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NZ wines inflict pain on Aussie producers

By GRAHAM HAWKES

Just how deep is the huge trans-Tasman trench into which the Australian white wine industry has fallen?

Okay, our nearest neighbours are not totally on their knees, and it’s important for observers on this side of the Tasman to maintain a sense of balance (and stop sniggering too loudly). There are also concerns at the amount of New Zealand wine being exported in bulk to varius countries including Australia.


But the statistics on sales of New Zealand wine now appearing in newspapers in the lucky country are astonishing.

(Graphic courtesy of
Weekly Times newspaper, Australia).

One of the latest ‘bad news for Oz’ stories published across the Tasman reports: "Australian wineries have resorted to bottling New Zealand wine“as Kiwi whites continue to pound our chardonnay on the domestic market.

Winegrape Growers of Australia executive director Mark McKenzie was quoted by the Weekly Times newspaper saying the boom in New Zealand sauvignon blanc was “largely to blame for $5 million of lost sales for Australian producers”.

“The Australian industry was slow to react to it; some thought it was a flash in the pan,” Mr McKenzie told the newspaper. “Nobody expected the deep effect on consumer tastes or the attractiveness to consumers it had in the Australian marketplace.”

The fact is, New Zealand’s white wines have put a massive dent in sales of Australian chardonnay over the past few years — and one of the problems Australia is facing is that aproximately two-thirds of its white wine plantings are currently in chardonnay.

Weekly Times journalist Leslie White reports sales of Australian white wine on the domestic market have barely grown since 2000, while the value of white wine imported from New Zealand rocketed from $A61 million in 2004-05 to $A228 million in 2008-09, largely due to the increased popularity of its sauvignon blanc.

Three of the five top-selling white wines in Australia are from New Zealand, with the highest-selling being Delegat’s Oyster Bay Sauvignon Blanc. In the 12 months to May this year, White reported, sauvignon blanc was the biggest-selling bottled varietal by value in the Australian off-trade market with a 17 per cent share. Chardonnay’s share dropped to 15 per cent.

Not surprisingly, these statistics haven’t been well accepted by some Australian industry people.

The Herald Sun newspaper reported Mark McKenzie appealing to Australian drinkers to be patriotic when buying wine this summer.
The newspaper said the trend towards New Zealand sauvignon blanc is hurting Aussie grape growers, pickers and bottlers.

Australia’s four main industry bodies recently sent a joint statement to more than 2300 vineyard operators, informing them that the industry was over-supplied by 20 per cent. The statement said 17 per cent of vineyards were making a loss, and Australia was producing up to 40 million more cases than it was selling.

McKenzie told the Herald Sun Australian consumers were overlooking quality wines produced in their own back yards for New Zealand sauvignon blanc.

“New Zealand sav blanc has become trendy and people think that is what they like best,” he said. “If it is what they really like drinking, fair enough, but we think most people who tried Australian varieties would be pleasantly surprised.”

“Don't just go 'me too' and grab a New Zealand bottle. Try something new and help our industry,” Mr McKenzie said.

However, at least one Australian industry player thinks the popularity of New Zealand wine in Australia is just a matter of swings and roundabouts.

The Weekly Times’ website received the following feedback from G Paterson, who said he was part of the Australian wine industry: “I seem to recall that for twenty years our Aussie shiraz and red blends have ‘invaded’ the NZ market and NZ is still a very significant customer for our wines. Why are we complaining? The boot is on the other foot, and the import/export balance is closer – but still in Australia's favour. To Mark Mackenzie I say...imagine if NZ didn't buy our wines. It's called ‘trade’, mate. It goes both ways.”

 

 

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