E-Malt.com News article: New Zealand: DB Breweries to raise beer prices in March 2012

DB Breweries will raise its beer prices in March, and other liquor companies in New Zealand are not ruling out similar moves, Stuff.co.nz reported on January, 17.

DB, with core brands Heineken, DB Export, Tui, Monteith's, DB Draught, Tiger and Amstel, announced this week that its pack products (beer and cider) will rise 3 per cent on average.

Its tap products will go up 1 per cent while its ready-to-drink labels (RTDs) will rise by 4 per cent on average from March 5.

The increases were a direct result of escalating costs, from raw materials and production to packaging and distribution, DB said.

''DB is experiencing increasing material costs as well as significant pressure on fuel, energy and utility costs, all of which have impacted our overall production, packaging and distribution expenses,'' managing director Brian Blake said.

''It's certainly regrettable that these rising costs have to be passed on to customers but unfortunately it's unavoidable.''

He acknowledged it was a difficult time for many operators in the hospitality industry but said the company was continuing to invest in marketing campaigns and category development to drive sales of DB's brands and their business overall.

A spokeswoman for rival brewer Lion said the company was ''naturally experiencing'' increased input cost pressures.

''We generally review our pricing at this time of year and we would communicate any decision we might make regarding pricing changes to our customers in due course,'' she said.

Lion's New Zealand beer brands include Speights, Steinlager and Macs, and it has a number of international premium brands such as Guinness, Stella Artois, Corona and Becks.

Japanese-based brewer Kirin Holdings took 100 per cent ownership of Lion Nathan in 2009. It is now known as Lion.

Asia Pacific Breweries, listed on the Singapore stock exchange, took full control of DB in 2004.

Meanwhile, RTD maker Independent Liquor said any increase in its pricing would not be influenced by the actions of its competitors.

Chief executive officer Julian Davidson said the company's last price rise was at the time of the annual excise tax increase last June, when Lion and DB also raised prices.

''We tend to take our price increases relatively in line with inflation just because the excise is regulated to increase in line with inflation,'' Davidson said.

''We're not in any way driven by what other players in the market do.''

Independent Liquor, leaders in the RTD market, was sold for $1.5 billion to Japan's largest brewer by volume, Asahi in August.

Based in Papakura, it manufactures and distributes pre-mixed alcoholic drinks such as Vodka Cruiser and Woodstock Bourbon, and beer labels including Carlsberg, Tuborg and Kingfisher which are brewed under licence. Its spirits range includes Seagers Gin and Whyte & Mackay Scotch, and it also carries several wine labels.


18 January, 2012