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Aussie thirst for Kiwi wine continues with older families tucking in

After a bumper harvest, New Zealand wine producers will be happy with recent research from Nielsen showing the Aussie hunger for Kiwi wines hasn’t abated at all.

Table wine accounted for the largest growth in wine sales in Australia for the July 2008 year. Kiwi wine contributed $AU198 million in off premise sales, increasing its share of the Australian market by 3%, a boost of $60 million in value.

Fears that the recession may have crumpled overseas demand for New Zealand’s premium wines has yet to be realised, and the falling kiwi dollar is sure to give the industry a boost – offsetting any fear that the favourable demand-supply ratio traditionally enjoyed by the industry has passed.

“When put into perspective, total table wine increased by $100 million in retail sales, meaning New Zealand wine contributed to 60% of the overall value growth of table wine sales,” Nielsen executive director of liquor services Michael Walton says.

Nielsen’s research also delved into the importance of a wine’s origin to Australian consumers, and while most would assume that the aficionados are fussier than general consumers, the reality is somewhat different.

The research found older families (22%), young singles (18%), and those aged between 25-39 years of age (17%), as well as those earning in excess of $80,000 annually (17%), considered origin important.

Over half of the table wine in Australia is sourced from outside the well-known regions, or sourced non-specific areas.

New Zealand’s total wine exports were up 14% to $797.8 million over the July 2008 year. Winegrowers reported that Australia remains New Zealand’s largest wine export market by value, accounting for 37 per cent of the total and $247 million.

NZ Winegrowers chairman Stuart Smith told NBR the industry is well on its way to its stated goal of $1 billion in exports by 2010.

Australia’s continued high consumption of Kiwi wines will be key to reaching that figure.

More by by Allan Swann

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