Wine exporter Delegat Group is going after the lucrative US market, in a bid to reverse New Zealand’s historic trade deficit and reliance on China.
Video / NZHerald
New Zealand winemaker and NZX-listed company Delegat Group has an aggressive plan to grow revenue in the United States by 9 per cent annually for the next three years.
“Which in a market which is largely flat to declining, certainly bucks the trend,” managing director Steven Carden told Markets withMadison.
There were about 53 million premium (anything above US$12 a bottle) wine consumers in the US, making it the world’s largest wine market, he said.
Just 3 million were buying and drinking Delegat’s brands such as Oyster Bay, which was already the third best-selling premium wine brand globally (according to information Delegat shared with investors).
“So there’s significant upside there for us to increase [market] penetration.”
If achieved, Delegat’s export growth would help lift New Zealand’s economy out of the trade deficit in which it has been stuck in for the past three financial years, according to Statistics NZ data.
Interestingly, Delegat’s growth targets were achievable without China - only 1 per cent of its wine went to NZ’s largest export market.
Delegat is still two-thirds owned by the Delegat family and soon to be chaired by founder Jim Delegat.
Watch today’s episode of Markets with Madison above to find out how much Delegat is investing to boost its opportunities internationally.
Delegat Group founder Jim Delegat (pictured here in 2007) is about to become chairman of the board. His family still owns 66 per cent of the NZX-listed exporter. Photo / Greg Bowker
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Stake is the proud sponsor of Markets with Madison. Stake your claim today at HelloStake.com.Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison.
She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
