Grape growers Will & Jayne Grigg ‘cautiously optimistic’ about industry’s future
Marlborough grape growers Will and Jayne Grigg are "cautiously optimistic" about the future of the region's wine industry.
Rising costs are eroding profitability, while domestic and export sales slowed in 2024 due to tough economic condtions he writes, noting that geopolitical shifts are adding further uncertainty, "with the threat of protectionism in key markets".
Meanwhile, industry stocks remain high, despite the small crop of less than 400,000 tonnes last year. Large vintages in 2022 and 2023 (both above 500,000 tonnes), exacerbated by slower sales in 2024, mean inventories remain higher than anticipated, Fabian says. "Together these issues are contributing to an increasingly uncertain and unpredictable outlook."
However, a recent report by Impact Databank shows that New Zealand wines recorded growth in the United States in 2024, marking their 16th consecutive year of expansion. Among the top ten countries supplying wines to the US, New Zealand was the only nation to post a volume increase last year.
Ranit Librach, NZW's US Market Manager, says New Zealand wine's sustained growth in the market underscores its strong consumer demand and distinctive flavours. "With a continued focus on innovation, sustainability, and meeting evolving consumer preferences. New Zealand is poised to further strengthen its reputation as a leader in the global wine industry."
NZW Chief Executive Philip Gregan says the industry is weathering tough times, but if you ask New Zealand wineries if they're confident about the medium to long term future of New Zealand wine, "their answer will be an unequivocal 'yes'". If you ask them if times are challenging at the moment, "the answer, probably from most of them, will also be an unequivocal 'yes'," he adds. Those two things aren't contradictory.
