By JOSIE CLARKE
The wine business is booming, with export sales up a third last year and the area in vineyards expected to grow by a third in the next three years.
There are 9460ha planted in producing vines. That is expected to reach 12,610ha by 2003.
By then, Marlborough will be home to 45 per cent of the country's vineyards. Hawkes Bay will have 22 per cent, with the rest spread around areas including Gisborne (13 per cent), Canterbury, Central Otago, Martinborough and Nelson.
These predictions in the Wine Institute's annual report for 1999-2000 follow a record year for the industry.
International sales of New Zealand wine reached $169 million - up 35 per cent from the previous year.
The report predicts that international sales could double in the next five years, possibly reaching $375 million in 2005.
Grape Growers' Council president William Crosse said the boom would require a substantial investment, not just in vineyards but in wineries, stock-holding and marketing.
He also highlighted the importance of keeping the national vineyard "clean" and healthy.
"We have a relatively clean vineyard. That's a huge asset to us and we must maintain our strict quarantine regulations."
Wine Institute chief executive Philip Gregan said the new grapes would be planted with the export market in mind because of the competitive domestic market.
"There are far greater opportunities offshore."
Sauvignon blanc, pinot noir and merlot are the three fastest-growing varieties. The strong growth in chardonnay in the past three years is slowing down.
Sauvignon blanc is expected to account for 27 per cent of the national crop by 2003, followed by chardonnay at 25 per cent. Pinot noir is predicted to be the big mover, becoming the third-most-planted crop at 16 per cent.
Mr Gregan said the perception in the industry was of a stronger overseas demand for local sauvignon.
"It's been seen as our signature wine for some time now. There is a very strong demand for that, and that's fuelling a lot of the plantings."
The industry assumed that about 80 per cent of the wine would continue going to New Zealand's key export markets - the United Kingdom, the United States and Australia.
He said most New Zealand wine sold in Britain for $15 to $27 a bottle.
Warnings have accompanied the predictions. Experts agree that the industry has hard work to do to manage growth properly over the coming years.
Wine Institute chairman Peter Hubscher said there were both opportunities and challenges arising from the increased production.
"Higher production will enable the industry to boost exports substantially above current levels. On the other hand, the world already has a wine surplus, competition is increasing, and we will need to invest heavily to develop profitable niche markets."
Mr Gregan said every individual company must do its homework, working out where and how to sell its wine.
"They can't leave anything to chance."
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