Premiumisation and the Craft Trend Go Hand in Hand in Australian Alcoholic Drinks

Premiumisation within alcoholic drinks in Australia has seen consumers drinking less but also better quality products. This was epitomised in the campaign for Asahi Super Dry, “Above all else”, launched in September 2016. The campaign highlighted the passion and process behind the creation of Asahi Super Dry beers. This ties into the craft beer trend in particular, with the rise of brew pubs and growing consumer interest in the manufacturing process. Similarly, premiumisation is also being seen in craft spirits, for example gin, with local consumers having a particular penchant for premium and super premium gin brands. The Australian government announced changes during the most recent budget to give rebates to craft spirit producers. This will help support the growing number of local gin and vodka brands. Manufacturers are helping to satisfy Australians’ thirst for craft and premium products by making these products more accessible. On 11 November 2016, Lion launched the online retailer MoCu, known as Modern Curations Gallery. It is currently the only external retail channel selling single batch craft beer from brands such as Little Creature and Malt Shovel Brewers, and also sells unique premium beer and wine products which can be hard to find.

Outlook

Premiumisation is anticipated to be a trend which will impact all alcoholic drinks categories over the next five years. In beer and cider/perry, this will be seen in the move towards craft and premium brands in categories such as lager and dark beer, resulting in a strong increase in unit price in beer. In cider/perry, consumers will show a preference for craft products, with manufacturers encouraging this trend by highlighting the fact that their products are authentic and made from good quality ingredients, primarily fruit, without the addition of sugar or preservatives. Premium craft spirits will continue to be an important growth area, focusing on the creation of distinctively Australian spirits. An example of this is Sullivan’s Cove, whose French Oak Cask was awarded World’s Best Single Malt Whisky at the World Whiskies Awards in 2014. Within wine, premiumisation will translate into the growth of premium sparkling wines such as champagne as well as the increasing popularity of higher-end reds.