Record NZ Wine Export Exceed $600 Million

Record New Zealand Wine Export Earnings Exceed $600 Million

Export earnings for year ending December 2006 of $611 million
Growth of 30% on previous year
Earnings from secondary markets of $100 million for first time

The record 2006 New Zealand vintage and a strong export drive have pushed New Zealand wine exports past $600 million for the first time, said New Zealand Winegrowers today. By comparison, two and a half years ago New Zealand wine exports earned $300 million.

Overall wine export earnings rose by 30% over the previous year to reach $611 million, with major markets performing well. Exports to the United States were up 25%, the UK was up 22% and Australia up by an impressive 47%. Together these markets accounted for 83% of exports by value in the past year.

New Zealand Winegrowers Global Marketing Director Chris Yorke said the results for 2006 were extremely positive. “There has been continued growth in our core markets of the UK, US and Australia, but there has also been very encouraging increases in our secondary markets: Canada is up 60% over the previous year, Denmark is up 51% and Ireland up 41% in value.

“For the first time, exports to our second tier markets (outside the UK, US and Australia) topped $100 million for the year, up 30% in value,” Mr Yorke said.

In terms of varieties, while sauvignon blanc continues to lead export volumes, with a 25% growth in volume over the last year, it is pinot noir that is firmly establishing itself as New Zealand’s second most exported variety, showing 41% growth.

“Almost 40% of our pinot noir exports go to the United States, a market that we expect to be our largest overall export destination by value in 2008.”

Mr Yorke said the New Zealand wine industry’s reputation for producing innovative and unique, premium-quality wines continues to grow worldwide.

“Our ambitious growth and marketing strategies are clearly paying off and the wine industry is on-track to achieve export earnings in excess of $1 billion by 2010,” he said.

Highlights

The value of exports was $611 million for the year ending December 2006, up 30% per cent on $471 million for the year ending December 2005.

Sauvignon blanc remains the largest single variety (accounting for 75% of export volume) but others show impressive growth, with pinot gris up 67% and merlot up by 27%

Pinot noir consolidates as our second most exported wine style ahead of chardonnay, with volume growth of 41%.

Overall volume of wine exports increases by 13% and the average value earned per litre of wine is up by 15%

ENDS

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