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To support ongoing craft growth, ANZ forecasts a 50 per cent increase on the existing hop plantings over the next three years.

 

The thirst for New Zealand craft beer continues with sales up by 35 per cent in the past year, according to ANZ’s 2016 Craft Beer Industry Insights report.

Released ahead of this week’s Beervana expo in Wellington, the report found that Kiwis now have a choice of more than 1,500 New Zealand craft beers from more than 150 breweries across the country.

With intense competition at home, New Zealand beer is also selling into 49 export markets, led by Australia.

The report found that craft’s share of New Zealand’s domestic beer sales has grown to 15 per cent, from 9 per cent three years ago. To support ongoing craft growth, ANZ forecasts a 200 hectare increase in hop plantings over the next three years, an increase of approximately 50 per cent on the existing planted area.

The data shows that exports of higher alcohol beers (typical of craft styles) have grown from $1 million five years ago to $4.5 million last year.

“Big flavour beer continues to win the day as the industry goes from strength to strength,” said John Bennett, ANZ general manager, central region, for commercial & agri.

“Demand is rising thanks to enthusiastic and increasingly discerning consumers at home and growing international interest, resulting in diverse opportunities across the industry.

“But as the juggernaut continues it’s not all beer and skittles. For some brewers with sales on the rise, business growth can feel like holding a tiger by the tail. Increasing competition comes with challenges: shelf space is limited, as are resources such as staff, manufacturing capacity, some key ingredients and working capital.

“Large and small brewers alike are also having to confront a lack of scale. Solutions are emerging. For some, it means developing business capabilities to attract investment to build plant. Others are turning to licence or toll-brewing for consistent quality and known production costs, allowing the brewer to concentrate on product development and marketing.”

ANZ’s report brings together input from multiple sources, including Statistics NZ, NZ Customs, data and insights from brewers and industry stakeholders across the value chain.

 

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