New Zealand Wine Sales Exceed 100 million litres

Media release
For Immediate Release
7 December 2006

New Zealand Wine Sales Exceed 100 million litres

Total sales of New Zealand wine have exceeded 100 million litres for the first time according to New Zealand Winegrowers.

For the year to the end of September 2005 global sales of New Zealand wine, including the domestic market, totalled 103 million litres, up 39 percent on the September 2004 year and up 89 percent on the year ending September 2003.

Commenting on the achievement Philip Gregan, Chief Executive Officer of New Zealand Winegrowers, said “The record sales performance has been driven by increased supplies of wine from the 2004 and 2005 vintages which have enabled wineries to be more aggressive in marketing and sales campaigns.”

According to Mr Gregan the growth figures have been dominated by increased exports. “Domestically New Zealand wine has recovered market share from imported products, but the real driver of growth has been the stellar export performance. Over the past two years exports have more than doubled – from just 27 million litres for the September 2003 year to 56 million litres valued at over $460 million for the current September year. This is a hugely impressive performance,” said Mr Gregan.

While the industry sales performance overall was very encouraging, Mr Gregan said there were concerns in the industry. “The downside of the strong sales performance is that a number of wineries are now starting to experience product shortages, which will need to be managed until the 2006 vintage comes on stream. The high New Zealand dollar has also slashed export profitability, while intense competition in the domestic market, though benefiting consumers, has reduced margins for wineries supplying local customers,” said Mr Gregan.

ENDS