Smaller New Zealand harvest means prices could rise
New Zealand wineries are braced for tight supplies after the 2012 vintage came in almost a fifth smaller than last year. The 2012 vintage is very similar in size to 2010, but given sales growth in the past two years, the reduced crop will introduce a new tension to the sectors’ supply demand balance. As a result it is very clear that focus in the next year will be on value rather than volume growth.
The 2012 wine grape haul came in at 269,000 tonnes, 18% down on the record harvest of 2011. Pinot Noir was down 25% with Sauvignon Blanc down 19%, show figures from trade body New Zealand Winegrowers.
What this means to Sauvignon Blanc pricing is that there will not be a need to discount - which NZ winegrowers see as a good thing. But how will the consumer react when they have been getting used to discounted kiwi wine? The 2012 vintage by all accounts is stunning quality-wise so maybe they will be happy to stomach the price rise?