Jos Ruffell: Garage Project co-founder on how the Australian excise tax break impacts Kiwi brewers

0:00Now, Kiwi Brewers, as I was telling you the other day, Kiwi Brewers are frustrated at the raw deal that they're getting in Australia at the moment. What is going on is that Aussie Brewers of beer get a full tax rebate on the exercise, but our Brewers don't, and the dispute has dragged on for more than a decade. Joss Ruffel is one of the co-founders of Garage Project and with us, hey Joss. Hey, how you doing? I'm very well-thank you. How much of a problem is this for you? This has become a huge problem for us. The exercise rebate for Australian breweries is now $400,000 a year, so collectively for just our brewery alone, we've paid $2.5 million of tax in Australia. We otherwise shouldn't have if this had been resolved earlier. They're doing it for the wine guys, right? And they've done it for 25 years for our wine guys, given them the full tax rebate. Why won't they do it for beer? This was introduced for New Zealand Wineries in 2004, the wet rebate. The beer excised remission came in in 2012 at a much lower level, but it has been increased over the subsequent decade to have parity for Australian Wineries, distilleries and breweries, who are all now receiving that $400,000.

1:12So the whole question is, why aren't New Zealand distilleries and breweries also having access when New Zealand Wineries are? That's what I'm asking you, Jos. Why? Well, you know, in fact, it's looked into this. It's a clear breach of sea. And we've had some really encouraging news in the last week where Mr McClay has actually now raised this openly with his Australian counterpart. And he's acknowledged that there is a precedent with wine. So we are seeing progress. We just really want to see that pressure applied and see some constructive discussions now turn into a solution. In terms of export markets, where does Australia rate for you? It's our number one export market by far. We have a team on the ground in Melbourne. We have an office of warehouse. This has essentially been an effective tariff on New Zealand beer. And we would have been in a position to actually invest more into that market if we'd been receiving the excised remission and playing on a level playing field with Australian brewery counterpart. Yeah, I mean, if you guys got if you guys got this money back, you would presumably go up like you'd be able to sell more, wouldn't you?

2:18Absolutely. We can, you know, invest in more employment in Australia. We could do more marketing promotion. That drives more production in New Zealand, more jobs back here. I mean, everyone wins. It's just a no brainer that this needs to happen. You wouldn't see what's going to get done. Well, that's in that's, you know, what we're facing in Australia is we're competing against breweries who have a $400,000 head start and they can choose not to essentially put excise onto the beers when they sell it into the market. And as you know, excises grow significantly in both Australia and New Zealand in the last few years. So that's that's a massive distance advantage for us. We're sort of fighting one on time behind our back. Do you reckon New Zealand beer is better than Aussie beer? I think, you know, one of the fantastic things about the Australian market, as you're seeing with New Zealand wine and and our beer is, you know, they're not afraid to admit when they when they see quality and they love New Zealand wine. They love New Zealand beer.

3:18It's a fantastic thing. I reckon you guys do a bit of product by the way. Are you going to do any more of end of the golden weather? Well, it's a, it's a bit of a takes a long time to brew and we have got a new batch coming through, but you know, it takes years for a batch of, you know, they got. How long does a take? Well, it's a wild beer, so it's a spontaneous fermentation. It's aged on central cargo fruit. It's more akin to it, you know, wine in some ways. It spends a lot of time in barrel. You have a how long? What would you do? Like how many years? We have beer and barrel for several years. We have some beers that take two, three, four years and barrel before they're ready. I mean, look, I'm getting really specific here. You might not know, but do you know when you did the last batch? Oh, the last batch, like a two years ago. And are you doing it with eight brachats? Yes, central cargo fruit. Oh, just so good. You know what you've cheered me up a means, see? I can't tell you how happy I am to hear this more of this stuff coming. Just look after yourself and best of luck.

4:18Just ruffle garage project co-founder.