Wineries, breweries closing down as decline in alcohol consumption starts to bite
Facing the "most difficult set of circumstances" within generations, wineries and breweries are going out of business as data reveals why Australians are drinking less.
The decline in alcohol consumption is causing wineries and breweries to close down. Economic challenges, younger people drinking less, and the popularity of non-alcoholic drinks are contributing to the downward trend. Nathan Heuston, a winery owner, reported a significant drop in his business, from generating $20,000 a week to just $2,000 a week.
Grape growers are seeking government assistance to transition away from wine production. In Australia, total alcohol consumption fell by 10% in the three years to 2024, with the sharpest decline recorded in the 2024 financial year. The Independent Brewers Association confirmed over 80 breweries have closed since June 2023. Hotel bars in Hobart entered voluntary administration earlier this year, and liquor sales at Coles dropped 3.3% last financial year.
Non-alcoholic beer sales are projected to nearly double in the next four years, becoming the fastest-growing beverage in the sector. Australian Grape and Wine anticipate the industry will change shape and size in the coming years, exploring new markets like India and Southeast Asia. The Australian government has provided over $105 million in funding to support the grape and wine sector.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
