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Home / Business / Companies / Agribusiness

<i>Owen Hembry:</i> Five wineries score five-star status

Owen Hembry
By Owen Hembry
Online Business Editor·NZ Herald·
30 Nov, 2008 03:00 PM5 mins to read

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Owen Hembry
Opinion by Owen Hembry
Business news editor, NZ Herald
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KEY POINTS:

After being dismissed two decades ago as a sector without a future, the New Zealand wine industry has broken into the upper echelons of one of the world's most important buying guides, according to John Buck, founder of Hawkes Bay winery Te Mata Estate.

It could prove a
helpful move as the wine industry pushes on towards an export target of $1 billion a year by 2010.

Five wineries have been given the top five-star accolade of "outstanding wine" by the international Parker's Wine Buyer's Guide.

Te Mata Estate, Ata Rangi, Felton Road Wines, Pegasus Bay and Rippon all won top recognition, while more than 100 other New Zealand wines were rated excellent or good.

Twenty years ago the guide's author, Robert Parker, was dismissive of the New Zealand wine industry and saw no future for it, Buck says.

Sixteen years ago he told Parker New Zealand would one day prove him wrong.

"At the time he might have been right but he's recognised where we are and to me what he's really saying is the New Zealand wine industry can foot it at all levels now. It's got equivalence of status with all the other major wine producing nations and regions."

New Zealand premium wines have been a well-kept secret but are now rated alongside international classics, he says.

"Robert Parker shows no favour and is beholden to no one, as he does not take advertising for any of his publications and ignores wine awards."

The books come out every six or seven years and Parker and his colleagues are the epitome of integrity, Buck says.

"They're big books, they're big, serious tomes, they're not for the faint hearted. But all the world's buyers, of course, use them as one of their bibles."

The recognition of New Zealand wine could also benefit other produce.

"What this does to me is that you sell your wine to the same people that you sell your food to ... and if you've got this premium recognition for your wine, all it does is it opens the doors."

So far the wine industry has proven resilient to the global economic crisis.

Total industry sales for the year ended June 30 were $1.25 billion, including a 14 per cent rise in exports to $797.8 million; and September was a record month, with exports worth more than $100 million.

One theory is that if people tighten their belts and skip the regular trip to a restaurant, they still buy a bottle to enjoy at home.

Te Mata Estate has not noticed any slow down in shipping and the recognition by the wine guide had resulted in many more inquiries, Buck says.

The winery's English agent told them the things that still seemed to be selling were wine, chocolate and sexy underwear.

Say no more.

New Zealand has built an enviable position as a premium wine producer.

But with the 2008 harvest up 39 per cent on last year at 285,000 tonnes after good weather and more land coming into production, it is a position the industry needs to maintain.

Buck would be disappointed if the industry could not sell larger harvests and maintain a premium image.

However, the industry is at a point where it has to shape its future rather than let it happen, and it had already fallen into the trap of going cheaper in the US, he says.

"Where we're just regarded - and we've brought it entirely on ourselves - as being a producer and marketer of cheap white wine."

The US has been used as a market to move volumes not planned for from the 2008 vintage and to clear unsold stock of 2007, he says.

"And having to go to buyers and saying 'how much would you give me for it' rather than 'this is what it's worth and therefore that's what I want'."

Buck says there is not enough marketing recognition of individual districts, the winemakers' exploitation of style and unique features that make our wine so compelling.

Meanwhile, a total of 91 gold across 14 different wine varietals, plus 239 silver and 399 bronze medals were awarded at last month's Air New Zealand Wine Awards.

International judge Nick Stock says he was impressed by the quality and consistency of the wine.

Eighteen trophies, 28 elite gold medals and three pure elite gold medals to sustainably produced wines, were awarded across six regions, with Hawkes Bay and Marlborough each winning eight trophies.

"The depth and breadth of these champion wines across a convincing range of varieties, regions and styles truly asserts New Zealand's growing reputation as a strong global force," Stock says.

New Zealand Winegrowers, which organised the awards, has said the industry is on track to hit an export target of $1 billion a year by 2010.

To put that target in perspective, it's not far short of half the $2.2 billion value of lamb meat exports in the year ended September 30 - a sector synonymous with New Zealand around the world.

Agriculture's powerhouse status in the economy is worth celebrating, and a more varied use of the land provides more scope to take up global opportunities and reduce risk should disaster strike any one sector.

Wine has been a star performer and earned its place at the top table.

Hopefully it won't be the last.

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