INCREASING THREAT FROM NEW ZEALAND

Despite the wine industry problems that New Zealand’s neighbor Australia is experiencing, NZ is doing remarkably well. Expected to be a billion dollar industry by 2010, New Zealand has seen phenomenal growth in recent years as consumers become more aware of its presence in the wine aisles. In June alone NZ exports rose 18% in value over the previous year.

As one of the fastest growing importers into the U.S., winegrowers are currently predicting that exports will jump another 17% in 2007. Pinot Noir exports grew 55% beating out Chardonnay as New Zealand’s second most imported wine style, while Sauvignon Blanc stands at #1.

What’s the reason for their success? It’s the regional quality of their wine, says New Zealand Winegrowers. Of course, the surging popularity of Sauvignon Blanc, NZ’s staple, doesn’t hurt either, along with the fact that everyone loves a niche market. As long as they don’t follow in Australia’s footsteps by jumping the gun and over-cropping, New Zealand’s popularity is likely here to stay.