With ongoing adjustment to COVID-19 impacts, Australian Beverages Council CEO Geoff Parker looks at the optimism in the non-alcoholic beverages industry as “the new normal” starts to appear. This article was first published in Food & Drink Business April 2021.
The first few months of 2021 have proved to be an exciting time for the non-alcoholic drinks industry. With restrictions easing across the country and the vaccine roll-out bolstering consumer confidence, the mood has shifted from resilience to reinvention, with industry well and truly embracing the opportunity to help the broader economy to “Build Back Better”.
Empowering choice
The drinks industry has a long history to demonstrating its reflexivity and ability to adapt tochanging markets.
With the rising popularity of new non-alcoholic drinks and creative craft beverages, this increasing demand for variety has empowered the credo of consumer choice, with the industry offering more alternatives than ever before.
From growth in health-conscious functional beverages to exploring new alternatives to sugar, smart brands are putting the lessons of the pandemic into practice as they lead a new wave of wellness and innovation.
At the heart of the industry’s ethos to empower choice is the nation’s first industry-wide sugar reduction pledge. This bold commitment by the Australian Beverages Council to voluntarily reduce sugar by 20 per cent between 2015 and 2025 showcases an industry which is responsive and responsible in supporting more choice for consumers. At the midway point of the pledge the industry is on track to deliver its 2025 promise.
It is important to remember the role that non-alcoholic drinks have in the Australian diet. Consumers are keen to embrace an increasingly diverse market with drinks for every occasion.
This exploration across tastes extends into exciting possibilities across uniquely Australian flavours. Some manufacturers looking onshore to native ingredients for new flavour opportunities whilst others are relying on trusted recipes for a broad and loyal consumer base.
Sustainability shift
The increased use of recycled materials, success of state-based container deposit schemes, and expanded government investment in recycling infrastructure, sees sustainability remain a key priority.
With the ban on certain types of single-use plastic across Queensland and South Australia coming into play, it’s clear consumers are looking to support brands with a positive environmental footprint.
The drinks industry has been at the forefront of these reforms, with a number of our members light-weighting existing plastic packaging while others increase the use of recycled materials across their portfolios.
The Australian Packaging Covenant has announced solid progress toward the 2025 National Recycling Targets, with the non-alcoholic drinks industry welcoming the opportunity to go above and beyond in achieving its environmental objectives.
As governments across the country commit to bolstering Australia’s onshore recycling infrastructure due to an increased demand for recycled materials, there is still work to do to ensure Australian manufacturing can fully adopt a closed-loop approach.
Given that by 2023, all states and territories will have a container deposit scheme (CDS), three critical success factors in achieving circularity will be: the transparency and availability of materials coming through (CDS); better sortation of recyclable materials collected through kerbside; and increased consumer awareness and education on recycling .
The non-alcoholic drinks industry will continue to promote a harmonisation agenda with scheme coordinators, regulators, and governments to maximise the efficiencies of these important strategic assets and decrease the significant impost and cost to drink manufacturers.
Ethical focus
In the wake of the pandemic, we have witnessed a sense of mateship and responsibility pervade Australian business culture. It is inspiring to see food and beverage brands searching for ways to support communities and affected groups recover from the pandemic’s economic impacts.
Embracing this ethos of doing the right thing, the industry is always ready to reflect societal sentiment across several important issues.
Recently, International Women’s Day served as an opportunity for the industry to be that mirror and celebrate women’s achievements and impact across Australian business. This year’s “Chooseto Challenge” theme invited us to challenge gender preconceptions and bias, and build a more equitable world.
I’m very proud that the association today is powered by an amazing team of women at both board and management level who constantly raise the bar, strive for better and deliver exceptional results time and time again.
Digital disruption
As consumers get back out and about, its evident digital disruption is here to stay. Accelerating consumer demands across ecommerce look set to be the focus for the remainder of 2021.
Crazy Domain’s recent Online State of Australia’s Small Businesses 2021 report found that small businesses were both the most disrupted and most adaptive to the changes required during the pandemic. An impressive two out of three changed their sales, marketing, or distribution approach, with a shift toward digital channels empowering many food and beverage companies despite the challenges of COVID-19. It is a clear example of the industry’s resilience and flexibility, with an increased digital focus providing access to new customers and audiences outside of traditional distribution channels, which has been one of the post-pandemic silver linings.
Resilient bounce back
With industry supporting local communities and workers, it is vital we continue to advocate for small business both in manufacturing and across the supply chain.
In Australian juice manufacturing, support for local producers is essential to ensure a resilient and secure agricultural sector. Consumers purchasing Australian grown fruit and vegetable juices will be a decisive factor in assisting the industry’s economic recovery.
With recent changes to the Health Star Rating, the industry will continue to support the crucial role of juice as a core food in the Australian diet, recognising its complete nutritional profile and contribution to consumers’ micronutrient intakes.
Late last year the industry launched its post-pandemic recovery blueprint, which outlined the critical role the industry will play in supporting the broader economic rebuild efforts. With the Modern Manufacturing Strategy selecting the food and beverage industry as a core priority of Australia’s economic recovery, the beverage industry will be focused on reinforcing supply chain resilience.
As it has done many times in the past, the drinks industry is ready to lean in and step up.
