Industry Analysis & Industry Trends
Australia imports the majority of the spirits consumed by residents. 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 comprise the majority of industry revenue. Over the past five years, the industry has recovered from the effects of the alcopop tax introduced 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 3.3% over the five years through 2015-16. In 2015-16, industry revenue is expected to grow by 0.6% to $568.4... purchase to read more
Industry Report - Industry Investment Chapter
The Spirit Manufacturing industry exhibits a high level of capital intensity. Automation is a critical part of the production process, particularly for larger scale operators with fully integrated operations. Over the past five years, capital investment has declined slightly within the industry, with labour costs expected to grow as a percentage of revenue. This is largely due to smaller distilleries still requiring significant labour functions to manufacture a range of products. In 2015-16, IBISWorld estimates that for every dollar paid as wages, $0.55 is required for investment in plant and equipment. Despite rising labour costs, the industry is anticipated to remain largely reliant on machinery and equipment to operate.
In 2015-16, wages make up about 7.5% of industry revenue... purchase to read more