New Zealand BUSINESS

Question 1

Briefly describe the system of wine regulations in NZ.

Answer 1

New World free for all - 85% of grapes must come from the GI

Marlborough growers created trademarked ‘Appellation Marlborough Wine’ - requires 100% grapes from GI, max Y, certified sustainable and bottled in NZ, applies to SB

Question 2

Describe trends in the size of growers/producers.

Answer 2

Rapid expansion post-2000 but consolidation following 2008 financial crisis → growers fell 40% absorbed by larger producers

19 companies production above >2mL annual

Question 3

Describe the root to market for NZ wines.

Answer 3

1. Exports account for 5/6th of sales
   - High-value exports very successful
   - 1/3 of export bulk shipped
2. Domestic sales small but 85% of producers use high-margin, cellar doors + digital sales

Question 4

What challenges exist for exporting NZ wine.

Answer 4

1. High $ - challenging to price-sensitive markets
2. Reliant on image/popularity of SB - 86% of exports

Question 5

What strengths does NZ have as an exporter? (5)

Answer 5

1. Good rep for Q
2. Distinctive soft brands e.g. Marlborough SB
3. Strong sustainability credentials
4. Willing to exp with new styles
5. Marketing based on NZ’s natural beauty and culture via New Zealand Wine org