Alcohol available for consumption fell by the biggest amount in 15 years.

A brewers association said broader economic and living cost pressures were impacting consumption and the hospitality sector.

Stats NZ data released today showed
a 4.3 per cent decline last year compared to 2022.

The last year was challenging for domestic producers, with factors including adverse weather events, Stats NZ international trade manager Alasdair Allen said.

“We have also seen a reduction in imports of beer and wine.”

Alcohol available for consumption decreased to 477 million litres, Stats NZ said.

Beer available for consumption fell by 13 million litres or 4.4 per cent.

Declines applied to low-, medium- and high-strength beers alike.

And wine also declined, but by a smaller amount – down 2.4 million litres and 2.4 per cent.

The quantity of wine imported for the year fell 9.9 per cent, Stats NZ said

“This followed a slight rise of 0.6 per cent in 2022 and a fall of 6.0 per cent in 2021.”

Spirits and spirit-based drinks overall had a bigger relative decrease than wine and beer, down by 5.9 million litres or 5.7 per cent.

But some spirits maintained their popularity or even increased it.

“The volume of traditional spirits, such as vodka, whisky, and gin, remained relatively flat with an increase of 1.4 per cent,” Stats NZ said.

Dylan Firth, Brewers Association of New Zealand executive director, said people were drinking less, and that was partly the result of broader economic pressures.

People facing higher living costs from inflation or rising mortgage payments might decide to buy a six-pack rather than a dozen beers, he said.

“This decline is indicative of the tightening economic constraints faced by consumers, which have undoubtedly contributed to subdued demand across various sectors, including hospitality,” Firth added.

Firth said the hospitality industry was facing significant revenue losses, exacerbating existing challenges from staffing shortages, supply chain disruptions and regulatory pressures.

And hospitality companies often relied heavily on beverage sales, he said.

“The only bright spot was the continued growth of 0 per cent alcohol beers which rose 8 per cent in the last year, combining to sit at 267 per cent growth since 2020,” Firth said.

He said that showed consumers were embracing the no-alcohol options available.

Firth said hazardous drinking rates in New Zealand had been declining for some time and the industry was serious about fostering responsible drinking behaviours.

Andrew Galloway, Alcohol Healthwatch executive director, said the Stats NZ data along with New Zealand Health Survey results made for some positive news.

Hazardous drinking rates dropped in the last year, falling from 18.7 per cent to 16 per cent.

But Galloway warned against exuberance for those hoping the country had progressed beyond harmful consumption.

“While these figures are a positive indication of some change among segments of the population, there remain significant inequities in consumption of alcohol and resulting harm, in particular for young people, Māori and Pacific peoples,” Galloway said.

“We still have a significant challenge in New Zealand when it comes to the harmful use of alcohol,” he added.

“The more people cut back, the more we stand to gain in terms of health.”

World rankings

The CIA World Factbook in 2019 ranked New Zealand as 32nd globally in pure alcohol consumption – below Australia, which took 27th place.

That data indicated Kiwis consumed 9.17 litres of pure alcohol per capita that year. The Cook Islands and Latvia topped the table then at 12.97 litres apiece.

But by 2022 the OECD said New Zealanders were drinking just 8.7 litres of pure alcohol per capita.

Last year, people in New Zealand on average had 1.86 standard drinks per adult per day, Stats NZ said.

One standard drink is 10 grams of alcohol, about a can of low-strength (3.5 per cent alcohol volume) beer.

A 750ml bottle of pinot noir (13 per cent alcohol) is 7.7 standard drinks and a one litre bottle of vodka (40 per cent alcohol) is 31.6 standard drinks.

Craft brewers’ tough year

Several domestic craft brewers closed or faced serious financial trouble last year.

Epic Brewing Company called in insolvency specialists on July 25 after experiencing financial difficulties blamed on Covid-19 and increased costs.

But that craft beer brewer found a new buyer a month later.

In August, brewer and gastropub operator Brothers Beer was put into voluntary administration.

Administrators PwC later said high inflation compounded earlier Covid gathering restrictions and border closures, creating major cashflow challenges for Brothers.

Trading continued under administration at Mt Eden and Piha.

And Deep Creek from Auckland’s North Shore went into liquidation in October after a product failure in a huge shipment to China.

John Weekes is online business editor. He has covered high-profile court cases and trials, as well as politics, breaking news and consumer affairs.