U.S. Boom for Craft Distilleries and how it compares to Australia's emerging industry


Research conducted by the American Craft Spirits Association earlier this year revealed the following findings about the booming craft spirits industry in the United States of America (USA). We have provided our thoughts on where the Craft Distilling industry for Australia is headed based on these findings.


 

1,280 ACTIVE CRAFT DISTILLERIES IN THE US


The number of active US craft distilleries has tripled since 2007. It is the highest amount of Craft Distilleries recorded since Prohibition.


72 ACTIVE CRAFT DISTILLERIES IN AUSTRALIA


There are approximately 72 active Craft Distilleries across Australia.

US CRAFT DISTILLERIES CREATING JOBS


US Craft Distilleries employ one full-time person for every 700 cases sold, versus the larger commercial operators who employ one full-time person for every 16,000 cases sold. This means Craft Distilleries employ 21 times more people than large commercial operators.


POTENTIAL JOBS CREATED BY CRAFT DISTILLERIES IN AUSTRALIA


Approximately 85% of Craft Distilleries in Australia are based in rural areas where the economies are fragile and the job opportunities are limited. If we consider US employment figures this is positive hope for employment within rural communities of Australia. We believe rural job growth in the industry would depend on whether remote distilleries can or continue to successfully develop the following areas in their businesses;


1) 'Interactive', 'Educational' or 'Memorable' cellar door experiences


2) High quality spirits made with integrity and high quality distilling practices


3) Producing spirits in categories that are experiencing demand or strong growth potential


4) Identifying and creating a marketing plan or strategy to attract the end consumer


5) Successful brand identity and developing strong brand equity


6) Having a solid business plan with a detailed financial model