Trends in alcohol
consumption are having
a flow-on effect for Kiwi
vineyards and wine exports.
In the UK - a key export market for
New Zealand wine - nearly 30% of
people aged 16 to 25 now avoid all
alcoholic beverages, including wine.
The only age group which is
drinking more wine is the oldest –
those in the 65-plus category. There
are clear signs of a similar pattern in
New Zealand. I see many people in
their 20s who either don’t drink at all
or only very occasionally.
In 2009, Kiwis consumed an average
of 21.5 litres of wine per year, but our
typical consumption has now eased
to 19.2 litres per head (this includes
imports which are very popular in
the sub-$10 category). The fall in our
consumption of New Zealand wine
is even steeper – from 13.9 litres per
capita in 2009 to only 10.9 litres per
capita in 2018 – a drop exceeding
20%.
Wine is now this country’s fifth most
valuable export commodity and is on
track to generate $2 billion per year
in export receipts by 2020, fuelled
largely by American demand for our
Sauvignon Blanc. But over the past
decade, the average value of those
exports has fallen from $NZ8.85 per
litre in 2009 to $NZ6.68 per litre in
2018.
In recent months, two wineries have
been placed in receivership, Vinoptima
in Gisborne and Mahana, one of
Nelson’s largest producers. There will
be more to come. Many small wineries
were established during the 1990s by
affluent ‘baby boomers’, then aged in
their 40s. Now they are in their midlate
60s and keen to sell up.
The number of wineries in New
Zealand peaked six years ago and
the industry is facing more and more
consolidation. Some of these small
wine companies simply close down;
others are acquired by the biggest
companies, which are often overseasowned.
The enforcement of drink-driving laws
has encouraged a more moderate
consumption of alcoholic beverages,
including wine, in New Zealand.
Rabobank suggested recently
that the legalisation of marijuana
in North America may also pose a
threat to winegrowers, with some
wine consumers expected to view
marijuana as a ‘substitute’.
The 27th annual wine guide New
Zealand Wines 2019: Michael
Cooper’s Buyer’s Guide has just
been released by Upstart Press.
WINE WORRIES
While five million
glasses of New Zealand
wine are consumed
around the world every
day, consumption in
some key markets is
actually declining and
the industry is starting
to see the impact with
more small wineries
expected to go belly-up
and legalised marijuana
offering alternatives,
says wine writer Michael
Cooper.
92 ANNUAL DIRECTORY 2019