Alcoholic Drinks in New Zealand
Euromonitor International's Alcoholic Drinks in New Zealand market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 162 | Publication date: Jan 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Steadily improving alcoholic drinks sales
Growth in the alcoholic drinks market moved ahead in both volume and value terms in 2007 at roughly the same levels as in the previous year. Buoyed by the country’s strong economic performance and higher consumer disposable income, trading up to premium alcoholic drinks across the market continued and this trend, in effect, created a conducive environment for many premium global brands to gain a strong foothold in the market.
RTDs with greater appeal
Volume sales of alcoholic drinks were boosted by the popularity of spirit-based RTDs, which consistently showed up as the fastest-growing product area over the review period, with 2007 being no exception on the back of substantial new product launches. With one of the largest vintages ever and a steady flow of products from Australia, the wine performance was better in 2007. Similarly, spirits also made a little headway with a fractionally improved volume sales growth rate. However, beer, the largest sector in terms of volume sales, continued its downward trend, significantly impacted by the declining demand for standard and economy products. While RTDs remained the popular alcoholic beverage among young adults, wine essentially had a strong bond with a more mature following. Consequently, both factors adversely impacted beer volume sales, with consumers turning to the spirits bases in the brands of their favourite RTDs as they grow older also playing an important role in the popularity of spirits.
Market remains highly consolidated
The alcoholic drinks market is consolidated to a relatively high degree, with the two leading players Lion Nathan Ltd and DB Breweries Ltd controlling almost two thirds of volume sales between them in 2006. They are the leading players in the largest alcoholic drinks category, beer, while Lion Nathan also had significant interests in RTDs and spirits. DB Breweries is actively expanding into spirit-based RTDs as the company’s traditional business line of beer is faced with limited growth opportunities and intense competition. Other significant players were Independent Liquor (NZ), Foster’s New Zealand and Pernod Ricard New Zealand. Meanwhile, the much-awaited Independent Liquor (NZ) sale saw the company finally ending up in the hands of private equity partners.
Supermarkets field their own specialists chains
Despite gradually losing sales to supermarkets/hypermarkets, specialists still dominated the retail distribution of alcoholic drinks. Although the current regulations on alcoholic drinks retailing do not allow RTDs and spirits sales in supermarkets/hypermarkets, beer, wine and cider sales demonstrated remarkable progress in this channel. Independent liquor specialists are faced with uncertain times, with mounting pressure from chained specialists, which have increased their discount offer intensity, frequency and product range. This was a tactical attack by chained specialists in response to the entrance of two big supermarket groups in liquor retailing with the opening of their own chained specialists, Duffy & Finn’s and Henry’s.
Steady outlook
Driven mainly by growth in RTDs, wine, and cider, volume sales of alcoholic drinks are predicted to increase over the forecast period. While spirits will see marginal volume sales growth, beer, the largest selling alcoholic product, is unlikely to grow significantly. The shift of supermarkets/hypermarkets into liquor retailing with the starting up of their own chained specialists will improve consumer access to premium alcoholic drinks brands significantly due firstly to competitive prices and secondly to the widening product range.
Table of contents
ALCOHOLIC DRINKS IN NEW ZEALAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Steadily improving alcoholic drinks sales
RTDs with greater appeal
Market remains highly consolidated
Supermarkets field their own specialists chains
Steady outlook
KEY TRENDS AND DEVELOPMENTS
The globalisation of the alcoholic drinks market in New Zealand
Alcoholic drinks follows the cues from non-alcoholic drinks
Continued premiumisation as retail prices of premium brands drop
Whole new approach to create a better drinking culture
Specialist Retailers
Summary 1 Leading Specialist Retailers 2006
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2006-2007
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Summary 3 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 1 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 2 Selling Margin of a Typical Domestically Produced Beer Brand 2007
Table 3 Selling Margin of a Typical Domestically Produced Wine Brand 2007
Table 4 Selling Margin of a Typical Imported Wine Brand 2007
Table 5 Selling Margin of a Typical Domestically Produced Spirits Brand 2007
Table 6 Selling Margin of a Typical Imported Spirits Brand 2007
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 9 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 18 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Sources
Summary 4 Research Sources
LOCAL COMPANY PROFILES - NEW ZEALAND
DB BREWERIES LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 DB Breweries Ltd: Key Facts
Summary 6 DB Breweries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUTION
Summary 7 DB Breweries Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 8 DB Breweries Ltd: Competitive Position 2006
DELEGAT'S GROUP LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Delegat’s Group Ltd: Key Facts
Summary 10 Delegat’s Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 11 Delegat’s Group Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
INDEPENDENT LIQUOR (NZ) LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Independent Liquor (NZ) Ltd: Key Facts
Summary 13 Independent Liquor (NZ) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Independent Liquor (NZ) Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 15 Independent Liquor (NZ) Ltd: Competitive Position 2006
LION NATHAN LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Lion Nathan Ltd: Key Facts
Summary 17 Lion Nathan Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 18 Lion Nathan Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 19 Lion Nathan Ltd: Competitive Position 2006
VILLA MARIA ESTATE LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Villa Maria Estate Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 21 Villa Maria Estate Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 22 Villa Maria Estate Ltd: Competitive Position 2006
BEER IN NEW ZEALAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 23 Lager by Price Band 2007
Published Data Comparisons
SECTOR DATA
Table 23 Sales of Beer by Subsector: Total Volume 2002-2007
Table 24 Sales of Beer by Subsector: Total Value 2002-2007
Table 25 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 26 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 27 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 30 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 31 Beer: Production, Imports and Exports: Total Volume 2001-2006
Table 32 Beer Exports by Country of Destination: Total Volume 2001-2006
Table 33 Beer Exports by Country of Destination: Total Value 2001-2006
Table 34 Beer Imports by Country of Origin: Total Volume 2001-2006
Table 35 Beer Imports by Country of Origin: Total Value 2001-2006
Table 36 Company Shares of Beer by National Brand Owner 2002-2006
Table 37 Company Shares of Beer by Global Brand Owner 2002-2006
Table 38 Brand Shares of Beer 2003-2006
Table 39 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 40 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 41 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 42 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY IN NEW ZEALAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 43 Sales of Cider/Perry: Total Volume 2002-2007
Table 44 Sales of Cider/Perry: Total Value 2002-2007
Table 45 Sales of Cider/Perry: % Total Volume Growth 2002-2007
Table 46 Sales of Cider/Perry: % Total Value Growth 2002-2007
Table 47 On-trade vs Off-trade Sales of Cider/Perry: Volume 2002-2007
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Value 2002-2007
Table 49 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2002-2007
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2002-2007
Table 51 Company Shares of Cider/Perry by National Brand Owner 2002-2006
Table 52 Company Shares of Cider/Perry by Global Brand Owner 2002-2006
Table 53 Brand Shares of Cider/Perry 2003-2006
Table 54 Forecast Sales of Cider/Perry: Total Volume 2007-2012
Table 55 Forecast Sales of Cider/Perry: Total Value 2007-2012
Table 56 Forecast Sales of Cider/Perry: % Total Volume Growth 2007-2012
Table 57 Forecast Sales of Cider/Perry: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES IN NEW ZEALAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 58 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 59 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 60 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 61 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 62 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 66 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2001-2006
Table 67 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 68 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 69 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 70 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 71 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 72 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 73 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
WINE IN NEW ZEALAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 74 Sales of Wine by Subsector: Total Volume 2002-2007
Table 75 Sales of Wine by Subsector: Total Value 2002-2007
Table 76 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 77 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 78 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 79 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 80 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 81 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 82 Volume Sales of Still Red Wine by Price Segment 2004-2007
Table 83 Volume Sales of Still White Wine by Price Segment 2004-2007
Table 84 Volume Sales of Still Rosé Wine by Price Segment 2004-2007
Table 85 Volume Sales of Other Sparkling Wine by Price Segment 2004-2007
Table 86 Sales of Still Red Wine by Grape/Varietal Type 2004-2007
Table 87 Sales of Still White Wine by Grape/Varietal Type 2004-2007
Table 88 Sales of Still Rosé Wine by Grape/Varietal Type 2004-2007
Table 89 Sales of Still Red Wine by Quality Classification 2002-2007
Table 90 Sales of Still White Wine by Quality Classification 2002-2007
Table 91 Sales of Still Rosé Wine by Quality Classification 2002-2007
Table 92 Wine Production, Imports and Exports: Total Volume 2001-2006
Table 93 Wine Exports by Country of Destination: Total Volume 2001-2006
Table 94 Wine Exports by Country of Destination: Total Value 2001-2006
Table 95 Wine Imports by Country of Origin: Total Volume 2001-2006
Table 96 Wine Imports by Country of Origin: Total Value 2001-2006
Table 97 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2006
Table 98 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2006
Table 99 Brand Shares of Still Light Grape Wine 2003-2006
Table 100 Company Shares of Champagne by National Brand Owner 2003-2006
Table 101 Company Shares of Champagne by Global Brand Owner 2003-2006
Table 102 Brand Shares of Champagne 2003-2006
Table 103 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2006
Table 104 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2006
Table 105 Brand Shares of Other Sparkling Wine 2003-2006
Table 106 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2006
Table 107 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2006
Table 108 Brand Shares of Fortified Wine and Vermouth 2003-2006
Table 109 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 110 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 111 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 112 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN NEW ZEALAND
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Summary 24 Benchmark brands – New Zealand
Published Data Comparisons
SECTOR DATA
Table 113 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 114 Sales of Spirits by Subsector: Total Value 2002-2007
Table 115 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 116 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 117 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 118 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 119 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 120 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 121 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2007
Table 122 Sales of Gin by Premium/Super-premium Split 2004-2007
Table 123 Sales of Vodka by Premium/Super-premium Split 2004-2007
Table 124 Sales of Flavoured vs Non-flavoured Vodka 2004-2007
Table 125 Spirits Production, Imports and Exports: Total Volume 2001-2006
Table 126 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2006
Table 127 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2006
Table 128 Vodka Production, Imports and Exports: Total Volume 2001-2006
Table 129 Gin Production, Imports and Exports: Total Volume 2001-2006
Table 130 Rum Production, Imports and Exports: Total Volume 2001-2006
Table 131 Liqueurs Production: Total Volume 2001-2006
Table 132 Company Shares of Spirits by National Brand Owner 2002-2006
Table 133 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 134 Brand Shares of Spirits 2003-2006
Table 135 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 136 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 137 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 138 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012