More Than One Billion Glasses of NZ Wine Sold

MEDIA RELEASE
20 August 2007

New Zealand Winegrowers 2007 Annual Results - More Than One Billion Glasses of New Zealand Wine Sold

- Exports lift 36 per cent to record $700 million
- Domestic sales exceed $500 million
- Projected $1 billion of exports by 2010 on track

More than one billion glasses of New Zealand wine were sold in 95 countries around the world in the past year, according to the 2007 New Zealand Winegrowers Annual Report.

In the year ending 30 June 2007, offshore sales of 76 million litres of wine totalled $700 million - up 36 per cent on 2006.

New Zealand Winegrowers Chair, Stuart Smith, said the quality of New Zealand wine continues to be the main reason behind the increase in sales in key export and emerging markets.

“The New Zealand wine industry has come of age. After growing steadily for two decades, it is now a major player in the New Zealand economy and the international wine market.”

The 2007 vintage produced a record crop of 205,000 tonnes in 2007, up 11 per cent on last year.

“With close to 150 million litres of wine available from this vintage, the opportunity to extend our position in new and existing markets is greater than ever, although supply constraints in key varieties will restrict growth in the year ahead,” said Mr Smith.

Exports to the United Kingdom increased by 36 per cent (to $227 million) in a crowded market. Exporters continue to make in-roads into the vast United States market with sales of 20 million litres ($176 million), an increase of 27 per cent on the 2006 year.

Australian exports were up 47 per cent to $180 million.

Mr Smith said the message from overseas markets for the continued popularity of New Zealand wine was “quality, quality, quality.”

The outlook for 2008 and beyond was very positive, he said.

“We are well positioned to take advantage of emerging international marketing opportunities while responding to challenges such as labour shortages and sensitivities around environmental issues.

“We are building on our long-term commitments to sustainability, quality and our world-class marketing programme. This year we enhanced our sustainable winegrowing programme and recently launched our new brand positioning “New Zealand Wine – Pure Discovery.”

Looking ahead, Mr Smith said the industry is projected to reach its 2010 target of $1 billion and is working towards $2 billion in exports by 2015.

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One billion glasses of wine
The one billion glasses of wine figure is calculated by the sale of over 125 million litres of wine: domestically (51 million litres) and internationally (76 million litres) during 2007. The standard size of a glass of wine is 125 millilitres – with 8 glasses per litre. 125 million litres x 8 glasses = 1 billion glasses sold.

Highlights and milestones

* Launch of new global brand positioning – New Zealand Wine - Pure Discovery.

* The value of exports was $700 million for the year-end June 2007, up 36 per cent on $512 million for the year-end June 2006.

* The 2007 grape harvest set a new record for the industry at 205,000 tonnes, up 11 per cent from the previous record of 185,000 tonnes in 2006.

* Sustainability policy targets 100 per cent adoption by 2012.

ENDS

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