- Gin and tonic producers such as Brighton Gin and Fever-Tree celebrate the removal of tariffs on exports to Australia as a result of the UK-Australia trade deal.
- The deal is expected to go into effect next year and will provide a boost to exporters ahead of the 2023 festive season
- The food and beverage sector contributes £120bn to the UK economy and exports from this sector to Australia have more than doubled over the past decade
UK gin and tonic producers will see increased exports in 2023, with tariffs on all products destined for Australia scheduled to be removed under the UK-Australia Free Trade Agreement (FTA).
Brighton Gin and Fever-Tree, the UK’s leading premium mixer brand, consider Australia to be one of their key international markets. Both will become more competitive in the Australian market after a trade deal reduces tariffs on gin and tonic water exports, currently set at 5%.
The premium gin market continues to thrive. In 2021, the UK will export £21.3m of her gin to Australia. According to Statista, the Australian gin market is expected to grow by a further 6.37% annually over the next three years, demonstrating the potential of this market for UK exporters.
The UK-Australia deal is the first new trade deal the UK has negotiated from scratch since it left the European Union. In the long term, it is expected to increase trade with Australia by 53%, boosting the UK economy by £2.3bn and adding her £900m to household wages.
The deal will reduce tariffs to zero on 100% of UK merchandise exports. It also enables fast customs clearance for food and beverage products, allowing businesses to ship products reliably when exporting to Australia.
Trade Secretary Kemi Badenoch said:
Australians can enjoy duty-free British gin and tonics next Christmas and New Year, made by great exporters such as Brighton Gin and Fever Tree.
2023 will be a landmark year for UK-Australia relations as exciting new trade agreements come into force, allowing UK businesses everywhere to take advantage of this opportunity.
Based in London, Fever-Tree is the world’s leading premium mixer brand, exporting to over 85 countries. The company’s tonic water is Australia’s number one premium mixer, growing over 50% last year in stores and online. The brand continues to grow four times faster than his in the broader tonic category in Australia.
Fever-Tree’s ANZ Head of Marketing Caroline Wood said:
As the UK’s leading soft drink exporter and #1 premium mixer brand worldwide, it’s great to see our industry-leading position evolve and expand into Australia and New Zealand.
We look forward to the new trade agreement giving us the opportunity to introduce our delicious G&Ts to even more Australians.
Brighton Gin was the first gin company founded on the South Coast and the first craft gin to be certified 100% vegan. Since 2020, we have expanded to 10 new markets, with Australia being our largest.
The deal will benefit nearly 2,600 companies in the South East, who have already exported £540m worth of goods to Australia in 2020 and could boost the South East economy by around £295m Brings
Cathy Caton, Managing Director of Brighton Gin, said:
Australia has been on the export list since the early days of overseas sales. Since traveling to the country in the 90s and falling in love, it now boasts one of the world’s best food and drink scenes.
Our export journey to Australia has only just begun and we are really looking forward to working with the DIT team to build our network and find suitable wholesalers and distributors. It’s the sun, and it may be the month you’re staying, but it’s midsummer in Australia and perfect weather for a BG&T or three on the beach.
Every state in Australia has a Brighton, so my goal is to serve and intoxicate Brighton Gin in every state.
Background:
- UK-Australia trade was worth £14.4bn in 2021.
- In 2020, 15,300 UK VAT registered businesses employing 3.4 million people exported goods to Australia.
- Together, Fevertree and Brighton Gin support nearly 200 jobs in the UK
- Statista is the market leader in providing trusted business data, specializing in market and consumer data across 170 industries and over 150 countries.
- Kraft gains ground in Australian beverage market – IWSR Drinks Market Analysis
