Craft Beer Surge - Sunday Star Times - 12 July 2009

Letters To The Business Editor - Page D7



Dear Tim

Re: Recession Bites Grog Sales – Sunday Star Times 28th June, 2009

I was surprised to read this article which does give the point of view
of the large brewers in this country and the commodity they sell
called beer. It is easy for consumers of this type of product to trade
down in tough economic times due to the fact that the flavour difference between the so called "premium" international style lagers and the budget NZ draught styles (which evolved during tough economic times during WWII) is minimal.

There is a segment of the New Zealand beer market that is still experiencing growth, the craft beers. Last week I was in Christchurch for a meeting of NZ craft brewers looking at setting up an export cooperative for the Australian market. We all talked about the growth rate were are all experiencing, even now, of 50% - 100%, across the
brewers at the table. We also discussed the issues we are currently having getting funding to expand capacity in our breweries. This is definitely something that the current economic situation if effecting the 50 craft breweries of New Zealand

As a brewer myself of craft beer, I would be surprised to see my customers trading down, as there is no comparative products that are cheaper. As a craft brewer I am making beers full of flavour, and don't compromise of ingredients, as a result my beer cost significantly more. But there is a growing market for these beers.

This month I am releasing a beer that could arguably be most flavourful beer in New Zealand, Epic Armageddon IPA. This beer will be selling in supermarkets for around $10 per 500ml bottle and I expect to sell out within a few weeks.

Cheers
Luke Nicholas
General Manager - Flying Brewer ;-)
EPIC Brewing Company