are increasingly purchasing wine at a higher price point, particularly over the $15 price point. Rosé and pinot noir are growing at a particularly healthy rate. Interestingly the eastern states hold 80 per cent of table wine value and Queensland is now the second largest state. Not surprisingly, given the glut is over, cleanskins are on the decline. Roy Morgan reported that the increasingly ageing population is reflecting which demographics wine businesses should be targeting in the future. For instance in 2020, the 50 + age group will be consuming over 50 per cent of the market share of wine. Wine drinkers have increased although the amount they drink has decreased. More and more people are using the internet to purchase wine and they are also paying less attention to reviews and retail recommendations, buying on price point and what they know to be good. Roy Morgan says this is another example of the behaviour of the ageing population – less likely to be swayed by external influences. Meanwhile Passport DSN discussed the marketing catch cry for the twenty-first century - consumer engagement with your brand as opposed to the old school mentality of brand building. Open Source marketing stresses consumers no longer trust big brands and companies and with the growth of technology, one-way communication platforms are no longer satisfactory. Transparency and innovation in the new market is imperative for brand success promoting a balance between consumer involvement and brand leadership. The Board of the Winemakers’ Federation of Australia met on 3 April 2008 and passed the resolution that forming an industry-owned services body (ISB) to take on the majority of functions of both the WFA and the Australian Wine and Brandy Corporation (AWBC) would represent the most effective outcome of the Review of National Organisational Structures (NOS Review). Under the proposed new structure the ISB would take on all functions of both organisations except advocacy, which would remain with the WFA; and compliance, which would remain with the AWBC. The recommendation is designed to align all strategy and policy functions of the industry to achieve better priority setting and resource allocation. Implementing the ISB would form one strategy, policy setting and implementation body for the Australian wine industry. Functions transferred to this new entity would include (but not be limited to) environment, health, winery tourism, trade, industry educational programs, workforce development, market development and knowledge development. The WFA board recommended that the GWRDC should continue as a purpose-specific national industry research and development body, and further, that its remit should be extended to increase the flow of funds to grape and wine R&D from other sources. It was also suggested that the WFA and WGGA should immediately establish a joint Peak Council to facilitate whole-of-industry representation on issues of common concern. Both organisations would retain complete autonomy, with the council – comprising members of the WFA and Wine Grape Growers Australia (WGGA) Boards – forming a forum for joint policy consideration. For Annual Lecture bookings, more information on future events, membership or for more detail on our Consumer Insights presentation please visit our website on www.winecommunicators.com.au 70 drinks trade drinks t drinks trade drinks trad drinks trad drinks trade drinks trade Consumer insights Our next major event is part of our Lecture Series and features acclaimed UK wine critic and commentator, Robert Joseph who will address the controversial topic – Is wine just another beverage? This event will take place in Melbourne on 17 June and Sydney on 19 June. drinks t drinks trade drinks trade drinks trad drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade drinks trade trad drinks trade Melissa Parker Vice president, Wine Communicators of Australia Inc drinks trade drinks trade Stephen Strachan drinks trad trade CEO, Winemakers’ Federation of Australia drinks trade drinks trade drinks trade drinks trade What happens next? The implementation of the ISB structure will be a lengthy implementation process, and is expected to take approximately two years. The WFA must now engage with a number of key stakeholders, including the partners in the NOS Review and the Federal Government, to enlist their support going forward. Once agreement has been reached with those parties, the WFA will then begin the consultation process with the Australian wine industry, followed by a ballot of opinion all AWBC levy payers. Finally, a formal case for the new structure would need to be submitted to the Minister for Agriculture, Fisheries and Forestry for his consideration and approval. Once Ministerial support has been gained, the process of implementation can commence. In the meantime it is business as usual for both the WFA and the AWBC. The two organisations are already working closely to ensure that our functions are integrated wherever possible. This is now happening with all external communications from our organisations, and we have recently commenced the process of integrating the WFA’s environmental programs (EnviroWine Australia) with AWBC’s activities, particularly the market development activities offshore. Our trade functions and programs such as Future Leaders are already fully integrated between the two organisations. The WFA will be communicating with members and wider stakeholders regularly on developments with the NOS Review. Meanwhile, please do not hesitate to contact the WFA with any questions or comments. The full list of WFA policy decisions in response to the Taskforce Review is available at www.wfa.org.au/NOS.htm. Sauvignon Blanc Chardonnay Pinot Gris Enjoy the magic. Drink Stoneleigh responsibly. Pinot Noir New releases Maxxium will release a new range of Jim Beam spirits to celebrate seven generations of family tradition in bourbon making. The Jim Beam Distillers range consists of seven bottles being releases in limited volumes over a three-month period. Each 700ml limited edition bottle will recognise each generation of the Beam family. Contact Maxxium for more information. RRP 700ml bottle $39.99. Barmania will introduce a new triple malt whisky. Monkey Shoulder is made with a blend of three different Speyside single malts – Balvenie, Glenfiddich and Kininvie. The three malts add their individual characters to the smooth and rich flavour of the whisky. Monkeys Shoulder is blended in small batches and matured in bourbon casks, making each batch subtly unique. Contact Barmania for more information. Hungerford Hill has released a specially labelled premium Chardonnay and Shiraz as the new wine partner of the Sydney Opera House. The Hungerford Hill Higher Octave Chardonnay and Hungerford Hill Higher Heavy Metal Shiraz is the first joint initiative of Hungerford Hill and the Sydney Opera House and will be introduced in Sydney bars, restaurants and duty free outlets. It will also be released to the international market at a later stage. Contact Kylie Teasdell from Hungerford Hill on 02 9518 5111 for more information. Imported “from Sweden with love” by Healthy Edge Australasia, Nexcite is a lightly carbonated non-alcoholic beverage new to the Australian market. The new energy drink contains herbal extracts derived from maté, damiana, schizanda, ginseng and guarana and does not contain taurine. RRP 200ml bottle $3.70. For further information contact Healthy Edge Australasia on 02 8883 3218 or visit www.nexcite.com.au. Barilliant is an integrated liquor management system that consists of The Barilliant Beer Control and Barilliant Spirit Control. The control systems have the ability to control and monitor drinks being dispensed what staff member is dispensing the drink with a Radio Frequency Identification tag. The system also monitors inventory and provides customers with Pulse TV screens, which display a mix of visual content and internal promotional information while they are waiting for drinks. Visit www.barilliant.com for more information. Bionade is a non-alcoholic carbonated beverage new to the Australian market. It is low in calories and sugar but high in minerals. Bionade is created with a fermentation process similar to beer and is made with purely natural organic and gluten free ingredients. The range includes four flavours - lychee, ginger and orange, elderberry and herbs. RRP 330ml bottle $3.30 Visit www.bionade.com for more information. Ferngrove have released their 2007 Ferngrove Estate Chardonnay (RRP $18.99) and 2007 Ferngrove Orchid series Diamond Chardonnay (RRP $23.99). The Estate chardonnay is supported by subtle oak and partially barrel fermented with new French oak, followed by periodic lees stirring. The Diamond Chardonnay is fermented and matured in 100 per cent new French oak hogsheads. Distributed by Red+White ph: 03 8413 8333. Patrón tequila is now available in Australia through premium beverage distributors, Southtrade International. Patrón is produced from the finest 100 per cent Weaber Blue agave grown in the highlands of Jalisco, Mexico, and is one of the first ultra-premium tequilas available on the world market. The range includes Patron Silver 100% Agave Tequila (RRP $95); Patrón Reposado Rested 100% Agave Tequila (RRP $109); Patrón Anejo Aged 100% Agave Tequila (RRP $119); Gran Patrón Platinum Tequila (RRP $299). Contact Southtrade International ph: 02 9922 2816 or visit www.southtradeint.com.au . drinks trade 73 New releases Winter Creek, situated at Williamstown in the far south of the Barossa Valley, have released their 2004 Winter Creek Barossa Shiraz, which scored 93 points in the 2008 edition of James Halliday’s Wine Companion. The wine is a good expression of cooler Barossa Shiraz. The Winter Creek winemaking philosophy aims to produce wines with a classic acid/tannin structure, vivid fruit flavours and with complexity coming from outstanding quality grapes. Contact D’Vine Distribution dvine_distribution@bigpond. com or phone 0411 163 104. Brown Brothers have released their 2004 Patricia Shiraz (RRP $53.90). The Shiraz was the only wine to be released in the flagship Patricia range this year. Each wine within the range must be a certain standard before Brown Brothers will release it under the Patricia label. Fruit was sourced from three first class Victorian vineyards (including Brown Brothers’ own Heathcote Vineyard) and the wine offers aromas of berries, spice and well integrated oak. The palate has concentrated fruit, great length and a fine grained tannin finish. Finlandia Vodka is made from glacial spring water and Finnish six-row barley to produce naturally pure vodka with the least amount of impurities. Finlandia Grapefruit Fusion combines the distinct taste of pink grapefruit with Finlandia Vodka. The flavoured vodka is made with the pulp, skin and peel of the grapefruit to balance out the sweetness and acidity and is untouched by artificial flavours, colours and additives. The Finlandia flavours range is also available in cranberry, lime and mango. RRP 700ml bottle $37.99. Contact Brown Forman for more information. The Swift brothers have introduced two new wines to the Printhie range. The Printhie Mountain Shiraz Cabernet 2006 and Printhie Mountain Chardonnay 2007 have been sourced from Orange, New South Wales. This wine region has altitudes of 600 to 1100 metres with various different soil types and microclimates. RRP 700ml bottle $17. Contact David or Edward Swift from Printhie Wines on 02 6366 8422 for more information. 74 drinks trade Alpha Noble is an ultra premium vodka from France introduced into the Australian market by Halloran Manton. Made from specially selected French wheat and spring water, the vodka is put through a distillation process six times. In the sixth distillation process the vodka is distilled in copper stills. Halloran Manton has also introduced a new Tequila. Sierra Milenario Extra Anejo Tequila is aged for a period of four years in American Holm oak barrels. Contact Halloran Manton on 02 9221 0045 for more information. Hesketh Wine Company focus on what each wine region does best when sourcing fruit for each wine style they produce. The Hesketh Hidden Garden Marlborough Sauvignon Blanc 2007 (RRP $20) and Hesketh The Protagonist Barossa Valley Shiraz 2005 (RRP $25).. Contact Jonathon Hesketh on 0419 003 144 for more information. McWilliam’s Wines have released the Barwang Tumbarumba Sauvignon Blanc 2007. The alpine countryside Tumbarumba region has an altitude of 700 metres with a cool microclimate climate. The fruit in the 2007 Barwang was sourced from three different vineyards in the region and were each treated separately to preserve the individuality of the vineyard block. RRP $19.99. Contact Bernadette Knight from McWilliam’s on 02 9722 1200 for further information. All Saints Estate has a tradition of producing richly flavoured and regionally distinctive varietal wines. The winery have a range of new releases including the Family Cellar Marsanne 2006 (RRP $28), All Saints Chardonnay Viognier 2006 (RRP $19.90), All Saints Sangiovese Cabernet 2006 (RRP $19.90), All Saints Shiraz 2006 (RRP $22.50), All Saints Durif 2006 (RRP $22.50) and Family Cellar Durif 2006(RRP $50). Contact Karina Ward on 02 6035 2222 for further information. New products & releases New product codes: (1) Package/size (2) Vintage (3) Releases (4) Distributor changes Wholesale pricing and carton quantity information available to Thomson’s Liquor Guide subscribers - over 12,000 products in print and online format Data current for supplier updates received up to and including 1/05/2008. Brand Product Supplier Size ml Beer & Stout, Domestic Brand Product Supplier Size ml Flinders Portfolio Pty Ltd Tanglefoot Byron Bay Premium Ale Byron Bay Beverages Pty Ltd [England] (4) Tanglefoot 4.5% 500 (4) Premium Beer 330 Trois Monts Flinders Portfolio Pty Ltd (4) Premium Beer 50L Gage Roads Constellation Wines Australia [Belgium] (4) Trois Monts 8.5% 750 (3) Nahoo Premium Ale [Lager] 330 TsingTao Flinders Portfolio Pty Ltd Lucky Beer Alepat Taylor Pty Ltd [China] (4) Lucky Beer 4.8% 330 (1) Tsing Tao 4.5% 640 Red Angus De Bortoli Wines Pty Ltd Waggle Dance Flinders Portfolio Pty Ltd (3) Red Angus Pilsener Beer 345 [England] (4) Waggle Dance Honey 5.0% 500 Beer & Stout, Imported Weihenstephan Palais Imports Aecht Schlenkerla Palais Imports [Germany] [Germany] (3) Korbinian [dopple bock] 500 (4) Schlenkerla Marzen [Smoke Beer] 330 Wells Bombardier Palais Imports Amarcord Combined Wines & Foods [England] [Italy] (4) Wells Bombardier [English Beer] 568 (4) San Mario Queen 500 Wells John Bull Palais Imports Ambar Flinders Portfolio Pty Ltd [England] [Spain] (4) Wells John Bull [English Bitter] 568 (3) Ambar Pale 1900 4.8% 330 Youngs Flinders Portfolio Pty Ltd Beer To Dine For Flinders Portfolio Pty Ltd [England] [England] (4) Youngs Double Chocolate Stout 5.2% 500 (3) Beer To Dine For 5.0% 750 Youngs Palais Imports Bishops Finger Flinders Portfolio Pty Ltd [England] [England] (4) Bitter [English Pale] 500 (4) Bishops Finger Strong Ale 5.4% 500 (4) Double Chocolate Stout [Choc Stout] 500 Boddingtons Flinders Portfolio Pty Ltd (4) Special London Ale [Strong Pale Ale] 500 [England] (4) Waggle Dance [Honey Ale] 500 (4) Boddigtons 4.4% 500 Whisky & Whiskey Castello Pilsener Arquilla Bulk Trading Pty Ltd BLENDED WHISKY [Italy] (3) Castello Doppio Malto [Double Malt Beer] 330 Matisse Combined Wines & Foods (3) Castello Rossa [Red Double Malt Beer] 330 [Scotland] (4) Blended Malt Scotch Whisky 15 YO 700 Castle Lager Flinders Portfolio Pty Ltd (4) Old Blended Scotch Whisky 700 [South Africa] (4) Scotch Whisky 21YO 700 (4) Castle Lage 5.0% 330 (4) Specially Selected Blended Scotch Cobra Flinders Portfolio Pty Ltd Whisky 12 YO 700 [India] Pig’s Nose Southtrade International (1) Cobra King 5.0% 750 (4) Pig’s Nose Blended Scotch Whiskey 40%700 (3) Cobra Low Carb 5.0% 330 (3) Cobra No Alcohol 0% 330 HIGHLAND SINGLE MALTS Efees Flinders Portfolio Pty Ltd Matisse Combined Wines & Foods [Turkey] [Scotland] (4) Efees Pilsener 5.0% 355 (4) Single Malt Scotch Whisky 15YO 700 Forst Alepat Taylor Pty Ltd SPEYSIDE SINGLE MALTS [Italy] MacKillop’s Choice Southtrade International (3) Forst 1857 [3 packs] 330 [Scotland] Fuller’s Flinders Portfolio Pty Ltd (4) Glen Grant Single Cask Malt [England] Whiskey Sept 1966 48.3% 700 (4) Fuller’s London Pride 4.7% 500 (4) Glen Keith Single Cask Malt Whiskey Oct 1972 47.2% 700 Fursty Ferret Flinders Portfolio Pty Ltd [England] VATTED MALTS (4) Fursty Ferret 4.4% 500 Sheep Dip Southtrade International Gouden Carolus Flinders Portfolio Pty Ltd (4) Sheep Dip Malt Scotch Whisky 40% 700 [Belgium] IMPORTED WHISKIES (4) Gouden Carolus 7.5% 330 Old Potrero Southtrade International Greene King Flinders Portfolio Pty Ltd [USA] [England] (4) Old Potrero 18th Century Style (1) Abbot Ale 5.0% 500 American Whiskey 62.55% 750 (3) Excalibur Lager 8.5% 500 (4) Old Potrero Single Malt Straight Rye (3) Export Ale 3.6% 500 Whiskey 45% 750 (3) Export Ale 5.0% 500 Rittenhouse Whiskey Southtrade International Jever Palais Imports [USA] [Germany] (4) Rittenhouse 6 YO Single Barrel (4) Jever Pilsner [German Pilsner] 330 Rye Whiskey 50% 750 John Smith’s Flinders Portfolio Pty Ltd Brandy & Cognac, Imported [England] (4) John Smith’s Extra Smooth 4.4% 440 Berville Alepat Taylor Pty Ltd [France] Kronenbourg Flinders Portfolio Pty Ltd (4) X.O. 700 [France] (4) Kronebourg 5.0% 500 Camus Alepat Taylor Pty Ltd [France] Lucifer Flinders Portfolio Pty Ltd (4) Borderies X.O. 700 [Belgium] (4) Extra Elegance 700 (4) Lucifer 8.0% 330 (4) V.S. Elegance 700 Monteith’s Drinkworks (4) V.S.O.P Elegance 700 [New Zealand] (4) X.O. Elegance 700 (1) Montheith’s Golden Ale on Tap 5% 50L Meukow Combined Wines & Foods Raftman Palais Imports [France] [England] (4) Cogac VSOP [Gift Box] 700 (4) Raftman 341 (4) Cognac SO [Gift Box] 700 (4) Cognac Vanilla with 1 Glass [Gift Box] 700 Sheepshagger Flinders Portfolio Pty Ltd (4) Cognac VS [Gift Box] 700 [England] (4) Cognac VS Vanilla 700 (4) Sheepshagger 4.5% 500 (4) Cognac VSOP with 2 Glasses [Gift Box] 700 Singha Beer Flinders Portfolio Pty Ltd (4) Courriere Napoleon Brandy non frost 700 [Thailand] Paul Giraud Cerbaco Distribution (4) Singha 4.5% 330 [France] Steigl Goldbrau Flinders Portfolio Pty Ltd (3) Heritage Grande Champagne [Austria] Cognac 60 YO 40% 700 (4) Steigl Goldbrau 4.9% 330 76 drinks trade Supplier Brand Product Calvados Size ml Calvados Bernerdy Alepat Taylor Pty Ltd (4) Calvados Bernerdy Extra 700 (4) Calvados Bernerdy ‘Fine’ 700 (4) Calvados Bernerdy X.O. 700 Victor Gontier Domfrontais Cerbaco Distribution [France] (3) 2000 42% 700 Gin City of London Southtrade International (4) City of London Gin 40% 700 Hayman’s Old Tom Southtrade International (4) Hayman’s Old Tom Gin 40% 700 Junipero Southtrade International (4) Junipero Gin 49.3% 750 Rums JM Martinique Cerbaco Distribution [France] (2) Vieux Rhum Agricole 1993 48.8% 700 RUM, IMPORTED DARK Pusser’s Rum Southtrade International (4) Pusser’s Aged 15 Years 40% 700 (4) Pusser’s British Navy Rum 42% 700 (4) Pusser’s Rum Admiral Lord Nelson Ship’s Decanter 47.5% 1L (4) Pusser’s Rum Nelson’s Blood Hip Flask 42% 200 MINIATURES Pusser’s Rum Southtrade International (4) Pusser’s Aged 15 Years Rum 40% 50 (4) Pusser’s British Navy Rum 42% 50 Vodka Adam Vodka Southtrade International (4) Adam Vodka 45% 750 Babicka Vodka Southtrade International (4) Babicka Wormwood Vodka 40% 750 Eva Zen-Sen Vodka Southtrade International (4) Eva Zen-Sen Vodka 40% 700 Peach Vodka Southtrade International (4) Peach Vodka 16% 500 Peliskovka Strong Vodka Southtrade International (4) Peliskovka Strong Vodka 60% 500 Liqueurs Amaretto Southtrade International (4) Amaretto Green Tea 20% 500 Gaugalin Cerbaco Distribution (4) Corn an Opium Poppies Liqueur 500 Patron Southtrade International (4) Patron Citronge Orange Liqueur 40% 750 (4) XO Café Tequila Coffee Liqueur 40% 750 Silvovice Prava Southtrade International (4) Silvovice Prava 50% 500 Starozlata Southtrade International (4) Starozlata Honey Liqueur 20% 500 Premix & Ready To Drink Alize Southtrade International (4) Alize Bleu 20% 750 (4) Alize Gold Passion 16% 750 (4) Alize Gold Passion 16% 1L (4) Alize Red Passion 16% 750 (4) Alize Red Passion 16% 1L (4) Alize Rose 16% 750 (4) Alize Rose 16% 1L (4) Alize Wild Passion 16% 750 (4) Alize Wild Passion 16% 1L Café Boheme Southtrade International (4) Café Boheme 16% 750 (4) Café Boheme 16% 1L (4) Café Boheme 16% 1L Fairy Bombs Southtrade International (4) Fairy Bombs Grenn Fairy Absinth & Energy Drink [can] 250 iDRINX iDRINX Pty Ltd (3) Vodka Yuzu Premium Beverage 6% [4pk] 275 CIDERS Ciders, Meads & Perry Pipsqueak Cider (3) Apple Cider Little Creatures Brewing P/L 330 Miscellaneous Spirits Veritas Southtrade International (4) Veritas Cachaca Gold 40% 750 (4) Veritas Cachaca Silver 40% 750 ABSINTHE Dabel Southtrade International (4) Dabel Premium Czech Absinth 70% 500 Supplier Brand Product Size ml ABSINTHE Miscellaneous Spirits Green Fairy Southtrade International (4) Green Fairy Absinth 60% 500 (4) Green Fairy Absinth 60% 40 Koruna Southtrade International (4) Koruna Natural Bohemian Absinth 73% 500 Kubler Southtrade International (4) Kubler Swiss Absinthe 53% 500 Lemercier Southtrade International (4) Lemercier Natural French Absinth 45% 500 (4) Lemercier Natural French Absinth 72% 700 Mansinthe Southtrade International (4) Mansinthe Absinthe by Marilyn Manson 66.6% 700 GRAPPA Bosso [Italy] (4) Grappa di Dolcetto (4) Grappa di Monferrato Combined Wines & Foods Jelinek [Czech Republic] (3) 5 YO 50% Gold Goulburn Wines & Spirits P/L SLIVOVITZ TEQUILA 700 700 700 Casa Noble Southtrade International (4) Casa Noble Anejo 40% 700 (4) Casa Noble Crystal 40% 700 (4) Casa Noble Reposado 100% Blue Agave700 Patron Southtrade International (4) Gran Patron Platinium 40% 750 (4) Patron Anejo “Aged” 100% Agave 40% 750 (4) Patron Reposado “Rested” 100% Agave 40% 750 (4) Patron Silver 100% Agave 40% 750 XXX Tequila Southtrade International (4) XXX Siglo Treinta Gold 40% 700 (4) XXX Siglo Treinta Gold 40% 1L (4) XXX Siglo Treinta Gold 40% Miniatures 50 (4) XXX Siglo Treinta Reposado 100% Blue Agave 40% 700 (4) XXX Siglo Treinta Silver 40% 700 (4) XXX Siglo Treinta Silver 40% Miniatures 50 White Table Wine, Domestic Andrew Harris Vineyards Andrew Harris Vineyards [Mudgee, NSW] (2) Highfields Semillon 2006 750 (2) Personal Selection Chardonnay 2006 750 Ashbrook Estate The Fine Wine Specialist [Margaret River, WA] (2) Chardonnay 2006 750 Audrey Wilkinson Combined Wines & Foods [Hunter Valley, NSW] (2) Reserve Semillon 2006 750 Bass Fine Wines Haviland Wine Merchants P/L [Tasmania] (2) Riesling 2007 750 Beelgara Beelgara Estate [Yarra Valley, VIC] Regional Reserve: (2) Chardonnay 2007 750 Billy Goat Hill Alepat Taylor Pty Ltd [Western Australia] (2) Sauvignon Blanc 2006 750 Cascabel Fesq & Company [Eden Valley, SA] (2) Riesling 2007 750 Cassegrain Cassegrain Wines Pty Ltd Limited Release Range: (3) Gewurtraminer 2007 750 Stone Circle: (2) Chardonnay 2007 750 (1) Chardonnay 2007 187 (1) Semillon Sauvignon Blanc 2007 187 Chateau Leamon Lewis Fine Wines [Bendigo, VIC] (2) Rielsing Single Vineyard 2007 750 Clyde Park Combined Wines & Foods [Victoria] (2) Pinot Gris 2007 750 Cofield Wines Cofield Wines [Rutherglen, VIC] (2) Chenin Blanc 2007 750 (2) Sauvignon Blanc Semillon 2007 750 D’Angelo Estate Vineyard Lewis Fine Wines [Yarra Valley, VIC] (2) Pinot Grigio 2006 750 Brand Product Supplier Size ml Combined Wines & Foods Domain Barossa [Barossa Valley, SA] (2) Chardonnay 2005 750 (2) Ruth Millers Riesling 2007 750 Eagle Vale Combined Wines & Foods [Margaret River, WA] (2) Sauvignon Blanc Fumé 2005 750 (2) Semillon Sauvignon Blanc 2007 750 Evans & Tate McWilliams Wines Pty Limited [Margaret River, WA] Classic: (2) White 2007 750 Fire Gully Fesq & Company [Margaret River, WA] (2) Chardonnay 2007 750 Foxeys Hangout Combined Wines & Foods [Mornington Peninsula, VIC] (2) Chardonnay 2006 750 (2) Pinot Gris 2007 750 Geoff Merrill Young & Rashleigh Wine Merchants [McLaren Vale, SA] (2) Chardonnay 2005 750 Gnangara McWilliams Wines Pty Limited (2) Unwooded Chardonnay 2007 750 Grant Burge Young & Rashleigh Wine Merchants [Barossa Valley, SA] (2) Lily Farm Frontignac 2007 750 (2) Summers Chardonnay 2006 750 (2) Thorn Riesling 2007 750 Grosset The Fine Wine Specialist (2) ‘Piccadilly’ Chardonnay 2006 750 Harvest Road Andrew Harris Vineyards [Mudgee, NSW] (2) Sauvignon Blanc 2007 750 Heemskerk Foster’s Group Ltd [Tasmania] (4) Chardonnay 2006 750 (4) Riesling 2007 750 Helm Wines WineFusion [Canberra Region, ACT] (2) Classic Dry Riesling 2007 750 Jamiesons Run Foster’s Group Ltd (1) Limestone Coast Chardonnay 1L Katherine Hills The Fine Wine Specialist [McLaren Vale, SA] (2) Chardonnay 2007 750 Keith Tulloch The Fine Wine Specialist [Hunter Valley, NSW] (2) Chardonnay 2006 750 Leeuwin Estate Fesq & Company [Margaret River, WA] Art Series: (2) Chardonnay 2004 Magnums 1.5L Leeuwin Estate red+white QLD [Margaret River, WA] Art Series: (2) Riesling 2006 750 (2) Sauvignon Blanc 2007 750 Prelude Vineyards: (2) “Siblings” Sauvignon Blanc Semillon 2007750 (2) Classic Dry White 2007 750 Longview Vineyard Young & Rashleigh Wine Merchants The Red Bucket Series: (2) Semillon Sauvignon Blanc 2007 750 [Adelaide Hills, SA] (2) ‘Blue Cow’ Unwooded Chardonnay 2006 750 (2) ‘My Fat Goose’ Semillon Sauvignon Blanc 2007 750 McGuigan Wines Icon Brands Pty Ltd Black Label: (3) Sauvignon Blanc 750 [Adelaide Hills, SA] Discover: (3) Sauvignon Blanc 750 The Shortlist: (3) Chardonnay 750 [Victoria] Discover: (3) Pinot Grigio 750 Mitchelton Wines Fine Wine Partners Pty Ltd [Victoria] (2) ‘Airstrip’ Marsanne Roussane Viognier 2005 750 Montrose Wines Oatley Wines [Mudgee, NSW] (4) Stony Creek Chardonnay 2007 750 Morris Pernod Ricard Pacific Pty Ltd Table Wine Range: (3) Morris Chardonnay 750 Brand Product Supplier Size ml Moss Wood Fesq & Company [Margaret River, WA] (2) Chardonnay 2007 750 Mount Pleasant McWilliams Wines Pty Limited [Hunter Valley, NSW] Cellar Aged Series: (2) Elizabeth Semillon 2003 750 Mt Majura Haviland Wine Merchants P/L [Canberra Region, ACT] (2) Chardonnay 2006 750 Peel Estate Alepat Taylor Pty Ltd [Baldivis, WA] (2) Chardonnay 2004 750 Penley Estate, The The Fine Wine Specialist [Coonawarra, SA] (2) Chardonnay 2006 750 Pepperton Estate Beelgara Estate [South Eastern Australia] Two Thumbs: (2) Chardonnay 2007 750 Pierro red+white QLD [Margaret River, WA] (2) Chardonnay 2006 750 (2) LTC Semillon Sauvignon Blanc 2007 750 Fire Gully: (2) Chardonnay 2007 750 (2) Sauvignon Blanc Semillon 2007 750 Pyramid Hill Combined Wines & Foods [Hunter Valley, NSW] (1) Chardonnay 2005 750 (2) Semillon 2007 750 (2) Verdelho 2007 750 Richard Hamilton Fesq & Company [McLaren Vale, SA] (2) Slate Quarry Riesling 2007 750 Rosily Vineyard Young & Rashleigh Wine Merchants [Margaret River, WA] (2) Sauvignon Blanc 2007 750 Serafino Combined Wines & Foods [McLaren Vale, SA] (3) McLarens on the Lake Unwooded Chardonnay 2006 750 (2) Reserve Chardonnay 2006 750 (3) Sharktooth Wild Fermented Chardonnay 2006 750 Goose Island: (3) Semillon Sauvignon Blanc 2007 750 Shadowfax The Fine Wine Specialist [Adelaide Hills, SA] (2) Pinot Gris 2007 750 (2) Sauvignon Blanc 2007 750 [Victoria] (3) “Macedon Ranges” Chardonnay 2006 750 Shingleback Shingleback Wine Pty Ltd [McLaren Vale, SA] (2) Chardonnay 2007 750 Songlines Estate Scotchmans Road [Hunter Valley, NSW] (4) Bylines Chardonnay 2006 750 Tapestry Combined Wines & Foods [McLaren Vale, SA] (2) Chardonnay 2007 750 Taylor Ferguson Combined Wines & Foods [Riverina, NSW] (2) Chardonnay 2006 750 Taylors Wines Taylors Wines (NSW) Pty Ltd Jaraman Range: (2) Chardonnay 2006 750 St Andrews Range: (2) Chardonnay 2005 750 Totino Estate Alepat Taylor Pty Ltd [Adelaide Hills, SA] (2) Pinot Grigio 2007 750 Water Wheel Young & Rashleigh Wine Merchants [Bendigo, VIC] (2) Sauvignon Blanc 2007 750 Winter Creek D’Vine Distribution [Adelaide Hills, SA] (3) Pinot Gris 2007 750 (3) Sauvignon Blanc 2007 750 Wolf Blass Wines Foster’s Group Ltd Red Label: (3) Classic Dry White 1L Yeringa Ridge Alepat Taylor Pty Ltd (1) Semillon Chardonnay 375 Zilzie Wines Fesq & Company [Victoria] Zilzie Estate: (2) Viognier 2006 750 drinks trade 77 New products & releases New product codes: (1) Package/size (2) Vintage (3) Releases (4) Distributor changes Wholesale pricing and carton quantity information available to Thomson’s Liquor Guide subscribers - over 12,000 products in print and online format Data current for supplier updates received up to and including 1/05/2008. Brand Product Supplier Size ml Red Table Wine, Domestic Alkoomi Fesq & Company [Frankland River, WA] (2) White Label Shiraz 2006 750 Ashbrook Estate The Fine Wine Specialist [Margaret River, WA] (2) Shiraz 2004 750 Barwang McWilliams Wines Pty Limited [Hilltops, NSW] (2) Cabernet Sauvignon 2005 750 Bass Fine Wines Haviland Wine Merchants P/L [Tasmania] (2) Pinot Noir 2007 750 Beelgara Beelgara Estate [Clare Valley, SA] Regional Reserve: (2) Shiraz 2006 750 [Coonawarra, SA] Regional Reserve: (2) Cabernet Sauvignon 2006 750 Brown Brothers WineFusion (2) Cabernet Sauvignon 2006 750 (2) Durif 2006 750 (2) Patricia Shiraz 2004 750 Carlei Estate Fesq & Company [Yarra Valley, VIC] Green Vineyards: (2) Pinot Noir 2005 750 Cascabel Fesq & Company [McLaren Vale, SA] (2) Joven Tempranillo 2007 750 (2) Monastrell 2006 750 (2) Shiraz 2005 750 (2) Tipico 2005 [Grenache Monastrell Shiraz] 750 Cassegrain Cassegrain Wines Pty Ltd Limited Release Range: (3) Pinot Noir 2006 750 (3) Tempranillo 2007 750 Stone Circle: (1) Merlot 2006 187 (1) Shiraz Viognier 2006 187 Clyde Park Combined Wines & Foods [Victoria] (3) Hayleys Block Pinot Noir 2006 750 (3) Megan’s Block Shiraz Viognier 2006 750 Cofield Wines Cofield Wines [Rutherglen, VIC] (2) Sangiovese 2006 750 (2) Shiraz 2006 750 (2) The Fifth Son 2006 [Blend Cab Savignon, Cab Franc,Merlot,P Verdot] 750 Cookoothama Nugan Estate (2) Cabernet Merlot 2006 750 Cooks Lot Cooks Lot Wines [Mudgee, NSW] (3) Shiraz 2006 750 Coral Sea Australian Regional Wines [South Australia] (2) Cabernet Merlot 2006 750 Crabtree Wines WineFusion [Clare Valley, SA] (2) Picnic Hill Shiraz 2005 750 (2) Watervale Tempranillo 2006 750 Cullen The Fine Wine Specialist [Margaret River, WA] (2) “Mangan” 2006 [Malbec/Petit Verdot] 750 Curlewis Winery Young & Rashleigh Wine Merchants [Geelong, VIC] (2) Reserve Pinot Noir 2004 750 Currency Creek Alepat Taylor Pty Ltd (2) Cabernet Sauvignon Black Swamp 2004750 (2) Carabid Merlot 2004 750 (2) Ostrich Hill Shiraz 2004 750 Creek Station: (2) Shiraz 2004 750 Dalwhinnie Young & Rashleigh Wine Merchants [Victoria] (2) Cabernet Sauvignon 2006 750 (2) Eagle Series Shiraz 2004 750 (2) Pinot Noir 2005 750 (2) Shiraz 2006 750 Domain Barossa Combined Wines & Foods [Barossa Valley, SA] (2) Black Tongue Shiraz 2006 750 (2) Black Tongue Shiraz Reserve 2004 750 (2) Merlot 2006 750 Edwards The Fine Wine Specialist [Margaret River, WA] (2) Shiraz 2005 750 Evans & Tate McWilliams Wines Pty Limited Margaret River: (2) Cabernet Merlot 2003 375 78 drinks trade Brand Product Supplier Size ml McWilliams Wines Pty Limited Evans & Tate Margaret River: (2) Cabernet Merlot 2006 750 (2) Merlot 2005 750 Fire Block Young & Rashleigh Wine Merchants [Clare Valley, SA] (2) Grenache 2003 750 Foxeys Hangout Combined Wines & Foods [Mornington Peninsula, VIC] (2) Pinot Noir 2006 750 Frankland Estate Fesq & Company [Frankland River, WA] (2) Isolation Ridge Cabernet Sauvignon 2005750 Geoff Merrill Young & Rashleigh Wine Merchants [McLaren Vale, SA] (2) Cabernet Shiraz 2004 750 (2) Merlot 2004 750 Grant Burge Young & Rashleigh Wine Merchants [Barossa Valley, SA] (2) Holy Trinity GSM 2003 750 HANDPICKED HANDPICKED WINES International P/L [Coonawarra, SA] (2) Cabernet Sauvignon 2005 750 Harvest Road Andrew Harris Vineyards [Mudgee, NSW] (2) Cabernet Merlot 2006 750 (2) Shiraz Cabernet 2006 750 Heemskerk Foster’s Group Ltd [Tasmania] (4) Pinot Noir 2007 750 Helm Wines WineFusion [Canberra Region, ACT] (2) Premium Cabernet Sauvignon 2005 750 Jamiesons Run Foster’s Group Ltd (3) Cabernet Sauvignon/Shiraz/Merlot 1L Katherine Hills The Fine Wine Specialist [McLaren Vale, SA] (2) Cabernet Merlot 2006 750 (2) Shiraz 2006 750 Keith Tulloch The Fine Wine Specialist [Hunter Valley, NSW] (2) “Kester” Shiraz 2004 750 (2) Shiraz/Viognier 2004 750 Leconfield Fesq & Company [Coonawarra, SA] (2) Merlot 2005 750 (2) Shiraz 2006 750 Leeuwin Estate Fesq & Company [Margaret River, WA] Art Series: (2) Cabernet Sauvignon 2003 750 Leeuwin Estate red+white QLD [Margaret River, WA] Art Series: (2) Cabernet Sauvignon 2003 750 (2) Shiraz 2004/05 750 Prelude Vineyards: (2) Cabernet Merlot 2003 750 (2) ‘Siblings’ Shiraz 2004 750 Lillydale Estate McWilliams Wines Pty Limited [Yarra Valley, VIC] (2) Cabernet Merlot 2003 750 (2) Pinot Noir 2007 750 Longview Vineyard Young & Rashleigh Wine Merchants (2) Devils Elbow Cabernet Sauvignon 2006 750 (2) Yakka’s Shiraz 2007 750 The Red Bucket Series: (2) Cabernet Shiraz 2006 750 Margan Fesq & Company [Hunter Valley, NSW] (2) Cabernet Sauvignon 2004 750 (2) Shiraz 2006 750 McGuigan Wines Icon Brands Pty Ltd [Barossa Valley, SA] The Shortlist: (3) Shiraz 750 [Coonawarra, SA] The Shortlist: (3) Cabernet Sauvignon 750 [Langhorne Creek, SA] (3) Hand Made Shiraz 750 Discover: (3) Shiraz Viognier 750 Montrose Wines Oatley Wines [Mudgee, NSW] (4) Black Shiraz 2006 750 (4) Omaggio Barbera 2006 750 (4) Pietra Sangiovese 2006 750 Morris Pernod Ricard Pacific Pty Ltd Table Wine Range: (3) Morris Durif 750 (3) Morris Shiraz 750 Brand Product Supplier Size ml Moss Brothers Lewis Fine Wines [Margaret River, WA] (2) Moses Rock Shiraz 2005 750 Moss Wood Fesq & Company [Margaret River, WA] (2) Cabernet Sauvignon 2005 750 Ribbon Vale Vineyard: (2) Cabernet Merlot 2006 750 (2) Merlot 2006 750 Mount Horrocks The Fine Wine Specialist [Clare Valley, SA] (2) Shiraz 2006 750 Penfolds Foster’s Group Ltd Cellar Reserve: (3) Cabernet Sauvignon 750 (3) Cabernet Sauvignon/Shiraz 750 Penley Estate, The The Fine Wine Specialist [Coonawarra, SA] (2) “Ausvetia” Shiraz 2004 750 (2) “Gryphon’ Merlot 2006 750 (2) “Gryphon’ Merlot 2006 750 (2) “Hyland” Shiraz 2006 750 (2) “Phoenix” Cabernet Sauvignon 2006 750 Pierro red+white QLD [Margaret River, WA] (2) Pinot Noir 2005 750 Fire Gully: (2) Cabernet Merlot 2004 750 (2) Shiraz 2004 750 Pikes Fine Wine Partners Pty Ltd [Clare Valley, SA] (2) EWP Reserve Shiraz 2005 750 Pindarie Haviland Wine Merchants P/L [Barossa, SA] (4) Bar Rossa 750 (4) Shiraz 2006 750 Punters Corner WineFusion [Coonawarra, SA] (2) Sovereign Reserve Cabernet Sauvignon 2005 750 (2) Triple Crown (Cabernet/Shiraz/ Merlot) 2004 750 Rutherglen Estates Haviland Wine Merchants P/L [Rutherglen, VIC] (2) Red 2006 750 (2) The Reunion 2006 750 Serafino Combined Wines & Foods [McLaren Vale, SA] (2) Cabernet Sauvignon 2006 750 (3) Dry Grown Grenache 2005 750 (3) Grenache Tempranillo Shiraz 2006 750 (2) McLarens on the Lake Shiraz 2006 750 (3) Sharktooth Shiraz 2006 750 Goose Island: (2) Shiraz 2005 750 Sorrento: (2) Cabernet Sauvignon, Cabernet Franc, Merlot 2005 750 (2) Dry Grown Grenache 2006 750 (2) Shiraz 2005 750 Shadowfax The Fine Wine Specialist [Victoria] (2) Heathcote Pink Cliffs Shiraz 2004 750 Shingleback Shingleback Wine Pty Ltd [McLaren Vale, SA] (2) D Block Reserve Cabernet Sauvignon 2005 750 (2) D Block Reserve Shiraz 2005 750 Skillogalee The Fine Wine Specialist [Clare Valley, SA] (2) Shiraz 2005 750 Songlines Estate Scotchmans Road [McLaren Vale, SA] (4) Bylines Shiraz 2005 750 (4) Leylines Shiraz 2005 750 (4) Shiraz 2005 750 South by Southwest Higher Plane Wines [Margaret River, WA] (3) Shiraz 2007 750 Stephen John Wines Haviland Wine Merchants P/L [Clare Valley, SA] (2) Pinot Noir 2006 750 (2) Shiraz 2006 750 Tapestry Combined Wines & Foods [McLaren Vale, SA] (2) Cabernet Sauvignon 2006 750 (3) Cadenzia Old Vine Grenache 2006 750 (2) Shiraz 2006 750 (3) Shiraz Viognier 2006 750 (2) The Vincent Shiraz 2005 750 Taylor Ferguson Combined Wines & Foods [Coonawarra, SA] (2) Cabernet Sauvignon 2005 750 [Yarra Valley, VIC] (2) Pinot Noir 2006 750 Brand Product Supplier Size ml Red Table Wine, Domestic continued Brand Product Supplier Size ml Combined Wines & Foods Conti Zecca Taylors Wines Taylors Wines (NSW) Pty Ltd [Italy, Puglia] (3) Cantalupi Biano [Chardonnay] 750 Eighty Acres Range: Domaine de Beaumalric Haviland Wine Merchants P/L (2) Cabernet/Shiraz/Merlot 2006 750 [France, Rhone Valley] Jaraman Range: (4) Muscat de Beaumes de Venise 2006 375 (2) Cabernet Sauvignon 2005 750 Dusky Sounds Combined Wines & Foods Trevor Jones Lewis Fine Wines [New Zealand, Gisborne] [Barossa Valley, SA] (4) Chardonnay 2007 750 (2) Dry Grown Shiraz 2005 750 [New Zealand, Marlborough] Tyrrell’s Vineyard Tyrrell’s Vineyards Pty Ltd (4) Pinot Gris 2007 750 Single Vineyard: (4) Reisling 2007 750 (3) Hanhn Barossa Shiraz Mourvedre 2006 750 (4) Sauvignon Blanc 2007 750 Water Wheel Young & Rashleigh Wine Merchants Fairhall Downs Combined Wines & Foods [Bendigo, VIC] [New Zealand, Marlborough] (2) Cabernet Sauvignon 2006 750 (2) Pinot Gris 2007 750 West Cape Howe Young & Rashleigh Wine Merchants Farnese Combined Wines & Foods [Western Australia] [Italy, Abruzzo] (2) Opis Chardonnay 2005 750 Premium Range: (3) Pecorino Terre di Chieti 750 (2) Book Ends Cabernet Sauvignon 2006 750 (2) Trebbiano D’Abruzzo 2004 1.5L Westend Estate Westend Estate Fazio Wines Mediterraneo Import Export Richland Range: [Italy, Sicily] (2) Richland Shiraz 2007 750 (3) Inzolia “Torre dei Venti” 750 Wilson Vineyard Lewis Fine Wines Gomba Mediterraneo Import Export [Clare Valley, SA] [Italy, Piedmont] (2) The Hand Plunge Shiraz 2005 750 (3) Rodero Arneis DOCG 750 Windowrie Windowrie Estate HANDPICKED HANDPICKED WINES International P/L [Cowra, NSW] [New Zealand, Marlborough] (2) Family Reserve Shiraz 2006 750 (2) Sauvignon Blanc 2007 750 Winter Creek D’Vine Distribution Italia Scotchmans Road [Barossa Valley, SA] [Italy, Lombardia] (3) Grenache Shiraz 2005 750 (4) Pinot Grigio 2007 750 (3) Second Eleven Shiraz 2007 750 (3) Shiraz 2004 750 Montana Pernod Ricard Pacific Pty Ltd [New Zealand] Wolf Blass Wines Foster’s Group Ltd (3) Classic Chardonnay 750 Red Label: (1) Cabernet Sauvignon Merlot 1L Monte Porzio Combined Wines & Foods Wyndham Estate Pernod Ricard Pacific Pty Ltd [Italy] (2) Frascati Superiore 2006 750 BIN: Pasqua Combined Wines & Foods (3) Bin 555 Shiraz Viognier 750 [Italy, Veneto] Icon: (2) Pinot Grigio Di Notte 2004 2007 750 (3) Black Cluster Shiraz 750 (2) Soave Classico 2005 750 [yellow tail] Casella Wines (2) Soave Classico 2006 1.5L (3) Cabernet Merlot [screw cap] 750 Pegasus Bay Fesq & Company (2) Reserve Cabernet Sauvignon 2005 750 [New Zealand] Yeringa Ridge Alepat Taylor Pty Ltd (2) Sauvignon Blanc Semillon 2007 750 (3) Shiraz Merlot 375 Saint Clair Estate Wines WineFusion Yeringa Ridge Combined Wines & Foods [New Zealand, Marlborough] [South Eastern Australia] (2) Marlborough Pinot Gris 2007 750 (2) Merlot 2005 750 Secret Stone Foster’s Group Ltd (2) Shiraz 2004 750 [New Zealand] Yeringberg The Fine Wine Specialist (3) Marlborough Vineyards Pinot Gris 750 [Yarra Valley, VIC] Sensi Combined Wines & Foods (2) Pinot Noir 2005 (limited) 750 [Italy, Tuscany] (2) Pinot Noir 2005 (limited) 750 (3) Vernaccia di San Gimignano 750 (2) Young Shiraz 2005 750 (3) Vin Santo del Chianti DOC 500 Zilzie Wines Fesq & Company Three Miners Combined Wines & Foods [Victoria] [New Zealand, Central Otago] Zilzie Estate: (3) Gewurztraminer 2006 750 (2) Cabernet Sauvignon 2006 750 (3) Pinot Gris 2007 750 (2) Merlot 2006 750 Villa Martina Mediterraneo Import Export (2) Petit Verdot 2004 750 [Italy, Friuli-Venezia Giulia] Rosé, Domestic (3) Pinot Grigio 375 Domain Barossa Combined Wines & Foods Waimea Estate Scotchmans Road [Barossa Valley, SA] [New Zealand, Nelson] (2) Roving Tongue Rosé 2007 750 (4) Bolitho Select Vineyard Sauvignon Blanc 2006 750 Foxeys Hangout Combined Wines & Foods (4) Pinot Gris 2007 750 [Mornington Peninsula, VIC] (4) Sauvignon Blanc 2007 750 (3) Rosé 2007 750 Waipara Hills Combined Wines & Foods McGuigan Wines Icon Brands Pty Ltd [New Zealand, Canterbury] [Limestone Coast, SA] (3) Pinot Gris 2007 750 Discover: (3) Reserve Select Sauvignon Blanc (3) Rosé 750 Southern Cross 750 Montrose Wines Oatley Wines (2) Sauvignon Blanc 2007 750 [Mudgee, NSW] Red Table Wine, Imported (4) Rosé of Barbera 2007 750 Shottesbrooke Haviland Wine Merchants P/L Bertani Combined Wines & Foods [McLaren Vale, SA] [Italy, Veneto] (2) Merlette [Rosé Style] 2007 750 (3) Valpolicella Monteriondo 750 Tapestry Combined Wines & Foods Cantine di Marco Mediterraneo Import Export [McLaren Vale, SA] [Italy] (3) Rosé 2006 750 (4) Aglianico del Vulture 2004 750 (4) Primitivo di Nanduria 750 White Table Wine, Imported (4) Salice Salentino Riserva 2003 750 (4) Zinfandel 750 Barbi Mediterraneo Import Export [Italy, Umbria] Cecchi Alepat Taylor Pty Ltd (3) Grechetto “Le Buone Perbole” 750 [Italy, Tuscany] (2) Brunello di Montalcino 2002 750 Barking Hedge Fermoy Estate (2) Chianti Classico Riserva [New Zealand, Marlborough] Di Famiglio 2004 750 (4) Sauvignon Blanc 750 (2) Chianti DOCG 2006 750 (2) Chianti Raffia 2006 750 Supplier Brand Product Size ml Cecchi Combined Wines & Foods [Italy, Tuscany] (4) Chianti DOCG 750 Cesari Mediterraneo Import Export [Italy, Veneto] (2) “Il Bosco” Amarone Della Valpolicella 2003 750 (2) Amarone Classico 2004 750 (3) Valpolicella 750 Clos Henri Haviland Wine Merchants P/L [New Zealand, Marlborough] (2) Pinot Noir 2006 750 Conti Zecca Combined Wines & Foods [Italy, Puglia] (3) Donna Marzia Negro Amaro 750 (2) Donna Marzia Primitivo 2005 750 Culley Haviland Wine Merchants P/L [New Zealand, Marlborough] (2) Pinot Noir 2007 750 Delas Freres Fesq & Company [France, Rhone Valley] (2) Cotes Du Rhone Saint Esprit 2006 750 Domaine de Cassan Haviland Wine Merchants P/L [France, Rhone Valley] (4) Beaumes de Venise 2005 750 (4) Cotes du Ventoux 2006 750 (4) Gigondas 2005 750 Domaine du Chateau d’Eau Haviland Wine Merchants P/L [France, Languedoc] (2) Pinot Noir 2006 750 Dusky Sounds Combined Wines & Foods [New Zealand, Hawkes Bay] (4) Merlot 2007 750 Farnese Combined Wines & Foods [Italy, Abruzzo] (3) Sangiovese 2005 750 Fazio Wines Mediterraneo Import Export [Italy, Sicily] (3) Merlot “Elite Line” 750 Fratelli Cei Combined Wines & Foods [Italy, Tuscany] (4) Chianti 2004 DOCG 750 (4) Chianti Raffia 2006 DOCG 2L (4) Montpulicano d’Abruzzo 2006 1.5L (4) Sangiovese di Toscana 1.5L Gavioli Combined Wines & Foods [Italy] (2) Montepulicano d’Abruzzo 2006 750 Gomba Mediterraneo Import Export [Italy, Piedmont] (2) Barolo Sori Boschetti 2003 750 Il Poggione Mediterraneo Import Export [Italy, Tuscany] (2) Brunello di Montalcino 2003 750 Italia Scotchmans Road [Italy, Puglia] (4) Primitivo 2006 750 La Botticella Combined Wines & Foods [Italy, Sicily] (2) La Botticella Syrah 2005 750 Lamole Combined Wines & Foods [Italy, Tuscany] (2) Chianti Classico Salcentino 2005 750 Montana Pernod Ricard Pacific Pty Ltd [New Zealand] (3) Classic Merlot Cabernet Sauvignon 750 Nederburg Fine Wine Partners Pty Ltd [South Africa, Paarl] (2) Cabernet Merlot 2005 750 Pegasus Bay Fesq & Company [New Zealand] (2) Prima Donna Pinot Noir 2005 750 Travaglini Combined Wines & Foods [Italy, Piedmont] (2) Gattinara 2001 750 Vesevo Combined Wines & Foods [Italy, Campania] (3) Greco di Tufo 750 [Italy, Lazio] (2) Aglianico 2005 750 Waipara Hills Combined Wines & Foods [New Zealand, Central Otago] (3) Reserve Select Pinot Noir 2006 750 Rosé, Imported Cantine di Marco [Italy] (4) Rosato del Salento Carpene Malvolti [Italy, Veneto] (4) Rosé Mediterraneo Import Export 750 Combined Wines & Foods 750 drinks trade 79 New products & releases New product codes: (1) Package/size (2) Vintage (3) Releases (4) Distributor changes Wholesale pricing and carton quantity information available to Thomson’s Liquor Guide subscribers - over 12,000 products in print and online format Data current for supplier updates received up to and including 1/05/2008. Supplier Brand Product Size ml Rosé, Imported continued Domaine Henri Bourgeois Haviland Wine Merchants P/L [France, Sancerre] (2) Sancerre Rosé 2006 750 Mateus McWilliams Wines Pty Limited [Portugal] (3) Mateus Tempranillo 750 Sparkling Wines, Domestic Cofield Wines Cofield Wines [Rutherglen, VIC] (3) Pinot Noir Chardonnay 750 Cope-Williams Lewis Fine Wines [Macedon Ranges, VIC] (3) Coniston Red 750 (3) Cuvee Riche 750 (3) Rosé 750 Katherine Hills The Fine Wine Specialist [McLaren Vale, SA] (3) Sparkling Brut NV 750 Leeuwin Estate red+white QLD Prelude Vineyards: (2) Chardonnay Pinot 2003 750 McGuigan Wines Icon Brands Pty Ltd (3) Sparkling Chardonnay Pinot 750 Brand Product Supplier Size ml Taylor Ferguson Combined Wines & Foods (3) Cuvee Brut 750 (3) Sparkling Moscato 750 (3) Sparkling Rosé 750 (3) Sparkling Shiraz Cabernet 750 Yellowglen Foster’s Group Ltd [Victoria] (3) Perle Sparkling Rosé 750 Champagne & Sparkling Wines, Imported Bortolotti Combined Wines & Foods [Italy, Veneto] (1) Prosecco Dry DOC 750 (1) Prosecco Extra Dry DOC 750 Ca del Bosco Arquilla Bulk Trading Pty Ltd [Italy, Lombardia] (3) Cuvee Prestige 750 Cantine Regie Combined Wines & Foods [Italy, Veneto] (4) Prosecco Extra Dry DOC 750 Ferrari Combined Wines & Foods [Italy, Trentino-Alto Adige] (4) Brut Metodo Classico 750 Henkell McWilliams Wines Pty Limited [Germany] (3) Henkell Rosé 750 Supplier Brand Product ml Le Marchesine Mediterraneo Import Export [Italy, Lombardia] (2) Franciacorta Rosé Millisimato 2003 750 Taittinger McWilliams Wines Pty Limited [France] (2) Brut Vintage 2002 750 Aperitifs, Bitters, Vermouths Mombello Combined Wines & Foods [Italy] (4) Bianco 1L (4) Dry Grown Grenache 2005 1L (4) Rosso 1L Dessert Wines Balbi Soprani Combined Wines & Foods [Italy, Piedmont] (2) Moscato D’Asti 2006 750 Beelgara Beelgara Estate Sun Dried: (2) Botrytis Semillon 2006 375 McWilliam’s Wines McWilliams Wines Pty Limited (2) Limited Release Riverina Botrytis 2007 375 Pegasus Bay Fesq & Company [New Zealand] (3) Encore Noble Riesling 2007 375 Thomson’s Liquor Guide - the only directory to keep the trade updated on products, pricing and industry suppliers. Visit www.liquorguide.com.au Next Month Beer: Flavours and infusions Craft and premium beers are experimenting more with different flavour profiles, not only attracting the female drinker to beer, but taking advantage of the opportunity to welcome back some RTD ‘ex-pats’. Wine: South Australia v Western Australia A unique view of two of Australia’s leading wine regions from a consumers perspective; bringing together the most attractive aspects of wine regions in these states. Spirits: Gin Drinks Trade presents the Venue Sessions on gin, with the services of professional mixologists. The session is a gin education, mixing and interactive tasting. Sessions are to be held in Perth on Monday 23 June. Spaces in the sessions are limited. 80 drinks trade Size To advertise in the SA v WA feature, or to include your brands or advertise in the Venue Sessions contact: Ashley Pini 02 9415 11 99 0410 600075 [email protected] Drinks Trade eye What caught our eye this issue In an example of embracing modern technology and utilising the popularity of ‘the-must-be-seenin’ website of current times, The Argyle, a Sydney venue has thrown a party for all its ‘friends’ on the online networking site Facebook. The Argyle recently offered to shout members of The Argyle’s Facebook Fan Club a drink, and had 150 patrons stop in to say hi face to face. “Rather than sending all our Facebook friends a ‘beer’ online we decided to shout them the real thing,” said sales and marketing director Shane Harmon. “The party is a way for us to The Argyle, Sydney give back to our customers and reward them for the support they have shown us during our first year in operation.” Facebook group ‘The Argyle (Fan Club) – Sydney’s Newest & Hottest Night Spot!’ was created by the fans themselves and now has more than 600 members. The venue plans to repeat similar activities in the future, following the success of their first ‘Facebook’ event. Harmon says that The Argyle uses Facebook daily to communicate special offers and events to their friend network and also to answer questions and listen to feedback from their customers. In Europe a new Drink Wardrobe claims to solve the problem of where smokers leave their drink as they head outside of no-smoking venues for a quick puff or before heading to the amenities. The ‘wardrobe’ is divided inside by a shelf and numbered sections, close to the venue front door. Guests place their beverage into one of the numbered slots before heading outside. Staff are on hand to ‘safeguard’ the drinks. The Drink Wardrobe has been introduced in Norway with apparent success and creator Joachim Raade now plans to introduce it worldwide. Visit www.drinkwardrobe. com for more information. Pernod Ricard in the US have given customers a chance to order customised product labels – for free. US residents can order personalised labels for brands including Chivas Regal, The Glenlivet, Jacob’s Creek, Kahlua and Mumm. Customers do not have to buy certain other products, and the service was offered for free – with a variety of styles available and with room for seven lines. Recent figures released by the Australian Bureau of Statistics reveal that Australian cafes, restaurants and caterers generated $13.7 billion in income during 2006/07. The breakdown of income to the 15,423 cafes, restaurants and caterers were takings from meals consumed on the premises (47 per cent); takings from catering services (24.1 per cent); and sale of liquor and other beverages (19.9 per cent). They employed 145,546 people (47.4 per cent as casuals). Over half (56.8 per cent) were licensed to sell alcohol. New South Wales accounted for 36.3 per cent of all cafe, restaurant and catering businesses in Australia; Victorian cafes, restaurants and catering businesses comprised just over a quarter of all businesses (27.4 per cent) while Queensland, ACT, Tasmania, South Australia, Western Australia and Northern Territory collectively accounted for 36.7 per cent of all cafe, restaurant and catering businesses. A unique Australian-themed coffee, wine and fashion store has opened in the Gubei region of Shanghai. The store, called 1Oz3 is the first of a planned chain to deliver the best of Australian urban lifestyle to Shanghai consumers. The store includes coffee flown in fresh from Sydney, a range of Australian fashion designs and a selection of Australian beers and wine. The concept was designed by Mr Yuri Bolotin, the principal of Sydneybased Design Portfolio. “Mixing these three categories in one store is fairly unorthodox at first sight, however the key to this concept is understanding customers’ mood, frame and mind and expectations when they come to the store like this. We found there is a lot in common between these products as they all help us to create an interesting, relaxing and unique experience our customers are looking for,” said Yuri. Visit www.1oz3.com for more information. Here’s your chance to learn from some of the best sommeliers in the world. The ‘cream’ of the Court of Master Sommeliers are making their way down under in August this year. Brian Julyan, chief executive of the Court will grace our shores, along with five other master sommeliers, including drinks trade 81 Drinks Trade eye Belvedere introduce a Personalised Bartender Service at a Sydney bar and restaurant. Cameron Douglas (the only master sommelier in this region) to conduct their highly regarded Introductory and Certificate Sommelier programs and examinations in Sydney and Melbourne. Limited places of 100 seats are available in each city for the introductory course and exam and only 30 places in each city for the sommelier’s certificate. These are the first two of the four levels of the course required to become a master sommelier. In Melbourne, the Introductory Course and Exam will take place on 27 and 28 August ($500); and the Certified Sommelier Exam ($400) on 29 August. In Sydney, the Introductory Course and Exam is on 30 and 31 August with the Certified Sommelier Exam on 1 September (prices as per Melbourne pricing). Fine Wine Partners is pleased to be bringing this unique opportunity to Australia. For further details, contact Fiona MacDonald on 02 8335 8016 or email fiona.macdonald@ finewinepartners.com.au . 82 drinks trade Belvedere Vodka and Foveaux Bar in Sydney’s Surry Hills has introduced a luxurious Belvedere Personalised Bartender Service – the first time offered in Australia. The concept is that that the bar comes to the patron, to offer an ‘intimate’ level of service, with the bartender creating a Belvedere cocktail at the customer’s table. “With the Belvedere Personalised Bartender Service, we have taken a vintage idea and served it up to our customers with a contemporary twist. It is all about engaging guests with an interactive drinks experience, offering Belvedere cocktails created to their exact tastes,” said Julian Serna, Foveaux’s drinks specialist. A specially-made mobile cocktail trolley, is driven by Julian and co-mixologist Matthew Siely. Foveaux Restaurant and Bar is the creation of chef and proprietor Darrell Felstead, combining a 45seat restaurant with a cellar cocktail bar. It was awarded Restaurant of the Year in the 2008 Sydney Morning Herald Good Food Guide Awards. Do Aussies have an image problem? That was a question posed by Megan Haverkorn of www.winespiritsdaily. com in the US. Megan reported on the success of Aussie wines in the US over recent years, but wondered if their was a chance our luck was running out, with over-supply followed by drought, a depreciating US dollar and image problems. “Can Australian wineries improve their image with American consumers and make a comeback?” asked Megan. She put the question to Stephen Rannekleiv, vice president food and agribusiness research and advisory for Rabobank International, and she shared his answers on her website: “The future of Aussie wine in the US? That’s the $64,000 question. I think it really depends on two things. 1. As you point out, they are no longer in over-supply, but years of discounting have left them with an image problem. No one wants to pay much for Aussie wine. They fully recognise the need to move up in price points, as they have low volumes and much higher production costs and also exchange rate challenges as the US dollar continues to be quite soft- but the question is “how”? If they can get their act together and really show the US that they have some good quality wines, I think they could do quite well. They have some top notch wines that sell at much more attractive price points than most of the top California brands. By all rights, they should be doing MUCH better in this market. 2. The other issue is just how long this recession thing goes on. The growth is still at the high end of the wine market, but it seems to be slowing a bit, and there are lots of signs of trading down in other categories (i.e. beer, where you see trading up and trading down simultaneously). If consumers start to become more price sensitive, but still want good quality, Australia might have some options. The issue for the Aussies will be to convince US consumers that they can deliver on quality, and I think that may be a tough sell. Australian wines seem to have lost some of their initial luster among the public, and I think consumers may be moving on, looking for the next destination to explore.” So I guess, in summary, I would say that Australia has great potential. They have the opportunity to show the US market that they can deliver excellent quality wines at very reasonable price points. However, if they haven’t been able to get that message across by now, I have to wonder about their ability to do so. I don’t really see a strategy in place that will realistically change US consumers’ minds about Aussie wine. I expect them to continue plodding along at mediocre price points in the US, in bottles with cute little critters. Argentina, on the other hand - now that’s a different conversation. I think it goes to show that its always easier to start at the higher end of the market and move down than to start at the lower end of the market and try to move up.” Arriving with blatant honesty to Drinks Trade recently was an emailed press release marked with the subject line, ‘We may be marketing duds but we can brew beer’. The release went on to say how ‘marketing duds’, Illawarra brewers Dr Simon Brooke-Taylor and Scotty Morgan were celebrating the bronze medal they received at the recent Australian International Beer awards (AIBA) for their South Coast Summer Ale. ‘Two pretty laid back blokes, Simon and Scotty say it was their lack of fashion sense and underused Malibu’s in the Man’s Room (a garage to nonbrewer folk) which led to the name of their first commercial beer. “While we’re completely serious about the taste of our beer, we’re pretty laid back about everything else. We tried to come up with a snappy name for the brew but being marketing duds, and our wives vetoing some of the more obvious choices, we ended up naming it Summer Ale after our Hawaiian shirts,” Scotty said. “We really need to stop wearing those lousy loud shirts when making test batches.” Their beer is currently selling in Wollongong NSW stores. It just proves that honesty really is sometimes the best policy, or at least, an eye-catching one. To find out more about Summer Ale contact Scotty on 0419 545 114 or [email protected]. EVO HAR0045/DT Regional winemaking at its A^O`YZW\U0Sab The sparkling winemaking team at Constellation Wines Australia (CWAU) is the nation’s most awarded. Led by Ed Carr, our team holds the unprecedented record of 21 consecutive Trophies for Best Sparkling White Wine of Show at capital city wine shows. Over the past decade, CWAU has been awarded over 100 Trophies across our outstanding sparkling portfolio, including 10 consecutive Trophies for Best Sparkling Wine at both the Melbourne and Perth shows. Most recently, Arras, our pinnacle sparkling wine, collected a Trophy and five Gold Medals for consecutive vintages between 1998 and 2002 at the Canberra National show as well as the 2008 National Australia Day Council Trophy for best Australian sparkling wine. These results are the combination of an expert team dedicated to crafting sparkling wines of distinction and an unrivalled vineyard resource around Australia, including in the premium sparkling regions of Tasmania, Yarra Valley and Tumbarumba. For more information on our comprehensive selection of award winning sparkling wines, please visit www.cwines.com.au or phone 131 492. Constellation Wines Australia replaced the trading name of the Hardy Wine Company on 31 March 2008. CWAU’s sparkling showcase includes the following wines: AVAILABLE NOW K R I S T O V