Tasmania’s Lark Distillery is leading the charge for a national export boom in Australian craft spirits, with the industry hoping to replicate the success of the country’s wine industry a generation ago.
Lark Distillery founder Bill Lark says there is “no doubt” Australian whisky can achieve global recognition and become highly sought after, just like Japanese whisky has in the last decade.
“This would be transformative for Tasmania and other regional communities where many of Australia’s 700-plus distilleries are located,” he said.
Lark whisky and gin are now available in Singapore, Indonesia, Malaysia and the Philippines after the company embarked on its export journey last year.
Lark CEO Satya Sharma, who joined the business in 2023 after a decade with Scotch whisky company William Grant & Sons, is optimistic about the export potential of Australian spirits.
However, he says it will be an uphill battle for individual distillers to grow sales abroad without support from the government.
“Currently, each distiller is going out to each market on their own, trying singlehandedly to build the Australian spirits category,” he said.
“What we are lacking is a megaphone, in the form of federal government investment to help raise awareness of the innovative liquid and authentic stories that we know will resonate with spirits consumers overseas.”
Tasmania alone now has 77 distilleries, the highest number per capita of any Australian state, according to Tasmanian Whisky & Spirits Association president Kristy Lark-Booth.
“Our distillers are making spirits that are truly world class, from whisky to gin, vodka, liqueurs, brandy and more,” she said.
“We have huge ambitions to grow our exports and create many additional jobs for Tasmanians in manufacturing, tourism and hospitality.”
Spirits & Cocktails Australia CEO Greg Holland said Australia currently ranks 29th globally for spirits exports, with total revenue of $112 million in the last financial year.
“This compares with sixth place for Australian wine, which is a $2.1 billion export industry, highlighting the differential treatment of spirits versus wine in this country,” he said.
In an effort to discourage excessive alcohol consumption, spirits in Australia are currently excised at $103.89 per litre of pure alcohol while beer is just $52.66.
“Spirits manufacturers are being held back by a tax that is already five times higher than that of wine, with another hike due on 3 February.”
Australian Distillers Association CEO Paul McLeay says the federal government “must act now” or Australian spirits “will lose market share to other nations that have already recognised the urgency of these trade opportunities.”
