Grape harvest fulfils its promise

By SIMON HENDERY, liquor industry writer

Almost two-thirds of this year's grapes have been picked and the wine industry remains on track for its biggest harvest.

With about 60 per cent of the grapes harvested, the industry group NZ Winegrowers is standing by its forecast of a national crush of between 150,000 and 170,000 tonnes - about twice last year's frost-affected 76,000 tonne harvest.

Winegrowers chief executive Philip Gregan said March weather was favourable, with lower than average rainfall in many areas.

This weather continued into this month, providing good conditions for ripening and flavour development.

So can the industry find markets for the wine produced by this record harvest?

Gregan told winemakers at an export conference in January that the industry faced an expensive but achievable marketing exercise as more grapes were produced.

A predicted tripling of wine exports over the next three or four years required a similar increase in international marketing of the country's wines of up to $35 million to $40 million a year, he told the conference.

Winegrowers marketing manager Anne-Marie McKenzie said yesterday a draft expanded marketing plan for the coming year would be considered by a Winegrowers committee next week.

It involved boosting the number of international promotions Winegrowers was involved in from about 80 last year, increasing awareness of New Zealand's sauvignon blanc in key markets, and raising awareness of other varieties, including chardonnay, pinot noir and merlot.

Winegrowers' marketing focus would remain on New Zealand's eight strongest wine markets, especially on the top four importers, the United States, Britain, Australia and Canada.

In the US, the promotions would be added in at least two more cities each year over at least the next three years.

Promotions are now held in New York, Boston, Chicago, Miami, San Francisco and Los Angeles.

Winegrowers planned to heighten international awareness of and demand for sauvignon blanc, the biggest export wine, but also wanted to make more use of the retail liquor trade and the wine media to push other New Zealand varieties.

New Zealand's 460-odd winemakers pay a compulsory levy to Winegrowers.

This would not be increased to finance the expanded marketing programme, McKenzie said.

Some money from the levy paid for marketing activities such as the agency's website and educational materials.

But payments for most international promotional activities were voluntary, and winemakers were invited to join marketing events of most benefit to them.

A significant amount of the $11 million spent on international marketing of New Zealand wines comes from sponsors such as bottle manufacturer ACI.

About $3 million comes from winemakers, and smaller amounts come from the Government and the compulsory producer levy.