NZ initiative will bypass UK

11 June, 2010

A New Zealand government package to help its wine industry develop in emerging markets has excluded the UK due to its relatively strong position.

In the deal, announced by New Zealand’s minister for economic development Gerry Brownlee, funds will be allocated to three main areas – northern Europe, North America and China.

Northern Europe is to receive NZ$500,000, North America NZ$1.2 million and wineries exporting to China will benefit from lower import tariffs.

Northern Europe’s package will be used to raise awareness of New Zealand wines in the trade, with the bulk of money going to Scandinavia, Germany and Benelux countries.

Details of the package have yet to be finalised, although David Cox, European director for the generic body New Zealand Winegrowers, said trade tastings were lined up over the next year in Berlin, Stockholm, Oslo and Helsinki.

“There is more to do, but there is great momentum in the UK and pretty good distribution. Pockets of opportunity remain, but the building blocks are in place so it could be argued the UK doesn’t need additional support,” he said.

But Tesco wine buyer Graham Nash said: “Since the UK is the most competitive market in the world it would be easy for focus to be switched to other wine-producing countries, which may be receiving more support.”??

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