IFAB 2013 Beverages

NEW ZEALAND
BEVERAGES
INDUSTRY 2013
January 2014
iFAB 2013 BEVERAGES REVIEW
January 2014 v1.00
iFAB 2013
The Food and Beverage Information Project
What is the purpose of the food and beverage information iFAB 2013
The Food & Beverage Information Project is the first project?
comprehensive overview of the state of New Zealand’s Food &
Beverage (F&B) industry. Part of the Government’s Business The project pulls together the available information on the food
Growth Agenda (BGA), it is an integrated programme of work and beverage industry into one place, in a form which is familiar
focusing on the six key inputs businesses need to succeed, grow and useful to business. The reports contain analysis and
and add jobs; export markets, capital markets, innovation, skilled interpretation of trends and opportunities to materially assist
and safe workplaces, natural resources and infrastructure. with business strategy and government policy.
Essentially, the BGA Export Markets goal will require lifting the The information will be of vital use to businesses, investors,
ratio of exports from today’s rate of 30% of GDP to 40% by government, and research institutions as the industry expands
2025. This equates to doubling exports in real terms (or tripling and diversifies. This industry view will be very useful to
exports in nominal non-inflation adjusted terms). This in turn government, enabling better dialogue and the opportunity to
equates to achieving a 7% per annum growth rate over the next address issues collectively.
twelve years.
What benefit will this bring to businesses?
This five-year project analyses the main sectors in F&B, including
dairy, meat, seafood, produce, processed foods, and beverages, The Project will have many uses for businesses. These include:
as well as providing an overview of how the industry is fairing in
our major markets. It also conducts in-depth sector reviews on a – As a base of market intelligence to enable business to be
rotating basis. The information is updated annually and feedback much more targeted in their own market research
from users shows the project is acting as a vital tool for – Reviewing and informing offshore market development
companies looking to expand and grow exports. (including export and investment) strategies
– Assisting in identifying areas of innovation and R&D for
Why Food & Beverage? the future
– Identifying strategic partners and collaborators
The Food & Beverage industry is vitally important to the New – Enabling a company to benchmark performance with that
Zealand economy. Food & Beverage accounts for 56% of our of its competitors
merchandise trade exports and one in five jobs across the wider – Monitoring industry activity
value chain. In addition, F&B acts as a vital ambassador for the – Gaining a better understanding of their own industry
country, being in most cases the first exposure global consumers sector
get to “Brand New Zealand.” – Identifying internal capability needs or external inputs
New Zealand’s F&B exports are growing strongly and the How will government use the reports?
country’s export performance is strong and improving relative to
peers. In the 15 years leading up to 2010, New Zealand's food and This information will provide much greater insight into the
beverage exports grew at a compound annual rate of 7% per industry, which is useful for a range of policy development, from
annum. So one way to look at the challenge is to ask – can we regulatory frameworks to investment in science and skills and
continue to grow our food & beverage exports at the same rate? facilitating access to international markets. In particular, a single
To understand if this is possible we need to know what has been source of factual information will enable government agencies to
driving our success. better coordinate their efforts across the system and be more
responsive to addressing industry issues.
OTHER RELATED iFAB REPORTS iFAB 2013
This analysis of the New Zealand beverages sector forms a part of the wider Food & Beverage Information
Project
Other reports, including those from previous years, are available on the MBIE or Coriolis website…
http://www.med.govt.nz/sectors-industries/food-beverage/information-project/ http://www.coriolisresearch.com/reports/
4
NOTE ON DEFINITIONS iFAB 2013
The iFAB project splits the total New Zealand food & beverage industry into six separate sectors; to avoid
double counting, products and firms are only defined and counted in one; some firms may be in another report
“NOT SUBSTANTIALLY TRANSFORMED” “SUBSTANTIALLY TRANSFORMED”
DEFINED AS DAIRY, MEAT, SEAFOOD DEFINED AS PROCESSED FOODS DEFINED AS BEVERAGES
OR PRODUCE
WHAT: Whole or minimally transformed WHAT: Products made from a mixture or WHAT: Juice, fermented or not, made from a
products; typically one single predominant combination of ingredients, rather a single single fruit or vegetable or a mixture or
ingredient; firms that predominantly pack these ingredient; firms that predominantly make these combination of ingredients; water
products products
Ingredients: Reconstituted vegetable
juice blend (water and concentrated
Ingredients: Concentrated Tomatoes, juices of tomatoes, carrots, celery, beets,
Tomatoes
Sugar, Salt, Concentrated White Vinegar, parsley, lettuce, watercress, spinach),
Food Acid (Citric Acid), Natural Flavours contains less than 2% of: salt, vitamin c
(Contains Garlic), Spices (ascorbic acid), natural flavoring, citric
acid, natural flavor.
EXAMPLES: Kiwifruit, milk powder, frozen beef EXAMPLES: Chocolate, ice cream, sauce EXAMPLES: Wine, soft drinks
TRADE CODES: Primarily classified in the global TRADE CODES: Primarily classified in the global TRADE CODES: Classified in the global HS trade
HS trade codes as HS02-15 HS trade codes as HS 16-21 codes as HS22/2009
EXAMPLE FIRMS: EXAMPLE FIRMS: EXAMPLE FIRMS:
SEE RELATED REPORTS SEE RELATED REPORT THIS REPORT
5
iFAB 2013
BENCHMARK – EXPORT GROWTH BY SECTOR iFAB 2013
In 2012 beverages were the fastest growing core food & beverage super-category in absolute dollars and third
fastest in percent terms
ANNUAL CHANGE IN EXPORT VALUE BY TYPE PERCENT CHANGE IN EXPORT VALUE BY TYPE
US$; million; 2012 vs. 2011 %; US$; 2012 vs. 2011
CORE F&B CATEGORIES
Beverage $117 Other Foods 23%
Processed Food $66 Pet & Animal Foods 14%
Seafood $51 Beverage 10%
Pet & Animal Foods $35 Seafood 4%
Other Foods $35 Processed Food 4%
Dairy -$23 Net Dairy 0%

Core F&B
+$67m
Produce -$36 Produce -2%
Meat -$180 Meat -4%
F&B RELATED CATEGORIES
Seed for sowing $30 Fertilisers 57%
Live Animals $27 Tobacco 48%
Tobacco $16 Supplements 33%
Supplements $3 Seed for sowing 28%
Fertilisers $3 Live Animals 15%
HBC/Household -$2 HBC/Household -1%

Net
Pharmaceuticals -$7 Related F&B Pharmaceuticals -3%
+$70m
Source: UN Comtrade database; Coriolis classification and analysis 7

BEVERAGES – WINE – SITUATION iFAB 2013
The wine industry has shown rapid growth driven by Marlborough Sauvignon Blanc; further diversification into
new varieties and new regions should occur going forward
New Zealand wine Competitors
The New Zealand wine industry has achieved spectacular growth New Zealand wine competes directly with other premium temperate
over the last 40 years, going from NZ£51 in exports in 1960 to climate countries. Key competitors include France, Germany, cooler
NZ$1.2b in 2012. Today New Zealand competes successfully with parts of the US (e.g. Oregon) and Chile.
major wine producers, both old world (e.g. France, Germany) and new
(e.g. Australia). New Zealand has achieved an overall premium price
position in–market on par with France (which has been producing Consumers/Markets
wine for ~2,000 years).
Global Financial Crisis (GFC) depressed global demand, pushing
International success to date has been built almost exclusively on down prices. These falling prices have impacted New Zealand wines.
Marlborough Sauvignon Blanc which has become a “must-have” wine
for major wine players. However good Marlborough wine area is now At the same time wine consumption is declining in many EU markets
almost all used. This may be a good thing as Marlborough now has (France, Italy, Spain) for social, lifestyle and economic reasons. These
almost as much area as Burgundy in grapes. twin forces, falling consumption and falling prices, have in turn
triggered a decrease in global wine area and production, particularly
Emergent secondary regions are 20 years behind Marlborough in in the three largest wine producers (France, Italy & Spain). On-going
terms of development. Hawkes Bay, Waipara and Central Otago changes to EU subsidy systems have accelerated the process.
stand out as the next best prospects. However, other than Hawkes
Bay/Gimblett Gravels Syrah, most regions have yet to find “their” New Zealand’s success to date in wine has been primarily in the
wine and the experience of Europe suggest this could take some time. Anglo-Saxon 4 (USA, Canada, UK & AU). Luckily these markets have
had stable-to-increasing consumption. However, New Zealand
Wine production is a fast growing industry for New Zealand, with a producers need to work to decrease reliance on these markets.
number of firms, ranging from very large to very small. Many large
wineries are now foreign owned and on-going acquisitions are China is an emerging growth market for wine globally and is now the
occurring. Foreign ownership now plays a big part in the wine fourth largest wine consuming country in the world in total (not per
industry, and these global firms with their global sales resources and capita) volume, nipping at the heels of Germany. China is now New
reach, provide a path-to-market for introducing global consumers to Zealand’s #5 wine export destination and the fastest growing market
New Zealand wines. by value.
However there is a large group of successful medium sized New Available in-market data suggests that the growth of New Zealand
Zealand owned wineries that, in many ways, are the key force driving wine is at the expense of French wines (i.e. that the two are close
industry quality and innovation forward (e.g. light wine development). substitutes to consumers).
GFC = Global Financial Crisis; Source: Interviews; Coriolis 8

BEVERAGES – WINE – SWOT ANALYSIS iFAB 2013
The New Zealand wine industry is well positioned for further growth, but pressures will continue
STRENGTHS WEAKNESSES
- Islands in the middle of the South Pacific the size of Italy but with only the - Large number of small wineries with low/no economies of scale
population of Singapore; therefore relatively unspoilt
- High debt levels of many small and medium sized wineries
- Strong and growing success in premium/super-premium
- Highly dependant on four countries (AU, UK, USA and Canada)
- Achieves a strong price premium in key markets (similar to France)
- Increasing exports of bulk wine
- New Zealand Sauvignon Blanc now a “must have” for global wine companies
- Lack strong super-premium heritage brands as demanded by brand and status
- Growth in market share in key markets (e.g. USA) conscious Asian consumers
- Innovative and quality-focused winemakers
OPPORTUNITIES ISSUES/THREATS/RISKS
- Continued income growth in Asian markets - Growing consolidation of the wine industry
- Continued growth of New Zealand wine consumption in China - Difficult finding good distributors to gain access into key markets
- Low share in Europe (two thirds of global wine consumption) outside British Isles - Continued growth of bulk wine trade reducing the value of wine
- Joint in-market activity spreading cost of marketing - Continued impact of GFC, reducing wine spend
- Automated vineyard pruning technology reducing requirements for labour - Continued growth of retail brands/store brands in wine
- Strong and growing demand in Asia for premium fortified wines/wine based spirits
(e.g. cognac)
- Reduction of global “wine ocean” supporting higher prices
Source: various company annual reports; various company websites; Interviews; Coriolis 9
BEVERAGES – OTHER BEVERAGES – SITUATION iFAB 2013
Outside wine, the New Zealand beverage sector is primarily focused on production for domestic consumption;
however, exports are growing
Soft-drinks/Flavoured Beverages (7.7% of bev. exports by value) - There are a wide range of smaller/micro breweries
Non-alcoholic beverages are a duopoly controlled by two international New Zealand is a minor beer exporter1, and imports more beer than it
companies that primarily manufacture for domestic consumption: exports, driven in part by the foreign ownership of its two key breweries.
However, beer exports have surged in the last few years and hops is an
- Coca-Cola Amatil, Australian-listed Asia-Pacific licensee of Coca- exporter of specialty hops.
Cola;
Spirits (3.4% of beverage exports by value)
- Frucor, former Apple & Pear Marketing Board juice business, now a
division of Suntory (Japan); maker of V energy drink and the Pepsi Prior to 2000 there were a wide range of small spirit ventures, producing
licensee in New Zealand. small scale niche spirits for the domestic market. At the same time
Independent Liquor launched RTD2 spirit beverages primarily for domestic
Smaller innovators emerging outside core soft-drinks. Organic-producer consumption and export to Australia.
Phoenix (Charlie’s/TBDC) recently acquired by Asahi.
Everything changed with the launch, rapid growth and financial success of
Juice (5.3% of beverage exports by value) 42 Below which created global awareness of NZ as a super-premium spirits
provider. In the wake of 42 Below a large number of new firms have entered
New Zealand exports apple and kiwifruit juice, primarily as a secondary the industry with a wide range of products and brands.
product of the fresh fruit industry. However New Zealand imports +20%
Independent Liquor, recently purchased by Asahi, is the largest player in
more juice than it exports and domestic fruit production cost structures
spirits. Independent initially developed its business around flavoured RTD2
suggest a premium/niche strategy.
drinks, however it is diversifying into other alcoholic beverages. The two
Beer (3.6% of beverage exports by value) main brewers also produce and pack spirits, as well as distribute imported
products and brands.
Beer brewing has been a low growth duopoly controlled by two international
companies brewing for domestic consumption. Independent has recently There are a range of other smaller firms in spirits achieving strong growth
entered the beer market and is gaining share. and the sector is well positioned for further growth (see related iFAB Spirits
report).
- Lion, founded in New Zealand, owned by Kirin (Japan)
Water (0.6% of beverage exports by value)
- DB Breweries (Ltd), founded in New Zealand, now owned by
Heineken (Netherlands) New Zealand has excellent theoretical potential to produce and export
premium bottled water. However, to date, it has realised very little of this
- Independent Liquor, founded in NZ, owned by Asahi (Japan) potential despite 30 years of trying.
1. Mexico, for example, exports 80x as much beer as New Zealand; NZ currently exports about as much beer as the Dominican Republic; 2. RTD = ready-to-drink 10
BEVERAGES – NON-WINE – SWOT ANALYSIS iFAB 2013
New Zealand is currently well positioned for further growth in premium non-wine beverages
STRENGTHS WEAKNESSES
- Islands in the middle of the South Pacific the size of Italy but with only the - No deep cultural unique “spirits” associated with New Zealand
population of Singapore; therefore relatively unspoilt
- Long shipping distance to traditional western markets
- Closer shipping distances to Asia compared to European competitors
- No large New Zealand owned champion growing and driving New Zealand brand
- Demonstrated capabilities in beverage production position in beverages
- On-going growth and success of Frucor/V, and Charlies/Phoenix in non-alcoholic - Limited culture or mentality of super-premium branding or positioning (e.g. relative
drinks category to France)
- Emergent success in spirits (e.g VoC and 42Below) - Not a major producer of many base ingredients of typical beverages (e.g. oranges)
OPPORTUNITIES ISSUES/THREATS/RISKS
- Leverage success of New Zealand wine industry; build on awareness of New - Limited opportunity shipping “water” around the world if it isn’t a premium product
Zealand in wider premium beverages segments
- Changing consumer sentiment (e.g. bottled water backlash)
- Wide range of New Zealand unique plants available as flavouring (e.g. 42 Below
- Failure to achieve large scale export traction outside wine
Manuka honey)
- Hollowing out of management skills in New Zealand industry due to foreign
- Rapidly growing demand for premium alcoholic beverages in Asia
ownership
Source: various company annual reports; various company websites; Interviews; Coriolis 11
BEVERAGES – POTENTIAL AREAS FOR INVESTMENT iFAB 2013
Alcoholic beverages are a major opportunity for investors; wine has shown rapid growth; opportunities exist in
second tier wine regions, cider, developing a premium spirits category and other beverages
Wine (78% of beverage exports by value) brewing experience. After a long period of flat exports, beer exports
New Zealand Sauvignon Blanc wine is now a “must-have” component have recently started growing. However - to date and despite years
of the portfolio for major global wine companies. Three of the top five of trying - there is no major revealed demand for New Zealand beer
US wine companies and three of the largest European alcoholic in any market other than Australia (96% of exports by value), except
beverage companies are in New Zealand. In addition, three of the top as “yet another niche brand.” Microbreweries are small and growing,
five Australian wine companies are in New Zealand. but most are primarily domestic focused. However, Moa Breweries
has listed on the NZX and is making an export push. Future export
success by New Zealand beer will require a unique/differentiated
There are some opportunities for further investment in Marlborough. product (as was the case with wine).
However, future area growth of Marlborough limited due to
geographical constraints.
Spirits (3.4% of beverage exports by value)
New Zealand has clear potential in premium alcoholic beverages,
Large wine firms are either foreign owned by global majors or building, in part, on New Zealand positioning in premium wine. Peer
committed NZ family owners (i.e. Delegat and Villa Maria both have group countries (e.g. Ireland) suggest strong future growth possible.
committed owners). Opportunities exist for new investment in next However, there are limited entry vehicles. At this point in the life
tier down of firms (e.g. Giesen, Lawsons Dry Hills, Chard Farm, Allan cycle, opportunities exist for start-ups into the space. Greenfields by
Scott, Coopers Creek, Kumeu River etc.). However these firms are global player with a strong transferrable skill set also suits.
looking for smart investment that gives them access to a global
salesforce and a route to market.
Cider (1.1% of beverage exports by value)
Investors with transferrable skills or those looking to unlock hidden New Zealand is a major apple producer and exporter. Recently the
value should investigate emergent secondary regions (i.e. “the next cider industry in New Zealand has experienced strong growth, both
Marlborough”). for domestic consumption and export. Exports have shown strong
growth over the past decade, almost exclusively to Australia (96%).
While there are a large number of producers, most export volume is
Soft drinks (7.7% of bev. exports by value) produced by the two main brewers (Heineken/DB & Kirin/Lion).
In soft drinks, while both Frucor/V and Charlie’s/Phoenix are
attractive, but both recently changed hands for top dollars. Both are Water (0.6% of beverage exports by value)
now Japanese owned.
Limited opportunities in exporting bottled water. At this late point in
the global life-cycle, meaningful success will require global best
Beer (3.6% of beverage exports by value) practice marketing (cf. Lynda Rae Resnick). Best fit would be for
New Zealand produces hops and barley and has ~150+ years of beer investor with transferrable capability.
12
BEVERAGES – SUPPLY CHAIN iFAB 2013
Beverages have a relatively simple supply chain
SIMPLIFIED MODEL OF NEW ZEALAND BEVERAGE SUPPLY CHAIN

(model; ANZSIC codes as available))
Domestic
Im p o r t e d Gr oc er y Su p er m a r k et s
m a r k et
b e ve r a g e s w h o l esa l e & o t h e r r e t a il
( F 3 6 0 - 10 0 )
A p p l e /p e a r S o f t d r in k Distributor Liquor
growing manufacturing w h o l esa l er specialists
( A 0 13 - 4 0 0 ) ( C 12 1 - 10 0 )
Other fruit C id e r Liquor/tobacco1 Hospitality/

growing manufacturing w h o l esa l e F o o d s e r v ic e
( r e m . A 0 13 ) ( F 3 6 0- 600)
H o p s /o t h e r B eer
ingredients/ manufacturing
imports ( C 12 1 - 2 0 0 )
S p ir it S e a f r e ig h t Beverage/liquor Su p er m a r k et s
manufacturing Airfreight w h o l esa l e2 & o t h e r r e t a il
( C 12 1 - 3 0 0 ) ( in - m a r k e t )
Gr a pe W in e m a k in g Hospitality/
growing ( C 12 1 - 4 0 0 ) F o o d s e r v ic e
( A 0 13 - 10 0 ) I n t e r n a t io n a l
m a r k et s
1. Tobacco inseparable at source; 2. There may be one or more layers of wholesaling, depending on product or market; some wholesale functions may be captive inside retailers or foodservice operators; Source: Coriolis 13
iFAB 2013
GLOBAL WINE PRODUCTION iFAB 2013
The global surplus (the European “wine lake”) is falling as the decline of global wine production meets rising
consumption
GLOBAL GRAPE AREA (ALL USES) 50 YEAR GLOBAL WINE PRODUCTION
Hectares; millions; 1961-2011 Litres; millions; 1961-2011
10 40
9
35
8
UN FAO 30 UN FAO
7
6 25 OIV
5 20
4
15
3
10
2
1 5
- -
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
50 YEAR GLOBAL WINE PRODUCTION PER CAPITA GLOBAL WINE PER CAPITA PRODUCTION VS. CONSUMPTION
Litres/person; 1961-2011 Litres/person; 1961-2011
35
10
9 30
8
50y
CAGR Global surplus Production (OIV)
7 25
-1% Consumption (OIV)
6
20
5
4 UN FAO
15
3
2 10
1
5
-
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
-
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: UN FAO AgStat database; OIV “Statistical report on world vitiviniculture 2013”; Coriolis analysis 15
GLOBAL WINE PRODUCTION BY REGION iFAB 2013
Global wine production growing outside Europe, driven by East Asia (particularly China) and Australasia; New
Zealand produces 0.6% of global wine
GLOBAL WINE PRODUCTION BY KEY COUNTRIES & REGION 51 YEAR WINE PRODUCTION BY REGION
Tonnes; millions; 2012 or as available Litres; millions; 1961-2012
31.6
51y
Greece 0.7
0.4 CAGR
Portugal 0.3 -
0.2 50y
0.3 1% 28.8 0.3%
1%
CAGR
0.6 3.4
1.2 27.0
Other Europe, 2.2 , 9% -
0.0
0.4 25.6 0.7
0.2
- 25.2
USA, 2.1 , 8% Other NA 3.1 1.7 1.2
0.8 0.8 SS Africa 2.3%
Germany, 0.9 , 4% 0.2
-
0.4 1.0
3% 0.3 0.2 NA/ME/CA -4.2%
2.7
1.4 2.3 1.7 E Asia 10.4%
21.5
0.4 1.1
0.3
N America, 2.8 , 11% Australia, 1.3 , 5% 1.8 3.1 C/S America 0.5%
Spain, 3.0 , 12% 1.8
New Zealand 2.4
-
0.0
0.2
Australasia 0.6% 2.4 1.5 Australasia 4.5%
1.3 5% Chile
1.3 0.2
0.7 2.8 N America 2.9%
5%
Total = C/S America
Europe, 14.9 , 59% 25.2m litres 3.1
Argentina
12%
1.2
24.9
5%
22.3
E Asia
Italy, 4.0 , 16% 1.7 6% Brazil 0.3 1% 19.7
18.7
China Other C/S America 16.2
1.5 0.4 14.9 Europe -0.2%
6% 2%
South Africa
1.0
4% Japan 0.1 0%
France, 4.1 , 16%
NA/ME/CA 0.2 1%
Other Africa
0.01
1961 1971 1981 1991 2001 2012
0%
Source: OIV 2012 preliminary; UN FAO AgStat database 2011 where not available in OIV; Coriolis analysis 16
TOP 30 WINE PRODUCING COUNTRIES iFAB 2013
Over the past decade, global wine production shrinking across all major Western European producers and
growing elsewhere; New Zealand is the 18th largest producer and led the top 30 in growth over the decade
TOP 30 WINE PRODUCERS 10 YEAR WINE PRODUCTION GROWTH RATE CAGR
Litres; million; 2011 %; tonnes; 2002-2012 or 2001-2011
France 4.1 France -1.9%

Italy 4.0 Italy -0.6%
Spain 3.0 Spain -1.0%
USA 2.1 USA 0.1%
China 1.5 China 2.9%
Australia 1.3 Australia 0.4%
Chile 1.3 Chile 8.4%
Argentina 1.2 Argentina -0.7%
South Africa 1.0 South Africa 3.4%
Germany 0.9 Germany -0.9%
Russia 0.7 Russia 7.1%
Portugal 0.3 Portugal -7.3%
Romania 0.3 Romania -4.9%
Greece 0.3 Greece 0.2%
Brazil 0.3 Brazil -1.0%
Austria 0.3 Austria 1.1%
Serbia 0.2 Serbia 3.0%
New Zealand 0.2 New Zealand 13.5%
Ukraine 0.2 Ukraine -0.6%
Hungary 0.2 Hungary -11.4%
Moldova 0.1 Moldova -2.5%
Bulgaria 0.1 Bulgaria 0.0%
Georgia 0.1 Georgia 6.4%
Switzerland 0.1 Switzerland -1.4%
Japan 0.1 Japan -3.3%
Source: OIV 2012 preliminary; UN FAO AgStat database 2011 where not available in OIV; Coriolis analysis 17
SUMMARY - OTHER GLOBAL BEVERAGES iFAB 2013
New Zealand has a relatively minor position in the global beverage trade outside wine; cider is the key standout
GLOBAL BEVERAGE METRICS BY PRODUCT TYPE/CATEGORY

2011 or as available
New Zealand
Global Global cross- % of production share of world
production border trade that crosses exports
Product L; b; 2012 L; b; 2011 borders % of l; 2011 Top 5 global exporting countries
Alcoholic Wine 25b 11b 45% 2.4% France, Italy, Spain, Australia, Chile
Beer 185b 13b 7% 0.2% Mexico, Netherlands, Germany, Belgium, UK
Cider 3b 0.7b 23% 1.6% Sweden, Ireland, Germany, UK, Netherlands
Spirits 25b 13b 52% 0.2% UK, France, USA, Germany, Mexico
Non- Juice 60b 13b 22% 0.2% Brazil, USA, Belgium, Netherlands, Germany
alcoholic
Soft drinks 595b
16b 3% 0.4% Austria, Germany, Netherlands, Switzerland, USA
Energy 5b
drinks
Bottled 232b 30b 13% 0.06% France, Italy, Belgium, USA, Germany
water
Source: OIV; UN FAO AgStat database; Beverage Marketing Corp; Rabobank; NACM; UNCTAD; UN Comtrade database; Coriolis analysis & estimates 18
iFAB 2013
WINE – KEY PRODUCTION METRICS iFAB 2013
New Zealand is increasing wine production long term primarily through increasing the amount of land growing
grapes
TOTAL HECTARES IN GRAPES TONNES CRUSHED
Hectare; 1961-2013 Tonnes; 000; 1961-2013
40,000 350
35,000
300
30,000 52y 52y
250
CAGR CAGR
25,000
8.7% 200 8.3%
20,000
150
15,000
100
10,000
5,000 50
- -
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
AVERAGE YIELD TONNES PER HECTARE NUMBER OF GRAPE GROWERS
Tonnes/hectare; 1961-2013 #; actual; 2000-2013
25 2,000
1,800
20 1,600 Geographic units (SNZ)
1,400 Enterprises (SNZ)
15 1,200
1,000
10 800 Growers1 (NZW)
53y 600
5 CAGR
400
-0.3%
200
-
-
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1. Appears to be NZW member growers not total; Source: various NZWine annual reports; UN FAO AgStat database; MAF/MPI; Coriolis analysis 20
WINE – KEY PRODUCTION METRICS iFAB 2013
Area growth is occurring predominantly in Marlborough and in Sauvignon Blanc and Pinot Noir
TOTAL HECTARES IN GRAPES BY REGION SHARE OF HECTARES IN GRAPES BY VARIETY

Hectare; 000; 1992-2013 % of hectare; 1992-2013
21y
Change
100% Other red
Unknown
35 Other NI +1 Merlot
Other NI
Gisborne -
90%
Gisborne
Pinot Noir
30 Hawkes Bay Hawkes Bay +4
80%
Marlborough Cabernet Sauvignon
Other white
Nelson Pinot Gris
70%
25 Canterbury Riesling
Otago
60%
20
50%
Marlborough +21
15
40% Sauvignon Blanc
30%
10
20%
5
Nelson +1
10%
Canterbury +1
Chardonnay
Otago +2
- 0% Muller Thurgau
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: various NZWine annual reports; Coriolis analysis 21
WINE – AREA VS. COMPETITORS iFAB 2013
New Zealand does not yet have a lot of area in wine relative to competitors, either at a country or a regional
level
WINE GRAPE AREA: NZ VS. SELECT COUNTRY & REGION
Hectare; 2012 or as available
COUNTRY (ha; 000) REGION (ha; actual)
Spain 1018 Bordeaux 120,000

France 800 Côtes du Rhône 83,800
Champagne 35,200
Italy 769
Burgundy 29,500
Portugal 239
Sancerre 2,600
Romania 205 Pouilly-Fume 1,200
Greece 110
Hungary 64 Sonoma County 24,280
Napa Valley 17,400
Turkey 517 Oregon 8,094
Iran 239
South Australia 69,970
NSW 38,363
China 570 Victoria 24,713
Western Australia 10,316
USA 407 Tasmania 1,229
Argentina 221
Marlborough 23,232
Chile 205
Hawkes Bay 5,093
Australia 169
Gisborne 1,608
South Africa 131 Otago 1,909
New Zealand 36 Canterbury 1,454
Source: UN FAO AgStat; Statistics NZ; Department of Statistics; DairyNZ; Coriolis analysis 22
WINE – PRICES iFAB 2013
The price of New Zealand grapes to the grower and wine at the border were growing until the global financial
crisis; since the there has been a strong correction that appears to have recently bottomed out
AVERAGE ANNUAL GRAPE PRICE PER TONNE AVERAGE DECLARED FOB WINE1 EXPORT VALUE PER LITRE
NZ$; actual; 1991-2012 NZ$; 1988-2012
$2,000 $10.00
$8.00
$1,500
$6.00
$1,000
$4.00
$500
$2.00
$- $-
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1. Uses HS 220410; Source: Statistics New Zealand database; various NZWine annual reports; Coriolis analysis 23
OTHER BEVERAGES iFAB 2013
New Zealand also exports a range of other beverages
Flavoured beverages
Beer Cider Spirits Juice Soft drinks Energy drinks Water

Key Hops Apples Whey alcohol Apples Sugar/sweetener Sugar/sweetener Water
Ingredients Malted barley Pears Grain Kiwifruit Flavours Flavours
Other Other fruit Juices
Source of NZ History of hops Major apple Whey byproduct of Major apple & Major producer of Early entrant in new Country image
comparative production producer dairy industry kiwifruit producer obscure fruits category Marketing
advantage (e.g. feijoa)
Experience in beer IP controlled Launched in
production varieties Australasia before
arrival of Red Bull
Example
1. Technically a soft drink is a flavoured beverage, typically sweetened and carbonated; Source: various; photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis analysis 24
iFAB 2013
NUMBER OF FIRMS iFAB 2013
The number of beverages manufacturing firms has grown over the past decade; however in 2012 wine and beer
increased number of enterprises while spirits and soft drinks consolidated
NUMBER OF BEVERAGES MANUFACTURING ENTERPRISES1 CHANGE IN NUMBER OF BEVERAGE MNFG. ENTERPRISES
Enterprises; 2002-2012 Enterprises; absolute change; periods as given
552 557 10 YEAR CHANGE 1 YEAR CHANGE

528
475
444 Wine 193 7
441
410
376
359 Wine &
368 375
335 Cider
365 Spirit 13 -2
310
324
287 294
264
230
214
204
182 Beer 19 3
30 28 Spirits
28
20 21 24 28 28 27
15 16 61 64 Beer
47 49 47 39 39 53
47 46
45 Soft drink 22 -3
78 79 83 85 82 93 90 Soft drinks
68 68 76 76
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Note: 2012 data latest available as of Oct 2013; defined as C121-100 Soft Drink & Cordial, C121-200 Beer, C121-300 Spirit, C121-400 Wine and other alcoholic beverages; Source: Statistics NZ business demographics
database; Coriolis analysis 26
iFAB TOP TEN BEVERAGES FIRM TURNOVER FY12 iFAB 2013
Lion BSW continues as the largest beverages firm in New Zealand by turnover in FY12
ANNUAL TURNOVER BY TOP 10 BEVERAGES FIRMS

NZ$m; FY2012
Lion - Beer, Spirits & Wine NZ 1 $613
CCA 2 $494
DB Breweries 3 $466
Independent 4 $414^
Frucor 5 $406
Pernod Ricard 6 $236
Delegat's 7 $220
Constellation 8 $1961
Villa Maria 9 $120*
Treasury $113
^ Uses FY10 Independents most recent available financials; 1. Uses FY13 Feb year end; *Estimate; Source: various company annual reports; NZCO; Coriolis estimates and analysis 27
iFAB TOP TEN BEVERAGES TURNOVER GROWTH FY12 iFAB 2013
FY12 was a difficult year for the top 10 beverages firms with only Constellation and Treasury achieving sales
growth
CHANGE IN ANNUAL TURNOVER BY TOP 10 BEVERAGES FIRMS ANNUAL TURNOVER % GROWTH BY TOP 10 BEVERAGES FIRMS
NZ$m; FY2012 vs. FY2011 NZ$m; FY2012 vs. FY 2011
Constellation 1 $4 Constellation 1 2%
Treasury 2 $2 Treasury 2 2%
Frucor -$10
* 3 Frucor -2% 3
Delegat's -$11 4 DB Breweries -3% 4
DB Breweries -$16 5 Lion - Beer, Spirits & Wine NZ -3% 5
Lion - Beer, Spirits & Wine NZ -$22 6 Delegat's -5% 6
Pernod Ricard -$22 7 CCA -6% 7
CCA -$31 8 Pernod Ricard-9% 8
Independent Independent
No data No data
Villa Maria Villa Maria
*Estimate; Source: various company annual reports; NZCO; Coriolis estimates and analysis 28
TOTAL BEVERAGES FIRM TURNOVER iFAB 2013
The New Zealand beverages industry is relatively consolidated, with the top ten firms accounting for about two
thirds of turnover in FY12
TOTAL NEW ZEALAND BEVERAGES INDUSTRY ANNUAL TURNOVER BY TOP 10 BEVERAGES FIRMS & OTHER
NZ$m; FY2012
Top 5
48%
Top 10
Lion - Beer, Spirits & 66%
Wine NZ, $613 , 12%
Other 500+ firms

$1,702 CCA, $494 , 10%
34%
TOTAL=
$4,988m
DB Breweries, $466 , 9%
Independent^
$414
8%
Treasury $113 2%
Frucor, $406 , 8%
Villa Maria $120 3% Delegat's Pernod
$230 Ricard
5% $236
Constellation $196 4% 5%
^Independent uses FY2010; N/C = not calculable from data available; Source: various company annual reports; NZCO; Coriolis estimates and analysis 29
EMPLOYMENT BY SECTOR iFAB 2013
The beverages processing industry has grown employment over the past decade, though total employment is
down in 2012 driven by soft drinks and spirits
TOTAL EMPLOYMENT BY BEVERAGES MNFG. ENTERPRISES CHANGE IN BEVERAGES MNFG. EMPLOYMENT
Headcount; as of Feb; 2002-2012 Absolute change; periods as given
9,370
9,270 10 YEAR CHANGE 1 YEAR CHANGE
8,950 9,050 9,010
8,930
8,670
8,330
8,190
7,810
Wine 950 60
7,400
5,290
5,260 4,830
4,750 4,810 Wine &
4,920 Cider
4,730
4,310 4,380
4,240 Spirit 150 -80

3,860
510 430 Spirits

520 520
450 590 590 640 590
280 270 Beer 280 90
1,600 1,690 Beer
1,490 1,540
1,460 1,500 1,470 1,440
1,410 1,580 1,700
Soft drink 230 -110

1,980 2,070 2,060 2,190 2,080 Soft drinks
1,850 1,720 1,730 1,900 1,850 1,900
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Note: 2012 data latest available as of October 2013; 1. Defined as C113-100 Milk & Cream processing and c113-300 Other beverages processing; Source: Statistics NZ business demographics database; Coriolis analysis 30
EMPLOYMENT BY REGION iFAB 2013
Beverages manufacturing employment growing in Marlborough and Otago/Southland and declining in

Canterbury and Auckland; limited change elsewhere
BEVERAGES MNFG. EMPLOYMENT BY REGION 5 YEAR CHANGE IN BEVERAGES MNFG. EMPLOYMENT BY REGION
Headcount; as of Feb; 2007-2012 CAGR; Absolute change; 2007-2012
9,270 9,370 Classified elsewhere 366

8,950 9,050 9,010
8,930
Northland -20
2,542
2,637
2,367 2,439 2,828 2,733 Classified elsewhere1 Auckland -220
40
70 45
40 Waikato/BOP -105
40 50 Northland
Hawkes Bay/Gisb 15
3,000
2,980 2,990
3,050 2,620 2,760 Auckland
Wel/Mana/Tara 15
280 Nelson/Tas/WC 20
300 275 255 Bay of Plenty/Waikato
360 245
760
660 690 675 Hawkes Bay/Gisborne
660 710
170 Marlborough 80
200 285 250
220 175 235 Wellington/Manawatu/Taranaki
275 275
250 295 270 Nelson/Tasman/West coast
1,190 Canterbury -130

1,050 1,170 1,120 Marlborough
1,090 1,130
600 620 660 570 470 Canterbury

540 Otago/Southland 59
373 373 443 366 382 432 Otago/Southland
2007 2008 2009 2010 2011 2012 5y ABS

+80
1. Data is geographic level; classified elsewhere would include non-”beverages manufacturing” activities (e.g. regional distribution & wholesaling); Source: Statistics NZ business demographics database; Coriolis analysis 31
EMPLOYMENT BY FIRM iFAB 2013
The top five employers account for about half of industry employment
BEVERAGES MNFG. EMPLOYMENT BY KEY FIRM

Headcount; 2012, 2013
Lion - Beer, Spirits

& Wine NZ, 1,000
CCA, 1,000 , 11%
Other, 4,050 , 45%

Total =
9,010
Frucor, 900 , 10%
Pernod Ricard,
750 , 8%
DB Breweries,
500 , 5%
Delegat's, 50 , 1%
Treasury, 70 , 1% Constellation, 270 , 3%
Independent, 170 , 2%
Villa Maria, 250 , 3%
Source: SNZ business demographics; Kompass; various firm websites; published articles; Coriolis interviews & analysis 32
iFAB TOP TEN NEW BEVERAGE INVESTMENT iFAB 2013
Recent investment has been in upgrading and expanding production
IDENTIFIED MAJOR INVESTMENTS IN NEW PLANT/EQUIPMENT

Identified, as of October 2013
Ra nk A nnou nc ed In v e s t m e n t F ir m F a c il it y Location O p e n e d /p l a n n e d
1 2012 $35m Coca-Cola Amatil Plant upgrade in Mt Wellington, Auckland 2012

Auckland (employing 400 in Auckland
and 1,000 Nationally)
2 2012 $30m Lion Redevelopment of the Speight's Brewery Dunedin 2013
3 2011 $20.1m DB Breweries New brewhouse Waitemata 2011
4 Mar 2011 $15m Coca-Cola Amatil $15m investment in beverage bottle plant Christchurch Jan 2012
in Christchurch
5 May 2012 N/A Babich Building a new 6,000t winery at Cloudy Marlborough 2014
Bay Business Park, for Marlborough crop
6 2012 $4m Monteiths Upgraded brewery Greymouth, West Coast 2012
7 2012 $4m Simply Squeezed Expanding, sourcing additional oranges Napier 2012
and greater processing facilities
(100 staff, 43 franchises, 22 grower
suppliers)
8 Sept 2013 N/A Indevin Leasing and developing 124-hectare Awatere 2014
sauvignon blanc vineyard in the Awatere
Valley
9 2012 N/A MO2 New plant planned with 9,500 bottles/hr Waikato 2013
with 6 flavours of carbonated milk drink
10 2011 N/A Delegat’s Group Upgrading facility in West Auckland, new Auckland 2012
bottling and pack line
Source: Coriolis from various published articles, annual reports & interviews 33
iFAB TOP TEN BEVERAGE ACQUISITIONS iFAB 2013
There have been a range of identified acquisitions in the beverages industry, ranging from very big to small
IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND BEVERAGES FIRMS

As of October 2013
Ra nk Acquirer Ta r g et Price Date Details
1 Heineken ~50% of APB/DB Breweries S$7.9b Sep 2012 Heineken acquired remaining shareholding in Asia Pacific Breweries it didn’t own
it did not own from Fraser & Neave (JV since 1931); 30 breweries across Asia including DB
2 Asahi Independent Liquor $1.5b Aug 2011 From Erceg family and PEP
3 Asahi Charlies Beverages $129.3m July 2011 New Zealand-based fruit juice producer, includes Charlies, Phoenix and Juicy Lucy
brands
4 Delegat’s Group Barossa Valley Estate A$24.7m Apr 2013 Acquisition of the assets of Barossa Valley Estate Limited, including a 41 hectare
vineyard and 5,000 tonne winery in the Barossa Valley, South Australia
5 Independent Liquor The Mill $20.6m May 2013 Nationwide chain of 35 liquor outlets
(Asahi)
6 Foley Family Wines Te Kairanga Wines $11m 2011 127 ha freehold land in Wairarapa, including 6.6 ha of McLeod Vineyard
(USA)
7 Delegat’s Group Hawke's Bay assets of $8.5m Jan 2013 Winery and vineyard assets of Hawkes Bay's Matariki Wines and an associated
Matariki Group company Stony Bay Wines; 61ha of land
8 Treasury Wine Remaining 50% of Rapaura N/A Nov 2012 Acquired 50% share of JV partner Babich (plans to extend winery from 15,000tpa
Estate/Matua Vintners (sales of $14.4m to 25,000; an integrated wine business providing packaging, bottling, laboratory
FY12) and warehousing servicese; expansion value of $11m; change name to Matua
Marlborough
9 DB Breweries 92% of Redwood Cellars $8.2m (AR Jun 2012 DB Breweries bought a majority shareholding in Nelson cider and fruit wine maker
12 p14) Redwood Cellars
10 Foley Family Wines NZ Wine Company N/A Aug 2012 Acquisition adds Grove Mill, Sanctuary and Frog Haven brands to its suite of local
(USA) wines; name changes to Foley Family Wines
MORE BEVERAGE ACQUISITIONS iFAB 2013
…continued
IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND BEVERAGES FIRMS

As of October 2013
Acquirer Ta r g et Price Date Details
Lion NZ (Kirin) Emersons Brewery $8m Nov 2012 Addition of New Zealand Craft brewery to portfolio
Delegat’s Group 2 Marlborough properties N/A Late 2012 121 ha in Wairau Valley and 91 ha in the Awatere Valley
Mission Estate Cape Campbell N/A May 2012 100 ha in Marlborough, Cable Station Rd
Winery
Independent Liquor Founders Brewery N/A Feb 2013 Small Nelson craft brewer
(Asahi)
Folium Vineyard Ltd Fromm and Partner $2.24 Mar 2011 8.4 hectares land in Marlborough
Achim Bauer and Kina Beach Vineyard $2m Feb 2012 6ha vineyard in Tasman
Karin Schoch
Yealands Ager Sectus Wine Estates N/A Aug 2011 Two wineries Hawkes Bay and Awatere Valley
(ASWE)
VinLink Marlborough new winery N/A 2012 New 16,500 T facility at Riverlands estate
Babich Tetley Brook Vineyard N/A Dec 2012 49ha Tetley Brook Vineyard in Marlborough
CLOSURES/DIVESTMENTS iFAB 2013
There have been number of closures in the beverage sector
IDENTIFIED MAJOR CLOSURES INVOLVING NEW ZEALAND BEVERAGES FIRMS

As of October 2013
C om p a ny Date Details
Ascension May 2013 Vineyard (7.56ha) ,winery event venue in receivership (Matakana) ; for sale for $2.3m; 50 job losses
Pernod Ricard Winemakers NZ June 2012 Closes Hawkes Bay Winery as its under-utilised since selling many brands to Lion - consolidating its manufacturing
operations in its Church Road Winery at Taradale. Plans to reinvest in Church Road; 13 job losses
Pernod Ricard Winenmakers NZ Jan 2011 Sells Lindauer brand and others from Gisborne and Hawkes Bay totalling $89m
St Helena April 2011 Mortgagee sale of 41.6 hectare winery in Canterbury (established in 1978 by Mundy family)
FOREIGN INVESTORS iFAB 2013
The New Zealand beverages industry has attracted significant foreign investment
FOREIGN INVESTMENT IN MAJOR NEW ZEALAND BEVERAGES FIRMS

As of October 2013
Date In v e s t o r Origin In v e s t m e n t Investor description
2011 Baywa Germany Turners & Growers (ENZA) Agriculture, building materials & energy
2011 Asahi Japan Independent Liquor Major Japanese brewer
2011 Asahi Japan Charlie’s Group Major Japanese brewer
2009 Foley Family Wines USA Vavasour US wine company
2012 Foley Family Wines USA NZ Wine Company (Grove Mill, Sanctuary US wine company
and Frog Haven brands
2009 Kirin Japan Lion – Beer, Wine & Spirits NZ Major Japanese brewer
2008 Suntory Japan Frucor Beverages Major Japanese brewer
2006 Bacardi Bermuda 42 Below Vodka Largest private, family-owned spirits company in the world (US$5b;
6,000 employees); Bacardi, Grey Goose, Dewar’s, Bombay Sapphire
2001 Treasury Wine Estate Australia Matua Foster’s wine division; spun off in 2011; Penfolds, Wolf Blass,
Jamieson’s Rum, others
1998 BRL Hardy; later USA Nobilo Holdings Global wine producer
Constellation Brands
1993+ Heineken Netherlands DB Breweries Third largest global beer manufacturer (200m hl)
1991+ Pernod Ricard France Pernod Ricard NZ (former Montana) Global spirits manufacturer and marketer
1990 LVMH France Cloudy Bay Louis Vuitton Moët Hennessy (LVMH) is a multinational luxury goods
conglomerate with champagne, cognac, other spirits brands
1939+ Coca-Cola Amatil Australia Coca-Cola Holdings NZ Regional Coca-Cola bottler
Source: Coriolis from various published articles and annual reports 37

iFAB 2013
TOP 10 BEVERAGES FIRM PROFILES iFAB 2013
1 2 3 4
LION – B,S & W NZ COCA-COLA HOLDINGS NZ DB BREWERIES LTD INDEPENDENT LIQUOR
Rory Glass Barry O’Connell Andy Routley Julian Davidson

Managing Director Managing Director Managing Director Chief Executive
DESCRIPTION: Brewer of beer, maker of wine; DESCRIPTION: Manufacturer and distributor of juice DESCRIPTION: Producer of beer and cider; DESCRIPTION: Distiller of spirits, brewer of beer,
Steinlager, Lion Red, Speights, Canterbury Draught, and soft drinks; many brands under license from Monteith’s, Tui, DB, Export Gold, Old Mout, Woodstock, Cruiser, Cody’s, Canterbury Cream,
Stella Artois (license), Mac’s, Isaac’s, Emersons, Coca-Cola USA Heineken (license), Tiger (license) Boundary Road, others
Wither Hills, Corbans, Te Hana, Lindauer, Daniel le
Brun, Huntaway, and marketer and distributor of
many spirits
KEY PRODUCTS: Beer, wine, spirits, RTDs, cider KEY PRODUCTS: Soft drinks, juices, water KEY PRODUCTS: Beer, Cider, RTDs KEY PRODUCTS: RTDs, spirits, beer
OWNERSHIP: Japan; listed on TYO (2503) OWNERSHIP: Australia; listed on ASX OWNERSHIP: Netherlands; listed on Euronext OWNERSHIP: Japan; listed on TYO (2502); Asahi
Heineken International (via Asia Pacific Breweries, Group Holdings
Singapore); Third largest brewer in the world
COMPANY NUMBER: 33986 COMPANY NUMBER: 440039 COMPANY NUMBER: 71013 COMPANY NUMBER: 354989
ADDRESS: 27 Napier Street, Freemans Bay, ADDRESS: The Oasis, Mt Wellington ADDRESS: 1 Bairds Road, Otahuhu, Auckland ADDRESS: 35 Hunua Road, Papakura, Auckland
Auckland 1011 Private Bag 14916, Panmure
Auckland
PHONE: +64 9 357 0111 PHONE: +64 9 570 3000 PHONE: +64 9 259 3000 PHONE: +64 9 298 3000
WEBSITE: www.lionco.com www.lion-nathan.com.au WEBSITE: ccamatil.co.nz WEBSITE: www.db.co.nz WEBSITE: www.independentliquor.co.nz/

www.kirin.com www.kirinholdings.co.jp ccamatil.com www.theheinekencompany.com www.asahigroup-holdings.com
YEAR FORMED: 1860/1968/1977 YEAR FORMED: 1939/1948 YEAR FORMED: 1930 YEAR FORMED: 1987
STAFF EMPLOYED: 1,000 STAFF EMPLOYED: 1,100 STAFF EMPLOYED: 500 STAFF EMPLOYED: 170
REVENUE: $613.2m (FY12; YE Sep) REVENUE: $493.8m (FY12; YE Dec) REVENUE: $465.7m (FY12; YE Sep) REVENUE: $414.4 (FY10)
COMPANY HIGHLIGHTS: Acquired Emerson’s COMPANY HIGHLIGHTS: New MD; $15m COMPANY HIGHLIGHTS: New MD replacing Brian COMPANY HIGHLIGHTS: Acquired The Mill (May
brewery (New Zealand craft beer company) investment in beverage bottle plant in Christchurch; Blake (in March 2013); parent Asia Pacific now fully 2013, 35 stores); acquired Founders Brewery (Feb
parent acquired Fijian brewer controlled by Heineken 2013); write down of assets in NZ of $533m; court
action against former PE owners
Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates 39
5 6 7 8
FRUCOR BEVERAGES PERNOD RICARD WINEMAKERS DELEGAT’S GROUP NOBILO HOLDINGS
CONSTELLATION BRANDS NZ
Carl Bergstrom Fabian Partigliani Jim Delegat Joe Stanton

Group Managing Director Managing Director Managing Director Chief Executive Officer
DESCRIPTION: Manufacturer of soft drinks, juices DESCRIPTION: Wine maker and grower; Montana, DESCRIPTION: Manufacturer of wine; Oyster Bay DESCRIPTION: Grower and manufacturer of wines;
and other beverages; V, Just Juice, Citrus Tree, Church Road, Deutz, Brancott Estate, Stoneleigh, Nobilo, Kim Crawford, Drylands, Monkey Bay, Selaks
Mizone, others Longridge ,
KEY PRODUCTS: Soft drinks, juice, water KEY PRODUCTS: Wine, sparkling wine KEY PRODUCTS: Wine KEY PRODUCTS: Wine
OWNERSHIP: Japan; private; Suntory Holdings (90% OWNERSHIP: France; listed on Euronext OWNERSHIP: New Zealand; listed on NZX:DGL OWNERSHIP: United States; listed on NYSE (STZ)
Kotobuki Realty; Torii family; others) (Delegat family ~66%)
COMPANY NUMBER: 913026 COMPANY NUMBER: 86020 COMPANY NUMBER: 523716 COMPANY NUMBER: 1477933
ADDRESS: 86 Plunket Avenue, Wiri, Auckland 2104 ADDRESS: Level 5, 4 Viaduct Harbour Avenue ADDRESS: Level 1, 10 Viaduct Harbour Avenue, ADDRESS: 45 Station Road, Huapai
Auckland Central, Auckland 1010 Auckland PO Box 471, Kumeu
Auckland
PHONE: +64 9 250 0100 PHONE: +64 9 336 8300 PHONE: +64 9 359 7300 PHONE: +64 9 412 6666
WEBSITE: www.frucor.co.nz www.suntory.com WEBSITE: www.pernod-ricard-nz.com WEBSITE: www.delegats.co.nz WEBSITE: www.constellationnz.com

www.cbrands.com
YEAR FORMED: 1987 YEAR FORMED: 1961 (Montana) YEAR FORMED: 1947/1991 YEAR FORMED: 2004
STAFF EMPLOYED: 900 STAFF EMPLOYED: 750 STAFF EMPLOYED: 50 STAFF EMPLOYED: 270 (Dry 100)
REVENUE: $405.8m (FY12; YE Dec) REVENUE: $235.9m (FY12; YE Jun) REVENUE: $222m (FY12); $230m (FY13; YE June) REVENUE: $192m (FY12); $195.8m (FY13; YE Feb)
COMPANY HIGHLIGHTS: Parent Suntory went COMPANY HIGHLIGHTS: Changed name to Pernod COMPANY HIGHLIGHTS: Acquired Barossa Valley COMPANY HIGHLIGHTS: Parent firm sold all
public in Japan as family owners sold down share (Jul Ricard Winemakers NZ; rebranded Montana as Estate in Australia; acquired 496ha in Marlborough Australian operations in Dec 2010
2013) Brancott and several vineyards in Hawkes Bay; case sales up
+25% to North America; North America will be key
growth region for the group for the next 6 years;
Operating EBIT $44.6m
* estimate; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates 40
9 10
VILLA MARIA ESTATE TREASURY WINE ESTATES
Sir George Fistonich Sam Glaetzer

Founder & Owner Director NZ
DESCRIPTION: Wine maker and grower; Villa DESCRIPTION: Wine maker and grower; Matua
Maria, Vidal Estate, Riverstone, Thornbury, Esk
Valley, Te Awa
KEY PRODUCTS: Wine KEY PRODUCTS: Wine
OWNERSHIP: New Zealand; private (Fistonich OWNERSHIP: Australia; listed on ASX

family)
COMPANY NUMBER: 291073 COMPANY NUMBER: 271464
ADDRESS: 118 Montgomerie Road, Mangere, ADDRESS: Waikoukou Valley Road, Waimauku,
P O Box 43046, Mangere, Auckland Kumeu
PHONE: +64 9 255 0660 PHONE: +64 9 354 5250
WEBSITE: www.villamaria.co.nz WEBSITE: www.treasurywineestates.com

www.matua.co.nz/
YEAR FORMED: 1961 YEAR FORMED: 1974/1985
STAFF EMPLOYED: 250 STAFF EMPLOYED: 70 (?)
REVENUE: $120m* (FY13 estimate) REVENUE: $112.7m (FY12; YE Jun)
COMPANY HIGHLIGHTS: Founder inducted into COMPANY HIGHLIGHTS: Acquired remaining 50%
NZ Business Hall of Fame; founder awarded 2013 share in JV Raparua Vintners (sales $14.4m);
Rabobank Leadership Award released first carbon zero wine
*Estimate; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates 41
OTHER BEVERAGES FIRM PROFILES iFAB 2013
Ownership
Company MD/CEO Business description Company # Formed Revenue Staff Address Website
ENZA Foods John Marks Fruit juice and ingredient 41406 1962/ $57.3m 150 1305 Tomoana Road, www.enzafoods.co.nz
General Manager manufacturer (retail, T&G (Foreign, 1990 Hastings, Hawkes Bay Freshfields and ENZA brands
foodservice, ingredients, toll Germany 64 6 878 9296
processing) in Hastings and owned Baywa)
Nelson
Yealands Wine Estate Jason Judkins Winery in Awatere and Hawkes 1763574 2006 $50- 130 534 Seaview Road www.yealands.co.nz
CEO Bay #6 wine company; NZ; Private 100m+ Seddon , Canterbury
Yealands, Violet, Crossroads, (75% Yealands, 64 3 575 7618
Talisman brands 25% ASWE,
Cutfield others)
Craggy Range Michael Wilding Wine makers across five 912925 1998 $31.8m 120 253 Waimarama Road www.craggyrange.com
Vineyards COO vineyards Foreign AU Havelock North,
(Tandom) 64 6 873 7126
Simply Squeezed Ltd Adrian Barr Manufacturer of fresh juices 2352451 1993/ $25- 100 Level 1, 15 Hardinge Road www.simplysqueezed.com
Chief Executive 7,000 tpa fruit processed Private: Japan 2009 35m* Ahuriri
Frucor
(Suntory)
The Better Drink Co Ltd Craig Cotton Juice and beverage company 969423 1982 $32m* 80 Suite 101, The Axis www.charliesgroup.co.nz/
Chief Executive Foreign, Japan; Building, 1 Cleveland “The Better Drinks Co.”
listed Asahi Road, Parnell, Auckland Charlies, Phoenix, Juicy Lucy,
64 9 837 6740 Stash Tea
Harrington’s Breweries John Harrington Beer and RTD manufacturing 133038 1991 $25- 70 199 Ferry Road www.harringtonsbreweries.co.n
Director and retail NZ; private 30m* Philipstown, Christchurch z
(Harrington 64 3 355 5632
family)
Foley Family Wines NZ Mark Turnbull USA wine company; Vavasour, 307139 1986 $30.9m 60* 13 Waihopai Valley Road, www.grovemill.co.nz
CEO Grove Mill, Te Kairanga, Foreign; USA Renwick, Marlborough Acquired NZ Wine Company
Goldwater, Sanctuary, The (Foley 80%; 64 3 572 8200 2012; 2013 season 5,698 t
Pass, Boatshed Bay, Dashwood 20% NZ) grapes processed
brands
Indevin Ltd Duncan McFarlane Contract wine making services 3164447 2004 / $15- 64 Cloudy Bay Business, Park www.indevin.com
Managing Director Wineries in Hawkes Bay & NZ; Private 2010 30m* State Highway 1, 17-19 (JV with Lion 2010,make many
Marlb; Te Hua, Crux, Leading (82% Wallace, Winefair Close, Blenheim of their brands)
Light, Ngakuta Bay, The Post, 18% others) 64 3 520 6810 Process 15% of all grapes in NZ
The Prospect brands
Just Water Tony Falkenstein Water coolers and water 1440340 1987 $27.8m 60 114 Rockfield Road, www.justwater.co.nz
CEO distribution to offices and NZ; listed Penrose, Auckland
homes; NZ & Au (NZX:JWI) 64 9 630 1300
* Estimate based on number of employees and type of business activity; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Kompass, Coriolis estimates 42
Ownership
Mud House Wine MJ Loza Winery 1144096 2001 $38.0m 60 22 Liverpool St www.mudhouse.co.nz
Group CEO Waipara Hills, Dusky Sounds, NZ; Public Riverlands Estate
Le Grys and Mud House unlisted (19% Blenheim, Marlborough
brands; Incl. NZ Extracts Ltd Marlb Wine 64 3 520 6011
Tourism,
others)
Amisfield Wine Craig Erasmus Winery based in Queenstown 401358 1999 $25- 60 10 Lake Hayes Road, RD 1, www.amisfield.co.nz
Company CEO Amisfield, Arcadia, Lake Hayes NZ; Private 30m* Queenstown,
brands (Richardson, 64 3 442 0556
Darby)
Cloudy Bay VIneyards Ian Morden Winery based in Marlborough 271895 1985 $46.1m 50 Jacksons Road, Blenheim, www.cloudybay.co.nz
Estate Director Cloud Bay, Pelorus, Dolphin Foreign; France Marlborough Purchased Cloudy Bay 1990
brands listed 64 3 520 9140 Marlborough-based vineyards
Soljans Estate Winery Tony Soljan Winery based in Auckland, plus 658205 1937 $10m* 50 366 State Highway 16, www.soljans.co.nz
Managing Director café and functions NZ; Private Kumeu, Auckland
(Tony Soljan) 64 9 412 5858
Morton Estate Wines John Coney Winery operations in Hawkes 668538 1982 / $30- 50 Morton House, 2 www.mortonestatewines.co.nz
CEO Bay and Marlborough; <ortpn Private; Canada 1995 40m* Mountain Road
estate, cathedral cove, (Coney) Epsom, Auckland
Colefield, Kinross, Mill Road, 64 9 300 5053
Nikau Point, Southern Cross
etc,. brands
Mills Reef Winery Nick Aleksich Wine makers; Mills reef, reef 26464 1965 $12-15m 50 143 Moffat Road, www.millsreef.co.nz
General Manager reserve, Prestons brands NZ; Private Bethlehem, Tauranga
(Preston 64 7 576 8800
Family, others)
BevPac New Zealand Graham Lundie Carbonated beverage 803057 1996 $15- 50 76 Lady Ruby Drive www.petbottles.co.nz
Managing Director manufacturers and contract NZ; Private 20m East Tamaki, Auckland TSL plastics
packers; Jolly brand, house (Lundie, Simth, 64 9 914 7180
brands Mazur, Borich)
Juice Products NZ Ltd Peter Stewart Fruit and vegetable juices, 1207153 2002 $7-12m 45 55 Sheffield Street www.jp-nz.com
General Manager concentrates, purees, blends NZ; Private Timaru Marketed by RD2 International
(Honiss, 64 3 687 4170
Walker, Iversen
others)
Ownership
Mission Estate Winery Peter Holley Winery 960152 1851 $10- 40 198 Church Road, www.missionestate.co.nz
CEO NZ; Private 12m* Taradale, Napier
(Marist 64 6 845 9350
Holdings)
Tasman Bay Food Brian Hirst Food and beverage (Fruit wine, 268656 1985 $15- 40 61 Factory Road www.futurefoods.co.nz
Managing Director ciders, juices) manufacturers NZ; Private 20m* Brightwater, Tasman www.tasmanbay.co.nz
and wholesalers (Hirst, others) 64 3 543 5340
Gibbston Valley Ashling Swirtz Winery, restaurant, wine tours 449621 1987 / $5- 40 1820 State Highway 6, RD www.gibbstonvalleynz.com
General Manager based in Queenstown USA; Private 1990 10m* 1, Gibbston, Queenstown
(Griffith, Pike)
Sacred Hill Vineyards David Mason Three wineries; Sacred Hill, 961615 1986/ $35- 35 James Rochfort Place, RD www.sacredhill.com
Managing Director Wild South, Gunn Estate Mixed: Private 1999 40m* 5, Hastings 36% export
brands NZ; 64 6 879 8760
(65% Mason
family) HK
(30% Jebson
Beverage )
Seifried Estate Hermann Seifried Winery ; Aotea, Old Coach 918475 1970 $12- 35 Redwood Road www.seifried.co.nz
Director Road, Rabbit Island, Redwood NZ; Private 15m* Appleby, Nelson
Valley, Seifried, Tapu Bay, (Seifriedn 64 3 544 5599
Venture cove, Winemakers Family)
Collection brands
Palliser Estate Richard Riddiford Winery 387777 1988 $4.3m 30 Kitchener Street, www.palliser.co.nz
Managing Director NZ; Private (FY13) Martinborough
(Riddiford, 64 6 306 9019
Morrison,
others)
Giesen Wine Estate Marcel Giesen Wine makers Canterbury; 257877 / 1983 $40- 30 272 Main South Road www.giesen.co.nz
Director Giesen, Voyage brands 1004906 50m* Hornby, Christchurch
NZ; Private 64 3 344 6270
(Giesen Family)
Pegasus Bay Winery Ivan Donaldson Winery and restaurant in 977771 1985 / $12- 30 Stockgrove Road, RD 2 www.pegasusbay.com
Owner Canterbury NZ; Private 1999 15m* Amberley, North
(Donaldson Canterbury
family) 64 3 314 6869
Babich Wines Ltd Joe Babich Winery; Babich, Iron Gate, The 57990 1916 / $30- 30 Babich Road, Henderson www.babichwines.co.nz
Managing Director Patriarch, Fume Vert brands NZ; Private 1959 40m* Valley, Auckland Export 57%
(Babich Family) 64 9 833 7859
Ownership
Coopers Creek Andrew Hendry Vineyard and cafe 93470 1975 $12- 26 601 State Highway 16, www.cooperscreek.co.nz
Vineyard Managing Director NZ; Private 15m* Huapai, Auckland
(Hendry, Smith 64 9 412 8560
others)
Saint Clair Family Neal Ibbotson Winery; St Clair, Doctors Creek, 1017340 2000 $40- 25 30-32 Liverpool Street, www.saintclair.co.nz
Estate Director Tuatara Bay brands NZ; Private 45m* Riverlands Estate,
(Ibbotson Blenheim
family, others) 64 3 578 8695
Allan Scott Wines & Allan Scott Winery; Allan Scott, Moa ridge, 608289 1993 $15- 25 Jacksons Road, RD 3 www.allanscott.com
Estates Director Scott base brands NZ; Private 20m* Blenheim
(Scott) 64 3 572 9054
VnC Cocktails Ltd Shane McKillen Manufacture and export of 1974727 2007 $5- 25 Level 2 Imperial Building, www.vnccocktails.com
Director ready-to-serve mixed cocktails; NZ; Private 10m* 44 Queen Street,
90% exported (36% McKillen; Auckland
27% Cook, oth) 64 9 915 0015
Mount Riley Wines John Buchanan Wine makers in Blenheim 869998 1997 $15- 20 101 Wairau Road, www.mountriley.co.nz
Managing Director NZ; Private 20m* Glenfield, Auckland
(John 64 9 444 1955
Buchanan)
New Zealand Quality Ian Riley Producers and exporters of 1886777 1990 $5- 20 83 Domain Road www.nzqw.co.nz
Waters Managing Director mineral water; export 50% Mixed; Private 10m* Putaruru
(Riley 58%, 64 7 883 8499
NzO Interntl
H.K 42%)
Moa Brewing Company Gareth Hughes Listed craft beer brewer based 1528394 2003 $2.45m 19 Level 1 Union Fish Co. www.moabeer.co.nz
General Manager in Blenheim NZ; Public (PE Building, 116-118 Quay
Pioneer 25%, Street, Auckland
others) 64 9 367 9472
McCashins Brewery Andrew Murray Brewers of beer, cider, water, 2223762 2006 $10- 18 660 Main Road, Stoke, www.mccashins.co.nz
General Manager spirits manufacturer; Stoke, NZ; Private 15m* Nelson
Rochdale, 26000Vodka, Frute, (McCashin & 64 3 547 5357
Palaeo Water brands others)
Kono NZ Don Everitt Producers of wine brands under 3438072 1977 $16m 16 Level 2, Wakatū House wakatu.org.nz
CEO the Tohu and Kono brands Private/Iwi (12) Montgomery Square,
(Wakatu) (Gp Nelson
$70m) 64 3 578 2069
Hunter's Wines (NZ) Jane Hunter Winery and restaurant; Hunters 140641 1979 $7-10m 15 603 Rapaura Road www.hunters.co.nz
Ltd Managing Director and Spring Creek brands; NZ; Private Blenheim
export 45% (Hunter) 64 3 572 8489
Ownership
Redwood Cider Co Justin Hall Cider manufacturer Old Mout 1774339 1985 / $5- 15 523 Moutere Highway, www.redwoodcider.co.nz
Managing Director Cider, Monteith’s cider brands, DB 92% 2006 10m* RD 1, Richmond, Nelson
Rekorderlig (License) 64 3 544 2706
Bacardi NZ Clare Bradley Vodka spirits manufacturer 42 1057818 2000 $10.8 N/A Lion Nathan sales www.42below.com;
NZ Marketing (Lion) below; acquired by Bacardi Foreign: (“10) www.bacardi.com
Netherlands; Formerly listed in NZ; acquired
Private (Bacardi Sales and marketing by Lion
family)
Other Wineries: Kumeu River, Mt Difficulty, Lawsons Dry Hills, Whitehaven, Trinity Hill, Dog Point, Forrest Estate, Akarua, Peregrine, Mahurangi River, Waimea Estate,
Nautilus, Framingham Wines, Carrick, Murdoch James, Ransom, Anchorage Wines, CJ Pask Winery, Clearview Estate, Waipara Springs Winery and Restaurant,
Moana Park Winery, Kahurangi Estate, Matahiwi Estate, Ata Rangi Vineyards, Bulmer Harvest, No. 1 Family estate, Karikari Estate, Konrad Wines, Spencer Hills estate,
Blackridge Vineyard, Chard Farm, Highfield Estate, The Milton, Rippon Vienyard, Marsden Estate, West Brook Winery, Brookfields Vineyards, Churton, Destiny Bay,
Wild Earth, Lincoln Wines, Richmond Plains, Martinborough Vineyard, Alana Estate, Mt Rosa, Ohinemuri, Kaimira, Fossil; Ridge, Julicher, Opihi, Pleasant Valley Wines
Three Miners, Auntsfield Estate, Ohau Gravel, Urlar estate, Maven Wines, Fromm winery, Two Paddocks, Rockburn, Okahu Estate, Huia Vineyards, Borthwick, Rimu Grove,
Schubert Wines… and many others
iFAB 2013
BEVERAGES – EXPORTS BY REGION iFAB 2013
Over the past decade New Zealand beverages exports have achieved strong growth driven primarily by
developed Western countries
10 YEAR NEW ZEALAND BEVERAGES EXPORT VALUE BY SUPER-REGION
US$m; 2002-2012 10 Year
CAGR Absolute
$1,257 TOTAL 20% +$1,049m
$96 E Asia 21% +$81m

$1,140
$35 SE Asia 21% +$30m
$12 Other 18% +$10m
$80
$32
10y $971 $12
CAGR
20% $51
$25
$10
$816 $496 Australia/ Pacific Is. 21% +$422m
$789
$38 $440
$722 $17
$9 $43
$18
$7
$28
$14 $370
$7
$524 $337 $311

$269
$454 $20
$9
$5
$305 N. America 22% +$262m
$23
$9 $266
$378 $4
$187 $241
$21
$8
$4 $155 $188
$258 $176 $187
$137
$208 $16
$6
$2 $147
$15
$5
$2 $93 $121
$74 $92 $310 $313 Europe 16% +$244m
$274
$58 $229 $227 $222
$43 $156
$116 $141
$69 $83
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: UN Comtrade database; Coriolis analysis 48

EXPORT DOLLARS iFAB 2013
Australia, the USA, the UK and Canada (“the Anglo-Saxon four”) remain the largest markets by value for New
Zealand’s beverages exports
TOP 25 BEVERAGES MARKETS BY EXPORT VALUE
US$m; 2012
Australia $473
USA $239
United Kingdom $235
Canada $67
Japan $39
China $27
Netherlands $23
Hong Kong SAR $19
Singapore $18
Ireland $11
Sweden $11
Malaysia $10
South Korea $10
Germany $8
France $7
Cook Isds $6
United Arab Emirates $6
Belgium $5
Denmark $5
Fiji $4
Papua New Guinea $4
Philippines $3
Latvia $2
Thailand $2
Finland $2
EXPORT DOLLAR GROWTH iFAB 2013
Australia, the US & Canada led export dollar value growth, but strong growth coming from a wide range of Asia-
Pacific countries; UK growth is slowing
TOP 25 BEVERAGES MARKETS BY CHANGE IN EXPORT VALUE
US$m
5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12
Australia $220 Australia $54

USA $95 USA $29
United Kingdom $49 Canada $10
Canada $35 China $8
China $26 Japan $4
Japan $23 Singapore $3
Hong Kong SAR $15 Papua New Guinea $3
Netherlands $13 Hong Kong SAR $3
Singapore $11 Malaysia $2
Malaysia $9 Sweden $2
Sweden $7 Germany $2
United Arab Emirates $4 South Korea $1
South Korea $3 United Kingdom $1
Papua New Guinea $3 Thailand $1
France $3 France $1
Ireland $2 Netherlands $1
Germany $2 United Arab Emirates $1
Belgium $2 Colombia $0.4
Philippines $2 Bulgaria $0.4
Latvia $1 Kuwait $0.3
Cook Isds $1 Samoa $0.3
Thailand $1 Cambodia $0.3
Norway $1 Tonga $0.2
Samoa $1 Qatar $0.2
Ukraine $1 Cayman Isds $0.1

EXPORT DOLLAR DECLINE iFAB 2013
Vietnam led declining markets by value; signs European situation deteriorating in some secondary markets
BOTTOM 25 BEVERAGES MARKETS BY CHANGE IN EXPORT VALUE

US$m
5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12
-$2.6 Viet Nam -$3.5 Viet Nam

-$0.3 Estonia -$1.7 Ireland
-$0.3 South Africa -$1.3 Denmark
-$0.2 Bahrain -$0.7 Norway
-$0.2 Panama -$0.6 Finland
-$0.2 Benin -$0.6 Brazil
-$0.2 Slovenia -$0.5 American Samoa
-$0.1 Greece -$0.3 Indonesia
-$0.1 Vanuatu -$0.3 Vanuatu
-$0.1 Ethiopia -$0.2 Poland
-$0.1 Barbados -$0.2 Solomon Isds
-$0.1 Norfolk Isds -$0.2 Barbados
-$0.1 Cuba -$0.2 Italy
-$0.1 Chile -$0.2 French Polynesia
-$0.0 French Polynesia -$0.2 New Caledonia
-$0.0 Poland -$0.1 Philippines
-$0.0 Tuvalu -$0.1 India
-$0.0 Kazakhstan -$0.1 Norfolk Isds
-$0.0 Czech Rep. -$0.1 Czech Rep.
-$0.0 Pakistan -$0.1 Guam
-$0.0 Areas, nes -$0.1 Bahrain
-$0.0 Costa Rica -$0.1 Syria
-$0.0 Russian Federation -$0.1 Bermuda
-$0.0 El Salvador -$0.1 N. Mariana Isds
-$0.0 Pitcairn -$0.1 Ukraine

PERCENT GROWTH iFAB 2013
Strong growth rates coming out of a wide range of smaller markets, particularly across Asia-Pacific region
TOP 25 BEVERAGES MARKETS BY CAGR PERCENT CHANGE IN EXPORT VALUE

US$m; %
5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12
Portugal 271% Austria 3257%

Timor-Leste 152% Papua New Guinea 378%
Cambodia 101% Jamaica 286%
Kiribati 83% Cambodia 238%
Ukraine 78% Kuwait 210%
China 74% Colombia 196%
Colombia 63% Timor-Leste 157%
Bulgaria 56% Bulgaria 110%
Indonesia 54% Marshall Isds 105%
Malaysia 54% Iceland 75%
Malta 50% Thailand 67%
Papua New Guinea 38% Qatar 65%
Hong Kong SAR 36% Cayman Isds 54%
Macao SAR 35% Russia 44%
Austria 34% China 41%
Mauritius 32% Germany 39%
Solomon Isds 31% Turkey 38%
Norway 30% Malaysia 27%
Latvia 29% Spain 27%
Qatar 28% Mexico 27%
Philippines 27% Switzerland 27%
Mexico 26% Samoa 25%
Sweden 24% Sweden 25%
United Arab Emirates 24% Singapore 21%
Japan 21% Tonga 21%

PERCENT DECLINE iFAB 2013
In terms of rate of decline, unstable and tertiary markets predominate
BOTTOM 25 BEVERAGES MARKETS BY CAGR PERCENT CHANGE IN EXPORT VALUE

US$m
5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12
-3% Vanuatu -48% Guam

-3% Poland -52% Bahrain
5 year -5% Czech Rep.
1 year -53% Saint Lucia
CAGR -8% South Africa CAGR -59% Poland
-11% Chile -61% Solomon Isds
-12% Costa Rica -72% Wallis Isds
-17% Tuvalu -78% Czech Rep.
-18% Greece -86% Viet Nam
-20% Bahrain -94% Falkland Isds
-29% Viet Nam -94% Curaçao
-35% Estonia -100% Pitcairn
-100% Macedonia -100% Zimbabwe
-100% Iran -100% Vatican City
-100% Ecuador -100% Afghanistan
-100% Bosnia -100% Ghana
-100% Myanmar -100% Antigua
-100% Pitcairn -100% Serbia
-100% El Salvador -100% Iran
-100% Pakistan -100% Croatia
-100% Kazakhstan -100% Sao Tome
-100% Cuba -100% Georgia
-100% Ethiopia -100% Hungary
-100% Slovenia -100% Myanmar
-100% Benin -100% Tunisia
-100% Panama -100% Syria

BENCHMARK – EXPORT GROWTH VS. COMPETITORS iFAB 2013
New Zealand delivered a good growth performance relative to key competitors; Chile appears to be the “one-to-
watch” currently
TOTAL BEVERAGES EXPORT VALUE IN 2012: NZ VS. COMPETITORS
US$m; 2012; 2012 vs. 2011
EXPORT VALUE 2012 1 YEAR $ CHANGE IN VALUE 1 YEAR % CHANGE IN VALUE
France $18,118 Spain $303 New Zealand 10%
United Kingdom $10,991 France $243 Chile 7%
USA $8,178 Chile $133 Spain 6%
Germany $7,079 New Zealand $117 Argentina 2%
Spain $5,545 Argentina $25 France 1%
Mexico $3,737 Mexico $11 Mexico 0%
Australia $2,245 Australia $1 Australia 0%
Chile $2,101 Greece -$5 South Africa -1%
Argentina $1,525 South Africa -$12 United Kingdom -1%
Ireland $1,503 Ireland -$93 Greece -2%
South Africa $1,331 United Kingdom -$135 Germany -4%
New Zealand $1,257 Germany -$278 Ireland -6%
Greece $314 USA -$937 USA -10%

FOCUS – NZ VS. CHILE iFAB 2013
Chile is achieving strong growth in beverage export to four countries, three of which are Top 6 New Zealand
markets
BEVERAGES EXPORT VALUE: NZ VS. CHILE TOP 15 CHILE BEVERAGES EXPORT MARKETS BY 1Y VALUE GROWTH VS. NZ
US$m; 2011-2012 US$m; 2012 vs. 2011
-$100 -$50 $- $50 $100
China
+$133 Chile driving growth
Spain across four countries;
$2,101 Japan three of which are
important to NZ
$1,968 USA
Venezuela
Russia
Ecuador
+$117 Brazil
Poland
$1,257
$1,140 France
Colombia
Bolivia
New Zealand
Peru
Thailand
UAE
Paraguay Chile
Hong Kong SAR New Zealand
2011 2012 2011 2012 South Korea
New Zealand Chile NET Other

iFAB 2013
BEVERAGES – EXPORTS BY TYPE iFAB 2013
New Zealand beverages exports have achieved very strong growth in the past decade
10 YEAR NEW ZEALAND BEVERAGES EXPORT BY CATEGORY/SUPER-CATEGORY (HS4/6 LEVEL)

US$m; 2002-2012
10 Year
CAGR Absolute
$1,257 TOTAL 20% +$1,049m
$1 Vinegar 20% +$1m
$43 Spirits 6% +$20m
$1,140
$1
$45
$971
10y $0
$47
CAGR
20%
$816
$1 $789
$36 $0
$722 $35
$0 $981 Wine 23% +$854m
$37
$895
$524
$0 $774
$29
$454
$0 $644
$30 $637
$378 $560
$0
$35
$258 $396
$208 $0
$30 $332
$245 $14 Cider 23% +$12m
$0
$23 $45 Beer 18% +$36m
$12
$28
$158 $10
$127 $2 $2
$15 $26 $97 Soft drinks 13% +$68m
$14 $4
$16 $82
$0
$13 $0
$14 $1
$11 $64
$0 $67 $55 $67 $9 $8 Water 13% +$6m
$2
$9 $11 $50 $50 $52 $6
$29 $38 $3 $3 $8 $6 $8 $67 $67 Juice 16% +$52m
$2 $5 $32 $3
$24 $31 $34 $48 $36 $38
$15 $16
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

EXPORT DOLLARS iFAB 2013
Bottled wine continues to be New Zealand’s largest beverage export
EXPORT VALUE OF TOP 18 BEVERAGES PRODUCTS (HS6 LEVEL) EXPORTS IN 2012

US$m; 2012
Wine, bottle $824
Wine, bulk $145
Soft drinks $66
Beer $45
Kiwifruit juice; other juices $41
Other flavoured beverages $31
Other spirits $25
Apple juice $21
Cider; other fermented $14
Sparkling wine $13
Liqueurs $11
Mineral water $6
Mixed juice $4
Whiskeys $4
Other water, unsweetened $3
Vodka $2
Rum $1
Vinegar $1

EXPORT DOLLAR GROWTH iFAB 2013
In 2012, wine, beer and “other flavoured beverages” drove export value growth while water and some spirits
struggled
ANNUAL CHANGE IN EXPORT VALUE OF TOP 18 BEVERAGES EXPORTS
US$m; 2012 vs. 2011
Wine, bottle $64

Wine, bulk $21
Beer $17
Other flavoured beverages $14
Sparkling wine $2
Whiskeys $1
Cider; other fermented $1 Net
Soft drinks $1 +$117m
Kiwifruit juice; other fruit juices $1
Mineral water $0
Vinegar $0
Rum $0
Apple juice -$0
Mixed juice -$0
Vodka -$1
Other spirits -$1
Liqueurs -$1
Other water, unsweetened -$2

PERCENT GROWTH iFAB 2013
In 2012, other flavoured beverages, beer and whiskey grew at the fastest rate; other water and vodka
experienced strong declines
ANNUAL PERCENT GROWTH IN TOP 18 BEVERAGES EXPORTS
US$m; 2012 vs. 2011
Other flavoured beverages 79%
Beer 63%
Whiskeys 59%
Wine, bulk 17%
Sparkling wine 15%
Vinegar 12%
Cider; other fermented 11%
Wine, bottle 8%
Rum 6%
Mineral water 6%
Kiwifruit juice; other fruit juices 3%
Soft drinks 2%
Apple juice 0%
Other spirits -5%
Mixed juice -5%
Liqueurs -11%
Vodka -34%
Other water, unsweetened -37%

$/LITRE iFAB 2013
In 2012 whiskey led in terms of export dollars per litre
VALUE PER LITRE OF TOP 18 BEVERAGES EXPORTS

US$/litre; 2012
Whiskeys $9.01
Rum $4.49
Wine, bottle $3.91
Sparkling wine $3.29
Kiwifruit juice; other fruit juices $3.23
Liqueurs $3.01
Wine, bulk $2.73
Vodka $2.42
Apple juice $2.09
Mixed juice $2.00
Other spirits $1.99
Vinegar $1.63
Other flavoured beverages $1.41
Soft drinks $1.36
Cider; other fermented $1.11
Mineral water $0.84
Beer $0.81
Other water, unsweetened $0.45
Wt. Average
$2.72

$/L CHANGE iFAB 2013
In 2012 whiskey, rum and bulk wine achieved good price increases, while vinegar prices were down strongly
ANNUAL CHANGE IN VALUE PER LITRE OF TOP 18 BEVERAGES EXPORTS

US$/litre; 2012 vs. 2011
Whiskeys $5.90
Rum $1.05
Wine, bulk $0.50
Other spirits $0.26
Mixed juice $0.25
Apple juice $0.22
Kiwifruit juice; other fruit juices $0.17
Liqueurs $0.14
Other water, unsweetened $0.13
Wine, bottle $0.11
Cider; other fermented $0.03
Other flavoured beverages $0.02
Vodka $(0.01)
Soft drinks $(0.08)
Beer $(0.11)
Sparkling wine $(0.15)
Mineral water $(0.15)
Vinegar $(0.53)

iFAB 2013
BEVERAGES – INDUSTRY SCIENTIFIC RESEARCH iFAB 2013
A number of research institutes are researching in the wine sector
KEY SCIENTIFIC RESEARCH ORGANISATIONS INVOLVED IN BEVERAGE INDUSTRY RESEARCH IN NEW ZEALAND
(2013)
Focus & activities
- Aroma studies- geological etc. effects on Sauvignon Blanc aroma www.wineresearch.org.nz

- $12m FRST funding of sauvignon blanc (with Plant and Food), Auckland and Lincoln Universities)
- Conjunction with Nelson Marlborough Institute of Technology
- Chemistry research into high acid, co-ferments, yeasts, polyphenol analyses http://web.auckland.ac.nz/uoa/science/a
- Pinot Noir research into aroma colour, polyphenols, soil profiles (Funding from liquorland and bout/departments/chemistry/about/subj
- Sauvignon blanc programme researching aroma compounds (FRST funding $1.6m/yr) ects/winescience/research/furtherwinere
Wine Research Institute search/furtherwineresearch.cfm
(Dept. of Chemistry – (Wine Science
Programme)
- Pest and Disease Management www.plantandfood.co.nz/page/home/lan

- Viticulture production systems ding-pages/wine-industry/
- Biological controls
- Applied sensors
- Viticulture and Wine research (18 staff at Marlborough Research Centre)
- Sensory Science
- Developing fining agents from
- Focus on Pinot Noir www.lincoln.ac.nz/Research-at-

- Climate and soil effects on vine growth and grape composition Lincoln/Research-centres/Centre-for-
- Enhancing nature’s ecosystem services in vineyards Viticulture-and-Oenology/
- Enhancing innovation and adoption of new technologies in the grape wine sector
- Sensory evaluation and psychological aspects of flavour perception
- Viticulture and Wine courses http://www.nmit.ac.nz/courses/areaofstu

- Situated within the Marlborough Wine Research Centre dy/mid/12245/a/25/viticulture-
wine.aspx
- Sustainable farming fund http://www.mpi.govt.nz/

- others
Source: Company websites; annual reports; Coriolis 64

BEVERAGE – INDUSTRY ORGANISATIONS iFAB 2013
There are four key industry organisations representing the New Zealand beverage industry
KEY INDUSTRY ORGANISATIONS INVOLVED IN BEVERAGE INDUSTRY RESEARCH IN NEW ZEALAND

(2013)
Details Website
New Zealand Wine - Funded through: a levy on the sale of grapes collected by the Grape Growers www.nzwine.com
Council under the Commodity Levies Act 1991;
- a levy on the sale of wine collected by the Wine Institute under the Wine Act
2003;
- User pays activities and sponsorships
- Represent views of producers and marketers of premium spirits and liqueurs www.distillers.co.nz
- Represent views of producers and marketers of juices and non-alcoholic www.nzjba.org.nz

beverages
- Represents all of the breweries in New Zealand brewersguild.org.nz
- Trans-Tasman association that represents the major producers in both markets http://www.brewers.org.au
on government and regulatory matters.
Source: Company websites; annual reports; Coriolis 65

METHODOLOGY & DATA SOURCES iFAB 2013
Data was from a variety of sources, and has a number of identified limitations
This report uses a range of information sources, both qualitative and The opinions expressed in this report represent those of the industry
quantitative. participants interviewed and the authors. These do not necessarily
represent those of Coriolis Limited or the New Zealand Government.
The numbers in this report come from multiple sources. While we
believe the data are directionally correct, we recognise the limitations in Coriolis has not been asked to independently verify or audit the
what information is available. In many cases different data sources information or material provided to it by or on behalf of the Client or any
disagree (e.g. Statistics New Zealand vs. FAO vs. UN Comtrade). of the data sources used in the project. The information contained in
Many data sources themselves incorporate estimates of industry the report and any commentary has been compiled from information
experts (e.g. FAO AgStat). As one example, in many cases, the value and material supplied by third party sources and publicly available
and/or volume recorded as exported by one country does not match information which may (in part) be inaccurate or incomplete. Coriolis
the amount recorded as being received as imports by the counterparty makes no representation, warranty or guarantee, whether express or
[for understood reasons]. In addition, in some places, we have made implied, as to the quality, accuracy, reliability, currency or completeness
our own clearly noted estimates. of the information provided in the report.
All trade data analysed in all sections of the F&B Information project are If you have any questions about the methodology, sources or accuracy
calculated and displayed in US$. This is done for a range of reasons: of any part of this report, please contact project lead Tim Morris at
Coriolis, on +64 9 623 1848
1. It is the currency most used in international trade
2. It allows for cross country comparisons (e.g. vs. Denmark)
3. It removes the impact of NZD exchange rate variability
4. It is more comprehensible to non-NZ audiences (e.g. foreign
investors)
5. It is the currency in which the United Nations collects and
tabulates global trade data
66
TRADE CODES iFAB 2013
Project defines the following trade codes as beverages
GLOBAL HARMONISED SYSTEM (HS) TRADE CODES DEFINED AS BEVERAGES

HS2002
HS Code Short Description Longer official description
200911 Frozen orange juice Frozen orange juice, unfermented, not containin
200912 Orange juice not-frozen unsweet Orange juice, not frozen, of a Brix value not >20, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200919 Orange juice not-frozen sweet Unfrozen orange juice, unfermented, not contain
200921 Grapefruit juice Grapefruit juice, of a Brix value not >20, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200929 Grapefruit juice Grapefruit juice (excl. of 2009.21), unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200931 Other citrus Juice of any single citrus fruit other than orange/grapefruit, of a Brix value not >20, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweet
200939 Other citrus Juice of any single citrus fruit other than orange/grapefruit (excl. of 2009.31), unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweet
200941 Pineapple juice Pineapple juice, of a Brix value not >20, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200949 Pineapple juice Pineapple juice (excl. of 2009.41), unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200950 Tomato juice Tomato juice, unfermented, not containing added
200961 Grape juice Grape juice, incl. grape must, of a Brix value not >30, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200969 Grape juice Grape juice, incl. grape must (excl. of 2009.61), unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200971 Apple juice, unsweetened Apple juice, of a Brix value not >20, unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200979 Apple juice Apple juice (excl. of 2009.71), unfermented & not cont. added spirit, whether or not cont. added sugar/oth. sweetening matter
200980 Kiwifruit juice; other fruit juices Juice of other single fruit, unfermented, not c
200990 Mixed juice Mixtures of juices, unfermented, not containing
220110 Mineral water Mineral waters and aerated waters, unsweetened
220190 Other water, unsweetened Other unsweetened waters; ice and snow
220210 Soft drinks Waters (incl. mineral and aerated), with added
220290 Other flavoured beverages Other non-alcoholic beverages, nes
220300 Beer Beer made from malt
220410 Sparkling wine Champagne and sparkling wine
220421 Wine, bottle Wine (not sparkling); grape must with by alcoho
220429 Wine, bulk Wine (not sparkling); grape must with alcohol i
220430 Grape must Other grape must, nes
220510 Vermouth Vermouth and other wine of fresh grapes, flavou
220590 Vermouth Vermouth and other wine of fresh grapes, flavou
220600 Cider; other fermented Other fermented beverages (for example, cider,
220710 Ethyl alcohol 80% Undenatured ethyl alcohol, of alcoholic strengt
220720 Ethyl alcohol any strength Ethyl alcohol and other denatured spirits of an
220820 Distilled grape wine Spirits from distilled grape wine or marc
220830 Whiskeys Whiskeys
220840 Rum Rum and tafia
220850 Gin Gin and Geneva
220860 Vodka Vodka
220870 Liqueurs Liqueurs and cordials
220890 Other spirits Other spirituous beverages, nes
220900 Vinegar Vinegar and substitutes for vinegar obtained fr
Source: United Nations codes; Coriolis definitions in conjunction with project steering group 67
GLOSSARY OF TERMS iFAB 2013
This report uses the following acronyms and abbreviations
A $/ A U D Australian dollar N /C Not calculable

A BS Absolute change N .H Northern Hemisphere
A N Z S IC AU/NZ Standard Industry Classification NZ New Zealand
AU Australia N Z $/ N Z D New Zealand dollar
Australasia Australia and New Zealand R&D Research and Development
b Billion S A s ia South Asia (Indian Subcontinent)
C A GR Compound Annual Growth Rate S E A s ia South East Asia
C/S America Central & South America (Latin America) S .H Southern Hemisphere
C RI Crown Research Institute SS Africa Sub-Saharan Africa
CY Calendar year (ending Dec 21) T /O Turnover
E Asia East Asia U S /U S A United States of America
E B IT D A Earnings before interest, tax, depreciation and U S $/ U S D United States dollar
amortization
FA O Food and Agriculture Organisation of the UN UK United Kingdom
FY Financial year (of firm in question) US United States of America
£/GBP British pounds YE Year ending

JV Joint venture Y TD Year to date
m Million Sou r c es
n /a Not available/not applicable AR Annual report

N A /M E/C A North Africa / Middle East / Central Asia Ce Coriolis estimate
N e c /n e s Not elsewhere classified/not elsewhere specified Ci Coriolis interview
68
Coriolis is a boutique management consulting Typical assignments for clients include…
firm that focuses on food, consumer
packaged goods, retailing and foodservice. FIRM STRATEGY & OPERATIONS:
We help clients develop their own strategy for
Coriolis advises clients on strategy, growing sales and profits. We have a strong
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Our style is practical and down-to-earth. We
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WHO WE WORK WITH EXPERT WITNESS

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We only work with a select group of clients in legal cases and insurance claims. We assist CORIOLIS LIMITED
we trust. We build long term relationships with applications under competition/fair PO BOX 90-509
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NEW ZEALAND

SEE RELATED REPORTS SEE RELATED REPORT THIS REPORT

CORE F&B CATEGORIES

Beverage $117 Other Foods 23%

Processed Food $66 Pet & Animal Foods 14%

Seafood $51 Beverage 10%

Pet & Animal Foods $35 Seafood 4%

Other Foods $35 Processed Food 4%

Dairy -$23 Net Dairy 0%

Meat -$180 Meat -4%

F&B RELATED CATEGORIES

Seed for sowing $30 Fertilisers 57%

Live Animals $27 Tobacco 48%

Tobacco $16 Supplements 33%

Supplements $3 Seed for sowing 28%

Fertilisers $3 Live Animals 15%

HBC/Household -$2 HBC/Household -1%

Source: UN Comtrade database; Coriolis classification and analysis 7

GFC = Global Financial Crisis; Source: Interviews; Coriolis 8

Beverages have a relatively simple supply chain

SIMPLIFIED MODEL OF NEW ZEALAND BEVERAGE SUPPLY CHAIN

Other fruit C id e r Liquor/tobacco1 Hospitality/

France 4.1 France -1.9%

GLOBAL BEVERAGE METRICS BY PRODUCT TYPE/CATEGORY

Beer 185b 13b 7% 0.2% Mexico, Netherlands, Germany, Belgium, UK

Cider 3b 0.7b 23% 1.6% Sweden, Ireland, Germany, UK, Netherlands

TOTAL HECTARES IN GRAPES BY REGION SHARE OF HECTARES IN GRAPES BY VARIETY

COUNTRY (ha; 000) REGION (ha; actual)

Spain 1018 Bordeaux 120,000

New Zealand also exports a range of other beverages

Beer Cider Spirits Juice Soft drinks Energy drinks Water

552 557 10 YEAR CHANGE 1 YEAR CHANGE

ANNUAL TURNOVER BY TOP 10 BEVERAGES FIRMS

Lion - Beer, Spirits & Wine NZ 1 $613

Pernod Ricard 6 $236

Villa Maria 9 $120*

Delegat's -$11 4 DB Breweries -3% 4

DB Breweries -$16 5 Lion - Beer, Spirits & Wine NZ -3% 5

Lion - Beer, Spirits & Wine NZ -$22 6 Delegat's -5% 6

Pernod Ricard -$22 7 CCA -6% 7

CCA -$31 8 Pernod Ricard-9% 8

Other 500+ firms

4,240 Spirit 150 -80

510 430 Spirits

Soft drink 230 -110

Beverages manufacturing employment growing in Marlborough and Otago/Southland and declining in

9,270 9,370 Classified elsewhere 366

1,190 Canterbury -130

600 620 660 570 470 Canterbury

2007 2008 2009 2010 2011 2012 5y ABS

BEVERAGES MNFG. EMPLOYMENT BY KEY FIRM

Lion - Beer, Spirits

CCA, 1,000 , 11%

Other, 4,050 , 45%

Recent investment has been in upgrading and expanding production

IDENTIFIED MAJOR INVESTMENTS IN NEW PLANT/EQUIPMENT

1 2012 $35m Coca-Cola Amatil Plant upgrade in Mt Wellington, Auckland 2012

2 2012 $30m Lion Redevelopment of the Speight's Brewery Dunedin 2013

3 2011 $20.1m DB Breweries New brewhouse Waitemata 2011

IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND BEVERAGES FIRMS

Ra nk Acquirer Ta r g et Price Date Details

IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND BEVERAGES FIRMS

Acquirer Ta r g et Price Date Details

There have been number of closures in the beverage sector