Runaway success shifts Mac's brewing

CRAIG SIMCOX/Dominion Post

CASUALTY OF POPULARITY: Colin Paige from Mac's Brewery holds a jeraboam of Brewjolais beer.

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Craft brewer Mac's is to cease production at its Shed 22 Wellington waterfront site in a move parent brewer Lion Nathan says will save the business hundreds of thousands of dollars a year.

Lion Nathan, which bought the Mac's brand in 1999 and set up its headquarters at the waterfront site above a state of the art brewery three years later, blamed rising costs and a growing demand for craft beer for the closure.

But the thousands of Wellingtonians and tourists who enjoy supping the natural brew at Shed 22 need not fear, corporate affairs director Liz Read said, as the brewery bar and restaurant would stay open.

The Wellington brewery will be dismantled and shifted to Christchurch where it will be rebuilt inside Lion's Canterbury brewery. Six staff are affected by the move but could continue brewing for Mac's at alternative sites.

Lion, which saw its New Zealand operations deliver a 5 per cent pre-tax profit increase of $94.3 million for the year to September, said the move was vital to protect the long-term future of the brand, which it bought from former All Black Terry McCashin a decade ago. Since then, production has rocketed 515 per cent.

The small size of the Wellington site made it difficult to meet demand, with brewery costs five times more expensive than any other Mac's brewing facility.

The Wellington brewery produces 800,000 litres of the beer every year compared to the 36 million litres that come out of the tanks in Canterbury. By combining the two, Lion said it would be able to stay on top of demand, which had tracked 80 per cent ahead of forecast in the last 12 months.

Only 20 per cent of the beer produced on site is enjoyed by Wellington drinkers. The rest is shipped off around the country via Christchurch which generates huge freight and distribution costs.

"It makes good commercial sense to move the brewery to Christchurch where we have the flexibility to meet current and future demand. Then there's the environmental footprint, which we're keen to address," Ms Read said.