- New Zealand beer sales contributed $ 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 the government last year in GST and Excise Taxes
- Low and no-alcohol beer has grown 256% since 2015
- Tourists spent $ 400 million on beer in the year ending March 2020
- There are 257 Breweries in New Zealand, more factories per 10,000 people (0.51) than the UK (0.42), Australia (0.29) and the United States (0.23).
Research from the New Zealand Institute of Economic Research (NZIER) reveals that the brewery industry in New Zealand is a significant contributor to the economy. Research shows that the brewing industry provides a strong GDP input and is a sizeable source of revenue for the government.
The findings, released today, follow research commissioned by The Brewers Association of New Zealand to evaluate key areas of the brewing industry and their contribution to the economy..
The study revealed that from grain to glass, New Zealand’s brewing industry is worth $ 2.7 billion through March 2020. In this value chain, $ 634 million in value added (GDP). The brewing industry also supports more than 7,000 jobs through brewing and the purchase of intermediate inputs for the brewing process, paying over $ 470 million in salaries.
“It’s important to recognize the significant contribution to New Zealand’s economy is being made by the brewing sector. Especially when economic conditions are difficult, ”said Dylan Firth, Executive Director of The Brewers Association of New Zealand
Mr Firth highlighted the significant revenue received by the government with the brewing industry contributing $ 810 million last year in GST ($ 407 million) and Excise Tax ($ 403 million).
“While it is great to recognize the fantastic contribution the brewing sector is making to New Zealand. There is no doubt that COVID-19 has affected this sector. The sector values and GDP data in this report are for the end of March 2020 and therefore the full impact of COVID-19 has not been included in the data. However, sales under license will likely be most affected by COVID-19, as lack of tourism, forced closures and social distancing requirements will affect sales at licensed companies. “Said Firth
“The closure of licensed companies due to early closings cost the industry about $ 300 million in sales. Even when taking into account the slight increase in outdoor sales in the June quarter. “Said Firth
“Over the coming years, the industry is facing challenges with reduced demand from international visitors, as COVID-19-related border closings have reduced tourist numbers by a bit. Before COVID-19, tourists spent $ 400 million on beer each year. “Said Firth
“One of the most dramatic things about this report that we have seen in New Zealand over the last few years, is consumers turning to low, no-alcohol beer. Beers with a low alcohol content (less than 1.15 percent) have seen substantial growth with a 256% increase in volume since 2015. “said Firth
“The Brewers Association supports moderate and responsible beer consumption, an increase in the low category and no category that really reflects this in our society either. I think it’s important for us to recognize the positive impact our sector has on government revenue, but in a social sense. There is a positive social element that comes from sharing beer with friends and family and we must celebrate this together with the fact that this industry provides strong economic value to the country. “
“It’s clear that New Zealand is still a country that enjoys beer and its diversity. We have 257 different factories in the country, Compared to other countries, New Zealand (0.51) has more factories per 10,000 people than the UK (0.42), Australia (0.29) and the United States (0.23) . The opportunity for New Zealanders to enjoy the wide variety of quality beers on offer certainly reflects the value of this sector “said Mr Firth.