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Jun
30
2009

Changing tastes and preferences in the market for NZ wine

The owner of Montana Wines and New Zealand’s largest wine company, Pernod Ricard, is set to cull its contracts with wine growers in the Gisborne region.

This action is in response to falling demand for chardonnay and sparkling pinot noir wine, both domestically and internationally. Chardonnay exports reportedly fell 12-14% last year alone. The culprit? Chardonnay’s fairer sister, sauvignon blanc. Apparently we are seeing a significant supply-side ‘correction’, as producers respond to a structural demand shock – consumers’ changing tastes and preferences. Indeed, last year sauvignon blanc overtook chardonnay as New Zealand’s most consumed white wine.

Try as they might, Pernod Ricard have not been able to sway the mighty consumer to stick with the product they have contracted for, despite “new product development, innovative packaging, capital investment and changes in wine style”.

I know at least one TVHE author that might be a little disappointed seeing his favourite varietal taking such a pounding. As for me, well I’ll stick with my reds thanks.

About the author

goonix

Goonix is an economist working in industry. His classic liberal views means that he is typically the most skeptical of the TVHE authors when it comes to government intervention in a market.

Permanent link to this article: http://www.tvhe.co.nz/2009/06/30/changing-tastes-and-preferences-in-the-market-for-nz-wine/

18 comments

  1. agnitio says:

    No more cheap chard for me then:(

  2. Matt Nolan says:

    Who drinks wine when there is perfectly good whiskey around?

  3. rauparaha says:

    OK, I’m concerned: are we drinking whisky or whiskey? And what happened to your passion for Jager? Have you moved on?

  4. agnitio says:

    hopefully whisky, Matt is a classy beast after all. And we all know Jager will allways be the drink of Matt’s heart.

  5. rauparaha says:

    I’d like to think so, but you can never trust an Irishman when alcohol’s involved :P

  6. What would Hayek say says:

    Single malt

  7. goonix says:

    Whisk(e)y – yuck!

  8. goonix says:

    Somewhat related – alcohol excise tax to increase tomorrow…

    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10581666

    :/

  9. Matt Nolan says:

    @rauparaha

    Bahahahaha, woops :P .

    @agnitio

    Indeed, I love Jager, but I’ve been told that no-one else does. As a result, I’m not buying it.

  10. Matt Nolan says:

    @rauparaha

    Actually, I just realised I was planning to buy a whiskey not a whisky – as I was tossing up between an Irish or American whiskey rather than a Scottish whisky.

    I was thinking along the lines of Jamesons – should I get something else?

  11. rauparaha says:

    @Matt Nolan
    I kinda prefer Scotch whisky, but I can definitely handle an Irish whiskey. It’s just bourbons that I really can’t stand, actually.

  12. Matt Nolan says:

    @rauparaha

    I love bourbon – but most people I know don’t. Hence why I was steering towards an Irish whiskey for the night.

  13. Paul Sharp says:

    The other issue not in the article is supply form new Pernod plantings in Waipara and the falling price per ton for Marlborough fruit. Gisborne has traditionally supplied cheaper Chardonnay but with falling prices in other areas this has given the producers another option for budget supply.

    The continuing reliance on Sav is something that has to be overcome. A change in varietal fashion could be devastating for the industry here.

  14. goonix says:

    @Paul Sharp
    That’s interesting insight thanks Paul.

    All the ‘eggs in one basket’ is definitely a risky strategy…

  15. Linh says:

    I love chard , Think I have to make some changes in my taste

  16. Brent Patton says:

    No more cheap chard for me then:(

  17. victor9011 says:

    I thin that NZ wines are great but in my country they are hard to find because I live in Romania wich is very far from NZ. I had a occasion to drink a sweet wine wich I liked very much.

  18. roofers in leeds says:

    i love a good chardonay

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