New Zealand Wine

NEW ZEALAND

New Zealand local, wine expert, critic and commentator, Bob Campbell MW, shared with Drinks Trade his insights into what is hot and what is not on the current New Zealand wine scene. By analysing data from the NZ Winegrowers Annual Reports - 2009 and 2018, Bob discusses where the New Zealand wine industry is compared to ten years ago, what is trending up and trending down, and makes a calculated guess on where this dynamic wine region is heading.

TRENDING UP

WINE PRODUCTION (+46 PER CENT)

That’s a fairly hefty increase, particularly when you consider that the productive area of vineyards has only increased by around 19 per cent in the past decade. The explanation is, of course, that the yield of tonnes per hectare varies considerably from vintage to vintage. Largest vintage was 2014 (320.4 million litres) and the smallest was 2010 (190 million litres). 2014 was also the most productive with 12.6 tonnes/ha while the rain-affected 2012 vintage was least productive with 7.6 tonnes/ha.

NO. OF WINERIES (+8 PER CENT)

There are now 697 registered wineries in New Zealand, a modest increase from 643 ten years ago. A Sauvignon surplus in 2008 and the global financial crisis saw a slowing in start-ups and a drop from the peak of 703 wineries in 2012. The big got bigger – those producing over 4 million litres increased from 6 to 17 wineries.

EXPORT SALES (+126 PER CENT IN LITRES; +72 PER CENT IN DOLLARS)

Solid growth, but a decline in return per litre, from $8.80 (2009) to $6.68 (2018). Top three markets by value in 2009 were (in order) UK, Australia and USA. The top three in 2018 were USA, UK and Australia. Sauvignon Blanc maintained its dominant position. In 2009 Sauvignon Blanc represented 81 per cent of export volume. In 2018 Sauvignon was 86 per cent of wine exports.

PRODUCING VINEYARD AREA (+19 PER CENT)

Steady, if slow, growth over the past decade with a small drop in 2013 and 2015. Regions with expanding vineyard area in the past ten years are Nelson (+44 per cent), Marlborough (+41 per cent), Central Otago (+24 per cent) and Wairarapa (+16 per cent). Vineyard area shrank in Gisborne (-41 per cent), Auckland/Northland (-27 per cent), Canterbury/Waipara (-16 per cent) and Hawke’s Bay (-5 per cent).

GRAPE VARIETIES ON THE UP (BASED ON VINEYARD AREA)

I’ve chosen to express the change in the area of productive vineyard over ten years rather than as a percentage, which can be deceptive. For example the growth in Sauvignon Blanc over the past ten years is a comparatively modest 13 per cent and yet that represents an increase of 6,897 hectares, greater than the net increase of the total national vineyard over that period.

• Sauvignon Blanc (+6,397 ha)

Marlborough Sauvignon Blanc is a juggernaut.

Uncharitable critics might argue that the wine industry is too dependent on a single grape variety and that consumers may soon tire of it. New Zealand’s wine industry would be very different place if it wasn’t for Marlborough

Sauvignon. For a start it would be around one-third of its present size, and that’s without calculating the coat-tail effect that

Marlborough Sauvignon Blanc has had on all other varieties. Can the present rate of growth drinks trade|35

Ata Rangi - Main Gate

continue? Probably not, but the restriction is going to be a lack of available land rather than an unwilling market.

• Pinot Gris (+946 ha)

Yes, it surprised me too. Pinot Gris is a quiet achiever. It is now the country’s third most exported wine and is clawing an everincreasing share of the domestic market. I am not the world’s greatest Pinot Gris fan but I have to concede that it has made great strides in quality over the past decade. Pinot Gris is becoming a lieutenant to Sauvignon Blanc.

• Pinot Noir (+ 876 ha)

The country’s second most planted grape variety is becoming something of a super-star on the international stage. It’s great for the image of New Zealand wine. Pinot Noir is a precious asset that must be protected from exploitation at all costs.

• Syrah (+142 ha)

With a rather miniscule 435 ha in 2018

Syrah is hardly going to keep Barossa Valley vignerons awake at night although it is attracting an increasing amount of attention from the international press. Another valuable image-builder.

TRENDING DOWN

NO. OF GROWERS (-35 PER CENT)

Somewhat mystified by this fairly dramatic drop to the present total of 699 I turned to NZ Winegrowers for help. CEO Philip Gregan responded, “There appear to be two trends going on … one, average vineyard size seems to be increasing and two, the number of growers does seem to be reducing. To me that suggests two processes. First in some areas Gisborne and Hawkes Bay for example, we have definitely seen some growers exiting the industry whether due to age or converting to other land uses. And second there is probably some consolidation going on i.e. smaller growers selling out to larger neighbours and/or wineries.”

DOMESTIC SALES OF NZ WINE (-11 PER CENT)

That figure bounces around a bit from a high in 2011 (66.3 million litres) to a low in 2013 (51.7 litres) but is generally tracking down. Sales of imported wines are on the up and consumption of all wine has slipped slightly.

CONSUMPTION PER CAPITAL OF ALL WINES (-11 PER CENT)

There has been a steady decline in wine consumption over the past decade. In 2009

BELL HILL, CANTERBURY*

Tiny production of hard to get superquality Chardonnay and Pinot Noir.

SMITH & SHETH, HAWKE’S BAY, MARLBOROUGH AND CENTRAL OTAGO*

Ground floor stuff, expect top quality Sauvignon Blanc, Chardonnay, Syrah and Pinot Noir.

WINE BRANDS TO WATCH

MATT CONNELL WINES, CENTRAL OTAGO*

Brand new. Seductive Pinot Noir and a very good Chardonnay.

GREYSTONE, NORTH CANTERBURY

Stylish aromatic wines and great Pinot Noir. A great site.

FRAMINGHAM, MARLBOROUGH

Truly great Riesling.

ATA RANGI, MARTINBOROUGH

Legendary Pinot Noir.

FELTON ROAD, CENTRAL OTAGO

Great Pinot Noir, Riesling and Chardonnay. consumption per capita of all wines was at the highest point in ten years (21.5 litres) while 2018 was the lowest point with 19.2 litres. Perhaps even more worrying for local wine producers is the even greater decline in the domestic consumption of New Zealand wine from 13.9 litres in 2009 to 10.9 litres in 2018 – a drop of nearly 22 per cent.

GRAPE VARIETIES IN DECLINE (BASED ON VINEYARD AREA) • Chardonnay (-748 ha)

Vineyard area dropped on the first half of the decade but seems to have plateaued in the second half. If wine quality is any guide the declining trend may soon reverse.

• Riesling (-272 ha)

It’s easy to make good Riesling in New

Zealand but not as easy to sell it. The variety experienced a steep drop of 223 ha in 2012 and has been in slow decline since.

• Cabernet Sauvignon (-268 ha)

Like Riesling, Cabernet dropped sharply in 2012 and acreage has continued to decline gracefully ever since. It won’t go away but is unlikely to enjoy a revival.

KUSUDA, MARTINBOROUGH*

Collectible, hand-made Pinot Noir, Syrah and Riesling.

NEUDORF, NELSON

Outstanding Chardonnay.