Moa Brewing Company is an independent and multi-award-winning brewery from Marlborough, credited as a craft beer pioneer in New Zealand. Managing director Stephen Smith said that all craft beer has a little more attention paid to it and generally uses more hops and malt to give it the flavour consumers expect.
Moa Brewing Co. expanded its RTD offering in 2022, launching the RTD cocktail brand HeyHey. Smith said that there had been many contributing factors to the increased demand for RTDs and beverage diversity in New Zealand.
“Some of them are linked to flavour because beer is not as appealing as it once was, especially to a younger audience wanting slightly sweeter and lighter products. There has been massive growth in better-for-you beers from zero percent to low carb, but low sugar RTDs have been a large reason for its recent success,” said Smith.
Since leaving university in the mid-1990s, Smith has worked predominantly within the FMCG industry. After six years in the United Kingdom, Smith returned home to work in various senior and management roles in New Zealand and Australia. In 2021, Smith began his involvement with Moa Brewing Company, now in its 20th year of operation.
New Zealand-owned and operated, Moa Brewing Co. sources 100 percent of its key raw materials from other New Zealand businesses. Smith’s focus in the industry is to continue to make great beers for great prices and hone in on drinkability and session-ability, as that is where the real volume is. Smith added this was vital because consumers have migrated out of mainstream beers.
Smith noted that there was still a lot of room for growth within the industry, particularly alternative alcoholic beverages such as Moa’s Ginger Bomb ginger beer and recent better-for-you beer launches. The Bush Moa Mid Ale was launched this year at 2.5 percent ABV, hoping to cater to the audience. Smith said the zero percent market is cluttered and already has excellent offerings. Smith said that there hasn’t been a significant impact on business yet, and despite outperforming the market two times over with its current range, he is still searching for more growth.
The cost of doing business in New Zealand has become a significant issue for the industry, with increases linked to raw materials and final shelf prices. Smith said the government should follow its Australian counterpart and set up an excise regime to help support smaller operators.
“We run a very lean business and can roll through the more challenging months better than most. It’s always important to run lean first and build up later rather than having a large cost base and hoping the sales turn up. We also only invest in things that we think consumers care about, such as value perception of our products and using New Zealand ingredients,” said Smith.
One significant development within the industry that Smith noted was the industry is in a state of dismay. He added that it was sad to see smaller breweries go into liquidation, as they have often been the heart and soul of the industry. According to Smith, the market in New Zealand is too small for this many players and some consolidation is needed. At the same time, the industry should not end up with only the larger brewers making it through, potentially leading to all the genuine creativity and innovation disappearing.
Moa Brewing Co. was the first craft brand to move its main range to cans for sustainability reasons. Cans are better for the environment and are lighter to transport; more can fit on a pallet, and there are fewer glass breakages in the community.
The company values its partnerships across the supermarket and wholesale retail brands, although Smith admitted that it is never perfect from either side.
“We must remember that the best position is when we are winning, the retailer partner is winning, and the shopper is winning. Often, it’s a tough thing to achieve.”
Moa Brewing Co. has continued to work closely with liquor retailers who have played a critical role in developing the category, reaching important shopping occasions, and supporting local communities.
