Tale of the grape
Exports continue to rise, but Kiwis are drinking less wine this year.
Reading New Zealand Winegrowers’ 2019 annual report left me feeling both optimistic and deeply concerned. Our wine production and exports are still growing steadily, but Kiwis are drinking less wine and, increasingly, what we are buying is imported.
First, the good news. The number of wine producers dropped between 2012 and 2015 from 703 to 673 but has since rebounded to reach a new peak of 716 this year. The vineyard area is also expanding and in the year to June 2019, the value of wine exports climbed by 6% to $1.82 billion.
Well over 80% of New Zealand wine is now exported, mostly to the US, UK and Australia (although after five years of no sales growth, NZ Winegrowers has closed its office in Australia). Reflecting its quality reputation, wine from New Zealand is either the most expensive or secondmost expensive in the US, UK, Canada and Hong Kong.
Referring to our obligations under the 2016 Paris Agreement on climate change, the report notes: “Winegrowing is a very low net emitter of greenhouse gases. In fact, it is precisely the kind of low-carbon, high-value land use the Productivity Commission said New Zealand would need to expand if it is to achieve a sustainable lowemissions future.”
Tracking changes in the vineyards since 2010, the report shows that total plantings of sauvignon blanc, pinot noir, pinot gris and syrah have expanded, but chardonnay, riesling, gewürztraminer, merlot and cabernet sauvignon have all declined. The report also reveals a drop in the number of wineries in Auckland, the Waikato/Bay of Plenty and Gisborne.
And the bad news? More than half the wine exported to the UK is shipped in bulk, rather than bottled within New Zealand, raising widespread concern about the potential for adulteration. And wine consumption in New Zealand has dropped from 21.3 litres a person in 2011 to 18.9 litres in 2019.
The greatest challenge is that consumption of New Zealand wine, which peaked in 2011 at 15.2 litres a person, has plummeted to 10.3 litres this year. Imports are rising and nearly half (45%) of the wine we currently drink is from overseas. Even Montana Sauvignon Blanc (in a move to keep its price under $10) is now an Australian wine.