Aussies raise a glass with NZ wine

Growth in Kiwi wine exports continued unabated in the past year, driven by a 37 per cent jump in Australian sales.

Drinkers across the Tasman quaffed more than $246.7 million worth of Kiwi wine, or 27.3 million litres, to overtake Britain as the No 1 market, according to New Zealand Winegrowers.

The year's vintage produced more than 22 million cases of wine after a long, dry summer and early flowering vines. Exports totalled $800 million for the year end June, up 14 per cent on the previous year.

Winegrowers chairman Stuart Smith said export sales were on track to hit $1 billion by 2010, with high quality sauvignon blancs leading the way.

"Each year we have made projections about sales and growth, and each year these are fulfilled and often surpassed. This year is no exception," he said.

National production jumped 40 per cent, thanks in no small part to a 60 per cent increase across Marlborough's wineries.

Marlborough produced more than 195,000 tonnes of grapes, though Gisborne and Hawke's Bay slipped 8 per cent and 18 per cent respectively, because of frosts and cooler weather at flowering.

The bulk of wine was destined for dinner tables in Australia, Britain and the United States. Shipments to Canada, meanwhile, rose 64 per cent as liquor boards added New Zealand wines to their portfolios, while markets in Asia showed strong growth.

However, tough times at home saw New Zealand domestic sales slip 5 per cent, or four million litres, to 87.4 million litres, as discretionary consumer spending took a hit with rising food, fuel and housing costs.