Shortage of Grapes Behind Multi-Million Purchase

Media release for immediate use 16 July 2007

Shortage of Grapes Behind Multi-Million Dollar Purchase in Marlborough

One of New Zealand’s oldest and largest, family-owned wine companies, Sherwood Estate has spent more than $3 million purchasing a vineyard in Marlborough in a desperate bid to secure grapes to fill export orders.

Sherwood Estate’s Managing Director Dayne Sherwood says the purchase, which means the company now owns more than 200 acres of vineyards in Marlborough and Waipara, was a vital move.

“Demand for New Zealand wine is at an all time high. Export orders have nearly tripled in the past three years and in the same period, domestic sales have grown by nearly a third,” says Dayne.

“There is simply not enough grapes in the country to meet that demand”

Sherwood Estate’s newest 40-acre vineyard will produce more than 180 tonnes of Sauvignon Blanc and Pinot Noir grapes every year.

Dayne Sherwood, who is also a director of the New Zealand Winegrowers Association, says while the site will help his company fill export orders, it was a purchase he’d rather not have made.

“It would have been better for us if we’d been able to source grapes to buy from a grower, but the shortage of fruit is so severe that competition is intense and that was not an option,” says Dayne.

Dayne Sherwood says the shortage of grapes is even more remarkable given the size of the 2006 harvest.

“More than 185,000 tonnes of grapes were produced last year (up 31% on 2005) – that is the biggest harvest ever, but it’s still not enough.”

Overcoming the shortage of grapes is an issue Dayne Sherwood says the New Zealand wine industry must urgently address.

“There is so much opportunity in international markets for New Zealand winegrowers at the moment. Existing markets are learning we can do more than just produce excellent Sauvignon Blanc, so demand for other varieties is increasing and there are a number of markets we still need to tap into”

“The one thing that is holding us back though is the shortage of grapes,” concluded Dayne.

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Background

Based in the picturesque Waipara Valley, Sherwood Estate is one of New Zealand’s largest independent, family-owned wineries. It is also one of the oldest.

Owned by Dayne and Jill Sherwood, Sherwood Estate was launched in 1987. It has grown from a one-man-band and is now considered to be among the 20 largest of the country’s 550 wineries. The company owns a modern, fully equipped winery in Waipara and more than 200 acres of vineyards in Marlborough and Waipara.

Unlike most wineries, Sherwood Estate carries out the entire winemaking process on its premises. Sherwood Estate grows and harvests its own grapes, crafts the wine and bottles it. This ensures Sherwood Estate is expert in all aspects of winemaking.

Sherwood Estate’s attention to detail and commitment to quality is also why it sells between 700,000 and 800,000 litres (or 70,000 cases) of wine each year and why it has survived more than 20 years in a difficult industry.

ENDS

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