Martinborough wine is in a prime position to enter Asia

DRINKING PALS: Jill and Roger Fraser with Takashi Wada, an importer of New Zealand wine. PICTURE / SUPPLIED BY ROGER FRASER

As the UK and US economies straddle economic purgatory Asia could be the saviour for Wairarapa winegrowers reeling from a wine glut and an excise tax hike.

Roger Fraser, co-owner of Murdoch James Estate in Martinborough, has secured distribution deals he values at up to $100,000 in Japan and South Korea after a two-week trip.

The trip convinced him Asian markets were the growth centres for his wines, and he is now planning an October venture to break into Singapore and back to Korea.
''I realised you have just got to be there wherever you sell in the world, relationships are crucial but in Asia that's even more so,'' he said.

He understands the trip would be a big investment for many cash-strapped winegrowers, with it costing him about $40,000 (including wine crating, venue hire, and other expenses).

Half of the cost of his trip was covered by a grant from New Zealand Trade Enterprise and he urged other winegrowers to talk to them.

However, the benefits for boutique Wairarapa vineyards _ which depend on upper class hotel, restaurant, and specialist stores _ were palatable. One of Mr Fraser's top end pinot noirs sells for $100 in Japan compared to $70 in New Zealand.

Successful shmoozing saw a Japanese company pick up three of his wines and a South Korean giant snap up another two.

While their biggest market was still Australia, he said Asia was more promising than Europe or the US as both superpowers wallowed financially.

Mr Fraser also made a trip earlier in the year to Vietnam and he isn't the only Wairarapa vineyard dancing with the dragon.

Palliser, Vynfields, Kusada, Matahiwi, Urlar, and Gladstone are all confirmed to be either negotiating or working with Asian distributors.

New Zealand Wine believes Martinborough is in a prime position to enter Asia because our red wines suit oriental foods. Global Marketing Director Chris Yorke said a hundred out of the 650 Kiwi growers were now sinking their claws into Asian contracts. ''It's very much a growth market for us and wineries are now really starting to put some focus on it,'' he said.

This was due to both the strength of their economies and New Zealand's oversupply of wine, which meant new markets were being explored.

Mr Yorke said most people were unaware China was now the country's fifth biggest
market _ behind Australia, the UK, the US, and Canada.