A Christmas message from NZ Winegrowers…
December 22nd, 2009 | Posted by Kirk
Its bad timing to say the least, this close to Christmas. NZ Winegrowers have, just last week, had a ‘State of the Industry’ meeting in Marlborough. For those unable to attend they have posted a video of the event on the internet here. (nb-now changed to NZW members only viewing – sorry)
Essentially grim viewing. Yes sales are up but most of the increases are due to bulk wine (mostly Sauvignon Blanc) being exported. This is going mostly to the UK and Australia, our two best markets. The reputation therefore, and not to mention price point, of NZ wine abroad is being eroded.
The outlook for 2010 is another vintage of oversupply. The situation appears to be mirroring that of Australia and their issues can be summarised in the WFA Restructuring Report here. This really makes for tough reading. And while the report indicates nearly 20% of Australias vineyards are unviable, it does offer a glimmer of hope for those in the premium and specialty quality range. This is also the range that NZ must continue to trade in. We are currently being drawn into the low value-low margin catagory where we will struggle to compete with Europe, especially given the current currency market situation.
New Zealand needs to refocus on quality. But then most of the country is already doing just that. You cant help but feel the rest of the country is being dragged along by the problems of Sauvignon Blanc – too many vineyards producing too much (by volume and crop size) wine. Some vineyards probably need to be mothballed or pulled out.
I could go on but Christmas is approaching.
Ron McFarland
December 22, 2009
Where is the Spirit of the Kiwi to go out and sell this stuff?
I keep reading all this oversupply, over cropping, bulk wine commentary and there is nothing about raising the bar on the selling front.
It’s like Sir Peter Blake saying we can’t win the race because of the weather – Peter would motivate his team to excel in all conditions because that’s what the game requires.
The other guys can let the weather determine the outcome.
My rant – Merry Christmas
Kirk
December 22, 2009
I think the picture would look a whole LOT different if we factored out Sauvignon Blanc. Some changes ARE necessary but more so in Marlborough.
Ron McFarland
December 22, 2009
It is truly a puzzle and has a nice prize for those that figure it out. Pinot noir is being offered here at very low prices or expensive wines are being closed out, which is teaching buyers to wait for the deal rather than the category or a specific brand.
To American consumers it is just New Zealand wine – no understanding or respect for the little guys.
Is the video available or was the link for private use?