Profitable growth for New Zealand wine

For Immediate Release 12 December 2011

Strategic Review provides framework for profitable growth of New Zealand wine

New Zealand Winegrowers (NZW) has released the results of a Strategic Review of the grape and wine sector. The Review was conducted for NZW over the past three months by consulting firm Price Waterhouse Coopers (PWC).

Commenting on the Review, Stuart Smith, Chair of New Zealand Winegrowers said 'The Review is a comprehensive examination of the industry: how it has changed in recent years, the opportunities and challenges facing it, and the future role of New Zealand Winegrowers'.

'The Review provides a framework for the profitable growth of New Zealand wine. It confirms that New Zealand wine's success to date has been founded on its reputation for high quality and distinctive wine styles. It argues that New Zealand Winegrowers must protect and further invest in that reputation to ensure a prosperous future. I believe that is a view that will resonate well with grape growers and wineries.'

Mr Smith said members would see significant changes as a result of the Review 'This is not a Review that is going to sit on the shelf. We commissioned the Review with the aim of improving the services NZW offers to the industry, and the Board has already moved to implement the recommendations.'

The Review recommended ten new or extended activities. The NZW Board has agreed to all these recommendations, including the development of a vineyard registry, increased resourcing for social responsibility initiatives, reprioritising marketing expenditure, improving geographical indication protection and focusing research on four key areas.

The Review also recommended that NZW amend its governance structure to support its strategic priorities. The Board has agreed to implement all the short term governance changes recommended including: reducing its size, consolidating its committee structure, developing succession plans for the Executive team, improving its administration and introducing metrics.

The Board has also put in place a comprehensive process to consult members on the remaining governance changes recommended by the Review. These include amalgamating NZW's two constituent bodies, reducing the size of the Board further and adding independent directors, and rationalising the regional levy spend.

Wine industry members are being briefed on the Review outcomes in a series of nine workshops throughout New Zealand this week. These will be attended by NZW Chair Stuart Smith, Deputy Chair Steve Green, and CEO Philip Gregan as well as representatives from PWC.

‘It is vitally important that growers and wineries understand the analysis that PWC have conducted and the strategic initiatives they have recommended, so that the industry can take full advantage of the opportunities identified.'

Copies of the PWC Review are available from the New Zealand Winegrowers' website http://www.nzwine.com/media-centre/downloads/

ENDS

© Scoop Media