Non-alcoholic beer grows as Australian wineries struggle to pay bills
A Hunter Valley producer cuts back while Heaps Normal expands, illustrating the uneven effects of Australia's changing drinking habits.
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Wineries and breweries close their doors as move away from alcohol bites | The Business | ABC NEWS
For one Australian drinks producer, the problem is paying the bills. For another, non-alcoholic beer is bringing growth and a place on pub taps.
That contrast runs through business reporter Adelaide Miller's report for the Australian Broadcasting Corporation (ABC), Australia's public broadcaster. It links falling alcohol consumption to changing lifestyles, pressure on household budgets and the growing appeal of alcohol-free alternatives.
Nathan Heuston opened his Hunter Valley winery five years ago. He says that for a stretch of this year, turnover amounted to only a tenth of what the business needed to cover its bills. He has reduced production and stopped buying barrels, with this year's winemaking limited to grapes from his new vineyard.
The squeeze extends beyond his property. Alcohol analyst Michael Doyle describes the fall in consumption in the 2024 financial year as the sharpest on record and expects a continuing, gradual decline. The report says younger generations are leading the shift away from alcohol.
Meanwhile, non-alcoholic brewer Andy Miller says Heaps Normal is growing by about a fifth annually. He says its draught beer is outselling alcoholic alternatives on some taps. The report projects that non-alcoholic beer sales will almost double between 2024 and 2028.
For established producers, adapting is not straightforward. The Independent Brewers Association says more than 80 breweries have closed since June 2023. The report also describes weaker liquor sales at Coles and only modest retail growth at Endeavour Group, which owns BWS and Dan Murphy's.
Wine industry representative Lee McLean calls for government help so growers and winemakers can change their businesses or leave the sector. In a statement accompanying the report, Agriculture Minister Julie Collins says the government has delivered more than A$105 million in support, citing the Wine Equalisation Tax rebate and a new mandatory code for wine-grape purchases.
Back at Heuston's winery, the immediate worry is the booking calendar. Summer should be approaching his busiest trading period, he says, but the reservations he would normally expect have not arrived.
An Australian retail group whose main businesses sell groceries through Coles supermarkets and alcoholic drinks through Coles Liquor outlets.
More on Wikipedia ›An Australian alcoholic drinks retailer that also operates hotels and poker machines. It was spun off from Woolworths Group in 2019.
More on Wikipedia ›Australia’s Minister for Agriculture, Fisheries and Forestry. A Labor Party politician, she has represented the Tasmanian seat of Franklin in federal parliament since 2007.
More on Wikipedia ›Published on Trari
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Which Australian state is home to the Hunter Valley wine region?
The Hunter Valley is a wine-growing region in New South Wales, north of Sydney.