DB Breweries' new joint venture with a boutique cider maker will make it New Zealand's biggest cider company with a third share of the market.

It could also mean an increase in staff levels as the new company cranks up operations.

DB has bought a majority shareholding in Nelson cider and fruit wine maker Redwood Cellars. The joint venture company, Redwood Cider Company, will operate as a standalone business incorporating both partners' cider brands. It will stay in Nelson.

The brands include Redwood's Old Mout Cider and DB's Monteith's Crushed Apple and Pear Cider, Johnny Arrow and imported Swedish label Rekorderlig.

The combined brands would give Redwood about 30 per cent of the New Zealand cider market, DB managing director Brian Blake said. It will produce cider for the Australian and New Zealand markets.

Blake, who will chair the board of the new company, would not divulge how many litres DB and Redwood jointly produced.

Cider volumes equal about 3 per cent of total beer volumes in New Zealand, he said, with huge potential for growth. By contrast, wine equals about 32 per cent of current beer volumes.

"We see the cider category growing and we think it justifies a separate company absolutely focused on cider," Blake said.

Monteith's, the first of the new-age ciders on the market, was doing "incredibly" in Australia, he said.

Both Monteith's and Old Mout Cider will be distributed by DB subsidiary Drinkworks in Australia. Fairfax NZ

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