Industry Analysis & Industry Trends
Australia imports the majority of the spirits it consumes. As a result, the Spirit Manufacturing industry supplies less than 40% of domestic demand. For some products, a degree of transformation occurs domestically, particularly in the case of ready-to-drink (RTD) beverages, which compose the majority of industry revenue. Over the past five years, the industry has recovered from effects of the alcopops tax in 2008, which reduced demand for RTDs. This recovery has been helped by increased demand for bottled spirits and ready-to-serve cocktail products. Industry revenue is forecast to grow at an annualised 1.8% over the five years through 2014-15. In 2014-15, industry revenue is expected to grow by 2.4% to $508.8... purchase to read more
Industry Report - Starting a New Business Chapter
The Spirit Manufacturing industry exhibits high barriers to entry. The production process for manufacturing spirits is highly capital-intensive and requires substantial economies of scale. This allows larger manufacturers to produce spirits at low costs, channelling the savings into advertising and marketing. It also allows larger producers to sell their products at lower prices than smaller producers. Therefore, to compete successfully on price, producers need large-scale operations that require significant capital investment.
Opportunities exist to compete on the basis of quality rather than price, which would allow for small-scale production as long as consumers are willing to pay a premium for specialty products... purchase to read more