annual report, the Australian Beverages Council - SMH.com.au · recap from the 2015 Annual Report, ... threat of traffic-light labelling is kept off the ... far from morphing into

Annual Report

2016

Inside this Issue

CEO’s Report

Current Members

President’s Report

Public Affairs Committee Report

Financial Statements

Technical & Regulatory Committee Report

FJA Executive Committee Report

ABWI Executive Committee Report

Treasurer’s Report

Board & Committee Lists

President’s Report Sandra LoaderOn behalf of the Board of Directors it gives mepleasure to provide this report.

My first duty in writing this report is to thankour outgoing President, Jonathan Moss fromFrucor, who ended his term in November of2015. Under Jonathan’s stewardship, the Boardhas overseen another busy and productiveperiod for the organisation and this momentumI am keen to take forward.

In reflecting on the year in review, along with arecap from the 2015 Annual Report, it is againinteresting to see a similar set of issuesmatched with a similar thrust of activitybetween that period and this. What this tells usas an industry is that the role of the peak bodyis paramount to ensure we have a unifiedvoice to the broad range of stakeholders theBeverages Council engages with in managingits issues’ agenda.

Some of our successes over the course of theyear are important to note. Firstly, as anorganisation we have again successfullymanaged to ward off any legitimate threat of adiscriminatory tax on our products, despite thevery best efforts from pro-tax proponents. Wewitnessed a height of pressure (for a tax) ontwo separate occasions.

The first was earlier in the year, when the UKGovernment unexpectedly announced it wasplanning to introduce a tax in 2018. Thiscaught the industry over there by surprise, andwas a hot topic with the media in this market.On behalf of the industry your organisationwas quoted in almost 200 news articles andinterviews on the day the story broke, which isa tremendous effort. We were also verypleased to have our food policy minister at thetime come out quickly and strongly against theidea of a tax.

The second bout of increased pressure was inthe lead up to, and during, the FederalElection. The Beverages Council devotedsignificant resources to keeping a tax off thepolicy table of either the Government orOpposition, through direct engagement withkey politicians. Whilst the Greens have stated

their support for a tax, which is very much arisk going forward, as an industry we should bevery pleased with the outcomes to date in thisspace. Naturally, the Board has a keen focuson what else we need to be doing on this issueover the next term of Government.

Another success over the course of the year inreview was the annual Board meeting held atParliament House in Canberra in November.This meeting, which was the second year in arow we have undertaken this activity, is a greatopportunity for the Board and organisation tohave a presence in Canberra, and to engage inan open and frank way with key politicians.We were again very appreciative that anumber of politicians were able to attend theevent, including Independent Senator for SouthAustralia Nick Xenophon, Opposition Healthspokesperson the Hon Catherine King, andMinister for Rural Health and Senator for NewSouth Wales the Hon Fiona Nash. The Boardwill attest that our engagement with thesepoliticians was lively, honest and open andbeneficial for all parties concerned. Onreflection some of the support the industryreceived during the subsequent calls for a softdrink tax as mentioned above we like to thinkwas due in part to the positive outcomes fromthis meeting in Canberra.

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President’s ReportRegarding front-of-pack labelling, as the Boardwe are pleased to see many brand labelstransferring across to the new integratedapproach for labelling, being the energy‘shield’, as part of the voluntary Health StarRating Scheme which was launched back in2014. As an industry, the adoption of thisgraphic which has both cross-sectoral andwide stakeholder support, and replacing theprevious Daily Intake Guide, is an importantstrategic move to ensure that the ever-presentthreat of traffic-light labelling is kept off theagenda.

From an event perspective, our success wasundoubtedly the inaugural Asia PacificRegional Beverages Summit we co-hosted withthe International Council of BeveragesAssociations. Attracting close to 150 local andoverseas delegates, the event showcased thehigh calibre of advocacy and representationwe undertake in our market, along withconnecting and sharing information amongstthe global beverage community. This occasionprovided an opportunity for the launch of theICBA Asia Pacific Regional Beverages Group,which comes under the auspice of theAustralian Beverages Council’s Sydney office,led by Geoff Parker. In practice, this means wehave additional resources and our localexpertise and insights are being used as anenabler into the region, to bring together thevery diverse and dynamic industry amongstmany of our close geographical neighbours. Astrade, threats and opportunities now transcendborders, this initiative strengthens theorganisation creating a very unique position atthe regional interface for our industry toleverage and share programs that protect ourindustry. Around the world, this concept is thefirst of its kind.

These are just some of the successes we haveenjoyed this year. Behind the scenes andbelow the surface, there are a myriad of muchsmaller positive results which all contribute toensuring our products are understood and areable to be freely consumed and enjoyed by allAustralians, every day.

Looking to some of the current and futurechallenges, undoubtedly the biggest topicremains container deposit schemes (CDS).With many governments now consideringwhat on face value to the general public (andvoters) is a very attractive idea, the industrymust carefully negotiate the political will withthe practicalities and realities of running avolume based business on very small margins.There is no doubt that the internaladministration of such schemes is an impost onall manufacturers, for many small and microcompanies it is a very real threat to theongoing viability of their operations. As such, akey role for the Beverages Council is to ensurethat firstly, our position against theseburdensome and antiquated schemes isknown, and that should a government decidethat a CDS is an option, then any impact onmanufacturers, be they large or small, isminimised. The Board has this firmly on itsagenda going forward to influence the AFGCwho has historically led the CDS agenda.

As we negotiate broader and deeper issues, arecognised challenge will be the Board’s wantand need to do more, but with limitedresources. As is evidenced from the Treasurer’sReport, the organisation runs a lean set ofaccounts but has a large mandate whichrequires significant resources. The Board isconstantly focussed on the most efficient andeffective diversion of resources as and whenrequired.

More broadly, the industry will continue toface a number of significant challenges be thatacross sales bans, marketing restrictions,sugar/sweetener demonization, canteenguidelines, grey imports, labelling or sportssponsorship, to name just a few. This is whywe, as an industry, must remain united throughsupport of the Beverages Council so we canmaintain our strong advocacy, throughengaged members and relying on qualityinformation to ensure a robust industry for all.To our Members we appreciate your supportand look forward to another busy year ahead.

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President’s ReportI am sure you would all agree the BeveragesCouncil has continued to deliver a large andinfluential agenda under our CEO GeoffParker's leadership over the past 7 years. Hisdedication, tenacity and outstanding capabilityhas created a brand we can all be proud of.

Not only has our CEO and his team navigateda volatile issues environment, they haveshaped the industry’s future while maintaininga professional organisation with qualityservices which all Members have benefitedfrom. On behalf of my fellow Board Directors,our sincere thanks to the CEO and his team fortheir commitment and contribution in makingour industry the credible voice that we are allproud of.

In closing I would like to thank my fellowBoard Members for their contribution of timeand expertise, whilst often having very busyand demanding corporate and commercialroles. Thank you in particular to MatthewShelley who is retiring from the Board this yearafter many years of service to the BeveragesCouncil in carrying on a family tradition sincehis father and long-serving director, ArthurShelley, retired some years ago from the Board.Your contribution and voice have helpedshape the Beverages Council we see today,and will be sadly missed.

To maintain our relevance and influence weneed the support of our whole beveragecommunity. We must continue to be a strongvoice that gets results that our members value.

Sandra LoaderIndependent Chair

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Chief Executive’s Report Geoff ParkerAfter another busy and challenging year, I amhonoured to once again provide the CEO’sreport.

The last 12 months has seen the organisationrealise a number of significant achievements.Politically, we have strengthened our profilewith various politicians both in Canberra andin State Parliaments. Throughout the course ofthe year we have engaged with a broad rangeof elected officials on an equally broad rangeof issues. As mentioned in the President’sreport, our primary engagement opportunity inCanberra is our annual board meeting held atParliament House and last year was aparticularly successful event. Naturally seniorbureaucrats are equally as important to engagewith and our outreach has extended to manyDepartmental Offices.

From an industry event perspective, we held avery successful Regional Beverages Summit inMarch in Sydney. Our regular biennialconference this year was co-hosted with theInternational Council of BeveragesAssociations to strengthen our international tiesand to focus the global industry’s attention onour market and more broadly, the region. Thisevent also provided an opportunity to launchthe ICBA Asia Pacific Regional BeveragesGroup. I understand the President will coverthis in her report, but it is important to reiteratethat this group, led and directed out of theBeverages Council’s Sydney office, providesour industry in Australia with access to aunique set of resources and information tobetter manage our issues here in this market.This concept was initiated by the BeveragesCouncil and is the first of its kind anywhere inthe world. We understand that other regionalmarkets are already looking to replicate theGroup elsewhere.

As raised in a number of other reports, theindustry’s defence against the idea of a tax onsoft drinks has been consuming vast amountsof resources. Whilst we were successful inkeeping the issue out of the majority of the lastfederal election campaign, with the make-up ofthe Senate and the Greens stating their supportfor a 20% tax on soft drinks, the issue is never

far from morphing into a draft Bill for debate.Our learnings from other markets through ourinternational network tells us that these typesof threats must be constantly challenged beforethey get before a parliament for debate. Wehave also learned that the broader the industrydefensive lines, the better. As mentioned in thePublic Affairs Committee report, this was themain idea behind the Beverages Councilinitiating the sugar roundtable of associations.

Another significant issue impacting the industryis in the form of another tax, albeit a levy,under the expansion of container depositschemes (CDS) across the country. At the timeof going to print the Beverages Council isparticipating in consultative meetings with theNSW EPA following the Government’sannouncements in NSW that it wouldintroduce a CDS in 2017. Soon after thatannouncement, the Queensland Governmentannounced plans to introduce a CDS similar toNSW and Western Australia has also signalledsimilar intentions. Whereas five years ago theindustry was coping with a CDS in SouthAustralia, in a few years’ time it could be facedwith a slightly different scheme in most statesand a territory (or two). This will mean a hugeimpost on all manufacturers - large, mediumand small, and unfortunately will result inminimal impact on litter and marginaladvances in recycling.

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Chief Executive’s Report Whilst the industry’s issues are constantlychanging, over the last 12 months our Officeitself, has witnessed some significant change.Earlier in the year, long serving team membersGale Lomas and Verena Griffiths left to pursueother opportunities and their service to theBeverages Council is evident. At the time ofgoing to print Colin Felder is also readyinghimself to take up a new challenge back withinindustry and we wish him all the best andthank him for his contributions over the lastthree plus years.

With departures come new arrivals. In recentmonths the organisation has welcomed somenew members to its team. Replacing Gale is anexperienced administrator, Neil Godfrey, whohas hit the deck running and will oversee allaspects of the day to day running of the office.Neil has already begun enhancing theefficiency of many of our back-end internalsystems. We also welcomed a part-time policyand research intern - Charlotte Hobbs, who isassisting us to round out many of our industryposition papers.

In addition to welcoming Neil and Charlotte, itwas very exciting to appoint the organisation’sfirst General Manager – Alby Taylor, whobrings to the role a wealth of experience. Albywill assist me to enhance the service deliveryfor Members, along with taking on some of thedomestic-focussed operations. Alby hasalready begun to firm up the administrativefunctions in conjunction with Neil, which willallow the organisation to better service ourdiverse cohort of Members.

At the time of going to print we are alsorecruiting for a Public Affairs Manager, whichis also a newly created role. This new structurereflects the new space the organisation findsitself in, at the forefront of high level lobbyingand advocacy to a broad range of stakeholdersin a complex and constantly evolving issuesmanagement space. I look forward to reportingon the new Team’s success in 12 months’ time.I would like to offer a formal thanks to the pastand current members of the Team who havebeen a part of the last 12 months. We run alean operation with a small team and I am

proud to know we box above our weight inassociation land. Thank you to the staff fortheir professionalism and dedication to ourcause.

Finally, thank you to the Board and Chair fortheir support. All Board Directors freely give oftheir time and counsel on a range of mattersand I appreciate the contributions that assistme in doing my job. None more so than theChair, Sandra Loader, who I regularly call onto discuss and debate a range of matters. I lookforward to another productive and no doubtchallenging year ahead working with theBoard.

Geoff ParkerChief Executive Officer

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Public Affairs Vered MosesThe Public Affairs Committee (PAC) has hadanother busy year. On behalf of the committee,I would like to thank outgoing chair MichelleCarfrae for leaving the Committee’s brief ingood shape.

The PAC operates under the direction of anAction Plan which is comprised of key‘buckets’ that cover the breadth of issues facingthe industry. These buckets are:

-Labelling-Sugar-sweetened beverages (SSBs)-Packaging and environment -Caffeine in the food supply -Energy drinks and alcohol -Fruit juice-Bottled water-Kids and SSBs

Each of these buckets is assigned an ownerfrom the Committee. Throughout the course ofthe meetings over the year, each ownerprovides regular updates on activities anddevelopment within the bucket.

The last 12 months has seen a large amount ofsignificant issues come onto the PAC’s agenda.What is evident is that many issues areperennial in nature and remain long termmatters for the industry to manage.

Undoubtedly the constant scrutiny andcriticism of sugar-sweetened beveragesremains the industry’s most pressing andserious ongoing risk. The broad range ofdetractors makes managing this issuechallenging and labour intensive. The industry,through the Beverages Council, continues todefend people’s right to choose whatever it isthey want to consume whilst promoting theconcepts of moderation and the importance ofa balanced diet.

The threat of a tax on sugar and sugar-sweetened beverages remains active. In thelead up to the recent Federal election theBeverages Council was successful in keepingthe topic of a tax off the table from both of themajor political parties. Going forward weknow that the make-up of the Senate means

the issue is never far from rising to the surface.Managing this likely eventuality is a toppriority for the Committee.

To assist the industry to defend against thethreat of a tax, the Beverages Council wasinstrumental in establishing a sugar roundtablethat comprised a number of associations andorganisations that would be negativelyimpacted should such a tax become a reality.These included the Beverages Council, theAustralian Food and Grocery Council, theAustralian Industry Group, the AustralianAssociation of National Advertisers, theAustralian Sugar Research Alliance and theCanegrowers Association. The establishment ofsuch a group will ensure that a much broadercoalition is able to proactively defend againstany proposed tax over this next term ofgovernment.

During the last year, we have noticed anincreased focus on what foods and beveragesare made available to purchase in schools andhospitals. Whilst as an industry we havealways supported a common sense approachto appropriate school canteen guidelines, weare witnessing a number of reviews of variousstate canteen guidelines that are movingcertain products into categories making them

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Public Affairsno suitable for sale. To add a further layer ofcomplexity to the issue there appears to bemore variation in assessment criteria for onestate’s guidelines compared to the next.

Coupled with this is a situation that somehospital districts in some States are nowlooking to adopt their own guidelines for whatis and isn’t allowed for sale in vending andcafeteria offerings within their buildings. This isa clear case of overreach on behalf of theadministration of these districts and is anotheremerging risk the industry must address.

As a Committee we recognise that the very bestissues’ management plan must be supportedwith credible and robust evidence. That is whywe support research to assist the industry toeffectively manage and navigate its issues. Thelarge secondary analysis of the AustralianHealth Survey that the organisation invested inlast year continues to provide dividends.Currently, the industry is conducting researchinto what consumers currently use (or don’t)from beverage labels when making theirpurchase decision. The results of this work willinform our positions on a range of labelling-related matters going forward.

The above are just some of the many issues thePAC has provided leadership on, on behalf ofthe industry, over the last 12 months. There area myriad of issues, threat and risks facing ourproducts and through forums like the PACunder the auspice of the Beverages Council,the industry has a credible voice to inform andbalance out the debate.

In closing I’d like to thank the other membersof the PAC who have given up their time tocontribute to the committee’s work. I lookforward to working with all of the PAC in theyear ahead.

Vered Moses Chair, Public Affairs CommitteeGlobal R&D Principal Nutrition ScientistPepsiCo Australia and New Zealand

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Technical & Regulatory Jim MoshovelisIn what has been another busy year for theTechnical & Regulatory Committee (TRC),pleasingly, we have seen an increase inattendance and more active participation ratefrom Members including Tru Blu, Lion, KraftHeinz, Nudie, Frucor, Red Bull, Schweppes,Coca-Cola South Pacific, PepsiCo, The ProductMakers and Simon Brooke-Taylor Consulting,and perhaps what was even more pleasingwith the attendance of proxies whennominated appointees were unable to attend,demonstrating the importance Members areplacing on the work of this Committee.

The TRC Charter continues to clearlyenunciate the responsibilities and commitmentof Members to this role, as well as highlightingthe TRC’s objectives which include:• Engaging in proactive strategies to addressregulatory, scientific and technical issuesimpacting the non-alcoholic Beveragesindustry;• Providing technical guidance, training andadvice to the Beverages Council and itscommittees;• Providing support to Public AffairsCommittee of a technical, scientific andregulatory nature, and where required liaisingwith the Public Affairs Committee tocoordinate working groups where crossoverhas been identified;• Informing Members of these activities andmaking recommendations to the BeveragesCouncil Board and it’s Executive Committees;• Providing support and assistance to theBeverages Council’s Secretariat, when requiredand;• Monitoring international standards andother industry associations on all matters of atechnical & regulatory nature.

The TRC held four meetings during the pastyear with many highlights as outlined below.

Food Standards Aust. / New Zealand (FSANZ)The TRC has continued to develop a closerrelationship with FSANZ, becoming a primarycontact point for information in the area ofnon-alcoholic beverages. Significantly, in Aprilthis year, we met with FSANZ in April to

discuss a number of beverage related issues.

P1030 – Health Claims for FormulatedSupplementary Sports Foods & Electrolyte

FSANZ has proposed a revision of the FoodStandards Code to permit formulatedsupplementary sports foods (FSSFs), electrolytedrinks and electrolyte drink bases (EDs) tocarry health claims consistent with theirrespective intended purpose and inaccordance with Standard 1.2.7-Nutrition,Health and Related Claims. This proposaladdresses an anomaly for EDs which, unlikeother products in this category, are formulatedto prescribed requirements for sugars andsodium levels to achieve the specific purposeof rapid replacement of fluid, electrolytes andcarbohydrates. As such, given the presentpositioning of ED’s under Std 2.6.2 disqualifiesthem from meeting Nutrient Profile ScoringCriteria (NPSC). As our Members are onlyinterested in continuing to make claimscurrently being made in relation to hydration,energy and performance, the TRC made asubmission supporting this proposal in 2015.

Following a period of public consultation, anumber of issues were raised by variousstakeholders which raised a number of

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Technical & Regulatoryconcerns directly at the Ministerial level hassomewhat stifled any further progress of thisproposal.

The TRC submitted a discussion paper toFSANZ to address the issues raised, proposinga number of areas of commitment andsuggestions to address areas of concern raisedafter consultation of the review.

The TRC continues to engage with FSANZ onP1030, however the desired timeframe willmean that label claims need to be carefullymonitored until resolution.

P1027 -Maximum Residue Limits (MRL)FSANZ has prepared a proposal to manage thepresence of low-level residues of agriculturaland veterinary chemicals without specificmaximum residue limits (MRLs). FSANZ’sview is that an individual risk assessment isneeded for each chemical, with a zerotolerance approach for high risk chemicals.

TRC also raised and instigated an IFIS workinggroup to attempt to resolve an unfairdisadvantage concerning fruit and vegetablejuice concentrates. Our concerns revolvedaround the circumstance where the reportedconcentration of residual chemicals was notrelated to the product offered for sale to theend consumer as is the case for all other foodslisted in the Code. Although recognised as alegitimate down fall of the frequency of therejection of imported product, it was deemednot worth the resourcing to pursue suchrectification in not only the Code but also IFISprocedure.

P1034 Chemical Migration for Packaging into Foods

FSANZ is undertaking a review to assesswhether there are any unmanaged publichealth and safety risks relating to chemicalmigration from packaging into food. If anyissues are identified, FSANZ will determinehow they can be managed through eitherregulatory and/or non-regulatory means. TheTRC has been directly involved in assistingFSANZ in this review through the provision of

data and in undertaking a review of currentpractices of imported packaging materials andthe future innovation of such packaging. Inaddition, our Technical & Regulatory AffairsManager, Colin Felder, represented theBeverages Council on P1034 at FSANZ’sPackaging Advisory Group which consists of awide range of both industry users andsuppliers.

Retailers & Manufacturers Liaison (RML)Colin also continued to represent theBeverages Council on FSANZ’s Retailers andManufacturers Liaison Committee. Twomeetings of which were held during the year.This is an important representation whichcontinues to highlight the Beverages Councilas the primary contact point for beveragerelated matters forming an importantcommunication connection between theregulator and committee members. Country ofOrigin Labelling (which now no longer comesunder FSANZ FSC) continues to be a dominantarea of discussion, with representatives of theDepartment of Industry, Innovation andScience actively pursuing major areas ofdeficiency raised by industry across manyareas.

Industry Advisory Group (Packaging)The Technical & Regulatory Affairs Managercontinues to represent our industry on thePackaging Industry Advisory Group. This is animportant representation as it allows us to beable to contribute industry stakeholder inputinto the development of future regulations thatwill effect members operations, especially aspackaging comes under more and morescrutiny.

FSANZ SubmissionsDuring the past year, the TRC made the following submissions to FSANZ:• Proposal P1024 – Nutritive Substances and Novel Foods;• Proposal P1034 – Chemical Migration from Packaging into Food; and• Application A1104 –Voluntary Addition of Vitamins and Minerals to Nut- & Seed-based Beverages.

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Technical & RegulatoryAustralasian Bottled Water Institute (ABWI)The TRC continues to provide advice andsupport to ABWI on technical & regulatorymatters including the ABWI Audit Code andTechnical Manual, Auditor frameworks andQuality Assurance Certificate qualifications, avariety of training resources, procedures andgovernance topics. A further review of theAudit Code has been requested to ensure thisdocument continues to serve our Memberschanging needs and opportunities.

Compilation of a Water Use Ratio study hasbeen a useful tool in promoting the ABWIimage in both the local consumer andinternational scene as world best practice.

Fruit Juice AustraliaDuring the year, the TRC provided advice andsupport to FJA on technical and regulatorymatters.

The TRC is overseeing the preparation of theapplication for the addition of Stevia to fruitdrinks. Significant review of the FSANZApplication Handbook has meant a renewedDietary Exposure Evaluation Studies(completed mid-June) was needed to progressthis application. It is now expected that thesubmission will be ready in late September, orearly October 2016 and will be submittedpossibly as a paid application.

Pursuance of local manufacturers deemed tobe adulterating juice by appropriateenforcement authorities has been progressedduring the year. This resulted in a successfulCourt prosecution of Sunzest in June 2016,who were found guilty of three of the fivecharges brought against them by the HumeCity Council who were acting on behalf ofVictorian Health. Handing down its decision,the Court issued fines and recorded aconviction against the company and issued apersonal fine on the owner.

Training and DevelopmentThe overview of training for Members is animportant role for the TRC.

Member and Consumer Fact Sheets continueto be developed to provide our Members withan opportunity to be informed of the latestinformation on topics including the Health StarRating Scheme, Country of Origin Labelling,Health and Nutrition Claims, LabellingGuidance of New Ingredients, RecallProcedures, Water Microbiology as well as anincreased insight into in the Chinese ExportBottled Water Market where significant changein Chinese regulations in January 2016, haspresented some challenges.

The Beverages Council training activity underthe ausdrinks banner has been restructuredinto 7 X 1 days sessions, covering topicsincluding:• New beverage formula development;• Labelling requirements/health claims andsurveillance;• Exporting of products;• Safe juice production;• Bottled water production;• Beverage business start-ups; and• How far is too far (Regulatory Limits).

International MattersThe TRC continues to monitor internationaltechnical and regulatory activities that mayimpact Members, and when required providecomment. The TRC monitors internationalactivities of Code Alimentarius, InternationalCouncil of Beverage Associations (ICBA),International Council of Bottled WaterAssociations (ICBWA) and International FruitJuice Union (IFU) and New Zealand Juice &Beverage Association (NZJBA) as well as otherregulatory bodies.

With regards to Codex, the T&RA Manager, onbehalf of the TRC, participated in a number ofelectronic working groups and briefings. Inaddition, the TRC provided comments toCodex Australia on the following Codexmatters:1. Codex Committee CCFA Revision for theUse of Benzoates in Food Category 14.1.4(Water-Based Flavoured Drinks, including“Sport,” “Energy,” or “Electrolyte” Drinks andParticulated Drinks)

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Technical & Regulatory2. Codex Committee CCFA The use of

Xanthan Gum in Juices, Nectars and theirConcentrates under Food Category Nos.14.1.2 -3 .

Looking forward, the TRC has many challengesincluding packaging, health claims and anumber of proposals being raised by FSANZ,such as nutritive substances and novel foodsthat will impact our industry.

I’d like to thank Colin Felder, who has held theposition of Technical and Regulatory AffairsManager at Beverages Council over the lastyear, for his assistance and dedication inensuring the appropriate governance functionsof the TRC are adequately overseen.

In closing, I would like to thank all Members ofthe TRC for their contribution, professionalismand commitment to the large amount of workcovered throughout the course of the past year.Without their input and dedication, many ofthe achievements outlined in this report wouldnot have been possible.

After a nine year career with Coca-Cola South Pacific I have chosen to leave the company as of June 30, 2016 to pursue other ventures and as such I am leaving the Chair position for the TRC open for re-election later in 2016 .

Jim MoshovelisChair, Technical & Regulatory CommitteeScientific&RegulatoryAffairsConsultant

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Fruit Juice Australia Charmaine EnglandAs Chair of the Executive Committee I ampleased to provide this report on behalf of FruitJuice Australia. I would like to take thisopportunity to thank the previous Chair, JamesAjaka, formerly of Nudie, for providing reallygreat work in managing the Committee’sagenda.

As a category, juice is not without its issues. Inan already very competitive non-alcoholicdrinks market, juice has received somenegative press off the back of the broaderdemonization of sugar that not just drinks areexperiencing, but is occurring right across thefood supply. This, coupled with local versusimport issues, Country of Origin Labelling,maximum residue limits and the like, has madefor a challenging time, in and around juice.

As an industry group we recognised the needto be not just defending the category, butproactively promoting the category and theinherent goodness in a glass of juice (with noadded sugar). Part of this activity was eluded toin the last Annual Report, and I wanted to keepMembers abreast of our efforts since that time.

In late 2016 the FJA Executive held a strategicplanning day to agree on where the group’sefforts and focus should lie over the next shortto medium term. Resulting from that meeting, itwas agreed that a range of activities wereneeded across three key groups:

1. Consumers2. Key Opinion Leaders3. Growers.

ConsumersFollowing on from the successful first phaseadvocacy and consumer campaign that wasrun in August of 2016, and as mentioned in thelast Annual Report, the FJA built on this with adedicated second phase of activity thatfeatured campaign ambassador – RobynLawley, being featured in articles and stories inpublications not covered in phase one, alongwith a concerted program to amplify thesignificant coverage from that first phase viaon-line channels.

Pleasingly, this phase two resulted in a reach toover three million Australians, along with justover eleven million impressions through onlinemedia. This resulted in a significant amount ofpositive coverage promoting the positives ofdrinking a small glass of juice with no addedsugar.

Key Opinion LeadersBuilding on the very successful KOL advocacyprogram attached to phase one, whichinvolved targeted briefings to discuss thefindings from the secondary analysis of theAustralian Health Survey looking at the role ofjuice in the Australian diet, the FJA haverecognised the need to engage further in thisspace.

To that end, we have established severalpieces of work to help inform the evidencebase of the positive role of juice in the diet.The first is a literature review looking at juiceand health, which will involve reviewing thelatest research and assessing the findings fromthese, with a view to categorically defining thepositive association.

The second project is a nutrition equivalencemodelling piece of work. This aims to ‘map’the nutrients of a piece of fruit to that of a glass

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Fruit Juice Australiaof juice, and at what volume this ‘one for one’nutrient matching occurs. This work is veryvaluable from an engagement perspective withKOLs, and helps reaffirm juice’s relevancy inthe dietary guidelines as an occasionalalternative to a piece of fruit.

GrowersAs a key stakeholder, the FJA recognised thatthe grower community in Australia required aunique engagement program to ensure that thiscore component of the supply chain wasproactive in its support of the juice industry. Asa Committee, we have worked hard over thelast several years to keep the growers abreast ofour issues and our actions to promote thecategory, which in turn assists farmers. Forexample, the Committee boasts representationfrom the peak growers’ association within itsranks, namely Citrus Australia. This affiliationhas already proved very beneficial and goingforward the FJA will look to enhance ourengagement with growers.

As we look to the year ahead, it will beimportant that the industry is able to unitebehind a common purpose, and agree on whatpriorities it wants FJA to focus over the coming12 months. At the time of this report going toprint, I am pleased to advise that the industry isalready in its final stages of developing anexciting new campaign that we hope willcontribute to the long term reinvigoration andrevitalisation of the category.

In closing I’d like to thank my fellowCommittee Members for the time and effortthey contribute to the work of the FJA. Theindustry is better for it.

Charmaine EnglandChair, Fruit Juice AustraliaManaging Director, The Daily Drinks Co.

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Austn Bottled Water Institute Tim CareyThe Australasian Bottled Water Institute (ABWI)Executive Committee has had anotherproductive year and on behalf of the group, Iam pleased to provide this report.

Over the last 12 months, media issues relatingto bottled water as a category have beensignificantly lower than in previous years.Naturally, there are always perennial storiesabout the price per litre being higher thanpetrol, and comparison stories that attempt tocompare the cost of bottled water to whatcomes out of the tap, but relatively speaking noserious issues have surfaced. Obviously thesame can’t be said for other categories and thisis perhaps in part why the last year has beenrelatively quiet.

Nonetheless, the Committee has kept itsagenda full considering a broad range oftopics, some of which are outlined below.

The group found the results of the EconomicModelling Project commissioned by theBeverages Council to be extremely beneficial.Being able to quantify the economic value addin real dollar terms along with the number ofjobs supported by the bottled water industry isextremely powerful data that I know hasalready been put to good use. From thatproject, the industry now knows thatnationally, the bottled water industry is worthover $500 million in direct economic output,and employs directly over 3,000 Australians.Of course the indirect economic value andthose jobs along the supply chain mean that infact the total economic worth is far, far greater.The ability to be able to split those figures bystate also adds another layer of usability to thereport’s findings. Going forward, the industrywill be actively using this information at everyopportunity.

Whilst on the topic of reports, the findings fromthe secondary analysis of the Australian HealthSurvey commissioned by the BeveragesCouncil was also a very insightful look at whatAustralians are eating and more importantly,drinking. The results showed that watercontinues to the beverage of choice forAustralians, with over 92% of children and

adolescents consuming water on the day of thesurvey. Bottled water plays an important part inthe water intake for all Australians, withapproximately 10% of total water consumptioncoming from the category. The demographicwith the highest consumption prevalence wasfemales 19-30 years of age, at over 13% of thatportion of the population consuming bottledwater on the day of the survey. Males in thatsame age bracket were the next highestconsumers as a percentage of the totalpopulation of that age at 10% consumption.What this tells us is that bottled water plays animportant in contributing to the hydration ofmany Australians, each and every day.

Throughout the year the Committee hascontinued to promote our affiliations with ourinternational associations. First and foremost,our relationship with the global peak industrybody – the International Council of BottledWater Associations (ICBWA) has never beenstronger. This was enhanced in March whenABWI co-hosted the ICBWA Board as part ofthe ausdrinks Regional Beverages Summit. Aspart of that event, the two organisations held ajoint meeting which provided a unique insightinto the myriad of issues facing the industry inthis market and around the world, some ofwhich are common but also many of which

15

Austn Bottled Water Instituteare unique to particular markets.

One such issue which the Committee spentsignificant amounts of time over the yearreviewing, given it spans the globe as a threatto the industry, is the continued safety doubtsof bisphenol-A, known more commonly asBPA. This chemical compound is found inmany every day products but in relation to thebottled water industry, it is found in the hardpolycarbonate watercooler bottles used withinthe home and in office delivery (HOD)channels.

Despite many leading health agenciesdeclaring current levels of exposure to BPA forhumans to be safe, such the European FoodSafety Authority, the Food & Drug Authority inthe US and our own standard setting agencyFSANZ, the use of BPA continues to comeunder scrutiny. In France, legislation came intoforce in January 2016 banning the use of BPAin products for domestic use, but interestinglynot those destined for export. Brazil isconsidering a total ban on BPA and in the US itis the manufacturer’s of large volume waterbottles who are moving away from using BPAand looking for alternatives to polycarbonategiven the negative perceptions of BPA.

The topic of BPA is a classic case of when anissue leaves the evidence base (declaringexposure levels safe), and moves into the courtof public opinion where the science and factsseem to be left behind and forgotten aboutaltogether. Locally, we are watching with keeninterest the overseas developments on the issueof BPA use, and are using our stronginternational affiliations to do so.

Closer to home, an issue that we paid attentionto over the course of the year was coal seamgas (CSG) and what risk this industry presentsto the bottled water industry which obviouslyrelies on high quality, sustainable aquifers,many which are in close vicinity to CSG fields.

To assist the Committee to have an informedposition and understanding on the topic, weinvited both the CSIRO and a consultinghydrologist to present at two separate meetings

over the course of the year. As a Committee wefound this process to be very beneficial.

The rate of expansion of CSG is where theconcern for the industry lies, and the threat thatmismanaged bores or improper practices couldhave an impact on an underground watersupply. Certainly this threat is not unique to thebottled water industry and we have beenwatching with a keen interest as todevelopments and activity on this topic. Wehave also taken learnings from our overseascounterparts where similar issues for shale gashave now escalated into significantenvironmental issues involving additionalregulation and oversight from the authoritieson any industry that uses undergroundaquifers.

The year ahead looks just as busy andhopefully just as productive as the year prior.The Committee will revisit its strategic plan toensure it remains relevant and current as aguiding document for the activities and effortsfor the Committee on behalf of the industry.

In closing, I would like to thank the Membersof the Committee who give freely of their timebut who all play a valuable and important rolein helping guide ABWI to effectively andefficiently manage the range of issues andinformation for the ultimate benefit of theAustralian bottled water industry. I lookforward to the Committee’s support in the yearahead.

Tim CareyChair, Australian Bottled Water InstituteGeneral Manager, Black Mount Spring Water

16

Financial Reports Ian TurnerOn behalf of the Board of Directors, I ampleased to offer the following report asHonorary Treasurer of the organisation.

As evident from the financial statements, theorganisation made a substantial loss for thefinancial year. Whilst significant in itsquantum, it is made up of several uniqueevents.

Firstly, the organisation wrote off a largeamount of bad debts that were deemedunrecoverable by the Board in its July meetingand many of which were of a significant age.The office has reviewed its debt collectionframework and going forward accountsreceivable will be more actively managed.

Secondly, the accounts for this year arecarrying a large expense for the juicecampaign we ran in August of last year, therevenue for which was received in theprevious period of 2014-15. As a board wehave discussed our plan to ensure this isn’t afeature of future accounts and will bring intoeffect these systems in this current period.

Finally, the revenue is down on projectionsdue to the arrival of a significant APAC fundingamount not meeting with the closing of theaccounts for the year. These funds, along withthe other APAC amounts, were to be used tooffset some of the expenses which were alsoincurred within the period, such as theincrease in the travel expense.

All of these extraordinary occurrences havecontributed to the paper loss represented in theaccounts. Had all of these not occurred, theorganisation would in all likelihood bereporting a surplus for the year. However, theBoard has decided that rather than try andredress these through amendments to theaccounts and a reissuing of the auditedstatements given the 2015-16 accounts werealready approved, it would draw a line in theaccounts for this year, and look towards 2016-17 with appropriate plans in place.

That being said, the organisation now has a

much leaner, more transparent financial systemthat can provide management with thefinancial insights and reliable data they need todo their jobs, along with enhanced reportingformats for the Board. As a Board we areconfident that the anomalies outlined aboveare behind the organisation and the reportedresult in 2016-17 will be more positive as aresult. I commend these accounts to themeeting of Members.

Ian TurnerHonorary TreasurerManaging Director – Saxby’s

17

Financial Reports For Year Ended 30 June 2016

Auditor’s Independent Declaration

Profit & Loss Account

Directors’ Report

Directors’ Declaration

Statement of Change in Members Funds

Auditor’s Report

Balance Sheet

Profit & Loss Statement

Statement of Cash Flows

Notes to the Financial Reports

AUSTRALIAN BEVERAGES COUNCIL LTD

A.B.N. - 12 115 440 166

SPECIAL FINANCIAL REPORT

FOR THE YEAR ENDED 30TH JUNE 2016

CONTENTS

- Directors' Report

- Auditor's Independence Declaration

- Directors Declaration

- Auditors Report

- Balance Sheet

- Profit and Loss Statement

- Statement of Cash Flows

- Statement of Changes in Equity

- Notes to the Financial Report

- Profit and Loss Account

Page 20

AUSTRALIAN BEVERAGES COUNCIL LTD A.B.N. - 12 115 440 166

DIRECTORS' REPORT

The Directors of Australian Beverages Council Ltd present herewith the Financial Report of the company for the year ended 30th June 2016 and report as follows:-

Board of Directors

The names and information of each person who has been a Director during the year and to the date of this report are:

Name

Jonathan Moss

Brad Van Dijk Ian Turner Geoffrey Parker Darek Kosla George Kotses Malcolm Lack Sandra Loader James Ajaka Jason Sargent Matthew Shelley Tim Carey Alexis Daems

Rohan Mann

Christine Black

Ex12erience S12ecial Res12onsibilities at Australian Beverages Council Ltd

25 years President

16 years Vice President 44 years Treasurer 22 years Chief Executive Officer 26 years Executive Committee 22 years Executive Committee 17 years Executive Committee 27 years Immediate Past President 20 years Executive Committee 18 years Executive Committee 34 years Executive Committee 12 years Executive Committee 18 years Executive Committee

10 years Executive Committee

18 years Executive Committee

Resigned 26 November 2015

Resigned 29 July 2015

Appointed 26 November 2016 Appointed 3 February 2016 Appointed 28 September 2015

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company Secretary

The following person held the position of Company Secretary at the end of the financial year:

Geoffrey Parker - has been in his current roles of Chief Executive Officer and Company Secretary since June 2009.

Page 21

Meetings of Directors

During the financial year, 4 meetings of Directors were held. Attendances by each Director were as follows:

Director

Jonathan Moss Brad Van Dijk Ian Turner Geoffrey Parker DarekKosla George Kotses Malcolm Lack Sandra Loader James Ajaka Jason Sargent Matthew Shelley Tim Carey Alexis Daems Rohan Mann Christine Black

Principal Activities

Meetings Required to Attend No. of Director Meetings Attended

3 3 4 2 4 3 4 4 4 3 4 3 4 4 4 3 1 0 4 2 4 3 4 3 2 2 1 1 2 2

The principal activity of the company during the financial year was to promote the interests of the Australian refreshment beverages industry. No significant changes in the nature of the company's activity occurred during the financial year.

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations of the company. As at 30th June 2016, the total amount that members of the company are liable to contribute if the company is wound up is $4,500.

Objectives

To promote continuation of a sole Beverages Council representing the non-alcoholic ready to drink industry by maintaining membership of greater than 90% of all relevant sectors per sales volume.

To proactively lead on identified issues of priority to achieve measurable results in all critical industry initiatives.

To provide the relevant services to members to grow by ensuring member satisfaction against key performance indicators and to educate and upskill members across key operational areas.

To ensure relevant stakeholders are engaged and informed in order to positively influence their expectations.

Page 22

Strategies

To achieve its stated objectives, the company has adopted the following strategies:

To be the one aligned, peak industry voice by developing an action plan to maintain existing members, to pursue new members, to investigate closer ties with NZJBA and to analyse synergies with like categories including tea and coffee.

Show proactive leadership by identifying opportunities to manage issues and agree on resources, activate action plan and review and report periodically.

Provide member benefits and satisfaction by undertaking surveys to identify future member needs and existing levels of satisfaction, and to identify gaps, actions and resources required.

Engage with stakeholders by identifying stakeholder needs and wants, identify gaps, identify critical success factors and measures, developing an engagement plan and developing an action plan.

Operating Results

The deficit of the company for the year ended 30th June 2016 was $305,220 (2015 deficit $46,197).

Review of Operations

A review of the operations of the company during the financial year indicated that net cash used in operating activities was $75,173 (2015 $145,297). During the year, net cash decreased by $92,112 (2015 decreased by $150,268). Membership fees received for the year were $647,588 (2015 $666,800).

Dividends

The company has no provisions in its Articles for the payment of dividends.

Significant Changes in State of Affairs

No significant changes in the company's state of affairs occurred during the year.

Mter Balance Date Events

At the date of this report, there are no other matters or circumstances which have arisen since 30th June 2016 that have significantly affected or may significantly affect:

(i) the operations of the company;(ii) the results of those operations; or(iii) the state of affairs of the company

in the financial year subsequent to 30th June 2016.

Future Developments

The company expects to maintain the present status and level of operations.

Page 23

Environmental Issues

The company's operations are subject to various regulations under Commonwealth and State legislation. The Directors are not aware of any significant breaches of legislation during the financial year.

Indemnifying Officers or Auditor

The company has provided for and paid premiums during the year for Directors and Officers liability insurance. The insurance is in respect of legal liability for damages and legal costs arising from claims made by reason of any ommissions or acts (other than dishonesty) by them, whilst acting in their individual or collective capacity as Directors or Officers of the company.

The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of Directors' and Officers' liability and legal expenses contract as such disclosure is prohibited under the terms of the contract.

Proceedings on Behalf of the Company

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year.

Auditor's Independence Declaration

The Auditor's independence declaration for the year ended 30th June 2016 as required under Section 307C of the Corporations Act 2001 has been received and is set out on the following page.

Signed on behalf of the Board in accordance with a resolution of the Board of Directors.

Director - Geoffrey Parker

Dated this 14th day of September 2016 at Sydney

Page 24


A.B.N. - 12 115 440 166

AUDITOR'S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF AUSTRALIAN BEVERAGES COUNCIL LTD

To the Board of Directors:-

I declare that, to the best of my knowledge and belief, during the year ended 30th June 2016 there have been no contraventions of:

i. the auditor independence requirements as set out in the Corporations Act 2001 in relation tothe audit; and

ii. any applicable code of professional conduct in relation to the audit.

Joseph Shamia Joseph Shamia & Co. Chartered Accountants

Suite 1, 307-317 Condamine Street Manly Vale NSW 2093

Dated this 14th day of September 2016

Page 25

AUSTRALIAN BEVERAGES COUNCD.. LTD A.B.N.-1211544016'

DIRECTORS' DECLARATION 30TH JUNE 2016

The directors have determined that the company is not a reporting entity and that this special putp0se financial report should be prepared in accordance with the accounting policies described in Note l to the financial report.

In accordance with a resolution of the directors of Australian Beverages Council Ltd, the directors declare that:

(t) The financial report and notes to the financial report are in accordance withthe Corporations Act 2001 and:

(a) comply with the Australian Accounting Standards applicable to thecompany;and

(b) give a true and f.air view of the finan.oial position of the company as at 30thJune 2016 and of its performance for the year ended on that date in accordancewith the accounting policies described in Note 1 of the financial report.

(2) In the directors' opinion there are reasonable grounds to believe that thecompany will be able to pay its debts as and when they become due andpayable.

This declaration is made in accordance with a resolution of the Board of Directors at Sydney this 14th day of September 2016 .

....... �::. .............................. Diroctor (Ian Tumor)

., •Utttlf•••• ... , ........ ,,, •••• ,,.,ntt•••tun,•••••h•tt••Director (Oeoflrey Parker)

Page 26

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AUSTRALIAN BEVERAGES COUNCIL LTD

Report on the Financial Report

I have audited the accompanying financial report of Australian Beverages Council Ltd, being a special purpose financial report, which comprises the balance sheet as at 30th June 2016, the income and expenditure statement and cash flow statement for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

Directors' Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors' responsibility also includes such internal control as the directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on my audit. I have conducted my audit in accordance with Australian Auditing Standards. Those Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

In conducting my audit, I have complied with the independence requirements of the Corporations Act 2001. I confirm that the independence declaration required by the Corporations Act 2001, given to the directors of Australian Beverages Council Ltd on 14th day of September 2016, would be in the same terms if given to the directors as at the date of this auditor's report.

Page 27

Auditor's Opinion

In my opinion the financial report of Australian Beverages Council Ltd is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company's financial position as at 30th June 2016 andof its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards to the extent described in Note 1 andthe Corporations Regulations 2001.

Basis of Accounting

Without modifying my opinion, I draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors' financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose.

Joseph Shamia Joseph Shamia & Co. Chartered Accountants

Suite 1, 307-317 Condamine Street Manly Vale NSW 2093

Dated this 14th day of September 2016

Page 28


A.B.N. - 12 115 440 166

BALANCE SHEET

AS AT 30TH JUNE 2016

NOTE 2015

CURRENT ASSETS Cash 2 180,604 272,716 Receivables 3 174,316 329,301

TOTAL CURRENT ASSETS 354,920 602,017

NON-CURRENT ASSETS Property, Plant and Equipment 4 18,225 4,981

TOTAL ASSETS 373,145 606,998

CURRENT LIABILITIES Creditors and Borrowings 5 81,142 131,585 Provisions 6 58,499 37,927 Other 7 101,238

TOTAL CURRENT LIABILITIES 240,879 169,512

TOTAL LIABILITIES 240,879 169,512

NET ASSETS 132,266 437,486

MEMBERS FUNDS Issues Management Surplus 8 95,935 95,935 Accumulated Deficit (207,436) 97,784 Transfer from Australasian Bottled Water Institute Inc. 243,767 243,767

TOTAL MEMBERS' FUNDS 132,266 437,486

The accompanying notes form part of this financial report

Page 29

AUSTRALIAN BEVERAGES COUNCIL LTD A.B.N. -12115 440 166

PROFIT ANDLOSS STATEMENT FOR THE YEAR ENDED 30TH JUNE 2016

2015

OPERATING SURPLUS (DEFICIT) FOR THE YEAR (305,220)

OPERATING SURPLUS (DEFICIT) FOR THE YEAR (305,220) Accumulated Surplus as at 1st July 2015 97,784

(207,436)

ACCUMULATED SURPLUS (DEFICIT) AS AT 30TH JUNE 2016 (207,436)

(46,197)

(46,197)

143,980

97,783

97,783


Page 30


A.B.N. -12115 440 166

STATEMENT OF CASH FLOWS


Note

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Operations

2016

951,678 Payments to Suppliers & Employees (1,029,766) Interest Received 2,915

Net cash provided by operating activites (a) (75,173)

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for Property, Plant & Equipment (16,940)

Net cash used in investing activities (16,940)

CASH FLOWS FROM FINANCING ACTIVITIES

Long Term Debt Funding (Repayments)

Net cash provided by (used in) financing activities

Net increase (decrease) in cash held (92,112) Cash at beginning of financial year 272,716

Cash at end of financial year 2 180,604


Page 31

Note (a)


A.B.N. -12115 440 166

STATEMENT OF CASH FLOWS


CASH FLOW INFORMATION

Reconciliation of Cash Flow from Operations with

Operating Surplus for the year

Operating Deficit

Non-cash flows in operating profit

Depreciation

Long Service & Annual Leave Provision

Changes in Assets & Liabilities

(Increase) Decrease in GST Refundable

(Increase) Decrease in Receivables

Increase (Decrease) in Creditors

Increase (Decrease) in Other Liabilities

Cash Flows from Operations


(305,220)

3,694

20,573

(5,478)

160,463

(50,443)

101,238

(75,173)

Page 32


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2016

Accumulated Surplus (Deficit)

$

Balance at lstJuly 2014 143,980

Loss Attributable to Members (46,197)

Balance at 30th June 2015 97,783

Loss Attributable to Members (305,220)

Balance at 30th June 2016 (207,436)


Total

$

143,980

(46,197)

97,783

(305,220)

(207,436)

Page 33

AUSTRALIAN BEVERAGES COUNCIL LTD A.B.N. -12115 440 166

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30TH JUNE 2016

NOTE 1 -Summary of Significant Accounting Policies

The financial report is for Australian Beverages Council Ltd as an individual company, incorporated and domiciled in Australia. Australian Beverages Council Ltd is a company limited by guarantee.

Basis of Preparation

The directors have prepared the financial report on the basis that the company is a non-reporting entity because there are no users who are dependent on its general purpose financial report. This financial report is therefore a special purpose financial report that has been prepared in order to meet the requirements of the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

The financial report has been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Corporations Act 2001 and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise.

The financial report, except for the cash flow information, has been prepared on an accruals basis and is based on historical costs unless otherwise stated in the notes. Material accounting policies adopted in the preparation of the financial report are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial report have been rounded to the nearest dollar.

Accounting Policies

The accounting policies that have been adopted in the preparation of this report are as follows.

(a) Members' Guarantee

The company is incorporated under the Corporations Act 2001 as a company limited by guarantee. If the company is wound up, each member of the company undertakes to contribute to the assets of the company in the event of it being wound up while they are a member and for payments of the debts and liabilities of the company contracted before they ceased to be a member. Such amount each member may be required to pay shall not exceed $50. As of 30th June 2016 there were 90 members and accordingly the amount of capital which is capable of being called up in the event of, and for the purposes of, the winding up of the company is $4,500 at that date.


Page 34



(b) Depreciation

The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset's useful life to the company commencing from the time the asset is held ready for use. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Asset classes carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

(c) Employee Provisions

Provision is made for the company's obligation for short term employee benefits. Short term employee benefits are benefits ( other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The company's obligations for short term employee benefits such as wages, salaries and sick leave are recognised as a part of accounts payable and other payables in the statement of financial position.

Contributions are made by the company to an employee superannuation fund and are charged as expenses incurred.

(d) Income Tax

No provision for income tax has been raised as the company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(e) Cash on Hand

Cash on hand includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less.


Page 35



(t} Accounts Receivable and Other Debtors

Accounts receivable and other debtors include amounts due from members. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

(g) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the A TO is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the A TO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(h) Accounts Payable and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability.


Page 36


A.B.N. - 12 115 440 166

NOTES TO THE FINANCIAL REPORT


2015

NOTE 2-Cash Westpac Banking Corporation -Business Cheque Account 149,204 9,049

Westpac Banking Corporation -Cash Management Account 27,275 254,362

Deposit -Rental Bond 4,125 4,125 Security Deposit 5,180

180,604 272,716

NOTE 3 -Receivables Other Debtors -

GST Refundable 20,967 15,489 Other Debtors -CEO Expenses 5,513 Other Debtors -Memberships & Ausdrinks 130,729 96,143

Other Debtors -Technical School 2,820 3,256

Other Debtors -Campaign Projects 19,800 208,900

174,316 329,301

NOTE 4 -Pro12ertv, Plant & Egui12ment Office Equipment -at Cost 26,529 31,493 Less Prov'n for Depreciation 8,304 26,512

18,225 4,981

NOTE 5 -Creditors & Borrowings Sundry Creditors 17,043 131,585 Other Creditors -

Superannuation Payable 38,409 Other Creditors -PA YG Withholding 25,690

81,142 131,585

NOTE 6 -Provisions Provision for Annual Leave 58,499 37,927

The accom12anying notes form part of this financial report

Page 37


A.B.N. -12 115 440 166

NOTES TO THE FINANCIAL REPORT


NOTE 7 - Other Membership in Advance

NOTE 8 - Issues Management Surplus Issues Management Surplus

101,238

95,935

2015

95,935


Page 38

AUSTRALIAN BEVERAGES COUNCIL LTD A.B.N. -12115440 166

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH JUNE 2016

2015

INCOME AusDrinks Interest Received Membership Fees Miscellaneous Campaign Projects Manufacturing Beverages Research Paper APAC Funding Techinal School

TOTAL INCOME

EXPENDITURE Accounting & Audit AusDrinks Australasian Bottled Water Institute Inc.

Bad Debts Bank Charges Board & Committees Consultants Depreciaton Donations Fruit Juice Association Insurance Interest Internet & Website Legal Fees Long Service & Annual Leave Provision

Office Expenses Press Cuts & Media Monitoring Printing, Postage, Stationery & Telephones

Rent Salaries Special Project Funding Staff Recruitment, Training & Seminars

Subscriptions Technical School Travelling & Accommodation

TOTAL EXPENDITURE

OPERA TING SURPLUS (DEFICIT) FOR THE YEAR

200,882 2,915

647,588 247

(26,568)

40,000 151,424

4,764

1,021,252

13,162 131,545

7,147 61,570 2,586

37,910 50,147 3,694 1,000

225,274 4,254 3,013 5,079

308

20,573 32,752 6,000

26,277 45,000

508,672

16,990 9,745 7,806

105,968

1,326,472

(305,220)

8,873 8,782

666,800 92

156,404 800

3,090

844,841

11,740 7,994

21,163

1,235 26,498

134,980 1,024

41,072 5,422

3,632 2,488

4,238 26,760

16,593 24,938

464,615 15,000

650 19,013 1,264

60,719

891,038

(46,197)


Page 39


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH JUNE 2016

2015

Accumulated Surplus as at 1st July 2015 97,784

ACCUMULATED SURPLUS (DEFICIT) (207,436)

ACCUMULATED SURPLUS (DEFICIT) AS AT 30TH JUNE 2016 (207,436)

143,980

97,783

97,783


Page 40

Board & Committee Listings

41

Board of Directors

PresidentSandra Loader, Independent ChairJonathon Moss, Frucor Beverages

(Resigned 15 November 2015)Vice PresidentsChristine Black, Coca-Cola South Pacific

(Joined 28 September 2015)Brad Van Dijk, PepsiCo Australia & New ZealandHonorary TreasurerIan Turner, Saxby’s Soft DrinksBoard MembersJames Ajaka, Nudie

(Resigned 29 July 2015)Tim Carey, Black Mount Natural Spring WaterAlex Daems, Frucor Beverages

(Joined 26 November 2015)Darek Kosla, TruBlu BeveragesGeorge Kotses, Bickfords AustraliaMalcolm Lack, Alchemy Cordial CompanyRohan Mann*, Sugar Australia

(Joined 3 February 2016)Anthony NoakesGeoff Parker, Australian Beverages Council

(Company Secretary)Jason Sargent, Red Bull AustraliaMatthew Shelley, Bertshell

ABWI Executive Committee

ChairTim Carey, Black Mount Natural Spring WaterCommittee MembersAlexandra Arvanitis, Coca-Cola AmatilBarry Hamilton, Nu Pure BeveragesDarrell Hobby, Coca-Cola AmatilMark Holmes, Nu Pure BeveragesDaniel O'Donoghue, Asahi BeveragesGeoff Parker, Australian Beverages CouncilSteven Pitts, Pristine Springs AustraliaWarwick Pleass, Pleass GlobalDave Raj, 100% Bottling CompanyMathew Shelley, BertshellBruce Taylor, Nu Pure BeveragesBrian Vel, Coca-Cola South PacificMaree Winther, Coca-Cola South Pacific

Fruit Juice Australia Executive Committee

ChairCharmaine England, The Daily Drinks Co.Committee Members Jacqueline Baroni, The Product MakersBen Cummings, Coca-Cola South PacificJudith Damiani, Citrus AustraliaDarren Forde, The Kraft Heinz CompanyPeter Gates, Directus AustraliaJeff Knispel, Nippy's Fruit JuicesChris O'Sullivan, Monde Nissin AustraliaGeoff Parker, Australian Beverages CouncilGlen Rogers, Schweppes AustraliaAndrew Ross, Grove Fruit Juice

*A number of observers also attended meetings

Technical & Regulatory Committee

ChairJim Moshovelis, Scientific&RegulatoryConsultantCommittee MembersBen Walkley, Frucor BeveragesBobbie Crothers, Coca-Cola South PacificConrad Reyners, Red Bull AustraliaGlen Rogers, Schweppes AustraliaJacqueline Baroni, The Product MakersRigas Ebony, The Kraft Heinz CompanyRobert Cumming, PepsiCo Australia & New Zealand Simon Brooke-Taylor, Brooke-Taylor & CoColin Felder, Australian Beverages Council

Public Affairs Committee

ChairVered Moses, PepsiCo Australia and New ZealandCommittee Members Russell Maloney, Coca-Cola South PacificRobyn Newman, Schweppes AustraliaGeoff Parker, Australian Beverages CouncilSarah Prestwood, Coca-Cola South PacificConrad Reyners, Red Bull Australia Alby Taylor, Australian Beverages CouncilBen Walkley, Frucor BeveragesJanine Waller, LionJenny Yee, Frucor Beverages

Members as at 30 June 2016

42

Ordinary (Full) Members100% Bottling Company Pty LtdAlchemy Cordial CompanyAlpine Beverages Pty LtdAqua Botanical Beverages Australia Pty LtdAquasplash LtdAsahi Beverages - Schweppes DivisionAustralia Blue MountainsGroup Pty LtdAustralian Food Importers Pty LtdBeloka Water Pty LtdBertshell Pty LtdBevco Pty LtdBickfords Australia Pty LtdBig Springs RiverinaBig Wet Natural Spring WaterBlack Mount Natural Spring Water Pty LtdBundaberg Brewed Drinks Pty LtdCoastal Springs Pty LtdCoca-Cola Amatil (Aust) Pty LtdCoca-Cola South PacificCooks Soft DrinksDirectus AustraliaDr Katrin MunzEastcoast BeveragesFB* PropakFrezco Beverages LtdFrucor Beverages (Australia) Pty LtdGarage Beverages Manufacturing Pty LtdGillion Pty Ltd Grove Fruit Juice Pty LtdHeinz Australia Pty LtdIQ BeveragesJust Water New ZealandK` K Water Pty LtdKerry GroupLencia Fruit Juices Pty LtdLevel Beverages Asia Pacific Pty LtdMeadWestvacoMildura Fruit JuicesMonde Nissin (Nudie Juice)Monster Energy Australia Pty LtdMountain Fresh Fruit JuicesNew Zealand Quality WatersNippy's Fruit Juices Pty LtdNoosa Beverages Pty LtdNorco Foods Nu-Pure Pty Ltd

Pebble Creek PepsiCo Australia & New ZealandPleass Beverages Pristine Springs Australia Pty LtdRed Bull GMbHSaxbys Soft Drinks Pty LtdSensient Flavours & ColoursSo Fresh GippslandSpringwater Beverages Pty LtdStarburst IAO Pty Ltd StayinFront Group Australia Pty LtdThe Daily Drinks CompanyThe Spring WatermanTropico Fruits Pty LtdTru Blu Beverages Pty LtdWet Fix Natural Spring WaterZymus Australia Pty Ltd

Associate (Supplier) Member3M Purification Pty LtdAquaworks Pty LtdBlue Mountains Natural Spring WaterBSI Group ANZ Pty LtdBundaberg Sugar LtdCHR HansenCormack PackagingCorrect Food SystemsFirmenich LtdFruitmarkGivaudan Australia Pty LtdIDEXX LaboratoriesInvita Australia Pty LtdKHS Pacific Pty LtdLloyd's Register Quality AssuranceMatthews Australasia Pty LtdManildra Harwood SugarPureCircle Australia Co. LtdSopura Australia Pty LtdSplatt Engineering Group Pty LtdSugar Australia Pty LtdThe Product Makers (Australia) Pty Ltd

Member AssociationAustralian Beverages Enterprises Co-op Soc Ltd

Australian Beverages Council2/2 Allen Street, Waterloo NSW 2017

Tel: + 61 2 9698 [email protected]

www.australianbeverages.org

Documents

annual report, the Australian Beverages Council - SMH.com.au · recap from the 2015 Annual Report, ... threat of traffic-light labelling is kept off the ... far from morphing into