The full year’s net profits for New Zealand’s biggest drinks company, Lion, have slipped 20% as consumption declines and consumers trade up.Reports filed by Japan’s Kirin Holdings, which owns Lion, show that profits for the year ending 30 September 2014 declined as consumers in Australia and New Zealand drink less and “premiumisation” of those markets continues. As reported by the New Zealand Herald, Kirin reported that total volumes of beer, wine and spirits in Australia and New Zealand declined 2.7%, while its sizeable dairy and soft drinks business declined 7.3%. Total revenue fell to NZ$564 million, down just over 7% from $611m a year earlier. Pre-tax earnings fell from $73.6m to $66m, while net profits tumbled from $55.2m to $44m. In February, Lion’s chief executive, Stuart Irvine, said that Australian and New Zealand consumers were drinking less alcohol than at any time in the previous 15 years.
