Global Beverage Trade and Company Overviews
SWOT ANALYSIS The New Zealand beverage industry is well positioned for further growth, but pressures
will continue
STRENGTHS
Islands in the middle of the South Pacific that have the area of Italy, but with only
the population of Singapore; therefore relatively unspoilt
Strong and growing success in premium/super-premium wine
Achieves a strong price premium for wine in key markets (similar to France)
New Zealand Sauvignon Blanc now a "must have" for global wine companies
Growth in market share in key markets (e.g. USA)
Innovative and quality-focused producers (e.g. Chia+Kawa)
Closer shipping distances to Asia compared to European competitors
Demonstrated capabilities in beverage production
On-going growth and success of Frucor/V, and Charlies/Phoenix in non-alcoholic
drinks category
Emergent success in spirits (e.g. Stolen)
OPPORTUNITIES
Continued income growth in Asian markets
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Rapidly growing demand for premium alcoholic beverages in Asia
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Low share in Europe (two thirds of global wine consumption) outside British Isles
Joint in-market activity spreading cost of marketing
Strong and growing demand in Asia for premium fortified wines/wine based spirits
(e.g. cognac)
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Reduction of global "wine ocean" supporting higher prices
Leverage success of New Zealand wine industry; build on awareness of New
Zealand in wider premium beverages segments
Wide range of New Zealand unique plants available as flavouring (e.g. 42 Below
Manuka honey)
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WEAKNESSES
Large number of small producers with limited economies of scale
High debt levels of many small and medium sized producers
Highly dependant on four countries (AU, UK, USA and Canada)
Increasing exports of bulk wine
Lack strong super-premium heritage brands as demanded by brand and status
conscious Asian consumers
No deep cultural unique "spirits" associated with New Zealand
Long shipping distance to traditional western markets
Unlike traditional sectors, no major ($1b+) New Zealand owned champion growing
and driving New Zealand brand position in beer, wine or other beverages
Limited culture of super-premium branding or positioning (e.g. relative to France)
Not a major producer of many base ingredients of typical beverages (e.g. oranges)
ISSUES/THREATS/RISKS
Ongoing consolidation of the industry
Difficult finding good distributors to gain access into key markets
Continued growth of bulk wine trade reducing the value of wine
Continued growth of retail brands/store brands in wine
Limited opportunity shipping "water" around the world if it isn't a premium product
Changing consumer sentiment or government policy
Failure to achieve large scale export traction outside wine
Hollowing out of management skills in New Zealand industry due to foreign
ownership (relative to Denmark or Holland for example)
CORIOLIS
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