Setting the benchmark

Setting the benchmark

The continued success of New Zealand wine in Australia is influenced by a number of things, from Sauvignon Blanc to sustainability, writes Brian Chase Olson.

It’s been a difficult couple of years for our winemaking neighbours across the Tasman. Following the ‘lockdown harvest’ of 2020, New Zealand’s 2021 total crush was down 19 per cent, according to New Zealand Winegrowers. Despite the relatively low yields, which are putting pressure on how much wine will be landing on our shores, the 2021 vintage in New Zealand is being heralded as a ‘benchmark vintage’ and producers are pulling out all the stops to attract more drinkers across the globe to a different class of top quality Kiwi drops.

Neighbourly love

It was widely reported at the height of the pandemic that Australian wine drinkers were turning to more local producers, at the expense of our international imports. In a recent report from Wine Intelligence, Australians significantly changed their purchasing habits of local wines, while all other wine-producing ‘country of origins’ suffered… except for one.

“It’s great to see while there is a strong ‘buy local’ movement in Australia, and while other imported wines have suffered in Australia, New Zealand has remained neutral,” said Charlotte Read, General Manager Marketing for New Zealand Wine.

She notes that New Zealand wine is the top imported wine into the Australian market, with more than 49 million litres of Sauvignon Blanc alone landing in Australia in the latest MAT figures (September 2021).

“Sauvignon Blanc is still the [number one] white variety consumed. [It’s] such a versatile wine that suits the Australian climate, lifestyle, cuisine and palate,” Read said.

The continued love affair with Marlborough Sauvignon Blanc has only intensified during the pandemic, according to Aotearoa NZ Fine Wine Estates Brand & Marketing Manager, Natalie Grace.

“The general consensus as to why Sauvignon Blanc continues to do so well is that in times of crisis or change, people tend to return to the products and brands they trust, reaffirming the strength of ‘brand’ New Zealand wine and the quality of its flagship variety,” Grace said.

Yealands

Kiwi producers also feel Australia has been a welcome launch pad for new innovations and styles of wine coming from the region.

Jarrod Grant, Yealands Wine Group National Key Account Manager, said: “Australia has always played a big part for the New Zealand wine market, it was the first market to embrace Marlborough Sauvignon Blanc and was the gateway for international expansion.

“However, we are also finding Australians are now embracing other New Zealand varietals and it continues to be the litmus test for new products in global markets.” And Grace agrees. “As producers of fine wine from multiple regions, both our Marlborough and North Canterbury Sauvignon Blanc certainly have their fans, but our Pinot Noir and Chardonnay are also seeing very strong sales, much higher than the aforementioned national export figures might suggest,” she said.

“We expect the fine wine producers of New Zealand are likely experiencing the same.”

NoLo for NZ

One of the biggest trends to hit the wine industry in the past year is the growth in the no and low alcohol (NoLo) wines, and New Zealand producers have been ahead of the pack, globally, in being first to market with these wines.

Giesen, producer of the world’s first alcoholremoved New Zealand Sauvignon Blanc, notes that its Giesen 0% Sauvignon Blanc has seen huge success since it arrived in Australia in August 2020.

“We’re seeing demand continue to grow every day,” said Giesen Group General Manager, Kyle Skene.

“We’re continuing to innovate in the low and no alcohol category, with our recent investment of over a million dollars in specialised spinning cone technology. This investment signals continued improvements in the quality of our market-leading Giesen 0% New Zealand Sauvignon Blanc, as well as our new Pinot Gris and Rosé blends set for release in Australia in the coming months.”

Skene points to Wine Intelligence data that reports Australians are far more likely to purchase low and no alcohol products compared to those in the UK, USA and Canada, with greater interest from younger consumers who proportionally base their purchasing decisions on health and wellbeing.

New Zealand global leadership in the NoLo space is part of its ‘NZ Lighter’ initiative, a collaboration of brands with wines ranging white, red and sparkling at below 10 per cent ABV. Today there are over 40 individual wines listed on the NZ Lighter website. Joining that number will be Giesen’s soon to be released Giesen 0% Merlot.

“We’ve seen huge demand for an alcohol-removed red wine among our consumers who are hoping for an improved offering compared to those already in market. We’re happy to share that Australia will be the first in the world to try this wine and we have full confidence it will be as popular as our other 0% offerings,” Skene said.

“Australia has always played a big part for the New Zealand wine market, it was the first market to embrace Marlborough Sauvignon Blanc and was the gateway for international expansion.”

-Jarrod Grant National Key Account Manager Yealands Wine Group

Sustainability stalwarts While low and no alcohol is a new frontier that New Zealand winemakers are paving the way in, sustainability is an area where our Kiwi neighbours have led the charge for decades. Since the founding of the Sustainable Winegrowing New Zealand program (SWNZ) in 1995, 96 per cent of the vineyard producing areas in the country are ‘SWNZ certified’, giving New Zealand wines a distinct point of difference on the global stage.

One producer on the front foot in this space is family-owned Babich Wines. The family has been producing wines since 1916, and has pioneered sustainable winemaking in the region for more than 20 years.

“We were part of the original pioneers of New Zealand’s sustainability,” said Babich Wines Sales & Marketing Director, Matt Adams.

More than 90 per cent of the wines Babich produces are exported, so connecting with Australian consumers is crucial to its ongoing success.

“We know consumers are making more conscious purchasing decisions in-store. It’s about merchandising [on shelf] by these types of messages (organic, sustainable winemaking) because research shows that consumers are willing to pay a small premium for these types of wines,” Adams said.

While top quality wines are of great importance, Babich notes that a diverse selection of vegan and organic options are becoming more important for trade.

“Australians still love Marlborough Sauvignon Blanc. There’s volume behind it, but at the lower (price) end. Pinot Gris is going well in Australia. Our Marlborough Pinot Gris is now vegan. That’s becoming increasingly important for retailers and the on-premise - they are looking for that sort of option in their wines,” Adams said.

Another producer showcasing New Zealand’s organic wine credentials is Villa Maria, which recently launched its new EarthGarden brand, the winery’s first organic wine range.

“The global organic wine market was forecasted last year by IWSR to grow 43 per cent by 2024, and New Zealand’s $2bn wine industry is well positioned to capitalise on this trend,” said Villa Maria’s Chief Global Sales & Marketing Officer, Matt Deller MW.

The range is produced from 100 percent organically grown and BioGro certified fruit and features a Marlborough Sauvignon Blanc 2020, Hawke’s Bay Rosé 2020, Marlborough Pinot Noir 2019 and Hawke’s Bay Merlot Cabernet Sauvignon 2019. The new range is part of the winery’s commitment to convert 100 percent of its company vineyards to be organically managed by 2030.

But it doesn’t stop there for New Zealand’swine producers, according to Grace.

“Ninety-six per cent of the country’svineyards are sustainably accredited, whichis quite an accomplishment, but what’s next?Is it good enough? New Zealand producersdon’t stand still – we’ll be seeing moreinitiatives and communication around howwe as an industry are giving back more thanwe take away,” she said.

“Understanding of regenerative agriculture practices will sit alongside organics and biodynamics and wineries will spend more time communicating why this is an important part of their culture and values rather than simply the ‘how’.”

Want more New Zealand wine content? Check out the Bloody Big Drinks Summit, featuring presentations with New Zealand Winegrowers and Aotearoa NZ Fine Wine Estates’ Natalie Grace.

Head here to find out more: theshout.com.au/bloody-bigdrinks-summit