Pinot noir tipped as export earner

By Dita De Boni

New Zealand has a cultural cringe about exporting wine to Australia but it could make inroads across the Tasman and around the world by boosting production of pinot noir, says a visiting Australian wine expert.

James Halliday, international wine judge and the author of over 40 books on the subject, has been part of the judging panel tasting 712 offerings from 137 wineries for the NZ Wine Society Royal Easter Show competition.

He said New Zealand pinot noir was one of the most exciting things happening in the industry as "the world is thirsty for good pinot noir in general.

"There are some good pinot noirs in Australia but they don't make enough.

"Whatever pinot is ordered goes through retail and to the customer almost sight unseen ... It's so much in demand."

Mr Halliday said production of pinot noir outside France's Burgundy region was small, so New Zealand could still penetrate the market despite producing only small volumes.

Our production of light, red varietals -- most suited to game and grilled fish meals - was still dwarfed by production of the most common whites.

Last year, 4844 tonnes of pinot noir were produced, compared with 17,823 tonnes of chardonnay and 20,580 tonnes of sauvignon blanc.

While New Zealand sauvignon blanc offerings received the thumbs up from Mr Halliday and several other judges, he was concerned about the chardonnay, which "lacks elegance and finesse."

Because New Zealand was constantly pitching for high prices in export markets, he said the chardonnays needed to resolve some viticultural issues - such as too much sweetness - before they could join the same league as the sauvignon blancs.

On export strategies, Mr Halliday pointed to Germany as one of the few markets outside Asia where there was still room to take market share without seriously upsetting existing exporters.

Germany is New Zealand's eighth largest market, with exports totalling $2.45 million last year. By comparison, $68.1 million worth of wine was exported to Britain and $16.2 million to Australia.

With consumption in most other Western markets declining over the last 20 years - from 60 litres per capita in France and Italy to an estimated 30 litres by 2020-25 - Asia is the most obvious area for attention for Australasian wine producers.

However, Mr Halliday warned that exporters had to put marketing and distribution arrangements in place before they could expect solid returns.

Although wine production in Asia was still insignificant and exporters were excited about the big population, increasing interest and understanding about wine, "no one can foresee when consumption will pick up and business there become profitable."