The days of quality cheap New Zealand wine are numbered as a
nationwide fall in production has put an end to a surplus
that has been the delight of price-conscious consumers.
The $10 and $12 specials of Marlborough sauvignon blancs on
offer since a record-breaking harvest in 2008 will disappear
this year, say wine industry experts.
Viva wine editor Jo Burzynska said a 17 per cent drop in
production in the wine industry last year, the result of one
of the coolest seasons on record, would result in the bumper
2008 surplus drying up.
In Marlborough there was a 23 per cent drop.
"They will go back to the prices they were pre-2008. I think
there will be a lot more Marlborough sauvignon blancs around
the $20 mark or over $15."
Ms Burzynska said the low prices were never sustainable for
the industry. "A lot of people weren't making money ... and
that couldn't have gone on. Since 2008 there's been quite a
lot of receiverships and wineries going out of business.
Villa Maria Estate founder and owner Sir George Fistonich
said wine prices were cheaper now than they were 15 years
ago. "The price of wine in New Zealand is well below where it
should be. The amount of pressure in discounting has been
quite high because of the surplus."
He said prices could also rise because the cost of grapes had
increased $200 a tonne to about $1500.
Gisborne Wine Growers chairman Doug Bell said price increases
would follow four "very tough years" for the industry where
the 40 per cent higher surplus made it difficult for wineries
to move their product.
"This sees us return to what could be a sustainable level of
prices both in terms of grapes and wine."
He said cheap wines would still be available, but they would
be imported.
"New Zealand wines will find their way into more profitable
export markets and discount wines will probably be now made
from overseas wine."
The owner of Primo Vino wine store in Hamilton, Henry Jacobs,
said historically imported wine was sold at discounted prices
and New Zealand wine fetched a higher price.
"When supply and demand were fairly well in equilibrium ...
that was not uncommon. 2008 was really bad in that not only
was there huge volume but the wines weren't very good and
that caused the start of the downward spiral."
Ken Sheldrick, cellarmaster for the Wine and Food Society of
Auckland, said it was too early to predict price increases
because many wine growers were experiencing such a good
season so far.
"With this wonderful weather we're having this year, 2013
could be an absolutely cracker year for wine production so we
could well have another surplus," Mr Sheldrick said.
"There's still a worldwide surplus of wine and quite a bit of
our wine is not getting exported ... I don't think prices
will go up all that much."
- Natalie Akoorie of the New Zealand Herald
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