In a region that appreciates traditional values, no-one is about to suggest that a land grab or gold rush is underway. However, there is a quiet but palpable sense of optimism about recent developments.
Some years ago, Hawke’s Bay Winegrowers, weighing up the difficulties inherent in promoting a miscellany of styles, narrowed the focus with its Hot Red Hawke’s Bay branding. It’s been a successful approach both in New Zealand and Australia, and now, what may give it rather more weight is China’s growing appetite for premium full-bodied red wine.
Hawke’s Bay is mobilising to tap into that potential.
The outstanding back-to-back vintages of 2013 and 2014 are also boosting belief in the Bay’s ability to build exports based on the quality of its wines. Mindful of the dangers of putting all their eggs in one basket, Hawke’s Bay wineries are also looking to develop their markets in the USA, Canada, the UK and other Asian countries.
Giving tangible form to the growing sense of optimism, Delegat’s has made a start on its new winery on the north-western outskirts of Hastings. While details are sketchy, it’s believed the plant will handle between 5000 and 10,000 tonnes of grapes coming off the company’s vineyards in Crownthorpe and the Gimblett Gravels as well as fruit supplied by contract growers.
In the meantime, Delegat’s has sold its Matariki winery to BLK, a partnership of local businessmen who also own the former Montana winery in Pandora leased out to winemaker Rod McDonald.
In another large development, Constellation has added 40 to 50 hectares of vines on its Corner 50 vineyard at the far end of the Bridge Pa Triangle. Villa Maria is planning a new winery on its relatively recently acquired Te Awa property, seeing merit in using fruit drawn from 400 hectares within 10kms of the site rather than trucking the grapes to Auckland.
Making a start on its redevelopment plans, Villa Maria has not long completed replanting 25 hectares at Te Awa, and will be replanting a further 40 hectares later in the year. Vidal Estate winemaker Hugh Crichton says that’s about getting more red wine suitable land for the Villa Maria group.
“Hawke’s Bay is one of the best spots for that in New Zealand, particularly the Gimblett Gravels. For us it’s about securing land for future growth of red wine in Hawke’s Bay. Part of that is China – George (Fistonich) is confident about the potential for growth in China.”
Crichton – a board member on HB Wine Marketing Ltd, the Hawke’s Bay Winegrowers owned company managing the push into China – doesn’t believe progress will be meteoric.
“I see it as a long slow road. We will need time for education and getting the brand Hawke’s Bay out into the market.”
For many people around the world, Sauvignon Blanc is often their introduction to New Zealand wine, he says. For the inquisitive, that can then be a launch pad for trying other wine styles such as Pinot Noir.
“I think there’s a very good opportunity to grow on the back of other varieties. We really need to focus on Hawke’s Bay as a brand and that’s where the joint marketing group will take us.”
New Zealand Winegrower asked Bridge Pa grape grower Chris Howell whether the growing momentum was more about the shortage of potential vineyard land in Marlborough or Hawke’s Bay’s push into China. “That’s a really interesting question,” he responds, “and I don’t know the answer. My gut feeling is that it’s probably a bit of both.”
Howell says it’s been pretty easy to sell any variety for the last couple of years. Hawke’s Bay fruit has been in demand because of the lower tonnages that were coming out of Marlborough. The region is also exporting more to China, the USA and other places.
“We are going well in that sector. Whether the companies are making money is a whole different story.”
Because of the big 2014 vintage, Howell anticipates demand for Sauvignon Blanc fruit dropping in both Marlborough and Hawke’s Bay.
“Already there’s been a drop in price for bulk Sauvignon Blanc – there’s so much about. It was easy to sell excess production. This year there’s no one in the market for Sauvignon Blanc fruit.
“Marlborough is so completely planted that extra planting is going into untested areas, the cool part of Marlborough where volumes drop off. There’s not really much more head room in terms of production on the Marlborough plains. Future plantings will have to be elsewhere.”
The growth in Hawke’s Bay planting is not big, he adds, 20 or 23 hectares here and there, and it will take time before it expands.
“China is predominantly a red wine market. There have been significant attempts to get Sauvignon Blanc into there but the take-up hasn’t been huge. I’m sure it will happen but it will take time to develop. The Chinese associate high quality with red wine.”
Like Howell, Hawke’s Bay Winegrowers executive officer James Medina believes the growing demand from China and the lack of available land in Marlborough are both playing into the dynamic.
Supply and demand have to be considered – “there is only so much land” and the most ideal sites have already sold. Gimblett Gravels is fully planted and for reds, the room for growth is at Bridge Pa. Wine companies are future proofing their products, and some are going to run out of room for reds.
Total sales to China are probably also driving the requirement for land, says Medina. Wine companies are getting in while they can. However, he points out, no-one has specifically come out and said they are making purchases because they perceive there are fewer sites available in Hawke’s Bay.
While the proposed $275 million Ruataniwha dam is likely to open up Central Hawke’s Bay to further development, Medina believes irrigated land there will be more valuable for horticultural crops than for wine grapes. ν
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