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: 165 | Publication date: Apr 2009
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
RTDs boosts volume growth while trading up feeds value growth
In 2008, volume sales of alcoholic drinks in New Zealand grew at a slightly higher rate than the average volume growth achieved during the review period, boosted by the strong performance of RTDs. In current value terms, the value sales growth of alcoholic drinks was also impressive in 2008. The good value sales performance reflected continued consumer premiumisation, as well as the annual increase in excise taxes and rising retail prices due to higher raw material costs. Despite the looming effects of the economic recession on disposable household income, consumer trading-up still played a major part in boosting value sales. However, many key categories of alcoholic drinks saw declining on-trade sales, which were adversely affected by the economic downturn as more consumers turned to the less expensive option of entertaining at home.
Beer and wine perform well, but spirits suffers from competition with RTDs
Volume sales of beer improved as leading brewers adopted strategies that resulted in a significant expansion of premium beer, and wine benefited from a better than expected new vintage in 2008. However spirits, the most expensive alcoholic drinks category, had a less impressive sales performance as young consumers increasingly preferred spirit-based RTDs. Although most RTDs are spirit-based, 2008 saw major new launches in wine-based RTDs by leading players such as Lion Nathan and Independent Liquor (NZ) in an effort to make wine accessible to young consumers.
Competitive landscape set for changes, new entrants
Despite its highly consolidated competitive environment dominated by a few major players such as Lion Nathan and DB Breweries, a relatively small competitor, Independent Liquor (NZ), became the most dynamic player in alcoholic drinks in 2007 because of its performance in RTDs and beer. One notable feature in 2008 was the entrance of the non-alcoholic drinks giant, Coca-Cola Amatil (NZ), into alcoholic drinks. Through Coca-Cola Amatil (NZ)’s newly formed alcoholic drinks distribution arm, Pacific Beverages, the company began the local distribution of the SABMiller beer brands, Miller Genuine Draft and Miller Chill, from the US.
Grocery retailers take a larger role in alcoholic drinks retail distribution
Two major grocery retailing chains, Foodstuffs New Zealand and Progressive Enterprises, continued to improve their retail distribution share at the expense of the dominant drink specialists, despite the legal restriction preventing sales of spirits and RTDs by grocery retailers. Although the current regulations on alcoholic drinks retailing prohibits the sale of RTDs and spirits in supermarkets/hypermarkets, the volume share of distribution held by this channel grew for beer and wine in 2008. However, grocery retail chains aggressively pursued a larger role in the distribution of alcoholic drinks as illustrated by the rapid expansion of Duffy and Finn’s and Henry’s discount liquor retailing chains, which were owned by Foodstuffs, in 2008. Also in 2008, Foodstuffs acquired the Liquorland discount chain with 70 stores nationwide from DB Breweries.
Economic uncertainty takes a toll on spirits and on-trade sales
Despite the looming economic uncertainty and pressure on household income, alcoholic drinks sales are predicted to be stable during the forecast period. As a country in which alcoholic drinks are a part of the social fabric, consumption for a majority of New Zealanders could be summed up by the slogan “drinking for better”. The continuing diversification of beer, wine and RTDs that gives wider choices to consumers will likely increase the growth of these categories in the forecast period, while the more expensive spirits will be increasingly pressured by popular and relatively inexpensive RTDs. While consumers often reduce their on-trade consumption of food and alcoholic drinks to control spending, more will resort to enjoying alcoholic drinks at home as the economy deteriorates.
Table of contents
ALCOHOLIC DRINKS IN NEW ZEALAND : MARKET INSIGHT
EXECUTIVE SUMMARY
RTDs boosts volume growth while trading up feeds value growth
Beer and wine perform well, but spirits suffers from competition with RTDs
Competitive landscape set for changes, new entrants
Grocery retailers take a larger role in alcoholic drinks retail distribution
Economic uncertainty takes a toll on spirits and on-trade sales
KEY TRENDS AND DEVELOPMENTS
New Zealand capitalises on its clean, green image
Economic conditions threaten to curtail premiumisation
Companies seek ways to encourage growth and responsible drinking
Leading companies look to acquisitions to cut costs and boost growth
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
Summary 2 Speculated Merger and Acquisition Activity 2007-2008
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Beer Brand 2008 - Export Gold 1
Table 4 Selling Margin of a Typical Domestic Wine Brand 2008 - Montana 1
Table 5 Selling Margin of a Typical Imported Wine Brand 2008 - Jacob's Creek 1
Table 6 Selling Margin of a Typical Domestic Spirit Brand 2008 - 42 Below 1
Table 7 Selling Margin of a Typical Imported Spirit Brand 2008 - Jim Beam 1
OPERATING ENVIRONMENT
Contraband/Parallel Trade
Duty Free
Cross-border/Private imports
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - NEW ZEALAND
42 BELOW LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Table 24 Summary1 Below Ltd: Key Facts
Table 25 Summary2 Below Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Table 26 Summary3 Below Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Table 27 Summary4 Below Ltd: Competitive Position 2007
DB BREWERIES LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 DB Breweries Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 DB Breweries Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 DB Breweries Ltd: Competitive Position 2007
DELEGAT'S GROUP LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Delegat’s Group Ltd: Key Facts
Summary 8 Delegat’s Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Delegat’s Group Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
INDEPENDENT LIQUOR (NZ) LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Independent Liquor (NZ) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Independent Liquor (NZ) Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 Independent Liquor (NZ) Ltd: Competitive Position 2007
LION NATHAN LTD - ALCOHOLIC DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Lion Nathan Ltd: Key Facts
Summary 14 Lion Nathan Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Lion Nathan Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Lion Nathan Ltd: Competitive Position 2007
BEER IN NEW ZEALAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 17 Lager by Price Band 2008
SECTOR DATA
Table 28 Sales of Beer by Subsector: Total Volume 2003-2008
Table 29 Sales of Beer by Subsector: Total Value 2003-2008
Table 30 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 31 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 32 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 33 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 34 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 35 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 36 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 37 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 38 Beer Exports by Country of Destination: Total Value 2002-2007
Table 39 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 40 Beer Imports by Country of Origin: Total Value 2002-2007
Table 41 Company Shares of Beer by National Brand Owner 2003-2007
Table 42 Company Shares of Beer by Global Brand Owner 2003-2007
Table 43 Brand Shares of Beer 2004-2007
Table 44 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 45 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 46 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 47 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN NEW ZEALAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 48 Sales of Cider/Perry: Total Volume 2003-2008
Table 49 Sales of Cider/Perry: Total Value 2003-2008
Table 50 Sales of Cider/Perry: % Total Volume Growth 2003-2008
Table 51 Sales of Cider/Perry: % Total Value Growth 2003-2008
Table 52 On-trade vs Off-trade Sales of Cider/Perry: Volume 2003-2008
Table 53 On-trade vs Off-trade Sales of Cider/Perry: Value 2003-2008
Table 54 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2003-2008
Table 55 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2003-2008
Table 56 Company Shares of Cider/Perry by National Brand Owner 2003-2007
Table 57 Company Shares of Cider/Perry by Global Brand Owner 2003-2007
Table 58 Brand Shares of Cider/Perry 2004-2007
Table 59 Forecast Sales of Cider/Perry: Total Volume 2008-2013
Table 60 Forecast Sales of Cider/Perry: Total Value 2008-2013
Table 61 Forecast Sales of Cider/Perry: % Total Volume Growth 2008-2013
Table 62 Forecast Sales of Cider/Perry: % Total Value Growth 2008-2013
RTDS/HIGH-STRENGTH PREMIXES IN NEW ZEALAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 63 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 64 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 65 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 66 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 67 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 68 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 69 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 70 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 71 RTDS/High-strength Premixes Production, Imports and Exports: Total Volume 2002-2007
Table 72 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 73 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 74 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 75 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
Table 76 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 77 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 78 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
WINE IN NEW ZEALAND
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 79 Sales of Wine by Subsector: Total Volume 2003-2008
Table 80 Sales of Wine by Subsector: Total Value 2003-2008
Table 81 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 82 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 83 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 84 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 85 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 86 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 87 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 88 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 89 Volume Sales of Still Rosé Wine by Price Segment 2003-2008
Table 90 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 91 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 92 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 93 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008
Table 94 Sales of Still Red Wine by Quality Classification 2003-2008
Table 95 Sales of Still White Wine by Quality Classification 2003-2008
Table 96 Sales of Still Rosé Wine by Quality Classification 2003-2008
Table 97 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 98 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 99 Wine Exports by Country of Destination: Total Value 2002-2007
Table 100 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 101 Wine Imports by Country of Origin: Total Value 2002-2007
Table 102 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 103 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 104 Brand Shares of Still Light Grape Wine 2004-2007
Table 105 Company Shares of Champagne by National Brand Owner 2004-2007
Table 106 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 107 Brand Shares of Champagne 2004-2007
Table 108 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007
Table 109 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007
Table 110 Brand Shares of Other Sparkling Wine 2004-2007
Table 111 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007
Table 112 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007
Table 113 Brand Shares of Fortified Wine and Vermouth 2004-2007
Table 114 Brand Shares of Non-grape Wine 2004-2007
Table 115 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 116 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 117 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 118 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
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
SECTOR DATA
Table 119 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 120 Sales of Spirits by Subsector: Total Value 2003-2008
Table 121 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 122 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 123 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 124 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 125 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 126 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 127 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 128 Sales of Gin by Premium/Super-premium Split 2003-2008
Table 129 Sales of Vodka by Premium/Super-premium Split 2003-2008
Table 130 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 131 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 132 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 133 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 134 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 135 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 136 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 137 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 138 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 139 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 140 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 141 Liqueurs Production: Total Volume 2002-2007
Table 142 Company Shares of Spirits by National Brand Owner 2003-2007
Table 143 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 144 Brand Shares of Spirits 2004-2007
Table 145 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 146 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 147 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 148 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013