Australia’s beverage industry has defied gloomy predictions of a ‘craft beer recession’ this quarter according to a new report from inventory management software provider Unleashed.

Of the 16 manufacturing industries analysed in Unleashed Manufacturing Health Report, the beverage industry was a solid eighth on the list with a score of 70 out of 100.

Unleashed described the beverage industry as resilient in defiance of negative headlines and a number of craft breweries going under.

ABC News reported last week that “Australia’s once-booming craft beer industry is navigating troubled waters and many brewers are struggling to stay afloat.”

However, Unleashed said that levels of excess stock in the beverages sector were also down over the past year, reducing from $69,239 to $59,623.

“The sentiment for Australian food and beverage manufacturers may be gloomy off the back of a cost of living crisis and tightening margins, but the independent SMBs have proven where there is a will there’s a way for innovating on products and attracting new consumers,” said Unleashed Head of Product Jarrod Adam.

The Manufacturing Health Index determines industry fitness on a scale of 0-100 for small to medium sized manufacturers throughout New Zealand, Australia and the United Kingdom. The index is calculated using a combination of sales, expenditure and overall efficiency metrics, analysing 2658 manufacturers across 16 different industry categories.

“Australian manufacturing is facing various headwinds including pressure from overseas manufacturing, market consolidation, and tightening pockets, but it’s showing that it’s remaining resilient, despite it all.”

The haves and the have-nots

At 63 out of 100, Australian manufacturers have successfully rebounded from their pandemic woes, improving their supply chain management, stock levels, and overall profitability.

Despite a positive overall score, Q3 2023 has been a case of the haves and the have nots in Australian manufacturing, where the majority of the 16 sectors studied are either doing poorly, or doing very well.

Nine out of the 16 industries scored 39 or below, and the remaining seven registered a health score of 57 or better. Further, only Beverages (57) registered within the 40-60 range, compared to NZ and the UK, which had six each in the middle range.

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