Victoria aims to double spirits exports by 2030
The Spirits Victoria Association (SVA) has released a government-backed plan that aims to help the region’s distillers scale.
Titled the Victorian Distilled Spirits Strategy, the five-year plan was developed as part of an eight-month process involving the Victorian government and spirits industry, which included public forums, workshops and interviews.
The strategy aims to boost Victoria’s spirits nationally, growing market share throughout Australia, while also creating a structure to help them become global brands.
It is built on four key priorities: Win at Home, Scale & Export, Community & Advocacy and Collaboration.
Cameron Mackenzie, president of SVA, said: “The Victorian Distilled Spirits Strategy 2025-2030 is a significant initiative that builds on the exceptional progress of Victoria’s spirits industry.
“This strategy outlines an exciting pathway for the future, driving innovation, sustainability, and collaboration to further elevate Victoria as a leader in the global spirits market.”
Capitalise on regional tourism
According to analysis by Deloitte in 2023, Victoria is currently home to more than 180 distilleries, more than 50% of which were established since 2020. The sector is valued at AU$2.98 billion and is predicted to grow to AU$3.46bn by 2028.
By 2028, the industry in Victoria is expected to add 2,400 more jobs, bring in 340,000 annual visitors to its distilleries and experience 12.5% revenue growth each year.
The Win at Home plan includes collaborative marketing campaigns with the Victorian government and other visitor economy bodies, as well as the redevelopment of the Drink Victoria programme to better promote and showcase the region’s spirits.
There will be a focus on major events in the region, such as the Australian Open tennis and the Formula 1 in Melbourne.
Spirits experiences will be integrated into visitor economy campaigns, and there will be a drive to increase door sales and promote unique visitor experiences at distilleries.
To develop the region’s distillery experiences, the creation of a visitor economy community of practice has been recommended.
This would allow the SVA to coordinate ideas and initiatives, such as encouraging distillers to use Australian Tourism Data Warehouse (ATDW) listings as a digital marketing tool and align them with Experience Victoria 2033.
Double exports
The plan also outlines a goal to double the region’s spirits exports by 2030, while showcasing Victoria as the best place in Australia in which to invest.
According to Australasian research group Sapere, in 2024, 17% of Australian spirits manufacturers export. A Spirits & Cocktails Australia report from 2022 found that around 40% said they would export with the right support.
Deloitte’s 2022-23 analysis estimated Victoria’s total spirits export value at AU$41 million, which has prompted the plan’s target of AU$82m by 2030.
To achieve the export target and help Victorian distillers scale nationally and internationally, an emerging leaders programme pilot has been put forward, supported by the Victorian government. This would include tailored support, with proposed initiatives including sharing national distributors and domestic ambassadors. These would help high-potential distillers navigate the challenges of scaling through a focus on building collaboration and partnerships.
Other initiatives include creating a community of practice for exports and pushing for distillers to partner on export activities, such as a common brand narrative, agreeing on target markets and having a communal presence at trade shows.
Excise reform
The strategy also touched on reforming Australia’s excise system. The country’s spirits excise rises twice a year, with many claiming it stops Australia from becoming a spirits production powerhouse. The report suggested supporting national advocacy by the Australian Distillers Association and Spirits & Cocktails Australia on the issue.
Other objectives from the strategy include promoting sustainability; encouraging efficient collaboration with national industry bodies; and building on the partnership with the Victorian government.
The plan included a goal to deepen engagement with Aboriginal and Torres Strait Islander communities, something it noted ‘remains limited’ in the spirits industry.
Commenting on the development of the strategy, Ros Spence, minister for agriculture of Victoria, said: “The Victorian government recognises the importance of the Victorian spirits industry to the Victorian economy by creating new businesses, economic development opportunities and jobs.
“The industry is also important in deepening and enriching Victoria’s strong food and drink culture and creating new visitor experiences in Melbourne and regional Victoria.”
Related news
