Battle brews

FOODWORKS DIRECTORY

Battle brews at the pumps

Independent Liquor is launching into the tap beer market to try to break apart what it says is a "cosy duopoly" between Lion and DB Breweries.

The Papakura-based company says two of the international brands it brews under licence, Carlsberg and Kingfisher, as well as its Boundary Road Craft range and Wild Buck New Zealand Ale, will be available on tap at bars around the country in the next month.

Chief executive Julian Davidson said the tap beer market - which he estimated was worth $900 million annually - was uncompetitive.

Lion's beer brands include Lion Red, Speight's, Steinlager and the Mac's range. DB Breweries has Tui, Monteith's, Export Gold and Heineken, among others.

Independent is promising an aggressive market entry and its sales team began the tap beer push last week.

But the company is not expecting an easy ride.

"Lion and DB have held this market for 150 years and I don't think they're going to let go of it without a fight," Davidson said.

DB managing director Brian Blake said he did not accept Independent's claim his company was part of a duopoly. "There's been fierce competition between DB and Lion for many years and there have been no barriers to others entering the tap market - it's simply that others have chosen not to do so," he said.

Independent Liquor, which has a big share of the New Zealand ready-to-drink market, was acquired by Tokyo-listed Asahi, a Japanese brewer, in August for $1.5 billion.

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