NZIER report highlights innovation in alcohol industry
The NZ Alcohol Beverages Council says a new report shows that innovation around local skills, social change and sustainability has been key to the New Zealand alcohol industry’s significant contribution to the local economy.
The NZ Institute of Economic Research (NZIER) report was produced for NZABC and found that the sector contributes $1.92 billion to GDP, pays $1.819 billion in excise tax and GST, spends $2.02 billion on local goods and services and generates $2.09 billion in exports.
“The report shows that the 1,865 beer, wine, and spirits businesses employ around 10,200 people from boutique distilleries in rural areas, to specialty production in the regions, to head offices in city centres,” says Bridget MacDonald, NZABC’s Executive Director.
“In addition, another 20,900 are employed indirectly from businesses in the supply chain, from yeast producers and hops growers to packaging, logistics and shipping. As a supplier itself, the industry connects to the hospitality industry, which employs around 172,000 in cafes, bars, restaurants, hotels and events businesses.”
The report also details how the industry and society have changed over the last couple of decades.
MacDonald says that’s reflected in people drinking less and becoming more moderate consumers, choosing higher quality products, or no- and low-alcohol options. She also cites a growing shift to supporting local producers and the growth of boutique wineries, distilleries and breweries.
“It’s an exciting time for our industry – we are diversifying our product ranges in response to consumer demands and trends,” says MacDonald. “The challenges of today are becoming the opportunities for tomorrow, and this encourages innovation and investment in research and development right throughout the industry – from developing unique hops varieties for beer, embracing indigenous ingredients for spirits to refining viticulture practices to create lower alcohol wines.”
She says industry’s commitment toward carbon-zero and sustainability targets is driving innovation across all aspects of business, such as sustainable supply chains, recyclable packaging, refining manufacturing processes, zero waste initiatives, and supporting local goods and services.
“The pandemic has been challenging for most businesses, including our industry. However, it is resilient and dynamic and will continue to play its part in making a positive contribution to New Zealand’s financial, environmental and social economies as we work through the uncertainty that lies ahead,” says MacDonald.
