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Wine Industry

New Zealand is one of the leading new world wine producing countries. NZ exports premium quality wines to countries all over the world.

 

New Zealand is known internationally for its wines such as Sauvignon blanc, pinot noir, chardonnay, pinot gris, riesling, cabernet sauvignon, merlot and methode traditionnelle sparkling wines.

 

The ten major wine producing areas of New Zealand are Auckland, Gisborne, Wairarapa (Martinborough) and Hawke's Bay in the North Island, and Marlborough, Central Otago, Canterbury in the South Island. The premium wine growing areas are Marlborough and Hawke's Bay.

 

NZ wines have a distinctive quality thanks to the maritime climate, fertile soils and innovative and experienced wine makers of the country. The unique geography and the enterprising wine makers have helped New Zealand's wine gain international recognition and awards.

 

The award winning wines of NZ come at a premium price; a feat that very few other wine producing nations have been able to achieve. Moreover, the wines have secured a place in the niche premium market and do not compete with wines in other categories. The price per liter of NZ wines is second only to French wines.

 

Australia, UK and the US are the biggest markets for NZ wine. Exports to Canada and Asia are also steadily increasing.

 

The export income from the wine industry has increased exponentially in the last 20 years, increasing at the rate of 24% per year. The production of wine has increased at a rate of 9% per year over the last decade.  The wine industry makes a contribution of more than NZ $1.5 billion to the national economy of New Zealand. Also, the industry provides more than 16,500 full time jobs.

 

The NZ wine industry is so successful that it is often used as a benchmark to show the success that can be achieved using a combination of research, production technique, quality viticulture and novel marketing methods.

 

Recently, the NZ wine industry has seen significant international interest. Some global wine makers have invested heavily in NZ. This investment has proved to be profitable for both parties as the investor has benefited from premium prices that NZ wines attain in markets and the local wineries have benefited from the extensive distribution networks of these multinational companies. Foreign investment has helped local companies grow into major players in the wine market. Currently it is being predicted that several medium sized companies are poised for tremendous growth and are in a favorable position to attract investments in the future.

 

The winegrowers of NZ have estimated that the sales of New Zealand wines will reach NZ$15 billion by 2010. There are several opportunities for investment in the New Zealand wine industry. These include:

 

1. Providing capital for winery expansion (purchase of vineyards). This can be done either through acquisition or shareholding.

 

2. Access to global distribution channels. International competition has made it difficult for small and medium sized wineries to access distribution channels. 

 

3. Partnering with a premium winery to provide a range of products to the market.

 

  1. Application of new technologies for development of wine related business.
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