Air NZ waves goodbye to a little kiwi battler as the business beings to change
January 14, 2015
A small New Zealand craft brewer has been taken off the menu on Air New Zealand flights as the airline moves to consolidate to a single supplier. Moa branded beer is a kiwi success story operating from a small South Island city that has been punching above its weight in recent years. The business had also developed an aluminium bottle to bring the weight of the product down to accommodate flying conditions. While Air New Zealand hasn't commented MOA CEO Geoff Ross told media in New Zealand that "From a business point of view it is a blessing in disguise as there was little or no margin," and highlighted the need for business from the same point of origin to partner together lamenting that "This hasn't been the case here,"
MOA has certainly won through brand association but that doesn't mean to say that has converted into the bottom line. The beer will progressively be removed from Air New Zealand lounges around the world and also inflight in coming months. Air New Zealand will now only use Lion Nathan owned brands - a company no longer in New Zealand hands.
Changes for this small business taking on the world from the bottom of the planet don’t’ stop there. The business also announced on Thursday that board Chairman Grant Baker would be stepping down to be replaced by Ashley Waugh. Waugh is already an independent director of the board and takes charge of the business as it struggles to turn a profit and expand into the lucrative Australian market. It begs the question of what could change at the business given the outgoing chair had a strong entrepreneurial pedigree as the executive chairman of 42 Below – a New Zealand success story taking the Russian’s on in the Vodka market. Founder of the 42 Below brand is also no stranger to Moa – he’s Geoff Ross.
The 42 Below brand was sold to Bacardi for $138 million in 2006. The Brewers Association of Australia and New Zealand estimates that:
Domestically produced beer accounts for 93% of beer consumed in Australia creating approximately 4,345 direct jobs in 2010-11.
In terms of revenue to the Government, the value of excises paid by the Australian brewing industry in 2010-11 totalled $1.96 billion.
Direct contribution to the Australian economy, which comprises employee compensation, gross returns on capital and other taxes payable, equated to approximately $4.3 billion in 2010-11.
While in New Zealand:
The New Zealand brewing industry directly contributes $722 million to national GDP. New Zealand brewing employs around 1,800 people directly with many thousands more jobs created indirectly throughout the beer value chain. From grain to glass, the beer value chain is a $2.2 billion industry, comprising an approximate annual spend of $89 million in ingredients, $228 million in manufactured equipment & packaging, $200 million in professional & financial services, $29 million in commercial property services and $25 million in transportation. The value of the retail beer market in New Zealand is equal to $941 million for supermarket & bottle store sales and a further $1.123 billion in pub, bar, cafe & restaurant sales. It is estimated that in 2012 tourists spent $240 million on beer, the equivalent to approximately $5 per stay day per tourist with potential for growth.
Author: EntreHub staff writers
Data: Brewers Association of Australia and New Zealand
Note to readers: This product has pride of place in our office bar fridge and not becaue we have any commercial arrangement in place! we just love it!
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