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The Way Forward. Year End 2010 End Year THE WAY FORWARD. THE WAY ANNUAL REPORT 2010 ANNUAL NEW ZEALAND WINEGROWERS ANNUAL REPORT WINE INSTITUTE OF NEW ZEALAND INC AND NEW ZEALAND GRAPEGROWERS COUNCIL INC YEAR END 2010 nzwine.com IT'S IN OUR HANDS. R EB 2010 A LA N 2011 C E 2019 LO W P RO 29 Wineries and Grape FI TA CONTENTS Growers SUPP B LY IL 2012 IM IT VO B Y 30 New Zealand Producing LU A M L Vineyard Area E A 4 CHAIR’S REPORT 2018 N C E B 31 New Zealand Vintages D R 8 ADVOCACY REPORT N THE A I 32 New Zealand Wine Exports A N N B By Market M C PLAN D 10 MARKETING REPORT A E R 2013 L I D E N A 34 New Zealand Wine Exports A & N V By Variety S Y 16 SUSTAINABILITY C E L E E 2017 P O P S REPORT F U D S T P 35 Wine Imports Into M R O Y E F T New Zealand I I T L I N A B 20 RESEARCH REPORT T / N P H O R I 23 Research Projects Funded E 2014 T M A T I S I U M This Year 37 INDUSTRY W 2016 O MEMBERSHIP LISTS R 23 Surveys and Publications G 2015 37 Wineries E U L A 49 Grape Growers V 24 WINE AWARDS 24 Air New Zealand Wine Awards 2009 58 INDUSTRY BOARDS 26 Bragato Wine Awards 2009 59 INDUSTRY ORGANISATIONS 28 STATISTICS 28 Summary: New Zealand 60 INDUSTRY STAFF Wine DIRECTORY THE FIRST STAGE IS TO REBALANCE SUPPLY AND TO RECOVER PROFITABILITY. Figures with three-fi ngered hands occur frequently in Maori whakairo rakau (wood carving). These matimati (fi ngers) have many interpretations, often being said to represent the three kete (baskets) of The second stage knowledge. In the landscape on the previous page they symbolise the three pillars of success: matauranga (knowledge), tautohito (skills) and whakamaherehere (guidance). is to drive growth in market returns Average yields were managed EXPORTS CONTINUE TO GROW, But the export story of 2010 was down from 9.2 tonnes per hectare BUT PRICES DECLINE the emergence of Asia. Shipments across the country in 2009 to to China shot up 180% to $17 8 tonnes per hectare. National Despite diffi cult market conditions, million, placing China ahead of all CHAIR’S vineyard area in production New Zealand wine exports grew by other Asian markets to become increased by 2,100 hectares to a 26% in volume to reach a year-end New Zealand’s 6th largest export REPORT total of 33,400 hectares as the total of 142 million litres. Bottled destination. The Japanese market last of the signifi cant pre-2008 wine exports were up a very jumped ahead 34% in volume after plantings came on stream. positive 13%. a long stagnation. Asia is now the continent where the highest Sauvignon Blanc consolidated The $1 billion barrier was broken average prices are achieved, and its dominance of the varietal mix. for the fi rst time in the 2009/10 total sales have reached over $60 Production, at just over 174,000 fi nancial year, with total exports million, compared with just $10 tonnes, was down just 2% whereas rising 5% to $1.04 billion. million only fi ve years ago. volumes of Chardonnay and Pinot Unfavourable NZ dollar exchange Noir were down 23% and 14% rates, the global recession, in- Sales of New Zealand wine in the respectively. Pinot Gris showed a market price pressures and bulk home market are estimated at 57 modest increase of 12%, while 24% wine exports all contributed to the million litres, a slight decrease on less Merlot was harvested than in comparatively restrained value the previous year (-5%). Overall 2009. growth. market share remained strong for New Zealand wine at 62% of a total In the regions, Marlborough Over the year average value of domestic market of 92 million litres. produced 183,000 tonnes, down bottled wine exports declined 11% 5% on the previous year. Hawke's to $8.77 per litre. They are now at For imports, bottled products Bay’s harvest of 39,000 tonnes values similar to those current in declined 19% to their lowest level in showed a similar level of reduction. early 2006. Including bulk wine 7 years, whereas bulk imports rose Gisborne (-21%) and Nelson exports, average value decreased by 64% after dropping signifi cantly (-23%) experienced sharper falls more sharply, down $1.47 (17%) to a year earlier. The fall in bottled due to both climatic conditions $7.33 per litre. imports is particularly signifi cant and production decisions. Only because it signals that New Zealand Canterbury, Waipara and Northland Availability of sharply priced consumers are recognising the experienced larger vintages than product stoked global demand excellent value for money off ered 2009. for Sauvignon Blanc. Exports by well priced local wines. of New Zealand’s fl agship wine increased 26% in the past year to VINTAGE 2010 reach a dominating 116 million litres REPUTATION—OUR GREATEST (BY TONNES) or 82% of total export volumes. ASSET Pinot Noir enjoyed a substantial New Zealand is one of a fortunate 300 33% rise in exports by volume as few among the world’s wine 250 GETTING THE BALANCE positive indicators: exports of THE YEAR IN REVIEW quantities of the excellent 2008 exporters that continue to enjoy and 2009 wines fl owed onto the growing exports. At the same RIGHT bottled wines continue to grow; 200 average prices remain stronger market. Pinot Noir exports reached time, the industry must be acutely A GREAT VINTAGE RESULT 150 Balance is the central theme for than our competitors; new markets an estimated $100 million for the aware of the fact that bulk wine New Zealand wine in 2010. fi rst time. Merlot is gaining its due now accounts for 27% of the total are developing at a swift pace. Early in the growing season, 100 New Zealand Winegrowers recognition with a 35% sales jump, volume of exports. 50 Balanced vines grow great fruit. At a time when fi nancial pressure calculated the likely demand for (THOUSANDS) TONNES while Pinot Gris continued its Balanced wines give a premium on growers and wineries has never premium bottled New Zealand wine 0 strong performance (+36%). Sales Bulk wine sales may be a vital taste experience. Balanced books been more intense, recognising in the 2010/11 sales year. Based on of these three varieties grew at a safety valve for cash-strapped 2010 2001 2007 2002 2003 2005 2008 2009 2006 ensure profi tability. these achievements is important. the data from Export Projection 2004 faster rate than Sauvignon Blanc, wineries. However sale of Surveys, an estimate of +/- 265,000 albeit from a much lower base. unbranded, below cost bulk In the marketplace, supply and While there is still a long way to tonnes (20,000 tonnes less than VINTAGE 2010 wines threaten to undermine the demand must be in balance for go before the sector is restored the previous two vintages) was (BY VARIETY) Leading export destinations were reputation that the industry has our sector to prosper as a quality to full health, the path forward is communicated to the industry. the traditional UK and Australian worked so hard and so long to producer. That is a pre-condition clear. For the next two years, the markets, although increases of 33% create. for New Zealand wine to grow its and 23% by volume respectively focus must remain on rebalancing Vintage 2010 proved to be a great Sauvignon Blanc 66% value and for profi tability to fl ow were led by bulk wine sales. Reputation is the industry’s and recovery. From there, future success. At 266,000 tonnes it Chardonnay 10% into individual grape and wine Shipments of wine to the USA greatest asset. Reputation is what growth prospects must target was in line with estimated annual Pinot Noir 9% businesses. expanded, albeit at a rate slightly the industry is selling. Every bottle enhanced value for New Zealand’s demand and it produced fruit of the Pinot Gris 5% premium wines ahead of increased highest quality. This is an excellent lower than the average (+19%); this that bears the words “New Zealand Merlot 3% Oversupply and the global fi nancial production capacity. result, brought about through a market remains a key opportunity wine” should add to that reputation, Other 7% crisis have tipped the scales in combination of disciplined vineyard for our exporters. Exports to not free-ride on it. recent years. But the well managed, As long as every step along that management and favourable Canada leapt by 41% on the back high quality 2010 vintage is an path continues to be guided by an growing conditions. of a very successful Vancouver important step towards bringing unswerving commitment to quality, Playhouse event. Bulk wine exports production into alignment with the industry can look to the future were also a factor in this market. market demand. There are other with confi dence. 4 CHAIR'S REPORT CHAIR'S REPORT 5 WINE EXPORTS BY VALUE INFORMING STRATEGIC Bragato Conference, First Steps to over the next 12 months will QUALITY RESEARCH the Grape Futures project, the DECISIONS Exporting, and the Annual Seminar ultimately decide the basis on Greenlight spray diary tool and the which growers can operate frost Even in testing times, the need completion of a revised Winery 1200 Series to mention just a few. New Zealand Winegrowers fans going forward. to produce wines of the highest Waste Code of Practice.
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