111810 NZWAnnualReport2007:11181020078/9/079:43AMPagec NEW ZEALAND WINEGROWERS ANNUAL REPORT WINE INSTITUTE OF NEW ZEALAND INCORPORATED AND NEW ZEALAND GRAPE GROWERS COUNCIL INCORPORATED YEAR END JUNE 2007 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page d NEW ZEALAND WINE 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page e PURE DISCOVERY NEW ZEALAND IS A LAND LIKE NO OTHER. NEW ZEALAND WINE IS AN EXPERIENCE LIKE NO OTHER. OUR SPECIAL COMBINATION OF SOIL, CLIMATE AND WATER, OUR INNOVATIVE PIONEERING SPIRIT AND OUR COMMITMENT TO QUALITY ALL COME TOGETHER TO DELIVER PURE, INTENSE AND DIVERSE EXPERIENCES. IN EVERY GLASS OF NEW ZEALAND WINE IS A WORLD OF PURE DISCOVERY. 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page f “...CHARDONNAY, PINOT GRIS, RIESLING AND SMALL BUT WORLD-CLASS QUANTITIES OF HAWKES BAY SYRAH, PLUS A HANDFUL OF RED BORDEAUX BLENDS... SEE WHY NEW ZEALANDERS ARE SMILING.” Tim Atkin MW, Off Licence News, UK, July 2007 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page 1 CONTENTS 3 HIGHLIGHTS 5 CHAIR’S REPORT 14 MARKETING REPORT 18 AIR NEW ZEALAND WINE AWARDS 2006 19 BRAGATO WINE AWARDS 2006 20 RESEARCH REPORT 23 SUSTAINABLE WINEGROWING NZ® 24 INDUSTRY RESEARCH & INFORMATION 25 STATISTICAL SECTION 25 SUMMARY NEW ZEALAND WINE (1997-2007) 26 GRAPE GROWERS AND WINERIES (1997-2007) WINERIES BY CATEGORY WINERIES BY REGION GRAPE GROWERS BY REGION 27 NEW ZEALAND PRODUCING VINEYARD AREA (1999-2009) BY GRAPE VARIETY (HECTARES) BY REGION (HECTARES) 28 NEW ZEALAND VINTAGES (1997-2007) BY GRAPE VARIETY (TONNES) BY REGION (TONNES) 29 NEW ZEALAND WINE EXPORTS BY MARKET (1997-2007) 30 NEW ZEALAND WINE EXPORTS BY MARKET (YEAR END JUNE 2007) 31 NEW ZEALAND WINE EXPORTS BY VARIETY (2003-2007) 32 WINE IMPORTS INTO NEW ZEALAND (1997-2007) BY COUNTRY OF ORIGIN BY PRODUCT TYPE 33 WINE IMPORTS INTO NEW ZEALAND (YEAR END JUNE 2007) 35 INDUSTRY MEMBERSHIP LISTS 35 WINERIES YEAR END 2007 49 GRAPE GROWERS YEAR END 2007 61 INDUSTRY BOARDS 62 INDUSTRY DIRECTORY IBC GRAPHS 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page 2 “POWERFULLY MAGNETIC AND A RICH COMMUNION OF GENEROUS FLAVOURS AND LACY TANNINS, NEW ZEALAND PINOT NOIRS ARE CHALLENGING THE RELIGIOUS AUTHORITY OF BURGUNDY.” Andrew Caillard MW, Australian Gourmet Traveller, 1 May 2007 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:43 AM Page 3 2007 HIGHLIGHTS New labeling standards established Pinot Noir 2007! Over $7 million Wineries in New invested into grape Zealand Wine marketing and wine research programme jumps 30% Vintage 2007 Total sales exceed “wonderful quality, 1 billion glasses give us more” Brand positioning Exports lift 36% ‘New Zealand Wine - to $700 million Pure Discovery’ launched Australian exporters benefit from WET rebate of AUD $6-7 million Sustainability policy targets 100% adoption by 2012 2-3 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:44 AM Page 4 “AT ONE RECENT CONFERENCE, A DELEGATE ROSE TO PRAISE NEW ZEALAND WINE FOR DISPLAYING ‘THE BEST AVERAGE QUALITY IN THE WORLD’. IT’S A FAIR ASSESSMENT OF A COUNTRY THAT’S CHANGING FROM A ONE-TRICK PONY TO ALL-ROUND PERFORMER.” Anthony Rose, The Independent (Magazine), UK, 24 February 2007 2007 2006 New Zealand Wine - Pure Discovery. Total sales of more than Sustainability policy adopted. 100 million litres and export earnings 1 billion glasses of NZ wine sold. in excess of half a billion NZ dollars. 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:44 AM Page 5 CHAIR’S REPORT Serious Business One billion glasses of New Zealand wine sold in 95 Most responses feature a countries around the world. strongly positive perception 36% growth in total export Sustainability - of New Zealand wine, images value. $1.2 billion of total sales. The Passport to Trade of high quality and feelings New Zealand’s fifth most of adventure or discovery. Is your vineyard or winery valuable export to Australia and This learning was channelled sustainable? the EU, and our second most into the development of valuable export to the UK. Every grape grower and a re-styled national brand winemaker should be asking After two decades of growth, image and the adoption themselves this question. our wine is now a serious player of a new strapline. The retailers, consumers and in the New Zealand economy “New Zealand Wine - Pure regulators of the future will In addition we have funded and the international wine trade. Discovery” captures the certainly want to know. If the a wide range of research We are used to the quality of excitement and clarity of answer is not a proven “yes”, into sustainable production our wines being taken seriously. flavour that our wines offer then there will be little place for methods, and were a key player But the arrival of the New the market. It summarises that product in the international in the development of the Zealand wine industry as the journey our industry quality wine market. BioGro organic grape and an economic force heralds has embarked upon, New Zealand Winegrowers wine standard. a new phase of our evolution; as we continue to discover, firmly believes that sustainability While we reject the specious a phase that involves both innovate and improve. is a key strategic goal for arguments around “food miles”, greater rewards and greater Pinot Noir 2007, flanked a successful future in the this catchphrase underlines responsibilities. by the Syrah and Aromatics international wine business. In the hold environmental issues Moving forward, we will Symposia, offered the world a short, it is the passport to trade. have on consumer thinking encounter more opportunities, chance to discover our wines This year we adopted a new in key markets. In short, the tougher competition, stricter through a tremendous series Sustainability Policy that importance of sustainability accountability, and closer of events and tastings. targets having all New Zealand has never been clearer. scrutiny from consumers, More wineries signed up to grapes and wine produced With the review of SWNZ regulators and media. All of this our marketing programme under independently audited complete and its findings is very positive, as it will drive than ever before, reflecting sustainability schemes by being implemented we are us to examine and improve the value it delivers to those vintage 2012. well prepared to meet the upon every aspect of what we who participate. Memorable sustainability challenge. Now do as an industry. The industry is well positioned successes were many, but to meet this goal. A major is the time for the industry As we get bigger, we must also undoubted highlights were review carried out this year to move to a new level of get better. We must build upon our events in key Asian confirmed that we already have commitment to environmental the cooperative and innovative markets: Singapore, Tokyo, a world-leading environmental and social, as well as economic, mindset and quality-focussed Hong Kong, Seoul and management system in sustainability. viticulture, winemaking and Shanghai. Sustainable Winegrowing marketing that have brought ® The revamped USA New Zealand (SWNZ). Over us success. If we do this, the programme is gaining traction the past 13 years we have New Zealand wine industry in that vast and fragmented brought the programme to will continue to thrive. market, with more the point where today over 60% of the total vineyard area New Zealand - Pure Discovery improvements to come. and 70% of wines are produced How do people see New Important learnings are being made in the UK, with a number in wineries covered by SWNZ Zealand wine? That is the membership. question we have been asking of new promotions and a trade key audiences over the past magazine supplement. year through a major brand audit conducted around the world. 4-5 2005 2004 500th winery. Exports exceed 50 million litres. Record total New Zealand wine NZ wine exports exceed 2003 sales of 96 million litres. 30 million litres, valued at over $300 million. NZ wine export value exceeds $250 million dollars for the first time. Wine Act 2003 enacted. 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:44 AM Page 6 “IT MAY COME FROM THE OTHER SIDE OF THE WORLD, BUT THE LOW EMISSIONS OF CONTAINER SHIPS, NEW ZEALAND’S RELIANCE ON HYDROELECTRICITY AND ITS COMMITMENT TO SUSTAINABLE VITICULTURE, MEAN THAT A BOTTLE OF NEW ZEALAND SAUVIGNON IS QUITE POSSIBLY THE MOST ENVIRONMENTALLY FRIENDLY WINE ON YOUR LOCAL SHOP’S SHELVES.” Joe Fattorini, The Herald Glasgow, UK, 23 June 2007 2000 1999 2002 NZ wine export 19.2 million Sale of Liquor Amendment Act 1999, public litres, valued at NZ$168.6 is able to purchase wine on Sundays from NZ Winegrowers commences operations in March, million. Host first major supermarkets, wine shops and other wine following an agreement between the NZ Grape international wine trade outlets for consumption ‘off-premise’. Growers Council and the Wine Institute of NZ meeting with New World to form a single, unified industry organisation. Wine Producers (NWWP) Organisation. 111810 NZW Annual Report 2007:111810 NZW Annual Report 2007 8/9/07 9:44 AM Page 7 Sauvignon Blanc continues to be our stellar performer, accounting for nearly three quarters of all offshore sales. International demand for our Pinot Noir is building strongly with shipments up 42% on last Exports on Target year; this variety is now firmly Gisborne produced a bumper Industry forecasts target in second place among the harvest of 26,000 tonnes $1 billion of exports by 2010.