Since the onset of the pandemic, trends and consumer preferences have evolved at a fast pace, from the downfall of craft beer to the rapid growth of RTDs, and although the market is volatile, one long-term trend is clear: the desire to shop local.
From boutique wines to craft spirits, homegrown beverages are enjoying a surge in popularity, and it’s more than a passing phase, it aligns with broader preferences for high quality produce and authentic storytelling.
Michael Shearer, General Manager of Coopers, says: “The fact that Coopers, being Australia’s largest independent family-owned brewery, has grown sales over the past year in an overall declining beer market is evidence that more consumers like what we do.
“During the pandemic we saw people turn to products they can trust and that represented good value. Our own research in 2022 showed that being well-priced and Australian were of equal importance to beer drinkers.”
According to Trevor Hannam, Head of Sales at Archie Rose, when consumers know the origins of a product and who was involved in its production, it fosters deeper trust.
“We strive to be transparent about the sourcing of our ingredients and production methods. I think people are drawn to that authenticity and it feels good knowing they’re supporting a brand that’s committed to quality, provenance and sustainability,” he explained.
Blake Vanderfield-Kramer, Co-founder of small-batch Australian grape spirit Feels Botanical, agrees that there is curiosity among consumers to experience something crafted in Australia for Australians.
“Australian-made liquor has a unique edge because it’s rooted in our country’s natural diversity and innovation. Consumers are increasingly seeking products that feel real and connected to a specific origin. When they pick up a bottle made here, they’re not just buying a drink – they’re connecting with a deeper story, one tied to Australia’s natural rhythms and cultural character.”
A sense of place
Typically, European countries with deep-rooted history have cornered the market for wine, but the last few decades have seen Australian wines gain recognition on the global stage, owing to our diverse terroirs and innovative spirit.
Libby Nutt, General Manager, Marketing & Export Sales at Casella Family Brands, told National Liquor News: “Iconic global brands like Yellow Tail, Jacob’s Creek, Hardys, and Penfolds represent a cross-section of the Australian wine industry. While these brands represent different ends of the market spectrum, collectively, they have shaped the perception of Australian wine, establishing it as a reliable choice with a reputation for value and quality for any occasion or price point.”
From the cool zones of Adelaide Hills to warmer regions like the Barossa Valley and Hunter Valley, Nutt attributes a lot of Australia’s winemaking success to its geographical diversity, which allows for an extensive range of wines.
“The unique Australian landscape has long influenced the wine industry, and we are fortunate to have multiple growing climates. At Casella Family Brands, we source up to 50 grape varieties from over 170 growers across 30 GIs.
“In addition, our commitment to experimenting with international grape varieties such as Tempranillo, Sangiovese, and other Mediterranean varieties showcases adaptability and a forward-looking attitude. As a result, we’re seeing an increasing range of wine styles, and these wines not only diversify Australia’s offerings but also help the industry respond to changing consumer preferences,” she added.
Australian spirit
While Australian wine has long been celebrated on the global stage, it’s far from the only category showcasing the nation’s talent, as Natalie Smith, Co-owner of award-winning small-batch Tasmanian distillery Taylor & Smith Distilling Co explains.
“Tasmania has a cool climate, and is known for its pristine water qualities, diverse plant life and isolated beauty. Together this makes the environment unique for the distilling and preparation of spirits.
“Tasmanian growers and producers are able to develop quality products and tell the story of the landscape, so that people from all over the world can experience the taste of Tasmania in the flavour profiles of the spirits we produce.”
When it comes to authenticity and distinct flavour profiles, Vanderfield-Kramer agrees that Australian spirits have a unique edge that is difficult to replicate elsewhere.
“At Feels Botanical, we utilise Australian grapes, turned into wine and then distilled into a spirit. This base not only gives each expression its own flavour, structure, and mouthfeel but also offers a point of difference that stands out in the market.
“We also incorporate native botanicals like Kakadu plum and quandong – ingredients that reflect our land and carry unique stories. Australian-made products are born from a blend of innovation, nature, and respect for craftsmanship, creating a liquor experience that feels both genuine and distinctive.”
While some spirits producers are making use of Australian ingredients and botanicals, others are putting a uniquely Australian spin on centuries-old methods and spirits that found their fame in other countries.
One such example is Act of Treason, a 100 per cent Australian agave spirit harvested at Eden Lassie in Queensland’s Whitsundays and rested in ex-Australian whisky barrels for a distinct Australian twist.
Trent Fraser, CEO of Top Shelf International, which owns Act of Treason, says: “We’re certainly inspired and informed by the traditions of Mexican agave spirits, but Australia has its own climate and culture and that brings a new edge to the category.
“With Act of Treason and our agave farm in the Whitsundays, we’re continually learning how the plants are growing and adapting to our environment. An Australian Pinot Noir might not be a Burgundy, but it can have its own character that makes it world class and the same is true for Act of Treason. We want to capture that Australian essence in our Australian agave spirit and certainly in our first year of production we’re seeing that.”
A new benchmark
There is no doubt that cost-of-living pressures, rising operating costs and excessive taxes present challenges for Australia’s liquor landscape, but despite this, persistence and determination among Australian producers has resulted in a diverse, innovative market.
“Producing spirits presents a range of regulatory considerations. From day one, Archie Rose’s Founder, Will Edwards, was willing to work through these to fulfil a goal of re-igniting Sydney’s history in distilling, and to produce Australian spirits at a scale that means we’re able to now give people the opportunity to switch from international to higher quality local spirits,” says Hannam.
Not only are consumers benefitting from a flourishing craft market, support for Australian-made liquor has a positive ripple effect across the board, and Nutt says the industry and economy will also benefit.
“The industry must collectively remind consumers that Australian-made drinks provide excellent value for money while maintaining high quality, and imported products often have added costs, such as tariffs and the environmental impact of long-distance shipping. By choosing local, consumers are helping to sustain the Australian economy and support local jobs, particularly in the agriculture and manufacturing sectors.
“Supporting homegrown brands also encourages innovation, helping Australian producers to continue developing new and exciting products while fostering a sense of pride in our rich, exciting and diverse drinks culture,” she stated.
Mitchell Taylor, third generation Managing Director of Taylors Wines, strikes a similar tone, highlighting the innovative nature of Australian brands in their pursuit for perfection.
“It’s important from an innovation point of view to be moving forward in all areas of creativity, which we do so well here in Australia, and it’s demonstrated by the amount of trophies and gold medals that we win. Not only among ourselves at home with very high standards of benchmarking, but in international competitions around the globe, which benefits all Australians by having such high standards of quality and innovation.”
Keeping it local
With so many benefits associated with shopping local, it is the responsibility of the industry, from suppliers through to retailers, to foster a connection with consumers that encourages consumption of Australian-made drinks.
Taylor says: “I think it’s important to work with our retailers very closely, and to know that we’re all in this together. It’s about doing collaborative events, and never missing the retailing spirit, so that you’re really partnering in the true sense of the word.
“It’s about learning from each other how we can improve, not only the quality of our wines, but also the service to our ultimate customers who dictate where we’ll be in the future – getting their insights, listening to them and making sure we’re adapted to the technology and innovation in front of us.”
Retailers are in a great position to tell the story of Australian liquor, and Hannam sees tastings as a great place to begin, but beyond that, he encourages retailers to showcase ingredients and tell the stories of regions and producers.
“Things like in-store displays, point-of-sale materials, and digital content help create that unique experience. It’s all about creating a genuine experience that gives people a reason to choose local,” he explains.
According to Vanderfield-Kramer, in-store segmentation is another great way for retailers to enhance the experience for customers who value Australian-made brands.
“Creating dedicated Australian spirit sections, rather than grouping products solely by category, not only helps drive awareness and excitement for local brands but can also boost margins by drawing attention to the quality and craftsmanship of Australian-made,” he stated.
This article originally appeared in the December issue of National Liquor News.