Are millennials damaging the wine industry?
The Country host Jamie Mackay caught up with Rabobank's senior horticulture and viticulture analyst Hayden Higgins about the bank's latest Wine Quarterly report.
Mackay notes the report points to supply issues around the world and stagnant consumption.
Higgins said they had seen a bit of slowing in consumption in some markets, Europe was one example.
"Combining that this year with a significant global vintage from 2018 - so some of those wines will be coming to the market now.
"This is having [the effect of putting] downward pressure on bulk wine prices.
"That tends to be in the generic wines, your Merlots your Cabernet Sauvignons, and Chardonnays.
"Not the key export varietals New Zealand plays in."
"Our strength is our Sauvignon Blanc. We don't expect to see such an impact for New Zealand around those vintage volumes coming through this year."
Mackay asks what's behind the stagnation.
"It's a combination - baby boomers tend to still drink their fair share of wine - but as you tend to see more consumers, particularly millennials coming into the marketplace, they're keen to try new and different things like craft beverages and beers, whiskey and spirits and gin.
"They're all taking some share of the consumer wallet. They are happy to drink wine, but they'll go for the premium stuff, drink less, spend more."
Higgins said they had also seen a growth in the demand for online sales.
Also in the interview, Higgins looks at the state of the horticulture industry and the fickle nature of avocado crops.
Listen to the full interview below: