International demand for New Zealand wine at an all-time high

International demand for New Zealand wine shows no sign of slowing, with total export value reaching a record $1.83 billion according to the 2019 Annual Report of New Zealand Winegrowers.

Export value has risen by 6% in June year-end 2019, and at a retail level, this translates to over $7 billion dollars of New Zealand wine sold around the world annually. The UK and USA led the growth, with the USA continuing to be New Zealand wine’s largest market with over $550 million in exports.

The premium reputation of New Zealand wine has translated to real value in its major markets where the country remains either the highest or second-highest priced wine category in the USA, UK, Canada, and China. “This year’s export results again reflect the New Zealand wine industry’s strengths, and reinforce our international reputation for premium, diverse and sustainable wines.” said John Clarke, Chair of New Zealand Winegrowers.

The report highlights the completion of the 2018 PwC Strategic Review, the first within the industry since 2011, which provided a wealth of usable insights into the state of the New Zealand wine sector, challenges and opportunities. “The Strategic Review report noted the continued steady growth of the industry, and identified a range of challenges and risks that need to be addressed to maintain that trajectory and ensure all members have the opportunity to benefit” said Mr Clarke.

Mr Clarke noted the Strategic Review underscored how important all aspects of sustainability were in order to maintain the New Zealand wine industry’s social license to operate. “As an industry, we need to ensure our key focus is on enhancing sustainability initiatives. Sustainability is a cornerstone of the reputation of New Zealand wine, and is vital to the ongoing success of our industry.”

Highlights over the last year include the completion of the first phase of the Bragato Research Institute’s climate change programme, the commencement of a new research winery facility, and the International Sauvignon Blanc Celebration, which saw over 100 international wine producers, experts and key influencers visit Marlborough to experience New Zealand’s diverse Sauvignon Blanc offerings.

The 2019 Annual Report can be accessed here.

For further information contact:
Philip Gregan
CEO, New Zealand Winegrowers
021964564

Editor’s note:
• Wine is New Zealand’s sixth-largest export good.
• New Zealand wine is exported to more than 100 countries.

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Wine exports to the USA surpass $500 million

Wednesday, 3 May 2017, 2:34 pm | Press Release: New Zealand Winegrowers

Leaves & vines from Kirkpatrick Estate Winery
Leaves & vines from Kirkpatrick Estate Winery

Wine exports to the USA surpass $500 million for the first time

The latest data from Statistics New Zealand show wine exports to the USA have surpassed $500 million for the first time, up 11% in the last year.

As the wine industry advances towards its goal of $2 billion of exports in 2020, there is significant potential for further growth in North America said Philip Gregan, CEO of New Zealand Winegrowers.

“New Zealand wine, especially Sauvignon Blanc, is very popular in the US and we expect consumer demand to continue to grow.”

“The new record level of wine exports into the world’s largest and most competitive market is an outstanding achievement for New Zealand wine exporters and testifies to the strong global demand for our wines.”

New Zealand wine exports reached a new record of $1.63 billion in March year end 2017. Wine is now New Zealand’s fifth largest export good by value.

The announcement of the new export records come at a busy time for the wine sector with the 2017 vintage nearing completion and the advent of International Sauvignon Blanc Day celebrations on Friday 5 May.

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USA biggest wine market as French drinkers cut down

french-drinkers1
Monica Edwards shops for wine at Central Market in Shoreline, May 29, 2012. REUTERS/Anthony Bolante/Files

PARIS | BY SYBILLE DE LA HAMAIDE

The United States became the world’s biggest market for wine last year, beating France into second place for the first time as consumption slides in the country long seen as its natural home and Americans develop a greater taste for it.

U.S. consumers ‎bought 29.1 million hectoliters of wine in 2013, a rise of 0.5 percent on 2012, while French consumption fell nearly 7 percent to 28.1 million hectolitres, the International Vine and Wine organization OIV said on Tuesday.

U.S. drinkers are, however, still way behind in terms of consumption per head.

According to per capita figures that date from 2011, the average French person still gets through almost 1.2 bottles a week, about six times more than the average American. Nevertheless, the downward trend in consumption through recent years is fairly dramatic in Europe’s wine-drinking heartlands.

“In countries such as France, Italy and Spain, people used to drink a lot of wine, but consumption habits are changing,” OIV director general Jean-Marie Aurand ‎said on the sidelines of a news conference in Paris.

“We drink less wine by volume, more quality wine. And there is also competition from other drinks such as beer.”

“In the U.S., it is different, and they are starting from a lower level per capita, so they have a tendency to consume more and more, notably quality wine,” he said.

A wine bottle is seen on display in a cellar at the winery of Vassilis Panagiotou in the city of Markopoulo, east of Athens October 12, 2013.  REUTERS/John Kolesidis
A wine bottle is seen on display in a cellar at the winery of Vassilis Panagiotou in the city of Markopoulo, east of Athens October 12, 2013. REUTERS/John Kolesidis

France, the world’s third largest wine producer behind Italy and Spain, saw its consumption per capita fall more than 20 percent between 2002 and 2011 to 46.4 liters per year, he said.

Over the same period, U.S. consumers raised their consumption by nearly 17 percent to 9.1 liters per person per year.

The OIV said the sharp fall on the French wine market last year was exaggerated by an adjustment in its statistical data.

WORLD TRADE DROPS BUT PRICES RISE

The Paris-based organization estimated last year’s wine consumption in China down 3.8 percent to 16.8 million hectolitres after a rapid growth over the past 10 years, but Aurand played down the fall, saying this was likely due to large stocks built up in the previous years.

Without official Chinese data, OIV calculates consumption by adding estimated output and imports minus small exports.

Overall, world wine consumption last year fell by 1 percent to 239 million hectoliters after four years of near stability.

“The long-awaited recovery that will mark the end of the financial crisis, which began in 2008, is still to take place,” Aurand said.

World wine production last year rose 9.4 percent to‎ 279 million hectoliters ‎helped by record output in Spain, Chile, South Africa and New Zealand, the OIV said.

International trade in wine fell 2.2 percent by volume to 98 million hectoliters, but higher average prices in 2013 led to a 1.5 percent rise in sales to 25.7 billion euros ($35.4 billion).

French exports shed 3 percent by volume, mainly due to low 2012 output, keeping the country behind Italy and Spain in the ranking of world wine exporters, but it remained the world’s top wine exporter in value at 7.8 billion euros ahead of its two main competitors.

“Things should move a different way in 2014 when you look at 2013 output, especially for Spain, which has a record harvest,” Aurand said.

For 2014, the OIV warned of a likely sharp fall in output in the southern hemisphere due to adverse weather conditions.

Initial estimates pointed to a fall of 20 percent in output in Argentina compared to 2013 and a drop of 10 to 20 percent in Chile after last year’s hefty production. Australian production could also fall slightly, the OIV said.

Overall output in the main countries of the southern hemisphere, also including South Africa, Brazil, New Zealand and Uruguay, could fall to between 49 to 53 million hectoliters this year, down 10 percent on 2013, the OIV said.

(Editing by Andrew Callus and David Evans)

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