A Budget that Backs Beverages

For immediate release 7 October 2020

“The 2020-21 Federal Budget handed down by Treasurer Josh Frydenberg last night is one of the most critical in living memory. It is reassuring to see that the Morrison Government has delivered a budget designed to support Australian manufacturing and importantly back the non-alcoholic drinks industry.” said Mr Geoff Parker, Chief Executive Officer, Australian Beverages Council.

“There is a long road to recovery ahead that will no doubt test the most resilient and agile of businesses but with greater investment in infrastructure and support for Australian manufacturing, I am confident that the Members of the Australian Beverages Council and the wider industry will weather the storm,” said Mr Parker.

“The Australian Beverages Council represents a wide range of drink companies ranging from large global corporations to small family-run businesses supplying the local economy that have had to not only survive bush fires, drought and floods but now need to surpass this global pandemic. It is these local, iconic business supporting regional employment that need considerable support thus it is pleasing to see that the federal government will be supporting these businesses with a tax cut and a carry-back scheme. Notably the largest single measure in the Budget announced yesterday,” said Mr Parker.

Late last week the Australian Beverages Council welcomed the announcement of the Modern Manufacturing Strategy by the Morrison Government, an initiative that supports the development of industry-led recovery roadmaps for the next two, five and ten years.

“As the peak body representing ninety per cent of the Australian non-alcoholic beverages industry by volume, the Australian Beverages Council is reassured to see the Government’s continued support for Australian manufacturing and that the beverage (and food) sector has been chosen as one of six National Manufacturing Priorities,” Mr Parker.

“The non-alcoholic drinks industry is heavily reliant on the domestic market with the majority of beverages manufactured locally being consumed in Australia. It’s also an industry that provides an important economic contribution to the country through the 46,000 jobs it provides, the $7 billion in annual value add and the $1.2 billion its supply chain pays in taxes each year,” said Mr. Parker.

“The support from the Modern Manufacturing Strategy is testimony to the opportunities that the industry can provide to the nation’s recovery and rebuild efforts, a position that was recently outlined in the Council’s recovery blueprint,” added Mr Parker.

“The blueprint, recently launched with the support of the Assistant Minister for Waste Reduction and Environmental Management, the Hon. Trevor Evans MP, maps out an ambitious post-Coronavirus recovery agenda to complement the Australian Government’s pro-growth and pro-jobs policies, identifying nine key inhibitors to growth and jobs creations across the economy which is slowing business and the wider economy from get back on their feet,” said Mr Parker.

“Underpinned by a commitment to support widespread economic rebuilding and recovery, the blueprint details a number of key policy areas that have broad appeal to support recovery beyond the drinks industry, including harmonisation of Container Deposit Schemes [CDS], incentivising key groups to meet sustainability goals, increasing recycling infrastructure, reforming the tax system, simplifying the industrial relations system and improving energy policy. Many aspects of which were echoed on the Budget,” said Mr Parker.

“Research and development is a fundamental pillar to success in the non-alcoholic drinks industry as businesses respond to changes in consumer behaviour. Investment in R&D was highlighted as challenge for the industry in the recovery blueprint noting the complexity of grant applications and barriers to entry. Following the announcement of a $2 billion boost in additional research and development tax incentives and the changes to the R&D tax offset for small businesses are measures that will complement the industry’s innovation, enabling the non-alcoholic drinks industry to remain agile and processive in the year(s) ahead,” said Mr Parker.

The full recovery blueprint report can be found at A Refreshing Recovery September 2020.

Mr Geoff Parker is available for interview about the industry’s policy reform blueprint and the response to the Modern Manufacturing Strategy.

-oOo-
Australian Beverages Council
The is the peak body representing the collective interests of the non-alcoholic beverages industry. We strive to advance the industry as a whole, as well as successfully represent the range of beverages produced by our members. These include carbonated regular and diet soft drinks, energy drinks, sports and isotonic drinks, bottled and packaged waters, fruit juice and fruit drinks, cordials, iced teas, ready-to-drink coffees, flavoured milk and flavoured plant milk. The unified voice of the Australian Beverages Council offers our members a presence beyond individual representation in order to promote fairness in the standards, regulations, and policies concerning non-alcoholic beverages. The Australian Beverages Council introduced a dedicated juice division, Juice Australia (formerly Fruit Juice Australia), in 2009 and a dedicated water division, the Australasian Bottled Water Institute (ABWI), in 2011.

For further information or to interview Geoff Parker, CEO, Australian Beverages Council:
Mrs Charlotte Milne
Sustainability and Public Affairs Manager Australian Beverages Council
M: 0478 890 920
E: Charlotte@ausbev.org