Detailed Findings:
Crate beers, specifically the Swappa Crate system (12 x 745ml bottles in a reusable wooden crate), are experiencing a resurgence in New Zealand despite declining overall beer consumption.
The Swappa Crate scheme, run by the Associated Bottlers Company (ABC), jointly owned by Lion and DB, involves a deposit system and bottle refilling.
Demand for crate beers peaked in the 1970s, declined with the rise of kegs and cans, but started growing again around 2015.
Sales have steadily increased year-on-year since 2015, except for a dip in 2020 due to COVID-19 lockdowns.
Lion reports a 3% volume growth year-on-year for its crates, driven mainly by on-premise sales in sports clubs.
Overall beer consumption in New Zealand fell by 4.4% in 2023 compared to 2022, according to Stats NZ.
There's been a market shift since 2017 towards beers with 4.35-5% ABV, surpassing sales of lower-alcohol beers.
Crate beers typically have around 4% ABV.
The popularity of crate beers is attributed to their environmental friendliness (refillable bottles) and affordability.
Sales are strong in regional New Zealand, particularly in the South Island.
"Crate Day," an unofficial event started by a radio station in 2009, initially promoted crate beer consumption but was discontinued in 2019 due to concerns about binge drinking.
ABC, Lion, and DB distance themselves from Crate Day and promote responsible drinking.
Key Takeaway:
Despite a general decline in beer consumption in New Zealand, the demand for crate beers, particularly the Swappa Crate, is on the rise, driven by their perceived environmental benefits and affordability, especially in regional areas.
Main Trend:
The Resurgence of Crate Beer in New Zealand
Description of the Trend:
This trend highlights the growing popularity of crate beers, a traditional format of beer packaging in New Zealand, despite a broader trend of declining alcohol consumption. The Swappa Crate system, with its reusable crate and refillable bottles, is at the heart of this resurgence. The trend is particularly strong in regional areas and is driven by factors such as environmental consciousness and cost-effectiveness.
Consumer Motivation:
Environmental concerns: Consumers are attracted to the reusable and refillable nature of the Swappa Crate system, aligning with a growing desire for sustainable options.
Affordability: Crate beers are perceived as a cheaper way to buy beer.
Nostalgia: Swappa Crates may evoke a sense of nostalgia for some consumers.
Community: Strong presence in sports clubs and regional areas suggests a connection to local communities.
What is Driving the Trend:
Increased environmental awareness: Growing consumer preference for sustainable and eco-friendly products.
Cost of living pressures: Crate beers offer a more economical option compared to some other beer formats.
Strong presence in regional areas: Swappa Crates have maintained a loyal following in regional New Zealand.
Marketing and promotion by breweries (excluding Crate Day): Lion's reported growth suggests that promotional efforts are contributing to the trend.
Motivation Beyond the Trend:
A desire to support sustainable practices, save money, and potentially connect with a sense of tradition and community associated with crate beers.
Who are the People the Article is Referring To:
Consumers in regional New Zealand, sports club members, environmentally conscious individuals, and those seeking affordable beer options. There may also be an element of nostalgia involved.
Description of Consumers the Product or Service the Article is Referring to and What is Their Age:
Demographics: Likely a mix of ages, but with a strong presence in regional areas. The article mentions sports clubs, suggesting a male skew, but this isn't definitive. The affordability aspect could appeal to a broad range of income levels.
Psychographics: Environmentally conscious individuals who value sustainability and affordability. They may be community-minded and appreciate the traditional aspect of Swappa Crates.
Age: Potentially a wide range, from younger drinkers attracted to the affordability and environmental aspects to older drinkers who may have nostalgic associations with crate beers. No specific age demographic is identified in the article.
Conclusions:
The resurgence of crate beers in New Zealand is a unique trend that defies the broader decline in alcohol consumption. It demonstrates the growing importance of sustainability and affordability in consumer choices, even within established categories like beer. The trend also highlights the enduring appeal of traditional products that can be adapted to meet contemporary values.
Implications for Brands:
Sustainability: Highlight the environmental benefits of refillable bottles and reusable crates.
Affordability: Promote crate beers as a cost-effective option.
Regional focus: Target marketing efforts towards regional areas where crate beers are particularly popular.
Community engagement: Strengthen connections with sports clubs and other community organizations.
Product innovation: Explore new flavors or styles within the crate beer format, while maintaining the core values of sustainability and affordability.
Implications for Society:
Reduced environmental impact: Increased use of refillable bottles can contribute to a reduction in packaging waste.
Support for local businesses: The Swappa Crate system supports local breweries and retailers.
Potential for increased alcohol consumption: While overall consumption is declining, the popularity of crate beers could lead to increased consumption among certain groups. This needs to be balanced with responsible drinking messages.
Implications for Consumers:
Access to affordable and sustainable beer options.
Opportunity to support local businesses.
Potential for increased alcohol consumption if not consumed responsibly.
Implication for Future:
The trend of crate beer resurgence could continue to grow as environmental concerns and cost-of-living pressures become even more prominent. We might see further innovation in the crate beer format, with new flavors and styles being introduced. The success of the Swappa Crate system could also inspire similar initiatives in other beverage categories.
Consumer Trend (Detailed Description):
The core consumer trend is Value-Driven Consumption with a Focus on Sustainability and Affordability. Consumers are increasingly making purchasing decisions based on a combination of factors, including price, environmental impact, and social responsibility. They are seeking out products that offer good value for money while also aligning with their values, such as supporting local businesses and reducing their environmental footprint.
Consumer Sub-Trend (Detailed Description):
A significant sub-trend is the Rise of the Eco-Conscious Beer Drinker. This refers to consumers who are specifically seeking out beer options that are produced and packaged in an environmentally friendly way. They are attracted to initiatives like the Swappa Crate system, which promotes reuse and reduces waste. They may also be interested in other aspects of sustainability, such as the use of locally sourced ingredients and energy-efficient brewing processes.
Big Social Trend (Detailed Description):
The overarching social trend is the Growing Mainstream Adoption of Sustainable Lifestyles. This is a broad societal shift towards more environmentally and socially responsible practices. Consumers are increasingly aware of the impact of their choices and are seeking out ways to reduce their environmental footprint and support businesses that align with their values.
Local Trend (Detailed Description):
A relevant local trend is the Continued Importance of Community Hubs in Regional New Zealand. Sports clubs and other community organizations play a vital role in regional areas, and the popularity of Swappa Crates in these settings highlights their importance as social gathering places. This trend reflects the strong sense of community that exists in many regional parts of New Zealand.
Worldwide Social Trend (Detailed Description):
A prominent worldwide social trend is the Global Movement Towards Circular Economy Principles. This is a global shift away from the traditional linear "take-make-dispose" model of production and consumption towards a circular model that emphasizes reuse, repair, remanufacturing, and recycling. The Swappa Crate system is a good example of a circular economy initiative, as it promotes the reuse of both the crate and the bottles.
Name of the Big Trend Implied by Article:
The Sustainable and Affordable Beer Movement
Name of Big Social Trend Implied by Article:
The Global Rise of Conscious Consumerism
Social Drive (Detailed Description):
The social drive behind these trends is a desire for Responsible Consumption and a Simpler Way of Life. People are increasingly questioning the impact of their consumption habits and are seeking out ways to live more sustainably and in harmony with the environment. There's also a growing appreciation for simplicity, affordability, and community connection, which are all reflected in the popularity of crate beers.
Learnings for Companies to Use in 2025:
Sustainability and affordability are key factors driving consumer choices in the beer market.
Regional areas offer significant opportunities for growth.
Traditional products can be revitalized by appealing to contemporary values.
Community connections are important, particularly in regional areas.
Strategy Recommendations for Companies to Follow in 2025:
Emphasize the environmental benefits of their products and packaging.
Promote the affordability of crate beers, particularly in the context of rising living costs.
Target marketing efforts towards regional areas and strengthen relationships with local communities.
Explore new flavors and styles within the crate beer format to attract a wider range of consumers.
Continue to promote responsible drinking messages and distance themselves from events like the original "Crate Day" that promote binge drinking.
Invest in innovations that further enhance the sustainability of the Swappa Crate system or similar initiatives.
Final Sentence (Key Concept) Describing Main Trend from Article:
In New Zealand, the resurgence of crate beers, particularly the eco-friendly and affordable Swappa Crate, demonstrates a growing consumer preference for sustainable and value-driven options, even as overall beer consumption declines.
What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do It:
In 2025, brands and companies, particularly breweries like Lion and DB, should double down on promoting the sustainable and affordable aspects of their crate beer offerings, especially in regional areas. They can do this by highlighting the refillable nature of the bottles and the reusable crate, emphasizing the cost savings for consumers, and further strengthening their connections with local communities and sports clubs. They should continue to innovate within the crate beer format while maintaining the core values of sustainability and affordability.
Final Note:
By implementing these strategies, brands can successfully take advantage of the crate beer resurgence trend. They can market to consumers who are looking for a sustainable and affordable way to enjoy beer and are interested in supporting local businesses and reducing their environmental impact. They can be a part of the growing movement towards conscious consumerism, where value, sustainability, and community are key drivers of purchasing decisions.
Comments