The New Zealand wine industry has continued to show solid financial metrics in 2017, with growth in tourism and exports. However, The 2017 Wine Industry Benchmarking and Insights survey report, entitled Ripening Opportunities, has shown that the country has not been utilising its popularity as well as it could be when it comes to international visitors.
“The synergistic relationship between the wine and tourism industries is especially exciting and rapidly evolving,” said ANZ Commercial & Agri General Manager John Bennett.
“Wine tourism – both domestic and international – remains a key growth market for Kiwi wineries and is particularly accessible to smaller producers. And the tourism outlook is bright on a number of fronts including airline arrivals and spend, notably with China becoming our most important tourist market.”
“Small producers experience greater premium price points on average compared to their larger counterparts,”
The report, prepared by Deloitte and ANZ Bank, tracks the financial results of 45 survey participants accounting for 56% of the industry by liters of wine produced, and 41% by export sales revenue generated.
Deloitte partner Peter Felstead said that, in general, the survey results show that profitability increases with size, however there are exceptions.
“Small producers experience greater premium price points on average compared to their larger counterparts,” he said.
In total, 254 million liters of wine were exported in 2017, accounting for $1.66 billion in export revenue.
Export volumes of New Zealand wine to the “big three” markets (Australia, the UK and USA) grew 19% over the previous year to top 200 million liters for the first time in 2017. Meanwhile, other offshore markets also grew in volume while experiencing a 34% higher price point than the “big three” markets.
Overall, the solid financial performance of the New Zealand industry paves the way for wine businesses of all sizes to take advantage of opportunities for growth, including through new and emerging export markets, growth in wine tourism, and other opportunities presented by digital channels.
To read or download the full report, Ripening Opportunities, go to www.deloitte.com/nz/wine.