Beer Consumption & Hospitality Card Spend Data Decline

Support for the hospitality sector needed more than ever

“The ‘alcohol available for consumption’ data released on Tuesday the 25th of August by Statistics NZ, and recent card spend data reflects how much the hospitality sector is suffering. This highlights the need for a more targeted response for hospitality operators by government” says Brewers Association of New Zealand Executive Director Dylan Firth.

“During lockdown level 4, people had almost no access to hospitality businesses, with only limited take-aways available. The figures just released reflect how beer consumption declined over this time as part of those closures, and ultimately how the hospitality sector is being negatively affected by lockdown measures.” said Firth.

“While we know there was a small increase in supermarket sales of beer, this was in no way offset by the overall reduction for hospitality during this time. The current return to level 3 in Auckland and the long stretch at level 2 for the rest of New Zealand has once again proven a massive blow to the brewing and hospitality sectors. Not only through the immediate lack of access to venues, but the blow to consumer confidence influencing future spending” Said Firth.

“The 6 months from January to June saw a reduction in beer consumption of 8 million litres compared to the same period in 2019. For the wider hospitality sector, electronic card spend in hospitality for the period March to July was down $1.78b or 33% on the same period in 2019” said Firth.

“The brewing industry, like many other sectors in New Zealand, has had a very tough 2020 so far, with two valuable channels, bottle stores and hospitality venues, closed over lockdown periods. This has had a real impact on those in the brewing industry, and with the wider hospitality industry still at a fraction of where it was pre-Covid-19, we face a long road to recovery” said Firth.

“Our members have been the first to acknowledge their role in supporting business where they can. To date our members DB and Lion have supported the hospitality sector in many ways including extension of credit, return of unused product and significant spending on marketing encouraging consumers to support their local” said Firth.

“While we acknowledge the value of the wage subsidy and temporary loss carry back scheme, ultimately businesses will be forced to take on more debt, which is not a sustainable option for many. There is real possibility the hospitality sector will be devastated long term, affecting not only business owner’s livelihoods, but the employees they support. Now is the time for the government to do more to help the hospitality sector. We have seen sector specific initiatives for tourism, media, and aviation but hospitality appears to have been left to languish and this needs to change. A proactive government, focused on the hospitality sector, coupled with the ongoing support of the brewing sector and other suppliers, will mean hospitality and tourism can once again thrive” said Firth.

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