Statistics New Zealand has released figures showing NZ beer consumption levels have matched those pre-pandemic, with a 7.25 percent increase during the first half of this year compared to 2020. While this looks positive, the industry faces difficult times with increased production costs and taxes.
Consumers are also shifting from 4 percent to 4.5 percent beer volume products, which are typically craft and premium brands.
Over the last two years of lockdowns, the Brewers Association is happy to see the industry finally rebounding, but that does not mean there is an easy road ahead.
In 2021, Kiwis paid $1.22 billion in alcohol excess, which is set to grow to $1.3 billion in 2022. This will mean an increase in $28.3 million for beer sales alone due to record inflation levels and alcohol excise tax.
"Proposals from the government on a mandatory container return scheme will mean beer producers will are hit with costs of over $8 per 24 pack. With a range of other costs already increasing, brewers have little or no capacity to incur this extra cost and will likely need to pass it on to consumers," said Dylan Firth, Brewers Association Executive Director.
"The New Zealand brewing industry was worth $2.8 billion last year. Supporting over 6,600 jobs through brewing and purchasing intermediate inputs into the brewing process, paying over $409m in wages. Not to mention $810 million last year in GST and Excise Tax."
