The local government of Western Australia has launched a decade-long strategy to grow craft beer production in the region.
The plan was put together by the state’s Department of Primary Industries and Regional Development, the Independent Brewers Association (IBA), West Australia Brewers Association (WABA) and South West Brewers Association (SWBA).
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As part of the strategy, the four parties’ two main goals are increasing the volume and value of locally produced beer threefold by 2034 from a 2023 baseline and creating “greater vertical integration of the craft beer value chain” in the region.
Over 120 craft breweries exist in Western Australia, representing 20% of total craft beer production in the country.
In order to achieve those two targets, the strategy proposes a number of actions. These include developing a data strategy for the region to build a set of “critical data” on local craft beer production, plus boosting market access for Western Australian craft beer both locally and internationally by improving access to distribution channels.
The initiative also looks to develop “sustainability credentials” in the state’s craft beer supply chains, bring producers and government together to work around development, sustainability and regulatory hurdles, as well as build up brand awareness through developing a Western Australia-focused marketing plans.
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By GlobalDataIt also aims to create a new industry body model, based on existing organisations such as the IBA, WABA or SWBA, to represent craft beer production in the area.
Speaking on the strategy, the minister for agriculture, food and forestry in Western Australia Jackie Jarvis said: “It aims to provide a strategic pathway for the industry and government to work collaboratively over the coming decade with a vision of encouraging more people to enjoy and experience the unique range of beers crafted in Western Australian breweries.”
The development of the ten-year plan comes as many craft brewers in Australia tackle a tricky market.
Craft beer sales in Australia dropped 12.7% in 2023, according to the latest findings from GlobalData, Just Drinks’ parent.
Speaking to the publication, the company’s head of global beer and cider research Kevin Baker said: “The sector has been hit by increasing raw materials, distribution and labour costs, together with consumers turning away from craft beers in favour of less expensive options due to the economic downturn.”
He added that craft brewers in the country are also working against the hit from “larger brewers launching craft-style brands, and even retailers launching craft-style private labels”.
Earlier in July, New South Wales-based group Mighty Craft appointed administrators following several failed attempts at improving its balance sheet.
At the time, Mighty Craft said its proposal to merge with Better Beer – in which it holds a 33% stake – had been “fundamental” to its recent efforts to lower its debts.
In a statement on the ASX however, the group said that it looked “unlikely” a deal could be reached with its lenders and Better Beer “that is acceptable to all parties”.
That same month also saw the Melbourne craft brewer Lotus Beer Collective fall into administration.
Reports from local news agency News.com.au at the time suggested Lotus Beer Co. owned the Valhalla Brewing craft brewery and taproom, based south of the city in Geelong.
