Liquorland Spirits Performance Overview
Brendon presented an overview of the Liquorland landscape, focusing on spirits and their performance in different sectors. He shared data and insights, including a breakdown by category and sector, which was valuable as it is not readily available to smaller distributors. Brendon also discussed the challenges of getting products on Liquorland shelves and the importance of building relationships with stores. He highlighted the potential for New Zealand spirit brands, noting the growing consumer interest in locally manufactured products.

Liquorland’s Market Performance and Pricing Strategy
Brendon discussed the current state of the liquor retail industry, noting that it is challenging but not as bad as other sectors like motor vehicles or hospitality. He highlighted that Liquorland, a retail business with over 40 years of experience, is the largest retailer in New Zealand in terms of revenue. Brendon also mentioned that they are truly independent and not owned by a big supplier, which could potentially influence their product choices. He shared that they are the most preferred retailer according to a survey called Coal Face, and spirits is their largest category. Brendon also presented data on the market’s performance, including same-store sales and revenue, and emphasized the importance of the Christmas season for their business. He concluded by discussing their pricing strategy and the focus on spirits as a key differentiator.

Spirits Growth Amidst Industry Declines
Brendon discussed the market trends in the liquor industry, highlighting that spirits are experiencing a significant growth rate, while beer and wine are facing declines. He attributed this to the impact of Covid-19 and the shift in consumer behavior, with more people opting for premium and low-carb products. Brendon also noted the increasing popularity of e-commerce and the potential for new product innovations in the industry.

New Zealand Spirits Market Growth
Brendon presented data on the New Zealand spirits market, highlighting its growth and the importance of premium products. He noted that the market is largely flat, with spirits growing at 2.5%. The data showed that whiskey, vodka, bourbon, brandy, and tequila are growing categories. Brendon also mentioned that New Zealand spirits are growing faster than the total spirits market.

Market Trends and Consumer Behavior
Brendon discussed the current market trends, noting a moderation in price per liter and a shift in consumer behavior due to inflationary pressures. He predicted a potential increase in discretionary spending, particularly during the upcoming Labor Day weekend. He also shared insights on the importance of storytelling and customer engagement in building brand relationships.

Sarah Bonoma hosted the first DSA webinar of the year, introducing Tom Finn from Herrick Creek Distillery and Juniper Collective as the guest speaker.

Tom’s Journey From Distillery to Collective

Tom discussed his journey from growing up in Niagara, Canada, to moving to New Zealand and starting a distillery. He shared his initial struggles with making spirits, including the first batch being the worst he’s ever tasted. Tom also talked about how he transitioned from a home distillery to a commercial operation, initially making whiskey and gin, but later focusing on moonshine. He faced challenges with New Zealand customers’ different palates and overcoming prejudices against moonshine. Tom also discussed his decision to take over the Juniper Collective, a bottle shop in the city center, and the challenges he faced, including managing staff and inventory, and dealing with a significant amount of paperwork.

Managing Inventory and Retail Strategies

Tom discussed the challenges of managing inventory and dealing with shoplifting in his store. He emphasised the importance of engaging with customers and building relationships with brands. Tom also shared his experiences with distributors, noting that some are more helpful than others. He highlighted the benefits of a consignment model, which allows for more efficient cash flow and increased brand visibility. Tom also shared his success with the Rifters brand since implementing this model. Sarah asked for Tom’s advice on how distilleries with a cellar door could apply retail strategies to improve their direct sales, to which Tom recommended maintaining a strong presence and engaging with customers.

Challenges and Marketing in New Zealand

Tom and Sarah discussed the challenges faced by their business, particularly in the current economic climate. He mentioned plans to start a marketing campaign called “I Heart New Zealand Spirits” to promote their products. The team also discussed the potential of changing the name of their business, “The Juniper Collective”, to reflect their expanded product range. However, Tom expressed concerns about the difficulty and potential hassle of changing a brand name.

Tom’s TikTok Approach and Future Plans

Tom discussed his approach to engaging with customers through TikTok and other platforms, emphasising the importance of personal interaction and storytelling. He also shared his plans for the future, including the development of a tasting bar in his store and the implementation of a simplified pricing structure for his products. Sarah sought Tom’s perspective on owning both a retail store and a distillery, and how this has influenced his approach to distilling. Tom shared his insights on the complexities of pricing and margins, emphasizing the need for simplicity and transparency.

Margins and Relationships in Business

Tom and Sarah discussed the importance of understanding and managing margins in business, particularly when selling to other businesses. Tom shared his experience of initially struggling with the idea of giving a 30% margin to a store, but eventually understanding the necessity of this in the industry. They also discussed the importance of building relationships with local businesses, such as the tram drivers, to increase foot traffic. Sarah asked about the range of margins Tom sees and where he would pitch himself as a new brand, to which Tom responded that most people aim for a 20% margin, but smaller stores may need to aim for 25-30%. They also discussed the challenges of theft and the importance of having insurance to cover such incidents. Tom confirmed that he would be responsible for covering theft in the consignment model.

New Zealand Spirits Industry Evolution

Tom discussed the origins of his podcast, which focuses on New Zealand spirits, and its evolution over time. He highlighted the importance of educating consumers about the industry and the unique aspects of New Zealand spirits. Tom also shared common themes among distillers, such as starting in a garage and facing growth limits. He mentioned the volatility of the industry, particularly since the pandemic, and the challenges of exporting New Zealand spirits. Tom’s future plans include consolidating his moonshine lineup and expanding the New Zealand Spirits brand. Angela asked about the sales percentages of different spirits, to which Tom responded that gin is still the biggest seller, followed by whiskey, with rum and vodka being less popular.

In the meeting, Sarah expressed gratitude to Tom for sharing his experiences and insights, which were deemed valuable by the team.

Welcome to the first Town Hall meeting to provide updates and facilitate a two-way dialogue between the Board and membership. It is important to receive feedback and and you are encouraged to ask questions or share comments. The DSA board members were introduced, including a new member, Joe James from Juno Gin, who replaced Tom Finn due to personal circumstances.

Strategic Plan and Ongoing Projects
The long-term strategic plan of the organisation focuses on supporting and educating members, developing and protecting the industry, and building and sharing the New Zealand spirits brand story. The ongoing projects are led by different board members, including the DSA Conference, member education, excise, industry sizing, member engagement, spirits awards, and board processes. There are projects that have been temporarily put on hold due to resource constraints and the need for volunteer hours. The organisation plans to revisit the standardisation of New Zealand spirits and the conference format in the future.

Advocacy Updates
Updates on the advocacy work and standards was highlighted, including changes to the CCA regime and the Customs Amendment Bill, which are still under consultation. Also currently underway are two pieces with MPI and Food safety, and a potential requirement to include energy statements on alcoholic drinks. The DSA are also working on a “speak up” policy to provide clarity on what they will and won’t look at, and how they will manage concerns raised.

Member Education and AGM Updates
The member education webinars are progressing with two successful webinars featuring Tom Finn and Brendan Laurie in February and March. Upcoming webinars include a session on the power of pricing, social media storytelling, and a sustainability panel.

The annual general meeting (AGM) is scheduled for August 14th.

The conference will now be every two year – the next on in 2026.

DSA were joined by Ami Mitchel from New Zealand Trade and Enterprise who provided an overview of the resources and support available to us through NZTE.  We also heard from Sarah Bonoma from Dancing Sands Distillery, who talked about how they’ve worked with NZTE and share some of their export journey so far.  We finished with a Q&A session.

Ami Mitchell – NZTE, Customer Capability Programme Manager

I love a good story, most people do. Businesses that tell an engaging and thoughtful story are the ones that you remember. I’m passionate about growing innovative companies within New Zealand and globally by helping them build and deliver impactful strategies that shape and tell their stories to as many people as possible.

Sarah Bonoma – Founder / Managing Director, Dancing Sands Distillery

Sarah oversees the nuts and bolts of how Dancing Sands works – leading their team and making sure the wheels of our distillery machine continue to turn. Dancing Sands exports to the UK, USA, Canada, Japan, Singapore, Taiwan and the Philippines.

DSA Member and co-founder of Papaiti Distillery, Nikki Oesterle is also a digital marketing expert and consultant and we’re delighted she will join us to help us upskill in this vitally important marketing medium.

Nikki Oesterle – Co-Founder Papaiti Distillery and Apista Consulting’s Principal Brand & Marketing Consultant

Nikki has over 17 years experience across a wide range of industries in New Zealand and overseas. Nikki is particularly passionate about sharing her skills with small business owners, enabling them to grow their business without wasting time on the wrong platform and targeting the wrong audience. She is an expert when it comes to:

• Digital Brand Building
• Social Media Strategy
• Social Media Management
• Search Engine Optimisation (SEO)
• Search Engine Marketing (SEM)
• Content Strategy & Development
• Digital Communications & Direct Marketing

You will need to register in advance for this meeting. After registering, you will receive a confirmation email containing information about joining the meeting.

Check out the following regulations

• Health and Safety at Work Act 2015
• Health and Safety at Work (Hazardous Substances) Regulations 2017
• Electricity (Safety) Regulations 2010
• Standards (available on SAI Global, Standards NZ website):
  • AS1940 The storage and handling of flammable and combustible liquids. Latest version 2017.
  • AS/NZS60079 Electrical apparatus for explosive gas atmospheres. Version referenced in the Hazardous Substances Regulations 2017 is 2009, however the latest version is 2022.
    • Part 10 Classification of areas
    • Part 14 Electrical installations design, selection and erection

This is a critical area that we need to constantly keep upskilling on.  The team at BECA who gave a wonderful presentation at last year’s conference will be back to continue the discussion on improving distillery safety and compliance.  This will be especially important for new and established distilleries alike.

This will be a very interesting ad highly relevant session from industry growth expert, Troy Trewin.

Since 2011 Troy has been managing and growing whisky businesses in Australia and New Zealand, as CEO of three separate and well-respected brands. In recent years he has been advising other up-and-coming distilleries, or those already in a fast-growth phase.

Troy’s passion is helping distillery founders grasp the true economics and realities of growing a spirit business from nothing, or with limited capital, to something of meaning in the industry and great value. Since early 2017 Troy has been the Chairperson of fast-growing craft brewery, Hobart Brewing Co – the second largest craft brewer in Tasmania.

In late 2019 Troy started hosting a weekly podcast, interviewing small business owners with 5 to 30 team members, who grew their business to something bigger.

With over 500 episodes, the Grow A Small Business is one of the best small business podcasts in Australia – they are now ranked in the top 50,000 (1.5%) of all 3.1m podcasts in the world.

You can listen to the podcasts Troy has done with distillery owners.