PHOTO: RICHARD BRIGGS
Chair’s Report Ten years ago, the New Zealand wine industry set out to double the value of our wine exports to $2 billion per year. This ambition reflected industry confidence that the distinctive flavours, quality and sustainability of our wines would increasingly resonate with consumers around the world.
IMPACTS OF COVID-19 Restrictions on operations of hospitality businesses worldwide have been a major stress point for wineries dependent on that sector. With countries bouncing in and out of lockdown, it is hard to predict buying patterns and, indeed whether some trade customers will survive at all. Cellar doors have also been hit hard by the collapse in international tourist numbers. Positively, we have seen more New Zealanders
A decade on, we have realised that bold
visiting cellar doors, but there have been long,
objective. Exports reached $2.01 billion for
lean periods outside of traditional Kiwi holiday
the year ending December 2020. Our ability
periods and long weekends. The tourism bubble
to compete with distinction, in markets at
with Australia provided hope for operators, but
home and throughout the world, has been
its potential benefits have been hindered by its
affirmed year after year.
on-again-off-again status.
This sustained growth has never been without
Internationally, New Zealand wineries’
challenge. In the past year, the effects
partnerships with supermarkets and big retailers
of COVID-19 on the border, markets, and
strengthened. With operations of other outlets
increasingly supply chains, have continued to
restricted or closed, consumers turned to trusted
impact growers and wineries.
brands on the retail shelves. New Zealand wine benefited from this trend. Exports lifted sharply
Now, for many in the industry, those challenges
in the six months to December 2020, up 9% in
have been compounded by a vintage that is of
value and 15% in volume for the period.
exceptional quality, but much reduced in volume. Successfully managing the market impacts of the
As the year progressed, wineries’ ability to
resulting supply constraints in a post-pandemic
ship products to market became a matter of
world will be a key focus for our industry.
concern. Transport costs more than doubled
2 / NEW ZEALAND WINEGROWERS INC
