Oversupply of cheap imports worries wineries

Local operators are responding to changing tastes by producing more varieties. File photo

The threat of an oversupply of cheap imported wine is a concern for New Zealand wineries, says an industry report from accountants Markhams MRI.

In its first business conditions survey of Auckland wineries, the firm said most operators believed trading conditions would continue to improve this year. That was the same as in other regions, except Wairarapa, where there was less optimism.

However, "all acknowledge the continuing threat from an oversupply of cheap imported wine", Markhams MRI said.

Markhams Auckland director Sam Bassett said there was a worldwide wine glut and Australian wineries had been "dumping" product here. Bigger New Zealand wineries could offer large discounts to compete, but this was more difficult for smaller wineries.

The strength of the dollar could squeeze export sales, Basset said.

However, export growth and new wine tourism were seen as the biggest opportunities by Auckland wineries.

Local operators were responding to changing tastes by producing more varieties such as sauvignon blanc, pinot noir, riesling and merlot.

"Local wineries are being responsive to what the marketplace is wanting and that shows flexibility and forward thinking," said Bassett.