Market Watch, September 2018

SEPTEMBER 2018 MARKETWATCHMAG COM MARKET WATCH 55PHOTO BY TK TKthat consumers are now recognizing the other wines coming from New Zealand in addition to Sauvignon Blanc she says Opinions are mixed on whether New Zealand producers can successfully pivot to a more balanced varietal offering for the U S market Avery says part of the problem is that many producers arent able to efficiently export their full range of products due to cost and supply concerns Generally we find that when U S visitors come to New Zealand they dont expect all the other great wines he says The non Sauvignon Blanc wines that do make it to the U S have mixed receptions in the trade and with consumers Brooke Sabel director of wine for the Garys Wine Marketplace franchise in New Jersey says that while big Sauvignon Blanc brands dominate her customers are becom ing more interested in New Zealand Pinot Noir and Chardonnay Furthermore Sabel notes that consumers are also willing to spend a little more on some of the countrys lower volume varietals And Elsey of Pappas Bros Steakhouse laments the lack of supply and variety of red wines from New Zealand in the U S He has seven New Zealand reds on the downtown Houston wine list including four Pinot Noirs a Syrah a Cabernet Franc and a Cabernet blend As more of those wines come into the market and have greater availability I will definitely look to taste and bring more in he says Others are a bit less enthused Bruno Marini food and beverage director at Sauvignon Blanc but were starting to see some growth from our Pinot Noir and were confident that will be the next growth category from New Zealand Other producers are also investing in Pinot Noir and in some cases other varietals as well Pinot Noir is where were seeing the biggest percentage increase this year for the Mohua brand says Gregory Doody president and CEO of Vineyard Brands which imports New Zealand labels Mohua and Peregrine Like other New Zealand entrants the vast majority of volume currently is in Sauvignon Blanc Doody doesnt see the dominance changing but he does see move ment in non Sauvignon Blanc entrants People are discov ering and rediscovering the Pinot Noir dominant Central Otago as a winemaking region he says There was a surge of interest five or ten years ago that is coming around again Because of the quality of the wine I dont think this is a short term phenomenon Peregrine also a Central Otago producer is casting a wider net With Peregrine we made the decision a few years back to limit offerings to Sauvignon Blanc and Pinot Noir but because weve seen interest in the entire range weve started bringing those back in as well says Doody noting that the lineup now includes a Riesling a Chardonnay a Pinot Gris a sparkling wine and a rosé Many New Zealand producers have moved into the rosé sector in recent years to tap into the skyrocketing U S demand The Matua rosé is a natural progression for us says TWEs Floor When a brand is all about refreshment a rosé seems like the perfect extension The Matua rosé like the Sauvi gnon Blanc carries a suggested retail price of 10 11 a 750 ml Kim Crawford the top selling New Zealand brand in the United States according to Impact Databank launched a rosé in the spring of 2017 Julie Rossman global director of imports marketing for Constellation Brands says the rosé quickly became a major seller This stellar growth reinforces the trend BOTTLED NEW ZEALAND TABLE WINEEXPORTS TO THE U S 2012 2017Calendar Years Still wine not over 14 alcohol excluding bulkSource IMPACT DATABANK 2018 2345201720162015201420132012 200 300 400 500VolumeValue millions of 9 liter cases millions of U S dollars As consumers rediscover the Central Otago winemaking region producers such as Peregrine winery above are offering more non Sauvignon Blanc varietals