Craft Beer Bubble In New Zealand?

Over the last week or so, some interesting conversations have happened for me around where craft beer is at and going in New Zealand.

I’ll roughly outline some of the points and ideas that have been raised. Not saying I agree with them all, or that there is any specific measurable information available to prove any of the following.

2013-03-07 16.52.09Three Lamps craft beer bar closing. Rent was too high? but the possible main point was they couldn’t get enough customers through the door to buy craft beer, in one of the most affluent parts of New Zealand. Location, parking, rent, passion? may have been contributing factors.

House on Hood (plus the other two bars) sold in Hamilton. Sky Sports Grill for sale/on the market. Why are craft beer bars being sold? cause they are(n’t) viable businesses? profitable? or location? or owners cashing up? These bars plus Three Lamps could see the loss of up to 100 craft beer taps back to the large breweries in Hamilton/Auckland.

Supermarkets and bottle shops, finally rationalizing the range of craft beers on their shelves, as the market continues to become more competitive. The slow-moving beers are being dropped, or just not re-ordered.

Prices dropping, as new players come into the market and try to win market share. They are sacrificing margin for volume. Is this a good move? Is it sustainable?

It seems there have been a lot of breweries open in the last year, whether through building a brewery or starting a brand and contract brewing. There is now a feeling in the market that supply has now outgrown the growth in demand from the customer. Has the growth in the number of new drinkers for craft beer in NZ slowed?

Sky Sports GrillOn the back of this possible slowing of new drinkers, comes the elephant in the room, beer quality. There is a number of beers in the market that are problematic and just not that good. This was highlighted when I had a story relayed to me about a guys friend saying he has given up on trying craft beer cause “you can’t be sure if it is going to be good or not”, “best to stick to the known brands”

Also the recent New Zealand summer was patchy at best, and not a shade on the previous summer which delivered some incredible growth for the beer market.

All in all things in the craft beer market in New Zealand have gotten a whole lot tougher in the last 6 months. Time for a reality check. Improve quality, sharpen prices, offer better value (not necessarily dropping prices), better service and maybe creating some interest in the beers. (many opportunists flooded the market in the last couple of years, offering beers masquerading as craft but really weren’t much more than Crafty Beggars).

Has the shine started to come off craft beer in New Zealand?

Is the craft beer bubble about to burst?

 

 

UPDATE: always good to read the feedback on Facebook after I post a rant. It gets me a little more focused.

I forgot to mention the Sprig & Fern closing in Auckland (more craft beer taps lost)

Maybe my focus should be on the number of craft beer taps lost in Auckland & Hamilton in the last 5 years (or is it 7 years since the Cock & Bull got bought out). We are looking at approx. 100 craft beer taps being lost. But we have gain possibly as much. So maybe for the region we are where we were for craft taps as we were in 2007. The new operators seem to be more passionate about craft, and offering a wider and better(?) range of beers on tap.

UPDATE II: my reference to bubble is more about a correction vs “craft beer is dead”. Kind of like a property bubble or an IT bubble. It bursts, there are casualties, but it doesn’t goes away, and the survivors are stronger, and the growth continues.

EPIC CAROLINA – Hamilton Release

I am a little behind in posting my content from last week, so here are a few photos from House on Hood, Hamilton when we released the Epic Carolina and Culley’s Hot Sauce ran the hot wings competition. Scroll to the end to see the video of the winner, and his winning round of eating hot wings covered in Carolina Reaper.

2014-02-20 18.11.14 New beer – Epic Carolina Amber Ale

2014-02-20 18.11.21 It was hot, humid and busy

2014-02-20 18.11.25

2014-02-20 18.13.08 First round, look at those cold beers, ready to soothe

2014-02-20 18.16.41 Culley himself, is that a devious little smirk, knowing what is to come

2014-02-20 18.16.49 the prize pack…

2014-02-20 18.18.29 and the people are ready

2014-02-20 18.19.21 first round of hot wings

2014-02-20 18.19.30-2

2014-02-20 18.19.36 round two, needs a little more hot sauce

2014-02-20 18.23.04 GO!

2014-02-20 18.23.05 eat it fast before the heat gets ya

2014-02-20 18.23.26 next wing…

2014-02-20 18.23.28 gee Greig, you are looking a bit hot there…

2014-02-20 18.23.33  counting down… 3…2…1,,,

2014-02-20 18.23.52 done

2014-02-20 18.30.52 wings and beer…

2014-02-20 18.30.56

2014-02-20 18.33.09

2014-02-20 19.10.37 gee I reckon I could eat on of those chillies…

2014-02-20 19.15.07 beer and chilli

2014-02-20 19.27.30 Eat a whole Carolina Reaper get a free botltle of Culley’s Carolina Reaper

2014-02-20 19.27.24 The pain!!! But it was worth it for a bottle of Culley’s hot sauce

 

 

Missed out on eating the hot wings?

6th March – Malthouse, Wellington

7th March – Sky Sports Grill, Auckland

[CHANGES] New blogs coming soon

This has been a pretty massive week, including I have changed blogging platform from Blogger to WordPress.

Since “Tasting Tuesday”….

 

Wednesday 19th February – Sam Snead’s House of Whiskey – Single Barrel Bourbon Tasting (special appearance by Epic Carolina)

Sam Snead's House of Whiskey - Bourbon Tasting
Sam Snead’s House of Whiskey – Bourbon Tasting

 

 Thursday – 20th February – Our first stag do tasting at Epic Beer HQ

Stag Do Tasting - Epic Beer HQ

 

Thursday – 20th February – Epic Carolina Hamilton Release – House on Hood (including hot wing eating competition)

Epic Carolina Hamilton Release

 

Friday – 21st February – Auckland Art Gallery – Five Maori Painters Exhibit Opening (beer supplier for the event)

Auckland Art Gallery - Five Maori Painters - Exhibition Opening
Auckland Art Gallery – Five Maori Painters – Exhibition Opening

 

Saturday – 22nd February – blanc Brew Fest (most popular beers for us, Epic Carolina and Coffee & Fig Stout)

350 people, drinking craft beer at blanc in Henderson - Brew Fest 2014
350 people, drinking craft beer at blanc in Henderson – Brew Fest 2014

 

I’ve found it hard to find the time to write blog post over the last few days. The spare time I could have spent blogging has been spent on moving the domain, setting up WordPress, and importing the old blog posts. There is still a bit of fine tuning to do on setup (and learning about WordPress), but I expect to be back into it in the coming week.