20 August 2012
New Zealand Wine: Positioned for the Future
•Wine exports reach $1.18 billion, up 8%
•Sales (domestic and export) total 242 million litres, up 10%
•Tight supply means focus on higher priced segments
•New Zealand wine is well positioned for the future.
Tighter market conditions provide new opportunities for New Zealand wines according to the June year end 2012 Annual
Report of New Zealand Winegrowers.
‘The vibrant and distinctive qualities of New Zealand wines continue to resonate with consumers in our key markets. In
the past year exports value grew 8% to $1.18 billion and international sales volumes have now lifted 79% since 2008 This
strong sales performance combined with a smaller 2012 vintage means a changed supply/demand dynamic for the sector in
the year ahead’ said Stuart Smith, Chair of New Zealand Winegrowers.
Mr Smith said that total New Zealand wine sales (export and domestic) rose 10% to a record 242 million litres for the
June year end 2012, but production from the 2012 vintage was less than 200 million litres.
‘Supply conditions are definitely tighter than at any time since 2007 which is a major turnaround for the sector. This
provides the opportunity for the industry to focus on higher priced segments in the year ahead.’
Mr Smith is clear that there are still significant challenges for both growers and wineries. ‘Profitability is a key
concern. Lower yields this year have restricted grower incomes while for wineries the challenge will be to maintain
shelf space and grow key development markets in a time of tight supply. Returns have also been impacted by the high New
Zealand dollar and domestic tax increases.’
Mr Smith said the wine industry has a clear path forward following the Strategic Review of 2011 which is now being
actioned by New Zealand Winegrowers.
‘The Strategic Review has provided a clear blue-print for action by the industry and New Zealand Winegrowers. We are now
fully into the implementation phase with our new Plan which includes increased focus on sustainability, social
responsibility and export growth in development markets. We are confident the Plan ensures the industry will be
well-positioned to take advantage of the significant international opportunities that exist for New Zealand wine.’
ENDS