Global Beverage Trade and Company Overviews
SITUATION SUMMARY: OTHER BEVERAGES Outside wine, the New Zealand beverage sector is primarily
focused on production for domestic consumption; however, exports are growing strongly for many products
SPIRITS
Prior to 2000 there is a wide range of small spirit
ventures, producing small scale niche spirits for the
domestic market. At the same time Independent
Liquor launched RTD 2 spirit beverages primarily for
domestic consumption and export to Australia.
Everything changed with the launch, rapid growth and
financial success of 42 Below which created global
awareness of New Zealand as a super-premium
spirits provider. In the wake of 42 Below a large
number of new firms have entered the industry with a
wide range of products and brands.
Independent Liquor, recently purchased by Asahi, is
the largest player in spirits. Independent initially
developed its business around flavoured RTD drinks,
however it is diversifying into other alcoholic
beverages. The two main brewers also produce and
pack spirits, as well as distribute imported products
and brands.
There are a range of other smaller firms in spirits
achieving strong growth and the sector is well
positioned for further growth (see related project
2012 Spirits Opportunity report).
BEER
been
Globally, mainstream beer brewing has
dominated by large companies mainly leveraging
scale, point-of-purchase control and distribution
economics. New Zealand's three mainstream
brewers focused on domestic consumption are: DB
Breweries (Heineken), Lion (Kirin) and Independent
(Asahi).
This situation is changing rapidly with the emergence
of a burgeoning craft brewing scene. New Zealand
now has a range of smaller/micro breweries, rising
with the growth of craft beer. Leaders in this space
include Moa Brewing, McCashin's, Harrington's and
many other smaller, innovative firms.
New Zealand is a currently a minor beer exporter¹,
and imports more beer than it exports. However, beer
exports have surged in the last few years.
The
country is known for its specialty hops and both uses
these domestically and exports them.
SOFT-DRINKS/FLAVOURED BEVERAGES
Non-alcoholic beverages are relatively consolidated
across two international companies that primarily
manufacture for domestic consumption:
-
Coca-Cola Amatil, Australian-listed Asia-Pacific
licensee of Coca-Cola;
Frucor, former Apple & Pear Marketing Board juice
business, now a division of Suntory (Japan); maker
of V energy drink and the Pepsi licensee in New
Zealand.
Smaller innovators emerging outside core soft-drinks.
Organic-producer Phoenix (Charlie's/TBDC) owned
by Asahi.
A large range of premium adult beverages are gaining
traction across multiple channels.
JUICE
New Zealand exports apple and kiwifruit juice,
primarily as a secondary product of the fresh fruit
industry. However New Zealand imports +20% more
juice than it exports and domestic fruit production
cost structures suggest a premium/niche strategy.
WATER
New Zealand has excellent theoretical potential to
produce and export premium bottled water. A
number of brands and companies have moved into
this premium space (e.g. One, Antipodes and Palaeo).
However, to date, little of this potential has been
realised.
1. RTD = ready-to-drink; 2. Mexico, for example, exports 80x as much beer as New Zealand; NZ currently exports about as much beer as the Dominican Republic
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