Focus for wine needs to look at positioning

NEW Zealand winegrowers have produced an "unexpectedly big" vintage in 2008, leaving the industry with the challenge of maintaining its premium position in overseas markets.

New Zealand Winegrowers' chief executive Philip Gregan, in Gisborne to speak to the local industry, said it was important not to outpace the market or the industry's infrastructure.

The industry had to focus on enhancing rather than exploiting its reputation for quality production, and premium positioning in the market place, he said.

The 2007 year had been successful with $800 million worth of wines being exported, an increase of $100m, from the previous year.

But local sales fell by 5 percent to 87.4m litres, reflecting the state of the economy.

There was strong demand in core overseas markets, he said.

British sales rose by 8 percent and Australian sales by 37 percent.

New Zealand wines such as Sauvignon Blanc and Pinot Noir complemented Australian wines such as Cabernet Sauvignon.

It was good to see New Zealanders drinking Australian wine, said Mr Gregan.

"That means an Australian is probably drinking a New Zealand wine."

There were opportunities to grow demand in Asian markets and the Chinese free trade agreement and the recently signed ASEAN-Australia-New Zealand FTA would only help.

According to the New Zealand Winegrowers' annual report, Sauvignon Blanc unsurprisingly dominated the production statistics with a 60 percent share of the harvest.

Marlborough benefited from favourable spring conditions.

But Gisborne, along with Hawke's Bay, had a reduced crop for key varieties such as Chardonnay and Merlot, due to early frosts and cooler weather at flowering.

Wine industry research had a heavy sustainability focus, said Mr Gregan.

There were many projects aimed at priority issues such as leaf roll virus, botrytis and sustainability.

The wine industry had a good relationship with government but growers remained concerned about compliance costs, said Mr Gregan.