22 August 2011
New Zealand Wine: Making Progress in
Tough Times
* Wine exports reach $1.1 billion, up
5% * June year end 2011 NZ wine sales total 221
million litres, up 11% * Rising $NZ seen as a major
challenge to exporters * Strategic Review
commissioned to plot the path forward for the wine
sector
The New Zealand wine industry is making progress
despite the tough economic times according to the June year
end 2011 Annual Report of New Zealand Winegrowers.
‘Three
years ago, the New Zealand wine sector was reeling from the
combined effects of the 2008 supply shock and the global
financial crisis. Today excess inventory has been sold
through and we have the confidence to take in a record
harvest based on anticipated demand’ said Stuart Smith,
Chair of New Zealand Winegrowers.
Mr Smith noted that
total New Zealand sales (export and domestic market) rose
11% to 221 million litres for the June year end 2011 while
export value rose 5% to $1.1 billion.
‘These achievements
represent real progress against a background of increased
uncertainty in the global economy.’
Mr Smith is clear,
however, that significant challenges still remain for the
sector. ‘Profitability is a key concern for wineries and
growers, as many still struggle with the legacy effects of
the past three years. The wild gyrations of the New Zealand
dollar are a major problem for wine exporters, and threaten
to de-rail the recovery that we are starting to see.
Domestically, annual excise increases impact winery
financial returns because those increases cannot be passed
onto consumers.’
Mr Smith noted that in a rapidly changing
environment there was a need for a clear path forward for
the sector and the industry organisation, New Zealand
Winegrowers.
‘For this reason we have commissioned a major
independent strategic review of the sector and our own
activities. Consultants PWC have been appointed to conduct
the review which we believe represents an exciting
opportunity to build on the progress of the industry to
date, and to position New Zealand wine for greater success
in the future’ said Mr Smith.
ENDS
Article source: http://www.scoop.co.nz/stories/BU1108/S00739/new-zealand-wine-making-progress-in-tough-times.htm
