New Zealand wine exports to UK drop 2%

23 August, 2013

New Zealand wine exports to the UK slipped by 2% in value in the year to June 30, according to New Zealand Winegrowers.

The generic body added that volume declines “were significantly greater” and said growth opportunities now lie away from its traditional export markets, the UK and Australia.

But in its 2013 annual report New Zealand Winegrowers said: “These markets will

undoubtedly bounce back with the more generous 2013 vintage as they remain priority destinations for New Zealand wine.

“Nevertheless, the longer term trend towards market diversification is undeniable. Shipments to second-tier destinations, notably in Northern Europe and Asia, are now valued at just under $200 million, the same as the total value of all wine exports a little more than a decade ago. Strong growth opportunities exist in these markets.”

Nielsen figures show New Zealand is down 6% in the UK off-trade (year to May 25) and down 1% in value at £315 million. The average bottle price rose 5% to £6.60.

However a record harvest of 345,000 tonnes is expected to 2.5 million hl this year, casting aside memories of a short 2012 harvest, and New Zealand Winegrowers expects this to cause a return to growth in the UK market.

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