UK gin and tonic producers are set to receive an export boost in
2023, with tariffs on all products going to Australia due to be
removed under the UK-Australia FTA.
Brighton Gin and the UK’s leading premium mixer brand Fever-Tree
consider Australia one of their core international markets. Both
are set to become more competitive in the Australian market after
the trade deal slashes tariffs on exports of gin and tonic water,
currently set at 5 per cent.
The market for premium-and-above gin continues to flourish. In
2021, the UK exported £21.3 million of gin to Australia.
According to Statista, the gin market in Australia is expected to
grow by a further 6.37% annually over the next three years,
demonstrating the potential of this market to UK exporters.
The UK-Australia deal is the first new trade deal the UK has
negotiated from scratch since leaving the European Union. It is
expected to increase trade with Australia by 53%, boost the UK
economy by £2.3 billion and add £900 million to household wages
in the long run.
The deal will see the reduction of tariffs on 100% of UK goods
exports to zero. It will also ensure food and drink products exit
customs quickly, so businesses can have certainty and ship with
ease when exporting products to Australia.
Trade Secretary said:
“Aussies can look forward to enjoying tariff-free British gin and
tonics, made by fantastic exporters like Brighton Gin and
Fever-Tree, next Christmas and New Year.”
“2023 is a landmark year for the UK-Australia relationship as our
fantastic new trade deal comes into force, allowing UK businesses
up and down the country to take advantage of the opportunities it
presents.”
London-based Fever-Tree is the world’s leading premium mixer
brand, exporting to over 85 countries and its tonic water is the
number one premium mixer in Australia, having grown by over 50%
in shops and online over the last year. The brand continues to
grow four times faster than the wider tonic category in
Australia.
Head of Marketing for ANZ at Fever-Tree, Caroline Wood,
said:
"As the UK’s leading soft drink exporter and no 1 premium mixer
brand across the globe, it's been fantastic to see our
sector-leading position evolve and expand as far
afield as Australia and New Zealand.
“We look forward to the opportunities presented by the new trade
deal to introduce even more Australians to great-tasting
G&Ts.”
Brighton Gin was the first gin company established on the south
coast and the first craft gin to be certified 100% vegan. They
have expanded into 10 new markets since 2020, however Australia
is their largest market.
The deal will benefit the nearly 2,600 businesses in the South
East who already exported over £540 million worth of goods to
Australia in 2020 and could boost the South East’s economy by
around £295 million.
Brighton Gin Managing Director Kathy Caton said:
"Australia has been on our export target list from our earliest
days of selling overseas. Since falling in love with the country
when travelling there in the 90s, it now boasts one of the
world's greatest food and drink scenes.
“We're just at the beginning of our Aussie export journey, but
we're really looking forward to working with the DIT team to help
us build our network and find the right wholesalers and
distributors to work with. While in the UK it might be the dark
days of Dry January and the month of staying in, it’s the height
of summer in Australia and perfect weather for a BG&T or
three on the beach.
“With a Brighton in every Australian state, my goal is to get
Brighton Gin served and drunk in every one!"
Notes to Editor
- UK-Australia trade was worth £14.4 billion in 2021.
- In 2020, 15,300 UK VAT registered businesses, which employ
3.4 million people, exported goods to Australia.
- Combined, Fever-Tree and Brighton Gin support around 200 jobs
in the UK
- Statista is the market leader in the provision of reliable
business data, specialising in market and consumer data spanning
170 industries and over 150 countries
- Craft gains ground in Australian drinks market – IWSR Drinks Market
Analysis
