Chinese quaffing NZ wine

Wine sales to China and Canada rocketed last year and Central Otago producers are keeping an eye on export potential.

Exports to China increased 180 per cent to $17 million, New Zealand's sixth largest destination for wine shipments.

Shipments of wine to Canada climbed 41 per cent.

Mt Difficulty Winery marketing manager Mike Herrick said the Canadian market had huge potential, but it was difficult to build a sustainable business when the industry was controlled by government-owned liquor boards.

The United States market had dropped away and China, which produces almost as much wine as Australia, was "definitely interesting" but more of a long-term option, he said.

"For the moment it's for somebody else to develop. It's a 20-year project," he said.

Felton Rd winemaker Blair Walter said Canada had its difficulties because of state controls but there was significant interest in New Zealand wines.

The market was similar to Scandinavia, where countries such as Sweden control liquor supply through state-owned organisations.

"Canada is a very interesting market," Mr Walter said.

Chard Farm winery co-owner Rob Hay said the producer sent a shipment of 1100 cases to China, where change in consumer demographics meant more people were gaining disposable incomes.

"Central Otago pinot noir complements a lot of Chinese dishes and we came away from two visits to China very bullish," he said.

New Zealand Winegrowers' 2010 annual report says $59m of wine was exported to Canada last season – the fourth-largest wine export market – compared with $6.1m in 2001.

Last year, a New Zealand Trade and Enterprise report into the Canadian export wine market said there was room for growth.

Wine exporters wait and hope

Wineries in Central Otago are hoping the strength of the Australia export market continues this year amid a weak United States economy, plummeting grape prices and fallout from the Queensland floods.

The economic cost of the floods could hit producers who rely on Australia as the largest importer of New Zealand wine. Consumer confidence across the ditch has tumbled and flood repairs are expected to cost $13billion.

New Zealand Winegrowers' figures to June 2010 showed 142 million litres of wine were exported last year, about $1billion of sales, including $327m of wine shipped to Australia.

Exports continued to grow but prices tumbled, with the average value of bottled wine exports down 11 per cent to $8.77 dollars a litre.