Australia: Beer brings billions to Australia’s economy

One hundred thousand jobs and upwards of A$15 billion rely on local brewing in Australia, despite most of the large local brewers being owned by overseas multinationals, 7News reported on August 2.

"People are surprised to learn that 84 per cent of the beer sold in Australia is made right here by Australians," Brewers Association CEO Brett Heffernan said.

And Australians drink a lot of it too, with the average Aussie drinking 224 stubbies a year, or around 2.6 drinks a day.

Australia's drinking habits have evolved since the mid 70's, we drink half as much as we used to, light or mid-strength beers now account for more than a quarter of all beer sold, and the nation is at the lowest levels of alcohol consumption since 1962.

A ten-year report published in 2017 by DrinkWise found Australians "are drinking less and the rates of underage drinking is decreasing".

But beer still narrowly reigns supreme as the nation's most widely consumed alcoholic beverage - beating out wine by a mere 1 per cent.

And it's bucked the trend when it comes to the decline in Australian Manufacturing, with the business predominantly staying on shore.

"Major local brewers (CUB, Lion and Coopers) account for 79.4 per cent of sales volume, independent brewers account for 3.4 per cent of sales, and imports at 16.2 per cent," Mr Heffernan said.

But that may be set to change after Carlton United Brewers was sold to Japan's Asahi for A$16 billion earlier this month, making it the second major brewer to be owned by an overseas multinational.

Australians are "blessed" when it comes to beer because of the availability of high-quality ingredients, according to Mr Heffernan.

Barley is one of those crops and is the country's second-largest with eight million tonnes being grown across every state, but not the Northern Territory.

Australia exports A$2.4 billion worth of barley overseas as well, accounting for nine-and-a-half million tonnes of the grain and 30-40 per cent of the global malting barley export trade.

Australia is also forging ahead when it comes to hops, a crop that's only really suited to southernmost climates in Victoria and Tasmania and another key ingredient in beer brewing.

Last year, the crop yielded more than 1500 tonnes of product, with a third delivered to domestic brewers and the rest sent overseas.

Australian hops are both locally and internationally sought after, "with forward contracts for the 2020 crop already at 90 per cent," said Owen Johnston at Hop Products Australia.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .