Global Beverage Trade and Company Overviews
INVESTMENT OPPORTUNITIES Beverages are a major opportunity for investors; wine has shown rapid
growth; opportunities exist in second tier wine regions, cider, premium spirits and other beverages
WINE
New Zealand Sauvignon Blanc wine is now a "must-
have" component of the portfolio for major global
wine companies. Three of the top five US wine
companies and three of the largest European alcoholic
beverage companies are active in New Zealand. In
addition, three of the top five Australian wine
companies are in New Zealand.
There are some opportunities for further investment
in Marlborough. However, geographical constraints
place limitations on further growth in Marlborough.
Large wine firms are either foreign owned by global
majors or committed NZ family owners (i.e. Delegat
and Villa Maria both have committed owners).
Opportunities exist for new investment in next tier
down of firms (e.g. Giesen, Allan Scott, etc.).
However these firms are looking for smart investment
which gives them access to a global salesforce and a
route to market.
Investors with transferrable skills or those looking to
unlock hidden value should investigate emergent
secondary regions (i.e. "the next Marlborough").
SPIRITS
New Zealand has clear potential in premium alcoholic
beverages, building, in part, on New Zealand
positioning in premium wine. Peer group countries
(e.g. UK, Sweden) suggest strong future growth
possible. However, there are limited entry vehicles.
At this point in the life cycle, opportunities exist for
start-ups into the space. Greenfields entry by global
player with a strong transferrable skill set also suits.
CIDER
New Zealand is a major apple producer and exporter.
Recently the cider industry in New Zealand has
experienced strong growth, both for domestic
consumption and export. Exports have shown strong
growth over the past decade, primarily to Australia.
While there are a large number of producers, most
export volume is produced by the two main brewers
(Heineken/DB & Kirin/Lion).
BEER
New Zealand produces hops and barley and has
~150+ years of beer brewing experience. After a long
period of flat exports, beer exports have recently
started growing. However to date limited demand for
New Zealand beer has been developed in markets
beyond Australia. Microbreweries are small and
growing, but most currently have a domestic focus.
However, Moa Breweries has listed on the NZX and is
making an export push.
Future export success by New Zealand beer will
require a unique or more differentiated product (as
was the case with wine).
SOFT DRINKS
In soft drinks, while both Frucor/V and
TBDC/Charlie's/Phoenix are attractive, but both are
now Japanese owned. A range of smaller firms exist.
WATER
There are potential opportunities in exporting bottled
water. However, at this late point in the global life-
cycle, meaningful success will require global best
practice marketing (cf. Lynda Rae Resnick/Fiji
Water). Best fit would be for investor with
transferrable capability.
CORIOLIS
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