Whisky royalty Bill Lark helps launch campaign to unlock massive export growth in national spirits industry
Key figures in Tasmania’s spirits industry have helped launch a national campaign to grow exports as major players continue to call for excise reform.
Tasmania
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Tasmania’s spirits industry is poised to experience a stratospheric rise akin to the wine boom of the 1990s if the federal government agrees to work strategically with producers in order to grow exports, local whisky linchpin Bill Lark says.
On Sunday, the nation’s leading trade associations for the spirits industry, the Australian Distillers Association and Spirits & Cocktails Australia, launched a new campaign in Tasmania ahead of the federal election, trumpeting the potential for national exports to grow by about $900m with targeted assistance from the Commonwealth.
Spirits are currently excised at $103.89 per litre of pure alcohol, compared to the $52.66 rate for beer. Wine is subject to an equalisation tax rather than excise duty.
Alcohol excises are intended, in part, to discourage excessive alcohol consumption and are typically heftier for products with higher alcohol content.
Mr Lark, who founded Lark Distillery in 1992, said he had “no doubt” that Australian whisky could become a “globally recognised” product similar to Japanese whisky.
But a spirits export boom won’t occur without increased support from the federal government, according to the whisky stalwart.
“This would be transformative for Tasmania and other regional communities where many of Australia’s 700-plus distilleries are located,” Mr Lark said.
The industry has long called for excise reform, arguing the tax regime stymies potential growth.
Australia ranks 29th globally in terms of the trade value of its spirits exports, raising $112m in revenue in 2022-23.
Australian wine, meanwhile, brought in $2.1bn in export revenue, ranking sixth in the world.
Analysis by Mandala Partners has shown that Australian spirits exports have the potential to grow to $1bn in trade value.
Australian Distillers Association chief executive Paul McLeay said excise reform was not necessarily the silver bullet for the industry.
“The government can provide immediate support for our industry by working with us to accelerate spirits exports,” he said.
“Not only will this deliver on its trade diversification goals, but it will also support the current economic priorities of growing domestic manufacturing and increasing employment opportunities, particularly in the regions.”
Mr McLeay warned that if the federal government didn’t act “now”, Australian spirits would “lose market share to other nations that have already recognised the urgency of these trade opportunities”.
There are 77 distilleries in Tasmania alone, which is the highest number per capita of any Australian state.
Kristy Lark-Booth, Mr Lark’s daughter and the president of the Tasmanian Whisky & Spirits Association, said local distillers were making products that were “truly world-class”, including whisky, gin, vodka, liqueurs, and brandy.
“We have huge ambitions to grow our exports and create many additional jobs for Tasmanians in manufacturing, tourism and hospitality,” she said.
Industry statistics show that only 17 per cent of Australian spirits manufacturers currently export their products, while 40 per cent of them are exploring opportunities to export.
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Originally published as Whisky royalty Bill Lark helps launch campaign to unlock massive export growth in national spirits industry
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