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

June 20, 2016

 

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 

  7) Local community support, everyone from residents to tourism bodies, and local government

 

USA'S GEOGRAPHICAL CONCENTRATION

 

More than 50% of US Craft Distilleries are based in just 10 states with California, Washington, New York, Texas and Colorado leading the way.

 

AUSTRALIA'S GEOGRAPHICAL CONCENTRATION 

 

Below is a table that demonstrates how many active Craft Distilleries are in each region of Australia.

Combining the number of Craft Distilleries in the states of Tasmania and New South Wales alone this accounts for 54% of the number of Craft Distilleries in Australia.

 

 

POPULATION OF THE USA vs. AUSTRALIA

 

Figures based on approximate population in each country versus the amount of Craft Distilleries.

Based on US figures this means Australia could potentially sustain 91 active Craft Distilleries in the future based purely on the scale of the US population and the Craft Spirit boom they are currently experiencing.

*Figures provided by Nip of Courage for the Australian market are based on the number of known active Craft Distilleries provided by industry sources. 

Please click here for the full report on the USA Craft Distilling Industry provided by the American Craft Spirits Association.