Export growth of wine has slowed and will soon begin to dip on lower available supply from the 2012 harvest, the latest Rabobank wine quarterly says.
The impact had not been uniform across markets. While shipments to the UK, Europe and Australia are starting to slip, those to the US, Canada and China are rising.
Early indications were for higher supply this year from southern hemisphere producers and the growing season was shaping up to deliver a larger 2013 harvest in New Zealand.
Despite the anticipated recovery in production, the low level of ending stocks is likely to support grape pricing in the key Marlborough region, the report says.
In Australia, the extended heatwave that has affected much of the country from late December into January has the potential to moderate production from the 2013 harvest. Wine grape markets have been subdued but are likely to respond if the extreme conditions continue.
It appears Chile will have a good season, while Argentina’s 2013 harvest will likely rebound from last year’s light crop.
Consumption is beginning to increase in some key markets as consumers discover new and more affordable wines.
That significant shift to lower-value wines in major import markets, such as Britain and US, has begun to create some welcome pricing tension for suppliers.
The prolonged economic downturn in the European and US markets has “played havoc’’ with demand for sparkling wines, channelling consumers downmarket and further into the hands of the off-premise retail chains.
A range of high-quality yet somewhat previously overshadowed products and producers have found new opportunities in the European and US markets with wines such as prosecco and cava finding “new life’’, the report says.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Warminger stood to gain significant bonus, court hears
- Sky will take a gamble and put Westworld, aka 'the next Game of Thrones' on Neon
- Milford fund manager faces 10 causes of action
- Mortgage rates have bottomed, regardless of further OCR cuts
- Unitary Plan appeals could clog courts for more than a year
Most listened to
- FMA counsel Justin Smith QC described Mr Warminger’s background and the pressure he was under to perform
- Media Snapchat: NBR’s Nick Grant ponders the Human Rights Commission’s role in RHOAKL racism row
- ASB's Jane Turner discusses what's behind NZ's widest month trade deficit
- Kathmandu's Xavier Simonet and Reuben Casey talk through the retailer's results.
- BNZ's Kymberly Martin and Massey University's David Tripe on mortgage rates.