Alcohol and beer in Australia: A brewers view James Brindley - PowerPoint PPT Presentation

Alcohol and beer in Australia: A brewer’s view James Brindley Managing Director Lion Australia

“ Fermentation equals Civilisation. ”

Introducing Lion • Largest brewer in Australia • #1 beer • Most popular craft beers • Premium winemaker • 8 breweries , 4 wineries • >1,500 people employed

Today’s topics 1. Changing alcohol landscape in Australia 2. Building a positive drinking culture 3. Beer’s challenges and opportunities 4. Creating a vibrant beer culture

A changing alcohol landscape in Australia: Australians are drinking less. 16 Australian Adult Per Capita Consumption of Pure Alcohol (L) 14 Cider 12 10 Spirits/RTDs 8 Wine 6 4 Beer 2 0 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Source: ABS. ABS Apparent Consumption of Alcohol. www.abs.gov.au. [Online] 2013-2014. http://www.abs.gov.au/ausstats/abs@.nsf/mf/4307.0.55.001/

A changing alcohol landscape in Australia: Four trends behind this. 16 Australian Adult Per Capita Consumption of Pure Alcohol (L) Ageing Diverse population population 14 12 10 8 ‘Generation Health Moderate’ & Wellbeing 6 4 2 0 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Source: ABS. ABS Apparent Consumption of Alcohol. www.abs.gov.au. [Online] 2013-2014. http://www.abs.gov.au/ausstats/abs@.nsf/mf/4307.0.55.001/

A changing alcohol landscape in Australia: A positive shift in our drinking culture… Lifetime and single- Lifetime risky Continued downward trend occasion risk drinking risk in underage drinking and a amongst 14+ yo’s in on the decline sustained increase in the decline (More than 2 std drinks/day age of initiation. on average) % in 2001-13 35 35 2007 2010 2013 29.2 12- 17 yo’s abstaining 30 29 30 56.5% 63.6% 72.3% 26.4 25 % of 12-17 yo’s 25 drinking at lifetime n/a 4.2% 2.6% 20.5 20.5 risky drinking patterns 20 20 18.2 % of 12- 17 yo’s 15 15 drinking risk of harm n/a 14.1% 8.7% 2007 2010 2013 2001 2007 2013 on that occasion Lifetime risk Average age of first 18-24 25-29 15.0 15.2 15.7 drink 30-39 40-49 Single occasion risk 18+ Source: Australian Institute of Health and Welfare, National Drug Strategy Household Survey, 2013

A changing alcohol landscape in Australia: …met by a staunch opposition from health lobby. 1. There is no safe level of alcohol consumption. Reducing per capita 2. consumption will reduce harm. 3. There is no role for the alcohol industry in policy development.

A vibrant hospitality industry and safer drinking culture – fundamental to our industry’s sustainability. We can’t get As an industry, Invest complacent – must work together significantly to create a positive in initiatives need to continue drinking culture. to achieve this. to build on progress.

Working collaboratively with our industry colleagues. • Work • Ensure an • Counter • Develop collaboratively informed misinformation, effective with industry debate about contribute to policies that colleagues alcohol policy evidence base target misuse Pan-industry body: all alcohol sectors and channels

DrinkWise Australia – building a healthier and safer drinking culture through behaviour change. • Promote a generational • Increase the age that change in the way young Australians are Australians consume alcohol introduced to alcohol. • Fully funded by • Campaigns focus on primary influences industry; of drinking behaviour: governed by a − Peer group norms − At-risk groups balanced Board (e.g. indigenous − Parental drinking communities, behaviour pregnant women)

The Campaign ‘Kids absorb your drinking’

The Campaign ‘Drinking – Do it Properly’ • Focused on shifting behaviour amongst 18-24 year olds • Hard to reach audience; unresponsive to ‘shock and awe’ campaigns • Aim: to make binge drinking less socially acceptable ; encourage those who drink in moderate way to continue doing so

Positive Behaviour Shifts • 2 million views • 57,000 shares in first 4 weeks • Strong Facebook engagement Of those who saw the campaign: • 33% reported they were drinking less after seeing it. Why? − 26% to ‘stay classy’ − 20% to ‘drink within their limits’ − 17% to ‘be more responsible’

Understanding Drinking Cultures in Australia and New Zealand • Lion- • Violence in night-time commissioned entertainment study, 2015 precincts the subject of ongoing debate • Look at other • Social and cultural drivers cultures around the of anti-social behaviour world with similar and violence drinking patterns; • What can be done to identify if same issues exist create a safer night out?

White paper: Understanding behaviour in the Australian and New Zealand night-time economies Find the full report at: https://www.lionco.com/media-centre

Today’s topics 1. Changing alcohol landscape in Australia 2. Building a positive drinking culture 3. Beer’s challenges and opportunities 4. Creating a vibrant beer culture

Challenges and opportunities for beer: Little understanding of beer and brewing of people don’t know 88% what’s in beer. Wine 58% made by people who are passionate about what they do. Beer 33% 1. “Lager” 2. “Light” Top 2 styles of beer known Source: Fifityfive Five. Vibrant Beer Culture research conducted on behalf of Lion. October 2013.

Challenges and opportunities for beer: Myths and misconceptions of beer think beer is fattening . 71% think beer contains preservatives . 69% over-estimate 94% the sugar content. believe it is high 62% in carbohydrates. Source: Fifityfive Five. Vibrant Beer Culture research conducted on behalf of Lion. October 2013.

Challenges and opportunities for beer: Shift in how Australians are socialising From: To:

Glass half full for beer: How the beer industry is evolving Craft – Value growth Growth of Contemporary through mid-strength and International rekindling brands – innovation and segment - consumer premiumisation. moderation step up interest in beer More brewers in Australia than ever before >350 craft breweries

Creating a Vibrant Beer Culture:

Creating a Vibrant Beer Culture: Making it part of our business strategy 1. Beer is an important part of my life. Affinity 2. I would miss beer if it did not exist any longer. 3. I love beer. 4. I am always talking about beer with my friends, family and colleagues. Amplification 5. Beer has a positive influence on = Beer the Australian way of life. ‘vibrancy’ 6. The beer category is constantly evolving for the better over time – it’s ever changing. Evolution index 7. Beer is exciting and dynamic. 8. I actively look out for what’s new in the beer category. Involvement 9. Beer is more than just a drink to me, it stands for something bigger.

Creating a Vibrant Beer Culture: Beer the Beautiful Truth • Long-term initiative • Campaign informed by consumer aimed at educating research . Consumers wanted: and informing consumers More information about beer • Busting myths and sharing facts To know about sugar content • Being transparent about Nutrition info on packaging nutrition information

Creating a Vibrant Beer Culture: Beer the Beautiful Truth 71% of Australians said this information would make them make more informed choices about what to drink.

Creating a Vibrant Beer Culture: How are we tracking? 35.0 NIPs & Fact 34.6 Buttons 34.5 34.2 introduced 34.0 33.5 33.2 Campaign Live Above 33.0 the Line 32.5 32.7 32.0 31.5 31.0 MQT Mar 15 MQT Apr 15 MQT May 15 MQT Jun 15 MQT Jul 15 MQT Aug 15 MQT Sept 15 MQT Oct 15 MQT Nov 15 MQT Dec 15 Beer VBC