Wineries and breweries close their doors as move away from alcohol bites | The Business | ABC NEWS

Consumer behaviour around alcohol consumption has been shifting, as data shows a downward trend over the last few years - led mostly by younger generations.

But as Australians decide to drink less alcohol, those businesses at the heart of production say they are now hanging on by a thread.

Business reporter Adelaide Miller visited a winery struggling with the decline in alcohol consumption.

Nathan Heuston opened his Hunter Valley winery five years ago. He says his business has plummeted recently, forcing him to cut back on operations.

"Our turnover for about probably 12 weeks this year, we were taking a 10th of what we require to pay our bills," he says.
"This year all we're going to make is what we've planted in our new vineyard and we haven't bought any barrels for last year and this year coming."

The accelerating decline in alcohol sales is being blamed on tough economic times, young people drinking less and a rise in popularity of non-alcoholic drinks.

Grape growers are calling for government assistance to help with the transition away from solely making wine.

The trend has affected all corners of the industry, with the Independent Brewers Association confirming more than 80 breweries had shut down since June 2023.

Seven hotel bars in Hobart entered voluntary administration earlier this year. Liquor sales at Coles dropped 3.3 per cent last financial year, and Endeavour Group, which owns BWS and Dan Murphy's, saw sales at its retail outlets only increase modestly, up 0.7 per cent.

The grape and wine peak body, Australian Grape and Wine, has described this period as "the most difficult set of circumstances" the industry has faced in "generations".

Meanwhile, those businesses producing non-alcoholic alternatives are seeing gains.
Non-alcoholic beer sales are projected to almost double in the four years to 2028, from 150 million litres to about 300 million.

In a statement to the ABC, Minister for Agriculture, Fisheries and Forestry Julie Collins acknowledged the challenges the industry had faced in recent years.

"The government has delivered over $105 million in funding to support the grape and wine sector," she said.

It included the Wine Equalisation Tax rebate and a new mandatory code of conduct for wine-grape purchases.

"Our government will continue to work closely with industry on future opportunities."
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