Hopulist Issue 1

GROWING PAINS
FOR SOME
BREWERS
WITH SALES
ON THE RISE,
BUSINESS
GROWTH
WILL FEEL
MUCH LIKE
HOLDING THE
PROVERBIAL
TIGER BY
THE TAIL.
It’s not all butterflies and hoppy rainbows in
Kiwi land, there are challenges.
John Bennett, general manager central region
of ANZ, explains: “Yes the craft category
is performing well, but from the brewer’s
perspective there are plenty of challenges.
For some brewers with sales on the rise,
business growth will feel much like holding the
proverbial tiger by the tail.”
In recent years the large volume sales of mass
produced amber lager have been in decline in
New Zealand. As a result the larger Breweries,
reflecting what is happening in the US and
European markets, are looking to buy into
the craft beer trend with the inevitable talk of
acquisitions and takeovers.
The three biggest breweries in New Zealand,
Lion, DB Breweries a subsidiary of Dutch giant
Heineken and Independent Liqour Group(ILG)
have all been at it. In 2012 ILG, which is itself
owned by Asahi of Japan, acquired Founders
Brewery. Lion has been aggressive in the craft
beer market buying Emerson’s in 2012 and
Panhead Custom Ales in 2016 and then this
year Tuartara was sold to DB Breweries. It’s
a familiar tale when a relatively small market
undergoes an explosion of growth, it’s tough to
stay pure to the movement as the bigger sharks
circle.