News

Beer is iconically Australia’s adult beverage of choice.  And yet for years, the wine industry’s export opportunity has be lauded as the reason it receives such preferential treatment by the Federal Government.   

The wine industry receives more funding each year than has ever been invested in the independent brewing sector and yet they continue to cry poor.  

In fact, the wine industry received $14.6 million dollars in the past 12 months just for programs designed to address the global downturn in demand and support tourism.

The independent brewing industry has never received a dollar from the Federal Government. And we have been doing it tough for years.

Beer is primarily made in Australia for Australians.  So as we have seen beer become unaffordable for the average Australian, and as small breweries that provide regional jobs and community hubs have continued to close at an ever quickening rate –  we have received not a single dollar of support.  

Now, the Grape and Wine Association is asking for $139.25m over three years to address ‘structural oversupply, rebuild demand and support businesses facing financial hardship and mental health’.   

On the contrary, the IBA has asked for a measly $1.25m each year for three years – to invest in a sector that doesn’t have the backing of thirty years of Government direct investment in leadership, research, data and resources.  

$139.25m almost makes my eyes bleed – it is an unimaginable amount of money for our members.  

When our members close, face structural inequities in the market, or have their mental health suffer – it is simply treated as par for the course.  Yet wine, that has had it good for so many years with all the hand-ups from Government it could possibly hope for, doesn’t plan for a decline and they still seek more and more.   And frankly are likely to get it.

If Government invest more in wine without a dollar going to beer, it is telling Australia’s beer drinkers that they don’t matter as much a red wine drinker in a far away country; and that that their local indie brewer, hop grower or barley grower is somehow less important. 

Before the naysayers tell me that wine is agricultural and its about regional and rural communities – beer is an inherently agricultural product made with malt, water, hops and yeast. 56% of independent breweries are located in rural and regional Australia bringing with them meaningful employment and purchasing Australian grown malted barley and hops.

Why do jobs in brewing matter less to the Federal Government? 

Why is the mental health of a grape grower more important than an independent hop grower? 

When the Federal Budget pie is finite and we ask for so little – why does Government keep giving more to wine?  Is it because Government’s historical investment in wine means their industry can afford lobbyists to keep the gravy train going? 

On the dollars amounts invested in the past year alone  – it is plain to see that this is not about equity or fairness, or saving meaningful employment and economic contribution.

The average Australian is impacted by the rising cost of beer, and the closure of their local brewery– they experience the strain in their everyday lives.   The ongoing preferential treatment of the wine industry over the brewing industry is going to come home to roost for Government.  

It is time the Federal Government invest in the industry that has stood on its own two feet – before giving a single additional cent to the wine industry.  

Sabrina Kunz
Chief Executive Officer

IBA Members can find a full copy of our Pre-Budget submission on the Advocacy page of our member portal.