CONCENTRATION AND REGULATION IN THE NEW-ZEALAND BREWING INDUSTRY, 1850-1970

The New Zealand brewing industry has become highly concentrated over the past one hundred.years, with the number of firms falling from a peak of 102 in 1891 to 2 by 1971. Scale economies have been partially responsible for the demise of the small independent brewer. However, the passage of temperance legislation between 1893 and 1918 and increased excise duties and the imposition Of price controls during and after the Second World War disproportionately affected small producers. Their exit from the trade resulted in local monopolies, ultimately a national duopoly and welfare losses to the New Zealand consumer.