2020 CEO Survey: Stuart Irvine, Lion

The way consumers connect with brands and businesses has shifted dramatically, says Lion chief Stuart Irvine.

What are the three enduring lessons or changes to flow from COVID-19?

There’s no question that the pandemic has accelerated a rapid uptake in technology across so many areas of our lives.

The way consumers connect with brands and businesses has shifted dramatically. In our industry, the role of technology in the hospitality experience has evolved significantly. For example, ordering via an app or checking in with a QR code is now the norm and this will pave the way for further enduring changes in how we and our customers connect with consumers post-recovery.

Our customers — the nation’s retailers and hospitality venues — have managed massive changes in how they manage their supply chains. Some have talked to making more progress in the last year than in a number of years previously. We expect them to emerge from COVID-19 with increased expectations that their suppliers will be in a position to partner with them on the next stage of technology and efficiency opportunities and we’re working hard to ensure we’re well placed to do that.

The year 2020 has been a massive experiment in workplace flexibility and, in talking to our people at Lion, it’s clear that many are experiencing the benefits.

It has transformed the workplace and in Lion’s case, I’ve been surprised by how productive we’ve been throughout this period.

While talk of the “death of the office” is grossly over-exaggerated, this year has shown how the opportunity to balance work and life, particularly caring responsibilities, can be enabled through truly flexible working that is the norm, not the exception to the rule. This has the potential to have significant workplace and societal benefits by supporting diverse and inclusive workplaces.

How people work at home vs the office — what the office is designed for and how it should be set up — are all things we are working through as we project forward and plan for the future of work. For example, if the office is a place of connection and collaboration then what changes need to be made to the layout and design to best enable this?

This year has marked a major step change in business and government working together, with the interest of the country at heart to keep people safe and navigate Australia through the crisis.

I hope we can maintain this momentum into 2021.

These are all positive developments and reflect changes that needed to happen anyway, the pandemic has been a catalyst to accelerate these shifts.

On a more personal note, 2020 has presented a significant leadership challenge. My reflections would be on the importance of staying calm, looking after your people and giving them a vision of the future to keep on moving forward.

How would you rate the shape of the Australian economy as we head into the new year?

It’s clearly been a very difficult year and has impacted different sectors of the economy differently.

In our space, the devastating impact of the closure of pubs and clubs has been felt around the country. The continued trading restrictions and ongoing impact of remote working on CBDs in particular are all being felt by the industry. We hope to see further recovery in the year ahead as people feel more confident to get out and socialise safely.

That said, there have been some brighter spots. Border closures mean that Australians are exploring their own backyard more and rural and regional areas are seeing some benefits. In particular it’s great to hear encouraging stories of regional tourism destinations thriving after the devastating bushfires last summer.

The prospect of a vaccine on the horizon and the benefits of government stimulus could see a bounce in 2021. The key is to make sure this is a bounce for everyone, not just some parts of the economy and that we do not back off the stimulus too soon and lose the benefits that have accrued to date.

What three reforms are needed to sustainably grow the economy?

1. Stimulus to support growth and investment

We welcome the recent announcement that the instant asset write-off will apply to a wider group of businesses – these stimulus measures are important to keep up business investment and confidence through the recovery for both small and large businesses.

As we pivot gradually from emergency settings to a nation-building stance, economic policy should focus on further incentives for investment into infrastructure and value adding research and development.

2. Clear national energy policy

A cohesive national energy policy that puts Australia out in front of the pack as a renewable energy economy. Policy certainty in this space is critical to manufacturing businesses in particular. In 2020 Lion became Australia’s first large scale carbon neutral brewer and we will continue to play our role in reducing emissions into 2021 and beyond.

Future stimulus should embrace opportunities to enhance Australia’s competitiveness in a low carbon economy.

3. Speed and simplicity of reform

Looking ahead, there’s an opportunity to accelerate the deregulation agenda, continuing to capitalise on the numerous new partnerships and commitments that have swept aside outdated ways of doing things.

What are the three best growth opportunities for your company in 2021?

Our focus for 2021 will be on growing our core business in Australia – core beer, craft beer and the emerging category of alcoholic seltzer, which is experiencing strong growth.

We will also continue to invest for growth in key international markets, for example the United States where we completed the acquisition of the fourth largest craft beer brand in New Belgium Brewing early this year. Unlike Australia, where the closure of pubs and clubs has had a significant impact on earnings, the US business has benefited from the channel shift to retail and is performing very well so we see further opportunity there.

Finally, we will be taking our role as a hospitality industry leader very seriously, by making it easier for our customers to do business with us and by supporting people to return to pubs and clubs safely. Investing in technology that helps our customers operate safely, and gives consumers confidence, is an area where we are already making investments. For example, the Myy app is a consumer facing loyalty app that we have co-created with PMG which provides Lion and our customers with functionality to reward customers and provide promotional offers along with a digital table ordering service. It’s currently being rolled out across venues in Australia and NZ.

What impact will digital transformation have on your company?

There is not a single process in our business that could not be improved through the intelligent harnessing of data.

We are particularly focused on driving a seamless customer experience leveraging technology like predictive analytics to make doing business with us easier. From a consumer perspective, we’re using data and analytics to ensure the brands they want are always available in the formats they want them, and ensuring safe venue experiences in a COVID-affected world.

For our people, it will be about balancing the different ways of working and productivity benefits that technology has enabled with a continued appreciation of the unique benefits of direct human connection. (See also the response to question one.)

How would you rate business, state and federal government performance this year?

Despite the tough conditions, we’ve seen business stepping up in the pandemic with remarkably flexible responses to help keep people safe and the economy going.

Overall, federal and state governments have done a very good job in incredibly difficult circumstances. You only need to look at what’s happening overseas to appreciate that. While we are certainly not out of the woods, on a global scale Australia has navigated the health and economic crisis very well so far. The instigation of National Cabinet has helped facilitate this response and is to be commended.