Wine sales take a hit

Five million glasses of New Zealand wine are consumed around the world every day but consumption in some key markets is declining and the industry is starting to see the impact.

Wine writer Michael Cooper said younger people were drinking less or avoiding alcohol altogether – unlike over-60s, who are drinking more.

Two wineries have recently been placed in receivership, Vinoptima in Gisborne and Mahana in Nelson, and Cooper believed there will be more to come.

Another threat on the horizon was legalisation of marijuana which may see some wine consumers viewing it as a substitute, he said, quoting a Rabobank report.

‘‘I see many people in their 20s who either don’t drink at all or only very occasionally,’’ he said.

‘‘It’s good to see people handle wine responsibly,’’ Cooper said.

In 2009, Kiwis consumed an average of 21.5 litres of wine per year, but typical consumption has now eased to 19.2 litres per head, including cheap imports.

‘‘The fall in our local consumption of New Zealand wine is even steeper – from 13.9 litres per capita in 2009 to only 10.9 litres per capita in 2018 – a drop of more than 20 per cent,’’ Cooper said.

Recent statistics show New Zealand wine exports on the increase in volume and value with growing consumption in China and Russia. But while the overall export value is up, the average value per litre has fallen from $8.85 per litre in 2009 to $6.68 per litre in 2018.

Wine is now the country’s fifth most valuable export commodity and is on track to generate $2 billion per year in export receipts by 2020, fuelled largely by American demand for sauvignon blanc.

‘‘Many small wineries were established during the 1990s by affluent baby boomers, then aged in their 40s,’’ Cooper said.

‘‘Now they are in their midlate 60s and keen to sell up. The number of wineries in New Zealand peaked six years ago and the industry is facing more and more consolidation. Some of these small wine companies simply close down.

Others are acquired by the biggest companies, which are often overseas-owned.

Cooper said the UK was a key market for New Zealand, and nearly 30 per cent of people aged 16 to 25 avoided all alcoholic beverages, including wine – with the exception of over-60s.

‘It’s good to see people handle wine responsibly.’

Michael Cooper, wine writer