Winery sales 'pointer to grapes glut'

The rising number of Nelson vineyards and wineries on the market is a reminder of what happens when too many grapes are grown without markets for them, say two of the region's most experienced winemakers.

At least 10 local wineries and vineyards, including Golden Hills Estate and Anchorage Wines, are known to be for sale as the oversupply of grapes continues to put the squeeze on the industry, leaving many struggling to avoid selling their wine at a loss.

Despite Winegrowers NZ calling for restraint, the New Zealand grape harvest hit a record 328,000 tonnes this year, prompting renewed fears for the future of many smaller and newer growers carrying large debt.

Brightwater Vineyards owner and former chairman of Nelson Winegrowers Gary Neale said too many of those who had got into the industry over the last decade had done so without making sure they had a solid relationship with a winery which would take their grapes and that they were growing what the market wanted. "A lot of people haven't done that."

As a result, they had been forced to accept low prices for their grapes or reduce or not pick their crops, he said.

Kahurangi Estate managing director Greg Day said the number of wineries and vineyards on the market was a "bit of a worry" and a sure sign that the national harvest was far too high.

While Winegrowers NZ had tried to talk up the industry's prospects, the bigger crop meant another 1.4 million cases of wine would have to be sold than had been estimated, he said. The industry would have had a much better chance of getting back on a solid footing if it had stuck closer to its original crop forecast of 265,000 tonnes.