The 2018 Brewers Guild of New Zealand Awards were marked by the inclusion of three new awards – the Champion Large Brewery, Champion Brewery and Champion Small Brewery. The three categories established to even the playing field between small, independent breweries and large players like Dominion Breweries and Lion. Sabrina Kunz, chief executive of the Brewers Guild, said that the new categories were included to keep up with changes in the wider industry – a sentiment echoed by DB managing director Peter Simon.
"The way New Zealanders consume beer is changing with people drinking less but drinking better and we are encouraged by people showing more interest in the taste profile of beer through craft,” he said.
The market share of the two major companies is telling. DB and Lion continue to hold 90 percent of the beer market, with their offerings now including beers from a range of smaller craft producers. Together, the two brewing giants have made the most significant contribution to the growth of the New Zealand craft beer market, despite not fitting the traditional ‘craft brewer’ mould.
Lion in particular has managed to keep ahead of the craft beer trend. It has long been the custodian of the Mac’s brand, and also purchased Emerson’s Brewing Co. in 2012, Panhead Custom Ales in 2016, as well as Crafty Beggars and, Little Creatures and James Squire. It recently acquired Harrington’s, with intention of filling the gap between Mac’s more traditional beers and Emerson’s hopped brews. It also set up the Fermentist in Christchurch as a base from which to brew its own micro-brews. All those companies continue to be run by their original operators with the exception of Mac’s.
The move into craft has worked, with Lion reporting a 30 percent increase in sales of Mac’s and a 90 percent increase in sales of Emersons. The acquisition of Harrington’s is too recent for any notable changes, but Lion managing director Rory Glass said that the plan was to invest around $2 million in upgrading the brewery.
“We will build on what has made Harrington's so great and help make their beers more accessible to people across the country," Glass said.
DB owns the Monteith’s Black Dog and Tuatara brands, and claim that those three make up 25 percent of the craft beer market.
New Zealand isn’t alone– a recent report from Mintel found that similar trends are emerging in Australia, where large multi-nationals like Coca-Cola have either purchased local craft breweries or have created their own craft brands.
“The advantage of mass craft for consumers is that it is cheaper due to economies of scale and more readily available due to better distribution access,” said Jonny Forsyth of Mintel. “In addition, the beer is often brewed to appeal to a more mainstream palate rather than being too experimental.”
