Brewing In New Zealand Report Shows The Benefit Of One Of New Zealand’s Favourite Beverages

• Beer sales in New Zealand contribute $2.7 billion dollars to the economy
• The closure of bars and restaurants due to the first COVID – 19 lockdown cost the industry an estimated $300 million in sales
• Brewing contributed $810 million to government last year in GST and Excise Tax
• Low and no alcohol beers have grown 256% since 2015
• Tourists spent $400 million on beer in the year ending March 2020
• There are 257 Breweries in New Zealand, more breweries per 10,000 people (0.51) than the United Kingdom (0.42), Australia (0.29) and the United States (0.23).

Research from New Zealand Institute of Economic Research (NZIER) has revealed the brewing industry in New Zealand is a significant contributor to the economy. The research shows the brewing industry provides both strong GDP input and is a considerable source of revenue for the government.

The findings released today, follow research commissioned by The Brewers Association of New Zealand to key evaluate areas of the Brewing industry and its contribution to the economy.

The study reveals that from grain to glass, the New Zealand brewing industry was worth $2.7 billion in the year to March 2020. Within this value chain, $634 million in value added (GDP). The brewing industry also supports over 7000 jobs through brewing and the purchase of intermediate inputs to the brewing process, paying over $470m in wages.

“It’s really important to acknowledge the significant contribution to the New Zealand economy the brewing sector provides. Especially at a time when economic conditions are tough” said Dylan Firth, Executive Director of The Brewers Association of New Zealand

Mr Firth highlighted the significant revenue which is received by the government with the brewing industry contributing $810 million last year in GST ($407m) and Excise Tax ($403m).

“While it is great to acknowledge the fantastic contribution the brewing sector makes to New Zealand. There is no doubt COVID-19 has impacted the sector. The value of the sector and GDP data in this report are for the year-end March 2020 and hence the full impact of COVID-19 is not yet captured in the data. However, on-licence sales are likely to be the most impacted by COVID-19, as both a lack of tourism, forced closures and social distancing requirements will have impacted sales on-licenced establishments.” Said Firth

“The closure of licenced establishments due to the initial lockdown cost the industry an estimated $300 million in sales. Even when taking into account a slight increase in off-premise sales in the June quarter.” Said Firth

“Over the coming year the industry faces challenges with reduced demand from international visitors, as COVID-19 related border closures have reduced tourist numbers to a trickle. Prior to COVID-19, tourists spent $400 million on beer each year.” Said Firth

“One of the most dramatic things from this report which we have seen in New Zealand over the past few years, is consumers move towards the low and no alcohol beers. Beers with low alcohol content (less than 1.15 percent) have seen huge growth with an increase of 256% in volume since 2015.” Said Firth

“The Brewers Association supports the moderate and responsible consumption of beer the increase in the low and no category really reflects this in our society too. I think it is important for us to acknowledge the positive impact our sector has on both government revenue but in a social sense. There are positive social elements that come from sharing a beer with friends and family and we should celebrate that along with the fact the industry delivers strong economic value for the country.”

“It is clear that New Zealand is still very much a nation that enjoys its beers and their variety. We boast 257 different breweries in this country, Compared to other countries, New Zealand (0.51) has more breweries per 10,000 people than the United Kingdom (0.42), Australia (0.29) and the United States (0.23). The opportunities for New Zealanders to enjoy the vast range of quality beers on offer certainly reflects on the value of the sector” says Mr Firth.

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