According to the latest Unleashed Manufacturing Report, small and medium sized Australian drinks manufacturers experienced 14.2% and 14.3% year-on-year increases to total sales revenue and to number of purchase orders placed, suggesting increasing customer demand and a recovering economic climate.

Additionally, the 36% excess stock levels of Australia’s drinks industry also greatly exceeded national averages, suggesting a return of confidence in the sector's sales pipeline.

This follows on from its report from the previous quarter which revealed a 28% decline in profitability for Australia’s drinks manufacturing when compared to the year prior.

“To see average sales revenues rise is a welcome relief for struggling Food and Beverage manufacturers,” said Jarrod Adam, Unleashed’s Head of Product.

“The last few years have been tough, and as a result we have seen businesses carefully strengthen their sales pipeline, manage overstock and generally upgrade their business health… The gains in sales revenue for both food and beverage sectors points to the hard work that has occurred to get AU consumer manufacturing back into the black.”

Guy Greenstone, Founder of Stomping Ground Brewery, expects this momentum to continue over the summer festive period.

"At Stomping Ground our keg beer sales are up significantly compared to the same time last year, and our packaged beer sales are also looking extremely positive this quarter,” he said.

“For us, we are seeing more people going out, and feeling a bit more confident in the economy. In general consumer sentiment seems to be lifting, which is benefiting us as a manufacturer."

Based on an analysis of around 1,300 small and medium sized manufacturers, the Q3 Unleashed report found that overall sales revenue across all industries were at their highest since 2018, a 4.5% increase on Q3 2023, the previous most profitable month.

“Sales revenue is the lifeblood of any business, and this is particularly true in times of economic uncertainty,” said Adam.

“To see this metric start to rise will be a welcome relief to many businesses that have been feeling the pinch of inflation, and will give them the ability to take advantage of a better economic climate.”

One of the factors underpinning the success of small and medium businesses is the tendency for consumers to support local businesses and brands.

"As a business we have benefited from the continuing trend of consumers supporting local and supporting independent,” said Greenstone.

“We have really focused on our region of Victoria, and our market has responded by supporting us in turn. It has been a great moment for an SME brewer to build a real community around our product.”

Adam added, “the food and beverage industries have improved their efficiency, and a strengthened future sales pipeline. All of this points towards a sector ready to take advantage of the change in economic conditions.”

"We believe a lot of AU manufacturers will be in a strong position to take advantage of the change in economic fortunes."

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