Over 100m litres of NZ wine sold in year

Global sales of New Zealand wine exceeded 100 million litres for the first time in the year ended September, New Zealand Winegrowers said today.

In the year ended September, 103 million litres of New Zealand wine were sold around the world, up 39 per cent on the previous year and 89 per cent higher than 2003.

Chief executive of New Zealand Winegrowers Philip Gregan said the growth had been driven by higher exports.

"Domestically, New Zealand wine has recovered market share from imported products but the real driver of growth has been the stellar export performance," he said.

Since 2003 exports have more than doubled from 27 million litres to 56 million litres -- valued at over $460 million -- in the latest September year.

But Mr Gregan said the wine industry was facing some hurdles.

He said the strong sales had led to product shortages at some wineries.

The high New Zealand dollar had also slashed export profitability, and intense competition in the domestic market had reduced margins for wineries.

- NZPA