top of page

Aussies to Toast Tariff-Free British G&Ts in 2023 Under New Trade Deal

British gin and tonic producers see success exporting their products to Australia thanks to the UK-Australia trade deal


  • Gin and tonic producers including Brighton Gin and Fever-Tree celebrate removal of tariffs on exports to Australia as a result of the UK-Australia trade deal

  • Deal set to come into force next year, providing a boost for exporters ahead of the 2023 festive season

  • The food and drink sector contributes £120 billion to the UK economy and exports to Australia from the sector have more than doubled in the last decade


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:

Aussies can look forward to enjoying tariff-free British gin and tonics, made by fantastic exporters like Brighton Gin and Fever-Tree, next Christmas and New Year.
2023 is a landmark year for the UK-Australia relationship as our fantastic new trade deal comes into force, allowing UK businesses up and down the country to take advantage of the opportunities it presents.

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:

As the UK’s leading soft drink exporter and no 1 premium mixer brand across the globe, it’s been fantastic to see our sector-leading position evolve and expand as far afield as Australia and New Zealand.
We look forward to the opportunities presented by the new trade deal to introduce even more Australians to great-tasting G&Ts.

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:

Australia has been on our export target list from our earliest days of selling overseas. Since falling in love with the country when travelling there in the 90s, it now boasts one of the world’s greatest food and drink scenes.
We’re just at the beginning of our Aussie export journey, but we’re really looking forward to working with the DIT team to help us build our network and find the right wholesalers and distributors to work with. While in the UK it might be the dark days of Dry January and the month of staying in, it’s the height of summer in Australia and perfect weather for a BG&T or three on the beach.
With a Brighton in every Australian state, my goal is to get Brighton Gin served and drunk in every one!

Background

  • UK-Australia trade was worth £14.4 billion in 2021.

  • In 2020, 15,300 UK VAT registered businesses, which employ 3.4 million people, exported goods to Australia.

  • Combined, Fever-Tree and Brighton Gin support around 200 jobs in the UK

  • Statista is the market leader in the provision of reliable business data, specialising in market and consumer data spanning 170 industries and over 150 countries

  • Craft gains ground in Australian drinks market – IWSR Drinks Market Analysis

Comments


bottom of page