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Pages tagged "The alcohol industry in New Zealand"


What we drink

Posted in Drinking in New Zealand

In 2020, 494 million litres of alcoholic drinks were available for sale in New Zealand (this is a proxy measure of the alcohol we consume):

  • 293 million litres of beer;
  • 113 million litres of wine;
  • 89 million litres of spirits and spirit-based drinks.

Beer comprises 59% of the total volume of alcoholic beverages consumed in NZ, followed by wine (23%) and spirits (18%)

The figure of 494 million litres is a small (0.8%) increase from 2019 (491 million litres).

However, these beverages are often different alcohol strengths (e.g. a beer can be 4% but spirits can be 40%), so the volume of what we drink doesn't tell us how much alcohol we have consumed as a country. Consumption of the 494 million litres equated to 36 million litres of pure alcohol, rose 1.9% from 35.3 million litres in 2019.

In 2020, 8.7 litres of pure alcohol were available for each person aged 15. To put this into perspective, it is the same as every person aged over 18 years consuming two standard drinks per person every day of the year (i.e. 2 cans of beer (330ml, 4% alcohol) or 2 glasses of wine (12.5%; 100ml)). In reality, New Zealand drinkers don't all drink the same amount. We know that approximately 46% of all alcohol sold in New Zealand is consumed in heavy drinking occasions, ie. 8 or more standard drinks for men and 4 or more standard drinks for women. 

In 2020, beer, wine and spirits contributed almost equally to our pure alcohol intake. Beer contributed 12.9 million litres or pure alcohol, wine 11.7 million litres, followed by spirits with 11.3 million litres.

In relation to NZers consumption of pure alcohol (ethanol), we consume an almost equal amount from beer (36%), wine (32.4%) and spirits (31.6%)

New Zealanders are increasingly becoming spirits drinkers - in 2004 spirits contributed 23% of pure alcohol intake, in 2020 spirits contributed 31.6%.

Because spirits are taxed at the highest rate in the excise tax structure (given their high strength) the increase in spirits consumption gave a $119 million windfall in tax revenue to the Government In 2020, Government excise revenue from alcohol was $1.193 billion, up from $1.074 billion in 2019. 


Alcohol available for consumption during the COVID-19 pandemic

Alcohol availability is measured on a quarterly basis. In Aotearoa New Zealand, national lockdown occurred in Quarter 2 (April, May, June). During this time, pubs were closed.

In Quarter 2, the overall amount of pure alcohol available for consumption (per capita) dropped by 9%.

Following lockdown, if New Zealand drinkers had returned to their (normal) heavy drinking patterns for Quarters 3 and 4, overall alcohol availability in 2020 should have been lower than previous years (due to the decline during lockdown). Whilst wine availability increased by 5%, spirits availability reduced by 27% and spirits-based drinks reduced by 23%.

Unfortunately, New Zealanders compensated for earlier declines in consumption by adding that volume to later quarters of 2020, resulting in an overall annual increase of 1.9% in pure alcohol consumption.

  • Quarter 3 (July–Sept 2020) showed pure alcohol availability per capita was 10% higher than in the same quarter in the previous year. Consumption of wine (12% increase), beer (20% increase), spirits (9% increase) and spirits-based drinks (4%) all increased.
  • During Q4 (Oct–Dec 2020), spirits and spirits-based drinks (RTDs) consumption increased substantially by 21% and 16% compared to the same quarter in 2019. Beer availability declined by 9%.

Note that about 15% of spirits consumption is normally unrecorded - being bought from duty free outlets. As duty-free outlets have been closed during the pandemic, consumers would have had to purchase their spirits from local outlets. This may partly explain the substantial increases in spirits availability. What was previously hidden in our figures of national consumption is now in available to be seen.

COVID-19 AND NZ DRINKING


New Zealand drinking compared to other countries

New Zealanders typically drink a large amount of alcohol in a drinking occasion. Although we drink less (overall) than the Irish and British (and slightly less than Australians), we drink more than Americans, Canadians and South Africans. 

We also need to note that our assessment of per capita consumption in New Zealand, when we are comparing countries, is out of date. This is because our per capita consumption calculations are not based on the alcohol content of products in our current market (the per capita calculations assume products have a lower alcohol strength than they currently do). For this reason, we believe that the per capita consumption estimate in New Zealand (of 8.9 litres per person) is likely to be an under-estimate of the true value.

Be careful of estimates of per capita alcohol consumption in NZ; the estimates are based on the concentration of alcohol in products sold in the 1970-80s

Click the image to download a bigger picture 


DRINKING IN NEW ZEALAND


Take Action

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

Consult local regulatory agencies in your area 

If you feel your supermarket is not limiting exposure and promotion of alcohol to a single area(s), consult your local regulatory agencies. As a starting point, contact your local PUBLIC HEALTH UNIT.

You may also contact the licensing team of the local council in your area as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCIL whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Get Prepared

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

The Sale and Supply of Alcohol Act 2012 introduced restrictions on where supermarket and groceries stores can display and promote alcohol. This is now confined to a “single area” within the store. Promotions must not be seen or heard outside of this area or from outside of the store.

Click here to read the legislation relating to single areas for supermarkets.


Consult your local regulatory agencies for the most updated information on alcohol areas in supermarkets. A good starting point is contacting your local PUBLIC HEALTH UNIT .

You may also contact the licensing team of your local council as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCIL whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Case for Change

Posted in 3. Irresponsible promotion - alcohol areas in supermarkets

In 1989, wine and mead became available for sale from grocery stores and supermarkets. This was followed in 1999 with beer. The sale of spirits is not permitted.

The introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly. New Zealanders are now drinking twice as much wine as they used to.

There are two major supermarket chains in New Zealand: Progressive Enterprises and Foodstuffs.

Alcohol is the biggest selling caterory in the supermarket. Many New Zealanders buy their alcohol from supermarkets.

On average, the same alcohol product is sold more cheaply from supermarkets than bottle stores.

The number of supermarkets and grocery stores in New Zealand communities has been linked with a range of alcohol-related harms: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.

The placement of alcohol in everyday settings, next to commonly purchased products, may normalise alcohol use in our society. Especially among children. New Zealand children are regularly exposed to alcohol in supermarkets.

Tobacco can't be displayed in supermarkets, but alcohol can. Yet alcohol is the most harmful drug in our society.

Availability, and exposure to, alcohol in supermarkets

Generally speaking, the more that alcohol is available in a community, the higher the levels of alcohol-related harm.

In 1989, wine and mead became available for sale from grocery stores and supermarkets.

In 1999, beer  available for sale through these types of outlets. The sale of spirits is not permitted.

Research has shown that the introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly.

Wine consumption increased by 11% -16% following its sale in supermarkets. This increase takes into account the lower price of alcohol in these settings. 

These increases happened immediately - within the first three months of wine being sold in supermarkets! Wine consumption has continued to increase (New Zealanders are drinking twice as much as they used to).

Alcohol sales are banned in supermarkets in Australia (although the supermarket chains usually have a separate alcohol shop next door). Many states in the United States also ban supermarket sales.

Today, around 250,000 residents of West Auckland cannot buy alcohol from their supermarkets as off-licence supply is controlled by the Portage and Waitakere Licensing Trusts. No supermarkets in the Invercargill Licensing Trust can sell alcohol.

During the New Zealand Law Commission's consultation on alcohol laws,  a strong sentiment was found in favour of removing alcohol altogether from supermarkets and returning to the pre-1989 era when it was only sold by specialist liquor outlets.


Supermarket's market share of beer and wine sales

There are two major supermarket chains in New Zealand: Progressive Enterprises (184 Countdown stores, 62 Fresh Choice and Supervalue stores) and Foodstuffs (140 New World stores, >50 PaknSave stores, 240 Four Square stores).

In 2000, the supermarket share of beer sales was 12% and for wine it was 43%. In 2008, they sold around 30% of all beer and just under 60% of all wine. In 2008 it was estimated that beer and wine sales in supermarkets were worth $1 billion. (cited in p.59, Law Commission Report (114))

The Law Commission (p.43) also cited an in-house supermarket newsletter that wine and beer together bring in more revenue than any other category in the supermarket.

In Auckland, approximately 75% of all alcohol sold is from off-licences; 53% of this is from bottle stores and 47% from supermarkets.

In 2013, research found that the most common place for Auckland drinkers to purchase their alcohol in the last month were supermarkets.

It is well-known that alcohol sold from supermarkets is, on average, significantly cheaper than the same alcohol purchased from bottle stores. The Ministry of Justice has stated that the price is so cheap that many smaller bottle stores buy their alcohol products from supermarkets.


Alcohol-related harm and supermarkets

The density of supermarkets and grocery stores in New Zealand has been shown to be linked with a range of alcohol-related harms across the North Island of New Zealand. These include: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.


Exposure to alcohol in supermarkets

PROMOTIONS AND DISCOUNTS

Supermarkets commonly use promotions to market their alcohol products for sale. They use a number of methods to stimulate shoppers to buy alcohol:

  • product displays
  • contests
  • price discounts
  • free tastings.

To read more about the impact of promotions, click here.

NORMALISATION OF ALCOHOL TO CHILDREN

On-site exposure to alcohol marketing at settings such as supermarkets is suggested to lead children to believe that alcohol is no different to any other everyday consumer good sold at the supermarket. This is especially given that supermarkets often us the same promotional strategies for alcohol as non-alcoholic products.

Many New Zealand children frequent supermarkets on a regular basis. Although they may not frequently attempt to purchase alcohol from these places, they are heavily exposed to its marketing. 

In a study of New Zealand children's visits to supermarkets, it was found that in 87% of these visits they were exposed to alcohol marketing.

International studies show:

  • that when children are exposed to on-site marketing at alcohol retailers they are more likely to start drinking earlier.
  • that when children aged 12–14 years are followed over time, non-drinkers exposed to sales promotions at alcohol retailers were 42% more likely to use alcohol when they were aged 14–15 years.
  • that children exposed to onsite advertising at alcohol retailers at least once per week were 50% more likely to have consumed alcohol than children less frequently exposed.
  • that children's exposure to alcohol marketing in alcohol retailers predicts their ability to list beer brands, match brands with slogans and name products in masked beer advertisements. 

END OF AISLE DISPLAYS

A high quality study in the United Kingdom found that end of aisle displays increased alcoholic purchases considerably. Sales increased as much as 23-46% - this would have a significant impact on alcohol consumption.


Tobacco is no longer displayed in supermarkets, so why is alcohol?

In July 2012, New Zealand required the removal of tobacco displays from all tobacco outlets, including supermarkets. Prior to this law change, tobacco was not to be displayed in close proximity to products that are marketed primarily for children, including all confectionery.

The reasons for these restrictions were due to the growing body of evidence, both nationally and internationally, of the effects of tobacco display advertising on adolescent smoking.

Following the law change to remove tobacco displays, positive reductions in the initiation of smoking, experimental and regular smoking, and attempted purchase of cigarettes were found.

This assists to provide a strong case for alcohol to be less visible in everyday settings.


Get Prepared

Posted in 1. The price of alcohol

The price of alcohol 

  • Cheap and discounted alcohol increases the demand for alcohol and encourages heavier drinking.
  • The introduction of alcohol (beer, wine and mead) into supermarkets (wine in 1989 and beer in 1999) had a considerable impact on lowering the price of alcohol. The price of any particular beer or wine is generally found to be cheaper in supermarkets than bottle stores.
  • The introduction of ready-to-drinks (RTDs or alcopops) also had a considerable impact on drinking, particularly on young people. They are relatively cheap and attractive to young people.
  • Increasing the retail price of alcohol is one of the most effective strategies to reduce accessibility and alcohol-related harm. It can be achieved in a number of ways including; increasing excise tax, introducing Minimum Unit Pricing, restricting the promotion of discounted alcohol.

Case for Change

Posted in 1. The price of alcohol

The low price of alcohol is a key driver of our drinking culture. Cheap alcohol fuels heavy drinking.

In 2017, alcohol was found to be more affordable than ever before. Wine has particularly become more affordable. This means that it now takes us less time to earn enough money to buy a standard drink.

In New Zealand, off-licences are now selling approximately 75% of all alcohol. Supermarkets are big players in the retail market.

High liquor outlet density in a community may lead to competition, which drives prices down.

Increasing the price of alcohol is one of the strongest tools in our kete / basket to reduce harm. A large body of high-quality research suggests that a 10% increase in price reduces overall alcohol consumption by 5%. In fact, it is the most important strategy to reduce inequities in alcohol harm.

The price of alcohol 

The price of alcohol is closely related to its consumption. On average, people will drink less when alcohol is more expensive. Increasing the price of alcohol is one of the most effective strategies to reduce consumption and harm. A large body of high-quality research suggests that a 10% increase in price reduces overall alcohol consumption by 5%.

A 5% reduction in consumption in New Zealand would mean:

  • 45 million FEWER bottles of beer (330ml)
  • 7 million FEWER bottles of wine (750ml)
  • <1 million FEWER bottles of spirits (1L)
  • 14 million FEWER bottles of RTDs (250ml)

The retail environment has a huge impact on the price of alcohol. In New Zealand, supermarkets are major suppliers of beer and wine. In 2008, the two supermarket chains sold around 60% of all wine and just over 30% of all beer in New Zealand. It has been found that beer and wine sold in supermarkets is cheaper than the same products bought at bottle stores. Many bottle stores buy their alcohol for sale from supermarkets, given they cannot obtain the alcohol at the same price from their own suppliers.

In New Zealand, alcohol products sold at off-licences have become more affordable over time. This means that it now takes us less time to earn enough money to buy an alcohol product.

When there are many outlets in a community, competition can force retailers to discount the price of their alcohol in their stores so that they can ‘win’ the purchase.

Price differences between different types of alcohol outlets may also lead to more alcohol-related harms in a community. For example, spirits purchased from an on-licence can cost 9 times more than those purchased from an off-licence. This is likely why off-licences in New Zealand are now selling approximately 75% of all alcohol sold in New Zealand. It also means that more people drink in their homes or other’s homes, which can often be risky settings. New Zealanders commonly drink at home or other private settings prior to entering pubs and bars in town. In 2010 in New Zealand, 73% of the total volume of absolute alcohol was consumed in private homes (own home, other's homes).

There are several ways that the price of alcohol can be increased:

  1. Increasing excise taxes on alcohol products
  2. Setting a minimum unit price at which alcohol can be sold 
  3. Restricting or banning heavy discounts on alcohol.

We need a combination of all of these approaches in order to reduce alcohol consumption and harm.


For a detailed report on alcohol pricing policies in Aotearoa, click here ROADMAP FOR ALCOHOL PRICING POLICIES

Click this button to read more on ALCOHOL EXCISE TAXES MINIMUM UNIT PRICING


Take Action

Posted in 4. Supermarkets

Consult local regulatory agencies in your area 

If you feel your supermarket is not limiting exposure and promotion of alcohol to a single area(s), consult your local regulatory agencies. As a starting point, contact your local PUBLIC HEALTH UNIT.

You may also contact the licensing team of the local council in your area as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCILS whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Get Prepared

Posted in 4. Supermarkets

The Sale and Supply of Alcohol Act 2012 introduced restrictions on where supermarket and groceries stores can display and promote alcohol. This is now confined to a “single area” within the store. Promotions must not be seen or heard outside of this area or from outside of the store.

Click here to read the legislation relating to single areas for supermarkets.


Consult your local regulatory agencies for the most updated information on alcohol areas in supermarkets. A good starting point is contacting your local PUBLIC HEALTH UNIT .

You may also contact the licensing team of your local council as they deal with Local Alcohol Policies or Licence Applications. Here is a list of LOCAL COUNCILS whereby you may search for contact details of the respective alcohol licensing team in your area. 

 


Case for Change

Posted in 4. Supermarkets

In 1989, wine and mead became available for sale from grocery stores and supermarkets. This was followed in 1999 with beer. The sale of spirits is not permitted.

The introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly. New Zealanders are now drinking twice as much wine as they used to.

There are two major supermarket chains in New Zealand: Woolworths and Foodstuffs.

Alcohol is the biggest selling category in the supermarket. Many New Zealanders buy their alcohol from supermarkets.

On average, the same alcohol product is sold more cheaply from supermarkets than bottle stores.

The number of supermarkets and grocery stores in New Zealand communities has been linked with a range of alcohol-related harms: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.

The placement of alcohol in everyday settings, next to commonly purchased products, may normalise alcohol use in our society. Especially among children. New Zealand children are regularly exposed to alcohol in supermarkets.

Tobacco can't be displayed in supermarkets, but alcohol can. Yet alcohol is the most harmful drug in our society.

Availability, and exposure to, alcohol in supermarkets

Generally speaking, the more that alcohol is available in a community, the higher the levels of alcohol-related harm.

In 1989, wine and mead became available for sale from grocery stores and supermarkets.

In 1999, beer became available for sale through these types of outlets. The sale of spirits is not permitted.

Research has shown that the introduction of wine sales into New Zealand supermarkets increased the affordability and consumption of wine markedly.

Wine consumption increased by 11% -16% following its sale in supermarkets. This increase takes into account the lower price of alcohol in these settings. 

These increases happened immediately - within the first three months of wine being sold in supermarkets! Wine consumption has continued to increase (New Zealanders are drinking twice as much as they used to).

Alcohol sales are banned in supermarkets in Australia (although the supermarket chains usually have a separate alcohol shop next door). Many states in the United States also ban supermarket sales.

Today, around 250,000 residents of West Auckland cannot buy alcohol from their supermarkets as off-licence supply is controlled by the Portage and Waitakere Licensing Trusts. No supermarkets in the Invercargill Licensing Trust can sell alcohol.

During the New Zealand Law Commission's consultation on alcohol laws,  a strong sentiment was found in favour of removing alcohol altogether from supermarkets and returning to the pre-1989 era when it was only sold by specialist liquor outlets.


Supermarket's market share of beer and wine sales

There are two major supermarket chains in New Zealand: Woolworths (184 Countdown stores, 62 Fresh Choice and Supervalue stores) and Foodstuffs (140 New World stores, >50 PaknSave stores, 240 Four Square stores).

In 2000, the supermarket share of beer sales was 12% and for wine it was 43%. In 2008, they sold around 30% of all beer and just under 60% of all wine. In 2008 it was estimated that beer and wine sales in supermarkets were worth $1 billion. (cited in p.59, Law Commission Report (114))

The Law Commission (p.43) also cited an in-house supermarket newsletter that wine and beer together bring in more revenue than any other category in the supermarket.

In Auckland, approximately 75% of all alcohol sold is from off-licences; 53% of this is from bottle stores and 47% from supermarkets.

In 2013, research found that the most common place for Auckland drinkers to purchase their alcohol in the last month were supermarkets.

It is well-known that alcohol sold from supermarkets is, on average, significantly cheaper than the same alcohol purchased from bottle stores. The Ministry of Justice has stated that the price is so cheap that many smaller bottle stores buy their alcohol products from supermarkets.


Alcohol-related harm and supermarkets

The density of supermarkets and grocery stores in New Zealand has been shown to be linked with a range of alcohol-related harms across the North Island of New Zealand. These include: antisocial behaviour, dishonesty offences, property abuses, property damage, sexual offences and violent offences.


Exposure to alcohol in supermarkets

PROMOTIONS AND DISCOUNTS

Supermarkets commonly use promotions to market their alcohol products for sale. They use a number of methods to stimulate shoppers to buy alcohol:

  • product displays
  • contests
  • price discounts
  • free tastings.

To read more about the impact of promotions, click here.

NORMALISATION OF ALCOHOL TO CHILDREN

On-site exposure to alcohol marketing at settings such as supermarkets is suggested to lead children to believe that alcohol is no different to any other everyday consumer good sold at the supermarket. This is especially given that supermarkets often us the same promotional strategies for alcohol as non-alcoholic products.

Many New Zealand children frequent supermarkets on a regular basis. Although they may not frequently attempt to purchase alcohol from these places, they are heavily exposed to its marketing. 

In a study of New Zealand children's visits to supermarkets, it was found that in 87% of these visits they were exposed to alcohol marketing.

International studies show:

  • that when children are exposed to on-site marketing at alcohol retailers they are more likely to start drinking earlier.
  • that when children aged 12–14 years are followed over time, non-drinkers exposed to sales promotions at alcohol retailers were 42% more likely to use alcohol when they were aged 14–15 years.
  • that children exposed to onsite advertising at alcohol retailers at least once per week were 50% more likely to have consumed alcohol than children less frequently exposed.
  • that children's exposure to alcohol marketing in alcohol retailers predicts their ability to list beer brands, match brands with slogans and name products in masked beer advertisements. 

END OF AISLE DISPLAYS

A high quality study in the United Kingdom found that end of aisle displays increased alcoholic purchases considerably. Sales increased as much as 23-46% - this would have a significant impact on alcohol consumption.


Tobacco is no longer displayed in supermarkets, so why is alcohol?

In July 2012, New Zealand required the removal of tobacco displays from all tobacco outlets, including supermarkets. Prior to this law change, tobacco was not to be displayed in close proximity to products that are marketed primarily for children, including all confectionery.

The reasons for these restrictions were due to the growing body of evidence, both nationally and internationally, of the effects of tobacco display advertising on adolescent smoking.

Following the law change to remove tobacco displays, positive reductions in the initiation of smoking, experimental and regular smoking, and attempted purchase of cigarettes were found.

This supports a strong case for alcohol to be less visible in everyday settings.


Get Prepared

Posted in 1. TV, radio, billboards, magazines, social media, etc

Alcohol and marketing companies have developed their own Code for Advertising and Promotion of Alcohol. The Code contains a set of guidelines for all alcohol advertisements in NZ.  From April 2021, new alcohol advertisements will be expected to adhere to the new Alcohol Advertising and Promotion Code, which will apply to all alcohol advertisements from July 2021.

There is also a law around irresponsible promotion of alcohol. This relates to the promotion of excessive drinking as well as advertising/promotions that appeal to minors. Click below to read more. 


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