The Drinks Association held its second Supply Chain and Logistics Forum for 2024 on Thursday, September 19, in Sydney. The event featured a full day of presentations, discussions, and networking, with a focus on current trends in the Australian liquor industry, supply chain insights from Advantage Group, and strategic workforce planning.
The forum took place at the scenic offices of Henning Harders, a Drinks Association Silver Partner and member of the Supply Chain and Logistics Forum.
Liquor in Focus: A current overview of the Australian liquor industry
The forum kicked off with a Liquor in Focus presentation by Drinks Association Gold Partner, Circana, and featured a detailed analysis, delivered by Jarna McLean, Director of Health & Lifestyle. The presentation provided a deep dive into the industry's latest trends, challenges, and emerging opportunities, offering a wealth of insights for stakeholders across the supply chain.
A central theme from the research was the continuing trend of moderation. Over the past 50 years, Australians have been consuming less alcohol on a per capita basis, and this pattern shows no signs of changing.
One of the notable shifts highlighted was the significant impact of the COVID-19 pandemic on liquor purchasing habits. During the pandemic, online alcohol sales surged, as consumers turned to digital platforms to stock up. However, in the years since, these online purchases have dropped, returning to more typical levels. This shift indicates a normalisation in buying behaviours as life returns to pre-pandemic routines.
The report also showed a decline in the consumption of premium spirits and wines, which had seen a boom during the pandemic as many consumers stocked up on high-end products for home use. As people continue to work through their cellars, there has been a notable reduction in demand for these premium beverages.
Another key insight was the heightened focus on value. As economic pressures increase, consumers are scrutinising every dollar they spend. It is noted that shoppers are becoming more price-sensitive, seeking out options that provide the best bang for their buck, without necessarily sacrificing quality. This presents both a challenge and an opportunity for the industry, as brands that can offer value-driven options are likely to capture consumer interest.
The presentation provided a clear picture of where the Australian liquor industry stands today and where it might be headed in the future. From long-term moderation trends to the evolving expectations of value-conscious consumers, the landscape is shifting, requiring stakeholders to adapt to maintain their competitive edge.
Advantage Group: Supply chain key takeaways from 2024 Trade Survey
David McLoughlin, General Manager at Advantage Group, delved into the key takeaways from their 2024 Trade Survey, focusing on supply chain performance and emerging trends.
Some critical global insights include creating an environment of trust and being perceived as a collaborative and an easy partner to do business with which are critical behaviours to drive long-term engagement.
Supply Chain competencies that were recently considered priorities, do not now hold the same priority ranking according to retailer feedback i.e. delivery in full, on time (DIFOT), aligns on metrics, and collaborative forecasting.
Effective Customer Service remains a key driver of ‘trust’. Retailers continue to highlight the need for ‘no surprises’ and are seeking proactive and transparent communication as a means to effectively manage product availability.
Retailers acknowledge the improvements in suppliers' Supply Chain capabilities, reflected in three years of improving scores across competencies, led by collaborative forecasting.
Lower overall scores in Supply Efficiencies, suggest retailers are seeking greater focus from suppliers on ‘cost out’ initiatives to help address inflationary pressures and the incremental costs associated with ecomm.
5 Big themes influencing the Supply Chain agenda
- Supply chain sustainability
- Resilience and risk management
- Collaboration
- Technology and digital transformation
- Customer-centric supply chains
With results taken from the Advantage Group data, Brown Family Wine Group and Lion were awarded joint winners of the Supply Chain Management Award at the recent Australian Drinks Awards.
Presentation: Strategic Workforce Planning
This session, led by Anthony Hordern, Strategic Workforce Planner at Pernod Ricard, and Courtney Ribbons, Supply Chain Operations Manager, explored the skills of the future and what businesses will need to remain competitive in the evolving workforce landscape by identifying creative learners within the business.
Drinks Association Sustainability Council Presentation
Rebecca Loch, Sustainability Lead at Lion and Chair of the newly formed Drinks Association Sustainability Council, shared the council’s strategic approach and ongoing initiatives aimed at promoting environmental and social responsibility within the industry.
The Sustainability Council’s mission is to inspire and drive positive change for both people and the planet. It seeks to achieve this through active engagement, education, and a commitment to continuous improvement.
The council’s efforts are focused on three key workstreams:
- Toolkit Development / Knowledge Hub
This includes the creation of playbooks, checklists, and templates designed to educate Drinks Association members on critical areas like climate risk disclosures, carbon management, and circular economy practices.
- Innovation Roadmap
The Council is dedicated to identifying, evaluating, and piloting innovative technologies and solutions. These efforts focus on addressing common industry challenges.
- Communication & Engagement
This involves delivering content on climate-related and circular economy topics through workshops, webinars, and industry events.
Why an industry-led Sustainability Council matters
- Stay competitive in a global context
- Unlock growth opportunities
- Stay ahead of compliance requirements
After surveying all Drinks Association members, with an 86% response rate, two key priorities emerged:
- Circular economy and packaging
- Climate change and carbon emissions
By collaborating with members, retailers, and partners, the council aims to influence and improve the entire value chain.
Discussion on 2025 Forums
Courtney Ribbons, Supply Chain forum Co-Chair, led a discussion on the upcoming forums for 2025, covering potential dates, locations, and content areas that members would like to see covered.
The day concluded with informal drinks and dinner at Penny’s Hotel allowing participants to unwind and further connect with fellow attendees.
Thank you to our partners BevChain, Mainfreight, Hillebrand Gori, Henning Harders and GS1 for your engagement and participation and to our forum participants, Mark Alexander & Rav Seepersad (AVL Wines), Justin Gibson & Paul Morris (Bacardi), Lee Rowland (Brown Family Wine Group), Tara Hamilton (Campari), Megan Sunderland, (Lion), Brad Greer (Mainfreight), Courtney Ribbons & Vanessa Thomas (Pernod Ricard), Hayley Thompson Pettitt (Moet Hennessy), Jess Button (Hill Smith Family Estates), Nathan Arneil & Jacques Roux (Henning Harders), Jamie Single & Mark Eaton (BevChain), Brad Greer (Mainfreight), Andrew Steele & Peter Davenport (GS1) and Rintira Sutthitham (Hillebrand Gori).
The forum offers key industry updates and the chance to engage with industry leaders. For more information or inquiries, contact rachelw@drinks.asn.au