British gin and tonic producers see success exporting their products to Australia thanks to the UK-Australia trade deal
UK gin and tonic producers are set to receive an export boost in 2023, with tariffs on all products going to Australia due to be removed under the UK-Australia free trade agreement (FTA).
Brighton Gin and the UK’s leading premium mixer brand Fever-Tree consider Australia one of their core international markets. Both are set to become more competitive in the Australian market after the trade deal slashes tariffs on exports of gin and tonic water, currently set at 5%.
The market for premium-and-above gin continues to flourish. In 2021, the UK exported £21.3 million of gin to Australia. According to Statista, the gin market in Australia is expected to grow by a further 6.37% annually over the next three years, demonstrating the potential of this market to UK exporters.
The UK-Australia deal is the first new trade deal the UK has negotiated from scratch since leaving the European Union. It is expected to increase trade with Australia by 53%, boost the UK economy by £2.3 billion and add £900 million to household wages in the long run.
The deal will see the reduction of tariffs on 100% of UK goods exports to zero. It will also ensure food and drink products exit customs quickly, so businesses can have certainty and ship with ease when exporting products to Australia.
Trade Secretary Kemi Badenoch said:
London-based Fever-Tree is the world’s leading premium mixer brand, exporting to over 85 countries and its tonic water is the number one premium mixer in Australia, having grown by over 50% in shops and online over the last year. The brand continues to grow four times faster than the wider tonic category in Australia.
Head of Marketing for ANZ at Fever-Tree, Caroline Wood, said:
Brighton Gin was the first gin company established on the south coast and the first craft gin to be certified 100% vegan. They have expanded into 10 new markets since 2020, however Australia is their largest market.
The deal will benefit the nearly 2,600 businesses in the South East who already exported over £540 million worth of goods to Australia in 2020 and could boost the South East’s economy by around £295 million.
Brighton Gin Managing Director Kathy Caton said:
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