Market Watch, September 2018

56 MARKET WATCH MARKETWATCHMAG COM SEPTEMBER 2018PHOTO BY CHRISTOPHER VILLANOtime there was a perception that New Zealand wines were on the cheap and cheerful side not serious offerings she says The popularity of Sauvignon Blanc while huge for the category caused some other premium categories to suffer Now were seeing that people are willing to pay 50 and upward for Hawkes Bay Cabernet Sauvignon or Pinot Noir from Martinborough Constellations Rossman notes that luxury New Zealand wines are growing at a faster than average pace The premi umization of white wines continues to be a strong trend and New Zealand wines are well positioned to lean into this trend with the high quality luxury wines that are being produced from vineyards around the country he says Kim Crawford released its Signature Reserve Sauvignon Blanc in March 2018 which retails at 25 a 750 ml in comparison to the core offerings 18 price point The new label sourced from the lower Wairau sub region of Marlborough is a richer and more complex wine according to Rossman Pacific Highways Slade says she is focusing on the next tier up from Giesens Estate range which accounts for the lions share of volume and carries a suggested retail price of 13 for white varietals and 20 for Pinot Noir The new more upscale Brothers range has suggested retail prices starting at 20 with higher prices for the Pinot Noir and late harvest Sauvignon Blanc New Zealand has done a great job of maintaining premium pricing Slade notes Its been the envy of other imports Theres been a lot of growth in the just under 15 price point which is a great starting point for the category Theres noth ing to stop New Zealand from going right up the ladder weve got the goods and now its just about turning it on from a sales point of view mwChopps American Bar and Grill in Burlington Massachu setts which is part of Boston based Pyramid Hotel Group says New Zealand Sauvignon Blancs are fan favorites because of the flavor profile and attractive prices These wines are in abundant production and have a price point thats very friendly allowing restaurants to showcase them he says Chopps features a handful of New Zealand Sauvignon Blancs on its wine list ranging from the 2016 Brancott Estate Marl borough Sauvignon Blanc for 32 a 750 ml to the 2016 Cloudy Bay Marlborough Sauvignon Blanc for 58 In contrast Marini isnt enthused by New Zealand Pinot Noirs North America dominates the Pinot Noir market so I dont think that consumers will see that quality of Pinot from New Zealand and restaurants dont have placements for it he says Retailer Mike Cimini owner of Austin Liquors Too and Dubss Liquors Fine Wines in Massachusetts and Sav Rite Liquors in Connecticut says New Zealand Sauvignon Blanc is growing steadily but demand for other varietals is rela tively minimal A few people will look beyond Sauvignon Blanc but the numbers are tiny he says He sees most consumers instead settling in at the 10 15 range rather than trading up within the sector People are drinking Sauvi gnon Blanc Prosecco or rosé interchangeably he says These are light and crisp great for the summer although there is a year round aspect Its a pop open drink it tonight type of product Premium PushA number of producers however are starting to look beyond the entry level Vanessa Conlin vice president of wine for online retailer Wine Access says people are increasingly willing to spend more on New Zealand wines For a long At Garys Wine Marketplace in New Jersey Wayne New Jersey store above Sauvignon Blanc still dominates But director of wine Brooke Sabel says that consumers are starting to spend more on New Zealands lower volume varietals such as Pinot Noir and Chardonnay