Lion Nathan affected by competition, supermarket sales

But DB is a discounter. It has been selling Heineken at prices significantly lower than the comparable Heineken selling prices in Australia, the report said.

Also, de-regulation of the New Zealand liquor industry in 1999 allowed supermarkets to sell alcohol for the first time.

“This changed industry dynamics as it led to significantly more competition at the off-premise retail level,” the report said.

As a result off-premise sales increased at the expense of on-premise sales.

The combination of the impact of supermarkets, discounting and other minor factors had resulted in a 6 percent reduction in the real price of off-premise beer since 1999.

“Competition in New Zealand is expected to remain tough, with price discounting from DB Breweries and smaller participants expected to continue,” the report said.

“Supermarkets, which represent some 30 percent of all alcohol sales and 22 percent of beer sales, now hold significant buying power in what is already a very competitive market.”

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One thought on “Lion Nathan affected by competition, supermarket sales”

  1. Heineken is sold by Lion Nathan in Australia and obvious prefers not to sell much compared to Becks and theirn owned brands.

    NZ pricing is set by Supermarkets and they prefer to sell the hugely popular Heineken compared to other less popular Lion brands

    Article is crap

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