Free-trade agreement will have benefits for both sides

3. New Zealand unchained?

The British government may be predictably, pitifully far from signing sufficient trade deals to replace those lost after Brexit. And trade between the UK and the EU may still be considerably tougher than it was before December 31, 2020. But the UK wine industry does at least seem to be happy with an agreement in principle for a free-trade deal signed with New Zealand in March 2022.

The removal of tariffs on New Zealand wine is the headline win touted by both the UK’s Wine & Spirit Trade Association and New Zealand Winegrowers, with both bodies also expressing satisfaction that New Zealand wine will avoid a staged removal of the tariffs, as will be the case for other agricultural products such as meat and dairy: for wine, tariffs will be removed from day one of the agreement’s adoption into law, whenever that happens. The savings work out at around 10p to 12p on a bottle of still wine, and 22p on a bottle of sparkling.

Other significant provisions in the agreement cover regulatory issues, with the WSTA celebrating the removal of import certification, while the agreement’s text calls for “recognition by the UK of New Zealand winemaking practices which are confirmed as substantively the same as those the UK already recognises for other countries. The UK will also assess other practices requested for recognition by New Zealand with the aim of recognising as many as possible before signature of the FTA.”

According to the WSTA’s Miles Beale: “This is a great deal for the UK’s wine importers and the jobs supported across the UK, which rely on over £750m in sales of New Zealand wine in the UK annually – from bottling and logistics to hospitality and retail. This modern FTA not only eliminates many tariff barriers, but permanently removes wine import certification for New Zealand wines and broadens the accepted list of New Zealand’s oenological practices permitted.”

New Zealand Winegrowers CEO Philip Gregan’s official take on the deal is equally upbeat. “This will help remove technical barriers to trade, and minimise burdens from certification and labelling requirements,” he said. “It will also support future growth in the market, and encourage exporters to focus on the UK.”

I have always been interested in the family business, even as a child. The process of growing grapes, making wine and selling wine has always had an attraction, and vintage, with all the activity, was always a special time.

I did a small amount of work in Australia as part of my wine making degree from Roseworthy College, but the rest has been New Zealand-based.

Babich Wines was among the early adopters when sustainability started being formalised and standardised through official accreditation in the late 80s and early 90s. But in a sense, we’ve been operating sustainably for well over 100 years. My grandfather, Josip Babich, started making wine in 1916 and even back then he had a reputation for integrity and treating his team, suppliers, customers, and of course his land with great respect. I think he knew that if he wanted his winery to thrive for generations to come, he needed to take a long-term, sustainable business mindset.

Our contribution, along with other New Zealand wineries, to the introduction of sustainability certification in the 80s and 90s was really a continuation of that, culminating in our Irongate Vineyard in Hawke’s Bay being the first in New Zealand to be independently certified as sustainable.

I’ve always said, “I may not meet my great-grandchildren, but I’m always thinking of them”, so for us, sustainability is about finding ways to produce great wine today, without compromising our ability to make great wine tomorrow. To do that, we’re focused on water conservation, organic winemaking, sustainable certification, and packaging, while making sure we’re also supporting the communities we operate in – both here and abroad.

Sustainability as a term has become devalued to a degree, but the flipside of being a marketing buzzword is that businesses have been promoting the need to run our businesses and live our lives more sustainably, to the point that sustainability is now a widely held, mainstream concept. People are looking at claims more critically and holding businesses more accountable for the way they operate. And because of its adoption by marketing departments, sustainability is a journey we’re all on together now, so ultimately you could argue it’s a good thing.

The geographic distribution of our vineyards can present some operational challenges but the advantages far outweigh the disadvantages. We have a distinct style we try to achieve for each of our wines and ranges, so having access to grapes from company-owned vineyards in a variety of sub-regions gives us a lot of flexibility to assemble a blend that achieves the quality and style we’re after.

Meanwhile, the diversity in terroir means we can find some really exciting and distinctive flavours with our single vineyard wines. I think we have the best of both worlds.

Our aim has always been to sustainably craft wines that are stylish and refined, and have easy-drinking appeal. Flavour, complexity and craft are important, but not at the expense of approachability. That philosophy still rings true today. To us, the second (or third) glass should always taste just as good, if not better, than the first.

New Zealand wine is entering an exciting phase in the UK market as consumers have matured and the free-trade agreement comes into place. In the past, the view has been that any New Zealand wine is good enough, but today that’s no longer the case. There is more diversity and excitement in the category than ever with organic wines becoming more and more popular for their sustainability and unique flavour profiles. Consumers are exploring different styles and expressions from different regions, and they’re seeking out wines that have a unique provenance and a story behind them.

The mainstream producers will always be there, and will always be popular, but consumers are increasingly learning that not all New Zealand wines are created equal and New Zealand wine is far from being a one trick pony.

David Babich

Babich Wines

Croation immigrant Josip Babich made his first wine in Auckland in 1916 and his descendants are still going strong with the third generation of the family, David Babich, now holding the reins. Babich boasts an impressive 428 hectares under vine, spread across 13 vineyards in Auckland, Hawke’s Bay and Marlborough.

Imported by Berkmann Wine Cellars berkmann.co.uk info@berkmann.co.uk 020 7609 4711

Babich Black Label Sauvignon Blanc and Pinot Noir

Both of these wines have been crafted to be best enjoyed with food. We have worked hard to retain complexity and preserve the intense varietal characters in the wines, without losing our hallmark subtlety and drinkability. It’s a fine line to tread but the result is two beautifully structured wines that really over-deliver on quality and flavour.