Australia's Liquor Industry Struggles Amid Changing Consumer Habits

On a scorching Boxing Day in Melbourne’s inner city, Andrew Crompton is busy inside his store, Act of Wine, meticulously placing bottles of prosecco and Yarra Valley pinot noir on display shelves. The Southbank bottle shop owner is preparing for the lead-up to New Year’s Eve, traditionally one of the biggest weeks for alcohol retailers. But he’s the only employee in the store.

Crompton opened the store in 2018, but has recently operated it solo after witnessing a steady decrease in sales in Australia’s liquor industry over the past 18 months. “I’ve really had to restructure the business and make changes to suit the changing demand and economy … that includes having less staff available to work in the business,” he said. The Australian retail sector has weathered a tough 2024, with higher interest rates forcing consumers to tighten their belts. But despite consumers the liquor industry is still struggling more than the rest, and the end of the festive season is unlikely to lift spirits. Australia is one of the world’s wealthiest countries per capita and traditionally has one of the highest spending on alcohol per capita. Bottle shops around the country thrived during However, spending on liquor has been trending downwards over the past few years. A key factor behind the decline is changing attitudes among young people.Khaléla Romano will be ringing in the new year with friends while watching fireworks, but she won’t be drinking alcohol.The 23-year-old Queensland university student has elected not to drink on Tuesday evening, admitting she would rather spend her money elsewhere. “I live with three other people in their 20s and none of us are particularly big drinkers,” she explained. “We don’t really have alcohol in the house. “A night out or purchasing liquor in general can be pretty expensive … To be honest, I’d rather spend my money on more important things like food, rent or experiences in genera

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