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Lion Nathan's Auckland brewery site adjacent to the upscale Newmarket shopping and apartment precinct could be put up for sale.
The brewer revealed today that the site is under review as it reported a decline in profit in a New Zealand business it is continuing to restructure.
Property analysts said the brewery -- bounded on one side by a railway line and on the other by Khyber Pass Rd -- was about 5ha in area and could sell for as much as $100 million to developers of apartments, offices and retail space.
Chief executive Rob Murray would only say that the site was "extremely valuable".
"Just how valuable it is will determine what our investment choices are going forward," he said.
He said the company faced a "50-year decision" as it considered whether to reinvest in the brewery or move on. A spokesman said if the company moved it would be to another site in Auckland.
No timescale was put on the decision.
Lion Nathan today reported earnings before interest and tax in New Zealand fell 3.9 per cent to $86.7 million in the 12 months to September 30.
"This was in line with expectations given the challenging operating environment in New Zealand, especially in beer where cost inflation is not being recovered in pricing, thereby crimping margins."
But the Australian-based company was talking up its New Zealand business, saying five of its six "power brands" here recorded growth.
Among the performers were Steinlager, Stella Artois, Speights and Corona, while sales of Lion Red declined.
Lion Nathan is one of the two main players in the New Zealand beer market, the other being DB Breweries. Lion Nathan is 46 per cent owned by Japan's Kirin.
The company, which brews Tooheys, Hahn, XXXX and Steinlager beers, posted net profit of A$226.8 million ($264.2m) for the year to September 30, up 12.3 per cent on last year.
- NZPA
