E-Malt.com News article: New Zealand: Demand moves away from mainstream to craft beer

Marlborough could be at the heart of a boom in New Zealand’s craft beer industry as a generational shift in drinking habits sees demand moving away from mainstream beer, Staff.co.nz reported on July 6.

Both award-winning craft brewery Renaissance Brewing and one of the country's largest craft brewing brands Moa Brewing Company are based in Marlborough.

According to Natasha D'Costa, researcher for multinational consultancy firm Frost & Sullivan, the New Zealand craft beer market could perform in much the same way as Marlborough sauvignon blanc did for exports in the 1990s.

According to D'Costa's report, compiled for New Zealand Trade and Enterprise, the global consumption of beer was changing. While there was a drop in beer drinking in North America, Europe, Australia and New Zealand, there was an increased demand for craft beer.

The research forecast craft beer exports could increase by up to 300 per cent in the next decade, while New Zealand consumption was expected to increase 80 per cent by 2019. Craft beer was the fastest growing segment of the New Zealand brewing industry at 25 per cent annually, D'Costa said.

Moa Brewing Company founder Josh Scott said he had seen the increase and the company was working hard on its distribution. It had an 8.7 per cent supermarket market share and produced more than 1.7 million litres of craft beer a year.

"It's amazing to see how when we first started [in 2003] we were the only craft beer on the shelf and now there are like 35 different brands. I think it has to do with a changing palate and more education around matching beer and food," he said.

He also believed there was a move away from drinking high amounts of mainstream beer to smaller quantities of craft beer.

"Even in my footy club it's changing - it's about quality over quantity."

Scott welcomed the increase in competition among brewers, as it helped lift the profile of craft beer and brought new and innovative flavours and ideas into the industry.

Renaissance Brewing chief executive Brian Thiel said the company had also seen a strong increase in demand for its craft beers, particularly over the past five years. The Blenheim-based brewery had increased capacity twice last year alone, but was still unable to keep up with demand.

"The demand is definitely there [and] it's coming from all over the place - domestic sales are good and demand from export is also good."

He also saw a change in attitude towards beer, with a greater appreciation for craft beer.

"Instead of going out and having as many as you can, more people are going out to enjoy a good quality beer."

On July 6 the company began installing a new NZ$100,000 bottling machine at its Dodson St site, which Thiel hoped would be operational by July 15.

The company had raised NZ$700,000 through crowdfunding last year for expansions and was planning a second round to grow its export markets. There was already a representative drumming up business overseas, Thiel said.

The NZTE research backed their comments, with D'Costa noting there was a move from "quantity to quality, with drinkers focusing on innovation, unique flavours and the provenance of offers when making their buying decisions".

The younger generation was leading the trend towards craft beer, she said.



08 July, 2015