New Zealand: Brewers waiting for law facilitating sales of low and zero alcohol beer in supermarkets

New Zealand’s low and zero alcohol beer producers fear losing out on bumper summer profits because a law change allowing their drinks to be stocked in the booze aisle for the first time, will not happen fast enough, stuff.co.nz reported on December 6.

A bill changing the Sale and Supply of Alcohol Act 2012 was due to be introduced into parliament on Monday, December 7, but will not come into force until next year at the earliest.

The wording of the Act has means beer and wine with alcohol levels of 1.15 per cent and below must to be kept separate from more potent drinks, which have to be displayed within a designated area to limit shoppers' exposure to them.

Brewers welcomed the law change last week, but said the outdated rules continued to make their low alcohol drinks harder to find.

They fear missing out on bigger sales as temperatures rise and shoppers buy alcohol for Christmas and summer parties.

Brewers' Guild of New Zealand president Emma McCashin said there had been a huge rise in demand and development of the zero per cent and low alcohol beer market in New Zealand, following a global trend.

"We want this to continue, but not being able to get them stocked in supermarkets in the alcohol aisle has been hampering that," McCashin said.

Justice Minister Amy Adams said the barriers to supermarkets being able to sell low alcohol drinks alongside regular beer and wine would soon be lifted.

"It doesn't make sense that supermarkets technically cannot place these non-alcoholic products alongside alcohol when we're trying to promote responsible drinking," Adams said.

"It's also irritating for supermarkets and confusing for customers."

But frustrations continue for beer producers. Heineken-owned DB Breweries said some supermarkets were not stocking its low alcohol products due to confusion around the law regarding alcohol-free beer.

The company recently released its first zero per cent beer Export Citrus 0.0 which sold in 12 packs.

It says its Export Citrus 0.0 is brewed the same way as normal beer and is blended with natural lemon juice.

DB corporate relations and legal director Matt Wilson said the brewer wanted its low and non-alcoholic beers stocked in the beer isle.

"Common sense tells you that's where you would go to look for beer whether it's alcoholic or non-alcoholic," Wilson said.

"We want to produce more low alcohol or alcohol free beers and it is disappointing a law change will not happen until 2016 at the earliest."

"The sooner that you have the right incentive to make more of them, the better it is for everyone."

Displaying non-alcoholic beer in the alcohol section encouraged the safe and responsible sale and consumption of alcohol - a key objective of the Act, he said.

"Also non-alcoholic beer could be considered an advertisement for alcohol, and according to the Act the promotion of alcohol must be contained in one area," he added.

Low alcohol and alcohol free beer is a fast growing category for producers, largely thanks to lower drink driving limits which came into force last December.

Sales for the New Zealand beer market as a whole increase around 30 per cent between December and February.

Companies caught breaking the existing law can be fined up to $20,000 and have their licence suspended for up to seven days.

Lion, New Zealand's other major brewer, did not produce alcohol free beer - instead focusing on mid strength beer around 2.5 per cent.

Countdown spokesman James Walker said low alcohol beer was a fast growing category.

Countdown supermarkets stock three low alcohol beers: 0.5 per cent Clausthaler, 0.0 per cent Bitburger Drive and Export Citrus 0.0 per cent.

Countdown supermarkets complied with licensing inspector instructions as to where to stock zero per cent and low alcohol products.

"This advice can vary depending on where a store is located in the country," said Walker.

Foodstuffs spokeswoman Antoinette Laird said its supermarkets, which include New World, Pak 'n Save and Four Square stores, displayed low alcohol and zero per cent alcohol products next to the alcohol area.

"We also believe that it would be unethical and irresponsible to place these products within the beverage aisle next to soft drinks," Laird said.

Alcohol free beers stocked by Foodstuffs included Clausthaler, Moritz and DB Citrus.

09 December, 2015