Drive to market record wine production

By SIMON HENDERY liquor reporter

New Zealand needs to "lift our marketing effort to another level" if it is to successfully sell this year's record wine production, according to industry body NZ Winegrowers.

The lobby group's annual report, released yesterday, says this year's harvest was 118,700 tonnes of grapes, more than 50 per cent more than the previous record, 78,000 tonnes in 2000.

Winegrowers chairman Peter Hubscher said this year's vintage had changed the supply landscape for the industry.

"The change means we need to move from allocating products in short supply to being proactive marketers to ensure on-going growth," said Hubscher, who heads Montana.

"To date we have achieved considerable success as a niche producer and marketer of quality wines.

"We must now lift our marketing effort to another level to increase export sales substantially above the current annual record of 23 million litres valued at $246.4 million."

The latest export figures were a 19 per cent increase in volume and 24 per cent increase in value over the previous year.

At the same time domestic sales of NZ wine fell an estimated 4 million litres to 32.2 million litres as wineries gave preference to export markets.

The number of growers and wineries in the industry is now over 1000, with the number of wineries up to 398 from 380 the previous year.

The area of vineyards grew to 15,829ha, up from 13,673ha last year, and Winegrowers said that was likely to increase to 20,000ha within two years, meaning a vintage of 200,000 tonnes was a real possibility by 2006.

Hubscher said New Zealand was a world leader in sustainable winegrowing but the industry's future success was not guaranteed.

"We have many advantages to build on an extensive array of quality wines, a young, talented and innovative workforce, a positive quality image in our major markets, and sound industry structures.

"From this platform we can develop an even more prosperous future for our industry."

* Lion Nathan has continued its buy-up of Marlborough vineyard land, paying $11.5 million for 63ha belonging to Ngai Tahu Holdings Corporation.

The sale adds to Lion's purchase this week of Wither Hills winery in Marlborough for $52 million.