Sales of packaged beer decline

Press, 3 July 1978, Page 2

Sales of packaged beer decline

New Zealand’s secondlargest company. Lion Breweries, Ltd, reports a further ditop in the sale of beer. The whole of the decline iia the company’s last financial year has been in packaged beers. Accounting to shareholders in their annual report, the Lion directors attribute the fall in the volume of beer sold to an over-all market decline and to the loss of Lion group outlets to the company’s main South Island competitor — Dominion Breweries.

Nevertheless, the directors say that they approve moderate drinking. “Social considerations still remin high on the company’s list of responsibilities and priorities for serving the consumer; thus, it will continue to develop and encourage drinking in moderation and to concentrate on the provision of food ser,vices,” the directors say.

Violence in bars is another concern of the group that rates special mention in the report from the Lion chief executive, Mr John Macfarlane. He claims that the rowdyism and violence are not inevitable consequences of serving liquor. “We are working

closely with the police and local authorities in an effort to minimise such occurrences,” he says.

“It is regrettable that rowdyism caused us to terminate a useful service in Taupo. To assist the traveller we offered a 24hour food service from the Cobb and Com. restaurant, but were forced to revert to normal hours because of unwanted visitors.

“Small neighbourhood taverns in sufficient numbers to cater for demand still appear to us to be the best means of coping with social needs, and we are closely monitoring the success of our ‘Pukemanu’ tavern in Martinborough. This is most successful from a commercial viewpoint, but at times is too popular,” says Mr Macfarlane.

“We entered upon a full scale use of polycarbonate jugs in our bars and made these available also to clients such as clubs and trusts, and we are pleased at their acceptance. “As well as having a useful social purpose in inhibiting the results of violence, they are proving to be of considerable economic benefit through fewer breakages.” The hotels division of the Lion group has so far

sold 75,000 polycarbonate jugs, including 10.000 for export, is now considering how this trend can be extended.

Last year Lion paid S39M in beer duty and the directors say that the levy, increased 38 per cent during the year, disguises the loss in sales volume. The dollar value of sales out of the breweries increased 15 per cent. The group’s business through wholesale wine and spirit merchants went up 23 per cent last year. It sold more liquor and dealt with more merchants.

“Sales through our managed hotels have increased 23 per cent. This increase reflects the popularity of food operations uch as the company’s Cobb and Co. restaurants,” say the directors.

The group’s export sales went from $6.5M in 197677 to S3OM last year. But this was largely the result of securing other manufacturers’ products and sell- 1 ing them overseas. “It is disappointing to record that this move into export factoring has been terminated by the Government’s recent action,” the directors say.

“Export sales, excluding the export factoring, total 56.68 M; this is a slight decline on the comparative figure last year, representing a reduction in the sales of surplus barley from malting requirements.”