ABA launches industry contribution report

Whether it is a family vineyard in the Barossa or a university student working in a CBD bottle shop, a new report shows the beer, wine and spirits industry provides direct and indirect employment opportunities for more than 590,000 Australians.

The industry’s important economic and social contribution was celebrated at the launch of Alcohol Beverages Australia’s Industry Contribution Report at a reception in Canberra on November 27.

Research conducted by Gillespie Economics found the industry contributed more than $158 billion annually in direct and indirect output last year and accounted for $36 billion in direct and indirect wages and income.

Alcohol Beverages Australia Executive Director Fergus Taylor said the report affirmed the industry’s role as a powerhouse in the Australian economy’s domestic and export markets.

“Millions of Australians enjoy beer, wine and spirits as part of a balanced, social lifestyle, and this report shows the important role the industry also plays as an employment provider and economic contributor,” he said.

“Consumption of alcohol has declined in Australia to its lowest rates since the 60’s, but businesses are growing with our customers opting for more premium offerings and exploring new drinking settings including food festivals, local breweries and distilleries, cellar doors and winery tours.

“The changing drinking culture has unlocked even more diverse and regionally-based employment opportunities for those looking to work in the industry, while also ensuring we remain a significant economic contributor to the national economy.

“The industry understands its place in the social and economic fabric of Australia comes with an obligation to promote responsible consumption and contribute to efforts to reduce alcohol-related harms, which we take very seriously and continue to work very hard to satisfy.”

Gillespie Economics Principal, Dr Robert Gillespie said the diversity of employment opportunities in the alcohol industry could be attributed to the breadth of supply industries it draws from.

“When you consider the supply industries cover everything from the growing process, through manufacturing and logistics, to the point of sale into the hands of the consumer, the alcohol industry provides employment opportunities for workers with a range of skill sets and experience across the entire population,” Dr Gillespie said.

“We looked at the direct contribution the industry made in 2017 based on IBISWorld data and then estimated the indirect contributions in terms of the key economic indicators of output, value added, wages and employment.”

Key Stats – The industry contributes*
• $158B in direct and indirect output;
• $70B in direct and indirect value-added;
• $6.51Bn** in direct taxation contribution***
• $36B in direct and indirect income/wages; and
• 595,055 in direct and indirect jobs.

*Methodology: Based on CGE modelling which models output, value add, income & employment. All values are GST free and wages are gross of taxes.
** Taxation figure does not include GST on the sale of any alcohol product
*** (Commonwealth of Australia, Final Budget Outcome 2017-18 September 2018, pp. 5)