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Thread: New Zealand Wine Industry Facing Losses

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    New Zealand Wine Industry Facing Losses

    I was roaming around lately and looking wine/spirits group etc... I notice wine companies in NZ being hit by losses and a lot in California also getting hammered. My feeling once they start collapsing globally there might be either consolidation or partial shrinkage of the industry.

    NZ: New Zealand Wine Co warns on profits: Beverage news & analysis
    Oyster Bay warning highlights challenges for wine industry - Oyster Bay Marlborough Vineyards - NZ Herald News
    Chardonnayfication: how the New Zealand wine boom lost its sparkle - and what we're drinking today | Mail Online
    (this one is the best)
    Chardonnayfication: how the New Zealand wine boom lost its sparkle - and what we're drinking today

    By NADENE GHOURI in New Zealand

    (Or the sobering tale of how New Zealand's helicopter-warmed Sauvignon Blanc liquid gold rush went to its head)
    No one gave a thought as to what might happen if their river of gold ran dry. As British consumers' thirst for Marlborough Sauvignon grew, land dismissed as unsuitable for grape production as little as five years earlier was covered with new vines. The amount of grapes produced increased 12-fold, from 15,472 tons a year a decade ago to 177,647 tons today; Sauvignon Blanc now makes up 80 per cent of New Zealand's wine exports - it's a half-a-billion-pound industry.

    And as competition grew, so production methods became ever more outlandish and expensive. The helicopters began to be hired, hovering for up to five hours on end to keep the frost off, and fixed, noisy, artificial wind machines - which look like oversized fans and work like giant hairdryers - were built.


    The interesting article on Oyster Bay is somewhat peculiar since the actual trademark is owned by their parent Delegat's and those sales have gone very well. Between the two of them they owe about 160 mil in debt long term and if sales collapse and the interest rates go up they are skrwd.

    Trouble In The California Vineyards | iStockAnalyst.com
    (30+ vinyards for sale in Cali and some are going very close to bust later on)
    Last edited by cyppok; 28 May 10, at 01:30.
    Originally from Sochi, Russia.

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    Solution? Kick the Goon! 4 liter box of wine for about $12AUS/$16NZD.
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    Quote Originally Posted by bigross86 View Post
    Solution? Kick the Goon! 4 liter box of wine for about $12AUS/$16NZD.
    did you read the Chardonification story? they hired choppers to stir air so wines dont die and giant fans built so that the vines dont freeze. None of it is sustainable long term and a lot of them will fold no matter what they simply do not have the cost structure to survive.
    Originally from Sochi, Russia.

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    Clearly it is time for a Parihaka-driven recovery.


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    Quote Originally Posted by Bigfella View Post
    Clearly it is time for a Parihaka-driven recovery.
    Hey, I've been doing my best! The problem with the NZ industry is they concentrated for years on the chardonnay and sav-blanc varieties, both of which are to say the least, weak flavoured. "Hmmm, subtle flavours of water with a faint glycol aftertaste".
    Fortunately for me there are now some good Pinot (both Gris and Noir) varieties now being developed, especially in the Hawkes Bay and Central Otago regions and the Merlot has always been top notch.
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    Quote Originally Posted by Parihaka View Post
    Hey, I've been doing my best! The problem with the NZ industry is they concentrated for years on the chardonnay and sav-blanc varieties, both of which are to say the least, weak flavoured. "Hmmm, subtle flavours of water with a faint glycol aftertaste".
    Fortunately for me there are now some good Pinot (both Gris and Noir) varieties now being developed, especially in the Hawkes Bay and Central Otago regions and the Merlot has always been top notch.

    Alternatively you can just import the good stuff from us.


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    Quote Originally Posted by Bigfella View Post
    Alternatively you can just import the good stuff from us.
    Why, do you get it off the Americans?
    In the realm of spirit, seek clarity; in the material world, seek utility

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    well

    I still think you guys will have major consolidations as will California. I am sure Hawkes bay is much better for wine production due to better climate, I personally would like to have a vineyard even in New Zeland (which is far far away 23+ hours flight), on the coast would be great vineyard/beach house I digress.

    Ya even in those regions they will begin to fail because of the easy evaluations given and the seduction to expand in good times. The helicopters and giant fans in the story I liked. I'm figure that in a few years they will collapse in price as will all real estate (the problem is I do not know if it will be a nominal decline or a real decline or both).
    Originally from Sochi, Russia.

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    To be serious we have boom/bust in sectors of our agriculture all the time. We play the agriculture market in the same way Americans play the stock market. The wine industry is generally in decline after 10 - 15 years of spectacular growth, our dairy industry is in mid cycle for growth, forestry is about to take off, etc etc. The wine industry has been consuming some prime land over recent years, these properties will be bulldozed and used for more productive purposes while the vineyards on more marginal land will continue to prosper.
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    Quote Originally Posted by Parihaka View Post
    To be serious we have boom/bust in sectors of our agriculture all the time. We play the agriculture market in the same way Americans play the stock market. The wine industry is generally in decline after 10 - 15 years of spectacular growth, our dairy industry is in mid cycle for growth, forestry is about to take off, etc etc. The wine industry has been consuming some prime land over recent years, these properties will be bulldozed and used for more productive purposes while the vineyards on more marginal land will continue to prosper.
    I m kinda curious now, how much would land around Hawke's Bay go for per hectare assuming its not too far from the Napier port hub, I tried looking but the real estate sites are a joke with overpriced crap etc... And is it really worth it? ergo buying something in Nz and actually trying not to be there to manage...
    (yes yes stupid questions)... I actually wouldn't mind having a beach house or a beach vineyard (wish I had enough money for it too but it would be nice to figure how much it costs). Any good links you suggest I look at or places I check out?
    Originally from Sochi, Russia.

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