Alcohol industry revenue records worst month ever
The alcohol industry has recorded a loss of $8.5 billion in revenue in April due to the Covid-19 restrictions on pubs, clubs and bars, marking its worst month ever.
The shutdown also resulted in almost half a million hospitality employees losing their jobs, according to Alcohol Beverages Australia.
"Despite some initial pantry filling in March, April has been the worst month on record for sales of beer, wine and spirit," Alcohol Beverages Australia chief executive officer Andrew Wilsmore said.
Beer sales dropped 44 per cent in April, while cider saw the biggest fall at 61 per cent. Small and medium sized wine producers also reported losses of up to 70 per cent after their main market of restaurants were forced to close.
Local distillers experienced revenue declines of up to 80 per cent, with travel restrictions biting into their core market.
"We knew that the total loss of trade from pubs, bars, clubs and restaurants was never going to be made up for by a brief, small surge in panic buying during the week people were concerned bottleshops would also close," Wilsmore said.
Wilsmore said the government needs to focus on job creation programs while simultaneously reducing the tax burden for businesses.
"This will be vital to our successful revival so that we can continue to provide employment opportunities and future careers for young Australians," he said.
Sheridan Randall, 26th May 2020
