Decanter World Wine AwardsNew Zealand's 'golden days' are over, says industry report
- Friday 26 August 2011
The country's producers and growers still face 'lower prices, tighter money and tougher markets' as a consequence of the oversupply caused by the 2008 vintage and the global financial crisis, according to New Zealand Winegrowers' Annual Report 2011.
It announced New Zealand's total wine sales increased 11% to 221 million litres for the year to June 30 2011 while export value rose 5% to $1.1 billion. However, lower-priced bulk exports have grown faster than bottled exports.
The organisation claimed bulk wine exports are now a reality for the global wine trade and New Zealand was not immune. Stuart Smith chair of New Zealand Winegrowers, said, 'We need to accept that there is no going back to the “golden days” before 2008.
There is also a fear that this year's record 328,000 tonne harvest could cause New Zealand bulk wine exports to rise further.
Tim Burnside, associate director Deloitte New Zealand told Decanter.com: 'Given the record harvest for vintage 2011, well above the record 2008 harvest, we consider it likely that similar issues will present themselves again. This could further tarnish New Zealand's premium branding, especially with the renewed global economic concerns.'
NZ Winegrowers has ordered an independent strategic review to assess the shape of the country's future in the global market to cope with changing conditions. It will be published in late October.
Smith explained, 'The world has changed and we must change with it. We need to know where the industry should be going.'
Have your say!
John Chappell
September 06 00:53
N Z Winegrowers needs to remember that it has a marketing responsibility to the industry and constantly whining about how " it's over,we're screwed,it's all downhill from here,NZ has no quality opportunity any more,etc " does not look good especially viewed - as I am viewing it - from a major export market, in this case the U.S.
A little positive leadership would be preferable and although it seems to be the only answer considered by NZ trade groups," we must produce less " is not the solution.
Nina Witikka
September 01 11:59
I agree! Bulk is not bad! and greener...
carl
August 27 05:15
Tarnish Premium Branding? That sounds like they brand the brand and not the wine... good inexpensive wine is good wine... most all industries welcome tiered business/markets... also focus on "premium bulk" and keep the overall $$$ building...
Evan Byrne
August 26 16:47
Given that New Zealand is keen to stress its Green credentials, surely shipping wine in bulk is a good thing. It takes up less space (meaning fewer voyages to transport the same volume) and is far lighter than shipping in bottle (which is effectively a separate 'tank' for every 0.75 litres of wine shipped). In Europe we are not allowed to ship in bulk for quality wines, but most of the New World, I believe, does not have this restriction. Obviously, it is not premium wine which is being shipped in bulk at the moment, but I expect that there will come a time when most wine, even at the top, will be transported this way - it seems a much better use of resources to me.