New Zealand: Premium liquor still going down well with consumers in New Zealand

Consumers are drinking less but many more are reaching for the top shelf when they do, says Spirits New Zealand.

Spirits NZ chief executive Robert Brewer says wine and beer consumption is down in New Zealand and nearing a freefall in some overseas markets, but local spirits distillers are still chugging along.

He said the industry was feeling the economic recession, but had been somewhat insulated from the overall drop in alcohol consumption.

"Although consumers are drinking less and less harmfully when they do spend, they tend to buy premium which is right in the spirits industry's sweet spot."

He said the popularity of gin and an emerging cocktail-culture meant spirit consumption was holding its own.

The mix of alcohol available for consumption changed between 2023 and 2009, with beer dropping by 41 percent from 36 percent; wine down by 29 percent from 33 percent; and spirits, including cocktails, up 35 percent from 26 percent.

Brewer said changing demand for premium spirits aligned with the growth in the industry.

"Twenty years ago you could have counted the truly commercial NZ distilleries on two hands," he said.

"Today there are almost 200 and although some will struggle given the current trading environment I get the sense that, in true Kiwi fashion, most will come through and continue to put New Zealand on the global map as a premium spirit producer."

Brewer said the industry was managing its challenges with a positive outlook for 2025.

"I think it's clear that that there will there will likely be some retrenchment in the industry... but the New Zealand distillers are an innovative, creative, passionate lot."

He said the spirit industry's export market was also expected to grow beyond current annual levels of between NZ$40 and NZ$50 million.