29/06/2026
The latest CPI-linked excise increase to $71.034 per litre of 100% ethanol (from 1st July, 2026) risks the collapse of Aotearoa’s nascent craft distilling industry. To all those who support us, thank you!
Why We Keep Talking About Excise
We know some people are probably tired of hearing about excise.
But we keep talking about it because it matters.
Not just to us, but to the wider New Zealand spirits industry.
This week, another New Zealand distillery closed its doors.
Eight jobs gone.
A local producer gone.
And the shelf space? It won’t stay empty.
It’ll likely be filled by imported brands.
That’s the reality.
And that’s the part people often miss.
When a local distillery disappears, we don’t drink less.
We simply buy from somewhere else.
Usually from bigger international brands with more scale, lower production costs, and deeper pockets.
We hear it all the time from stores:
“Why should we buy local when I can get an international brand cheaper?”
And honestly, it’s a fair question.
Not because the imported product is better.
Not because it’s made with more care.
But because the system often makes it cheaper.
That’s where excise comes in.
For small New Zealand distillers, excise is one of the biggest bills we pay.
Before wages.
Before rent.
Before power.
Before we make a dollar.
Across the industry, many are paying hundreds of thousands each year just in excise without support from our government like many multinationals.
And here’s the thing:
Government reviews have previously recommended alcohol should be taxed on standard drinks. Not the outdated category system we have now.
Because alcohol is alcohol.
Yet under the current system, spirits are taxed far heavier than b**r and w**e.
Not because they cause more harm per standard drink.
But because that’s how the system was built.
And right now, that system feels broken.
That pressure flows through everything.
Margins get tighter.
Growth gets harder.
And the ability to compete gets weaker.
Yet every year, the answer seems to be the same:
Raise the tax.
The argument is usually that higher tax reduces harm.
But if it was that simple, how do you explain places like Spain?
Right now, you can buy 2 litres of w**e for NZ$4–$6.
A bottle of rum for around NZ$16.
That same bottle here? $50–$70.
Yet somehow their drinking culture looks very different to ours.
That tells us something important.
This isn’t just about price.
It’s about culture.
It’s about education.
It’s about responsibility.
And that matters, because the latest numbers already show New Zealanders are drinking less.
Less volume.
More premium.
More moderation.
More low and no-alcohol.
That doesn’t look like a country spiralling.
That looks like a country changing.
So the question is worth asking:
Is excise really driving that change?
Or are Kiwis already shifting how they drink on their own?
Because if the culture is already moving in the right direction, then what exactly are annual excise hikes achieving?
At some point, we have to ask whether the system is still serving its purpose, or whether it’s simply making it harder for local producers to survive.
At 1919, we believe in good spirits, shared well.
We support responsible drinking.
Always have.
But we also believe New Zealand should back the people making great spirits here at home.
Because once local producers are gone, they’re hard to replace.
And when that happens, it won’t be New Zealand stories, New Zealand jobs, or New Zealand craft filling those shelves.
It’ll be imports.
