NEW ZEALAND WINEGROWERS

Annual Report2016

Vision Around the world, New Zealand is renowned for our exceptional wines

Mission To create value for our members

Purpose To PROTECT the competitive position of our wine from NZ

To support the profitable GROWTH of our wine from NZ

Activities Advocacy/ Research/ Marketing/ Sustainability

Annual Report2016

NEW ZEALAND WINEGROWERS

CHAIRS’ REPORT  2 7 8

12 16 18

22 27 28

38

KEY PERFORMANCE INDICATORS

ADVOCACY

RESEARCH INFORMATIONRESOURCES

SUSTAINABILITY

MARKETING WINE AWARDS  STATISTICS

DIRECTORY

2

Chairs’ report

3

THE ON-GOING PROGRESS TOWARDS THE $2 BILLION GOAL IS FOUNDED ON OUR REPUTATION AS A WINE EXPORTER OF THE FIRST RANK, CRAFTING AND MARKETING DISTINCTIVELY-NEW ZEALAND, HIGH QUALITY, HIGH VALUE WINES.

This fundamental has been, and will remain, the rock on which our success is built. As we have long said our reputation is our key asset.

Continuing investment in New Zealand wines’ reputation is a priority for the industry. This investment is designed to both protect the success achieved to date and to provide a platform for future profitable growth.

OVER TWO DECADES OF EXPORT GROWTH

New Zealand wine is well on track to reach exports of $2 billion by 2020.

In the year to 30 June, the value of our exports lifted 10% to just under $1.6 billion, the 21st consecutive year export value has grown. This two decades strong performance testifies to the underlying market and consumer demand for our wines.

Export value growth this year was impacted by three factors: the continuing strong demand in key

markets, supply constraints following the smaller 2015 vintage and the material drop in the level of the $NZ against the $US. On the back of these developments the average $FOB value per litre lifted 8%.

North American markets were the major driver of export growth in the past year as wineries, facing supply constraints, directed supply to the most profitable markets. Exports value to the USA grew 24% this year and, at $461 million, it is now firmly established as our largest market. Similarly exports to Canada lifted 13%. Growth was also strong into the United Kingdom with export value up 8% to $382 million. By contrast exports to Australia were flat as wineries diverted supplies to other markets in response to a high exchange rate and the slow Australian economy.

With demand strong in key markets, further export growth is forecast for the year ahead. Improved supply from Vintage 2016 is expected to lift export volumes 10% over the next 12 months. This will be another significant step towards our $2 billion export goal.

ACCESSING MARKETS FOR FUTURE GROWTH

Competitive market access is a prerequisite to marketplace success. Our $1.6 billion export industry has been supported by

free trade agreements (FTAs) with countries such as Australia and China, and other market access initiatives designed to reduce non-tariff barriers.

As an industry we strongly support the Trans Pacific Partnership (TPP). With wine exports to TPP countries valued at close to $1 billion we see TPP as a ‘must have’ for our sector as it will improve access into some of the wealthiest and fastest growing economies in the world. We believe TPP will provide a solid foundation on which to grow export sales in the years ahead.

Similarly we have supported the proposed FTA with the EU. Wine exports to the EU are valued at over $500 million, and the benefits for our sector from a robust deal with the EU are obvious. Brexit has clearly complicated matters, but our ambition to improve access into both the EU and UK markets is not diminished by this development.

Chairs’ Report

The New Zealand wine industry has a target of $2 billion of exports by 2020. In the past year significant progress has been made towards that goal, confirming the sector is on track to reach this milestone.

4

Chairs’ Report

PROTECTING OUR BRAND

In November 2015 the government introduced the Geographical Indications (Wine and Spirits) Registration Amendment Bill. This initiative was warmly welcomed by producers. With the Bill now before the Primary Production Committee it seems certain that in the coming year a geographical indications (GIs) register for New Zealand will become a reality. This will align the New Zealand GI rules with those of most other major wine producing nations.

As such, the Act will provide additional international protection for our geographic names. This is important given the value we have built in our ‘New Zealand’ wine brand, and the growing recognition of our regional and sub-regional brands. As a result New Zealand Winegrowers is assisting regional associations to prepare applications to register their GIs under the new legislation.

The GI legislation is a significant step forward for the sector, but to fully protect our brands there are still more steps to take. Our members would like to see further enhancements to the New Zealand regulatory framework to ensure that the standards for wine packaged in-market are equivalent to those applying to wines packaged in New Zealand. New Zealand Winegrowers will continue to push for progress on the review of export legislation so that this important issue is addressed.

OUR HOME MARKET

Domestic sales volumes were down slightly in the past year on reduced supply from vintage 2015. This development meant that for the first time sales in New Zealand were overtaken by sales into both the USA and the UK.

Nevertheless, New Zealand remains a critically important market for producers. Our home market accounts for just over 20% of global sales volume and for many small wineries it is the only market in which they operate. Further, its importance is growing in one critical area – inbound tourism.

Tourism New Zealand data shows that in the year to December 2015, one in five overseas visitors to New Zealand visited a winery or had some other ‘wine experience’. Those tourists stayed longer in New Zealand and spent significantly more than other tourists. While the numbers of Australian and American tourists were highest, China was the third largest source of foreign ‘wine tourists’, a focus market for ourselves in partnership with NZTE.

The quality wine experiences we offer these tourists play an important role in terms of brand recognition and export growth. The visitor who returns home with warm memories of a winery experience and shares them with friends becomes a convincing, lifelong ambassador for New Zealand wine.

REDUCING COMPLIANCE COSTS

Compliance costs associated with producing, selling, marketing and exporting our products remain a major concern for producers. They erode profits and divert our producers from focusing on their primary tasks.

Positively, this year we have been closely involved in a review of the outdated Customs and Excise Act. New Zealand Customs ran a genuine consultation process, taking time to understand industry key concerns. We believe significant benefits will arise for wineries from this process as new legislation and regulations come into force.

We continue to produce and update a wide range of guides to help members navigate the many intensely regulated aspects of grape growing and winemaking. The annual Spray Schedule, the International Winemaking Practices Guide, the Winegrowers Legal Guide, the Labelling Guide and other documents are highly valued by members. We have also just released a guide to the Health and Safety at Work Act, produced in conjunction with WorkSafe.

“New Zealand’s cool climate wine styles and premium positioning remain very much in its favour in most major markets. For some time now, New Zealand wines have become representative of how consumers – from across the UK, mainland Europe and Australia to the US and Canada – all seem to be willing to pay up for more expressive and lighter-bodied wines.”

RABOBANK, QUARTERLY WINE REPORT, APRIL 2016.

5

Chairs’ Report

Classics tasting in Cloudy Bay barrel hall during the 2016 International Sauvignon Blanc Celebration.

BRINGING THE WORLD OF WINE TO NEW ZEALAND

In February 2016 over 300 guests descended upon Marlborough to take part in the first ever International Sauvignon Blanc Celebration (ISBC).

Delegates from 18 countries had the opportunity to taste over 400 wines. Guests explored the science of Sauvignon Blanc flavours and the many regional and stylistic expressions from over 70 producers from around New Zealand.

ISBC was the lynchpin in a series of showcase events in 2016. Following ISBC, 65 key wine writers and trade influencers participated in New Zealand’s first ‘WineFlight’ which was strongly supported by Air New Zealand. The destination for the WineFlight was the Gisborne Sparkling and Chardonnay Symposium, where 80 guests conducted an in-depth exploration of the rich quality, diversity and likely future developments of our Sparkling and Chardonnay wines.

These events, combined with the International Sommelier’s Summit (or ‘Sommit’) and the North Canterbury Forage, were the 2016 manifestation of our Major Events Strategy.

This Strategy, a cornerstone of our promotional activity, provides for a series of major events through to 2023 when we will be celebrating 50 years of the modern Marlborough wine industry. The Major Events Strategy complements our many in-market activities that continued to perform strongly in 2016.

International media coverage of New Zealand wine resulting from our 2016 events was extensive and overwhelmingly positive. Preparations are now well under way for Pinot Noir 2017 and associated events, including another WineFlight and further Sommits.

ENSURING HEALTHY VINEYARDS

New Zealand vineyards are lucky: our isolation and climate have protected them from most of the potentially devastating grape pests and diseases that occur in other wine countries. But with over 36,000 hectares of grapes in production and more being planted in response to strong demand, and as New Zealand’s connections with the world grow, so too does the risk of a biosecurity incursion impacting our vineyards.

Against this background, biosecurity is assuming increasing importance for our sector. This year in response we appointed a Biosecurity Manager to develop and lead the implementation of our Biosecurity Strategy.

Central to the Strategy is that our sector participates fully in a ‘Government Industry Agreement for Biosecurity’ (GIA). This will mean that if there is a biosecurity incursion, government and industry will share the cost of responding, and New Zealand Winegrowers will have a seat at the table in deciding what the biosecurity response should (or should not) be and how it should be implemented.

As part of the process of entering into a GIA, we need to satisfy the Government that we can meet our share of a biosecurity response costs. To do this, the Board is recommending the establishment of a dedicated biosecurity levy. This levy would normally be set at zero, and would only ever impose a cost on members if funds are needed for a major biosecurity response. Members are currently voting on this proposal, which we anticipate will receive strong industry support.

6

CARING FOR OUR LAND AND OUR PEOPLE

Sustainability continues to be a top priority for New Zealand Winegrowers. A new Sustainability Strategic Plan is in place and during the year we implemented the results of our business process review to ensure that our structure meets industry needs now and into the future. As part of this process, direct responsibility for sustainability was transferred to the Chief Executive Officer.

The Board also approved the development of a new Continuous Improvement approach for Sustainable Winegrowing New Zealand, so that members can define and work towards their own sustainability goals. This is set for launch to the industry in 2017.

Access to a productive, well-trained labour force is critical to being able to produce high quality grapes

NEW HORIZONS FOR THE FUTURE

On 1 July 2016 New Zealand Winegrowers Inc commenced operations. This was the final step in a process of consolidation of the industry organisations which began more than 30 years ago.

Although little has changed on a day-to-day level there are some major changes worth noting. Most importantly, all members now have a direct say in electing each and every representative on the governing Board, and all members can stand for any position on the Board.

The Board plays a critical role in providing direction to the industry, in identifying strategic opportunities and risks, and ensuring real value for members is generated by use of members’ levies.

The initial elections for the new Board will be held in October 2016. We encourage each member to consider what they have to offer, and whether they are prepared to commit their time and skills to help shape the future of our industry by standing for election to the Board.

New Zealand now has the distinction of being the only major wine producing nation with a single industry body, representing and advocating for the interests of its entire grape and wine industry. This places our industry body in an excellent position to continue protecting the competitive position of New Zealand wine and supporting industry growth in the years ahead.

and wine. The industry has a New Zealanders first employment policy. We directly employ well over 7,000 New Zealanders in full-time roles, as well as supporting many others in sectors supplying the industry, in hospitality and in tourism. The increase in Recognised Seasonal Employer (RSE) Scheme numbers in the past year was welcomed as these workers are required to ensure peak loads are met. As such RSE workers provide important support for the roles of our full-time employees.

INVESTING IN NEW KNOWLEDGE

Research and the information derived from it are highly valued by our members.

Solid progress is being made in our two most significant research projects. The $7 million, 7-year Vineyard Ecosystem Research

Programme (co-funded by the Ministry of Business, Innovation and Employment) is off to a positive start. The $17 million Primary Growth Partnership ‘Lifestyle Wines’ Project (co-funded by the Ministry for Primary Industries), focusing on high quality lower alcohol, lower calorie wines is now delivering valuable information to the industry. Together these two projects represent a substantial joint investment in the future by industry and government.

In addition to these stand-alone projects, New Zealand Winegrowers is in the final stages of seeking government funding for the creation of a New Zealand Research Institute for Viticulture and Oenology. Our vision is for a single national research institute driving all relevant grape and wine research in New Zealand. We believe the Institute will enable research to focus on more complex projects, providing holistic knowledge transfer to drive the New Zealand industry forward.

Chairs’ Report

STEVEN GREEN CHAIR JOHN CLARKE DEPUTY CHAIR

Credit: Villa Maria Estate.

7

BULK WHITE WINE PRICE

Key Performance Indicators

NEW ZEALAND WINE INDUSTRYKEY PERFORMANCE INDICATORS: JUNE YEAR END 2016

TOTAL VALUE OF EXPORTS

MARKET VALUE PACKAGED WINE EXPORT

SHARE OF TOTAL EXPORTS, VOLUME

DOMESTIC SALES, VOLUME

BULK WINE EXPORT

$1.57 BILLION 10%

56.3m L*

$8.81/L $4.30/L

PRICE

141.2m L 71.4m L5% 1%VOLUME VOLUME

*figures are in $NZD

*Estimated

$27.6m

CHINA

$14.5m

GERMANY

$460.6m24%

USA

$107.4m13%

CANADA

$44.5m7%

NETHERLANDS

$17.3m

HONG KONG

FOB VALUE

45%

14%7%

7%

2%

2%

8%$381.8m

UK

$361.7m0.1%

AUSTRALIA

OTHER VARIETIES

14.4%85.6%SAUVIGNON BLANC

8

AdvocacyProtecting our members’ ability to produce, market and sell competitively.

9

Advocacy

KEEPING COMPLIANCE COSTS DOWN

New Zealand Winegrowers’ Advocacy team works to provide members with accessible information around legal, regulatory and procedural changes that affect grape growing and winemaking.

Our regular publications include the New Zealand Winegrowers Labelling Guide, the International Winemaking Practices Guide and the Winegrowers Legal Guide. These are updated and reissued as necessary.

The new Health and Safety at Work Act marked a shift in emphasis in how businesses are expected to manage the health and safety of their workers. Together with WorkSafe, we developed Working Well, a wine industry-specific guidebook of information and tools to help members understand the Act and what they are now expected to do.

Our team receives daily phone calls and email queries from members about compliance requirements. Although most of these relate to winemaking practices, international labelling questions and export requirements, we have access to resources and contacts that we use to assist us when answering a wide variety of our members’ regulatory queries.

GEOGRAPHICAL INDICATIONS ARE COMING

The Geographical Indications (Wine and Spirits) Registration Amendment Bill was introduced into Parliament in November 2015, and has broad, cross-party support. The Bill has been a major focus of our activity in the past year.

Once in force, the Geographical Indications (GI) Act will provide us with an internationally recognised way to identify and protect the collective intellectual property in our wine region’s names, and a greater ability to protect those names from misuse overseas. We have been working with regional winegrowers associations to help them prepare for the Act, and expect to have 20-plus GIs ready for registration when the Act comes into force.

RESPONDING TO CHANGE

We are lucky in New Zealand to have modern, principled regulatory regimes for grape growing, winemaking, food safety and exporting. Compared to many other countries, our laws and standards are clear, transparent and impartially applied.

However, just as the physical and commercial environments affecting the wine industry never remain static, so must our regulatory standards adapt and change, as outdated rules increase the cost and complexity of doing business.

Over the past year New Zealand Customs has engaged extensively with businesses and associations, such as New Zealand Winegrowers, to review the outdated Customs and Excise Act.

Our activities center around: government engagement, product integrity standards, intellectual property protection, encouraging free and fair trade, and promoting social responsibility.

Right and left: New Zealand Winegrowers host government officials on Marlborough field trip.

10

Advocacy

We expect a New Zealand Customs’ proposed rewrite of the Act will deliver a more modern and flexible excise regime.

In other areas of regulation, change is still needed. We continue to push for review of export legislation to ensure that our laws do everything we require to ensure the integrity of all wine exported from New Zealand.

OUR WORKFORCE

The recent labour surveys in Marlborough and Central Otago highlighted the challenges of ensuring a sufficient supply of qualified workers to support the industry’s projected growth. As the Recognised Seasonal Employer (RSE) scheme marks its tenth year of operation, New Zealand Winegrowers will be taking stock, and working with members to develop a coherent, future-focused labour strategy. The strategy will address labour supply and demand, pastoral care of employees and contractors, attraction and retention, and education and training.

TELLING THE SUCCESS STORY OF NZ WINE

Much of the work that the Advocacy team undertakes goes on behind the scenes. Part of this role is to make sure the country’s leaders factor our sector into their policy decision-making, and understand how the wine industry’s successes are relevant to the government’s goals and targets.

We see increasing evidence that wine is top-of-mind when politicians and officials think about New Zealand’s export successes, with many positive mentions in Parliament this year. In February, Minister Goldsmith, Minister of Commerce and Consumer Affairs, hosted a function at Parliament for around 120 politicians and officials to celebrate the wine industry’s export success, and the Government’s commitment to implementing the Geographical Indications Act. Minister Guy, Minister for Primary Industries, congratulated the industry on its ongoing success at the Marlborough Grape Days. Minister

Goodhew, Minister for Food Safety, attended the Air New Zealand Wine Awards and met with our members in Nelson, Hawke’s Bay, Marlborough and Auckland.

Our programme of field trips to Marlborough is now well established and ensures key officials have a first-hand feel for our industry. We have helped organise other one-off visits for specific departments and visiting officials, and will do so again in future.

SOCIAL RESPONSIBILITY

We work with government agencies such as the Health Promotion Agency and Ministry of Health to ensure they are aware of how committed the wine sector is to responsible drinking, and programmes, such as pregnancy labelling. A review of the Cheers! initiative was completed over the past year, which will result in governance and management changes to enhance the focus of its activities.

ACCESS TO WORLD MARKETS

As always, we have been active in advocating for greater freedom in wine trade. We participated in seminars on the Trans-Pacific Partnership (TPP), negotiations of the 16-nation ‘Regional Comprehensive Economic Partnership’ Free Trade Agreement (FTA), and hearings on the proposed EU/NZ FTA.

The TPP Agreement, which includes provisions to reduce wine trade barriers, was signed by its 16 member states in February. History tells us that new free trade agreements generate significant increases in wine exports, so the potential benefits from TPP are very exciting as it would be New Zealand’s first free trade agreement with the USA, Japan, Canada, Mexico, and Peru.

While the Brexit vote has complicated the future for trade relations with Europe, it may also represent a significant opportunity for us to simplify access to one of our principal markets.

Wine is New Zealand’s second largest export to the UK, and it will be in the interest of both states to ensure that this trade remains free and fair.

Across the Tasman, changes to the Wine Equalisation Tax were proposed, including a reduction in the rebate cap. It is not yet clear what impact these changes will have on New Zealand wineries, but the core principle of equal access to the rebate for New Zealand and Australian wineries has been preserved.

We understand how frustrating it is that so many countries have different winemaking rules. We work closely with other New World winemaking nations to jointly push for simplified trade in wine – for example, by seeking permission from foreign governments to use common wine additives, to eliminate unnecessary restrictions, certificates and tests, and to adopt common standards.

Although the wheels often turn slowly, the impact of this international cooperation – through the World Wine Trade Group, FIVS, the APEC Wine Regulatory Forum, and the International Organisation of Vine and Wine – is considerable.

Working Well guide: Health and Safety in your winery and vineyard.

11

Advocacy

INTERNATIONAL MEETINGS 2015-16

New Zealand Winegrowers attended the following international meetings to directly advocate for the interests of New Zealand wine in key international regulatory and industry bodies:

INTERNATIONAL ORGANISATION OF VINE AND WINE (OIV) GENERAL ASSEMBLY, GERMANY (July 2015)

FIVS SUMMER CONGRESS, GERMANY (July 2015)

WORLD WINE TRADE GROUP (WWTG) PLENARY MEETING, ADELAIDE (November 2015)

APEC WINE REGULATORY FORUM, ADELAIDE (November 2015)

OIV EXPERT GROUP MEETINGS, FRANCE (April 2016)

FIVS GENERAL ASSEMBLY AND SPRING CONGRESS, BELGIUM (April 2016)

WWTG INTER-SESSIONAL MEETING, BELGIUM (April 2016)

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP ROUND 12, PERTH (April 2016)

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP ROUND 13, AUCKLAND (June 2016)

SUBMISSIONS 2015-16

In addition to extensive engagement, New Zealand Winegrowers made or contributed to direct submissions, or written policy proposals, on the following matters:

INTERNATIONAL

WET REBATE REVIEW (November 2015)

NEW ZEALAND / EUROPEAN UNION FREE TRADE AGREEMENT PROPOSAL (ongoing)

CODEX ALIMENTARIUS COMMITTEE ON FOOD ADDITIVES (ongoing)

COUNTRY OF ORIGIN LABELLING, AUSTRALIA (January 2016)

CHINA FOOD SAFETY LAW (January 2016)

MALAYSIA LABELLING PROPOSAL (January 2016)

INDIA FOOD REGULATIONS (February 2016)

BRITISH COLUMBIA NON-TARIFF BARRIERS (March 2016)

TRANS-PACIFIC PARTNERSHIP SELECT COMMITTEE REVIEW (March 2016)

WHO ENGAGEMENT WITH NON-STATE ACTORS (ongoing)

THAILAND LABELLING PROPOSAL (ongoing)

ONTARIO PRICING PROPOSAL (June 2016)

DOMESTIC

GEOGRAPHICAL INDICATIONS AMENDMENT (100% NEW ZEALAND) (July 2015)

NEW ZEALAND HEALTH STRATEGY (December 2015)

MPI ‘FIRST PRINCIPLES’ REVIEW OF COST RECOVERY (ongoing)

GEOGRAPHIC INDICATIONS (WINE AND SPIRITS) ACT IMPLEMENTATION (ongoing)

REVIEW OF WINE EXPORT LEGISLATION (ongoing)

CUSTOMS AND EXCISE ACT REVIEW (ongoing)

FETAL ALCOHOL SPECTRUM DISORDER ACTION PLAN (February 2016)

NEXT STEPS FOR FRESHWATER MANAGEMENT (MFE) (April 2016)

AMENDMENT OF INCORPORATED SOCIETIES ACT (June 2016)

“There had never before been a wine that crackled and spat its flavours at you from the glass.”

OZ CLARKE (OZCLARKE.COM) ON NZ SAUVIGNON BLANC SPEAKING AT THE 2016 INTERNATIONAL SAUVIGNON BLANC CELEBRATION.

12 SECTION

ResearchBuilding a knowledge platform that protects our members’ ability to sustainably produce exceptional wines and supports innovation.

13

Research

FOCUS ON FIVE KEY AREAS:

• PESTS AND DISEASES

• REDUCING COSTS, INCREASING PROFITABILITY

• SUSTAINABILITY AND ORGANICS

• QUALITY WINE STYLES FOR EXISTING AND DEVELOPING MARKETS

• TECHNOLOGY TRANSFER

KEY INITIATIVES AND RESULTS FROM 2015-2016

Breadth and depth of research: New Zealand Winegrowers’ active research programme to June 2016 comprises of over 20 individual projects covering all five focus areas. A complete list of individual projects can be seen on nzwine.com.

New Zealand Research Institute of Viticulture & Oenology (RIVO): Following the announcement of a new government initiative, New Zealand Winegrowers submitted a proposal to establish a Regional Research Institute (RRI) based in Marlborough to explore factors such as terroir, disease pressure, varietal mix, climate and wine styles.

The proposal is one of three shortlisted for final review by MBIE prior to funding approval.

PESTS AND DISEASES

Virus Elimination Project: Objective – create a toolkit for sustainably managing Grapevine leafroll-associated virus 3 (less than 1% incidence). Project ran from August 2009 to July 2015.

Total funding – $2.3 million (New Zealand Winegrowers levy contribution $1.2 million; co-funded by MPI’s Sustainable Farming Fund $1.1 million).

Results – participating vineyards reduced incidence of leafroll 3 to less than 1% by final year of the project.

Tech transfer – Leafroll 3 virus and how to manage it – 110-page book distributed to all members, final presentations to industry at 2015 Romeo Bragato Conference.

REDUCING COSTS, INCREASING PROFITABILITY

VineFacts: Objective – transform VineFacts newsletter from a regional to a national service published by New Zealand Winegrowers while extending the focus of phenological monitoring from Sauvignon Blanc to other major grape varieties. Project runs to June 2017.

Total funding – $458,840 (NZW levy contribution $90,000, co-funded by MPI’s Sustainable Farming Fund $287,840 and Marlborough Research Centre Trust $81,000).

Results – VineFacts extended to cover 5 regions, subscriptions grew from 327 in 2014/2015 to 544 in 2015/2016, and consistently received highest page views on the members’ website between October 2015 and April 2016.

Tech transfer – seasonal weekly updates on pest and disease risk, best practice guidance and historical data on weather, growth and yield; presentation to industry at 2015 Romeo Bragato Conference.

SUSTAINABILITY / ORGANICS

Vineyard ecosystems: Objective – move toward an integrated understanding of vineyard ecology using an interdisciplinary approach and establish a strong science foundation for our sustainability credentials. Programme runs to December 2021.

Total funding – $7 million (NZW levy contribution $3.5 million, co-funded by MBIE $3.5 million).

Results – establishment of multi-site, multi-region vineyard trials unprecedented in scope in New Zealand with first seasonal monitoring completed in vintage 2016.

Tech transfer – introduced to industry at Grape Days 2015 and the inaugural Organic and Biodynamic Winegrowing Conference 2015.

QUALITY WINESTYLES

Lifestyle Wines: Objective – position New Zealand as Number 1 in the world for high-quality, lower alcohol and lower calorie wines. Programme runs to February 2021.

Total funding – $16.97 million (industry contribution $8.84 million; co-funded by MPI’s Primary Growth partnership (PGP) $8.13 million).

Results – annual category growth in domestic sales has already eclipsed original target of the programme.

Tech transfer – tailored tastings and extension services offered to participating companies; research reports available to all industry members; presentations to industry at Romeo Bragato Conference 2015.

The future of the New Zealand wine industry relies on research leading to technical innovation that will enable grape growers and winemakers to remain internationally competitive as leading producers of premium quality wines.

Left: Dr Sarah Knight, University of Auckland, Researcher for New Zealand Winegrowers ‘Lifestyle Wines’ PGP Programme on lower alcohol wines.

14

Research

RESEARCH PROJECTS FUNDED 2015/2016

The pathway of volatile sulphur compounds in wine yeast – The Bragato Trust and NZW Scholarship. University of Auckland – (Dr B Fedrizzi - student M Kinzurk)

Lifestyle Wines (PGP). University of Auckland and Plant and Food Research (Various) Joint funded by NZW and MPI Primary Growth Partnership (PGP) fund

Literature review of calcium tartrate stability of wines. Lincoln University (B Tian)

Evaluation of the efficacy of a range of commercial bentonites on New Zealand Sauvignon blanc wine. Hills Laboratory (K Creasy)

Bentonite literature review. Lincoln University (B Tian)

High-throughput genotyping of transposon-induced mutations in vines. Lincoln University (C Winefield)

Population genomics of the wine spoilage yeast Brettanomyces bruxellensis. University of Auckland (M Goddard)

PESTS AND DISEASE

Grapevine Trunk Disease; young vine ecology, diagnostics and preventative treatments. New Zealand Viticulture Nursery Association Incorporated (VINA) (N Hoskins)

Leafroll virus and mealybug monitoring in Marlborough, 2015 to 2017. Plant and Food Research (V Bell)

Virus diversity in New Zealand grapevines: sequence, ecology and impact – The Rod Bonfiglioli Scholarship. Plant and Food Research (R MacDiarmid - student A Blouin)

Sustaining vineyards through practical management of grapevine trunk diseases. South Australian Research & Development Institute (M Sosnowski) Supported by MPI Sustainable Farming Fund

Developing Powdery Mildew Best Practise (Year Two). Lewis Wright Valuation & Consultancy Ltd (T Lupton)

Grape botrytis resistance to AP and SDHI fungicides. Plant and Food Research (R Beresford)

Grape powdery mildew monitoring. Plant and Food Research (D Mundy)

Developing Powdery Mildew Best Practise in New Zealand Vineyards. Lewis Wright Valuation & Consultancy Ltd (T Lupton) Supported by MPI Sustainable Farming Fund

SUSTAINABILITY/ORGANICS

Pinot noir wine composition and sensory characteristics as affected by soil type and irrigation in the Waipara region. Lincoln University (G Creasy)

Vineyard Ecosystems Programme. University of Auckland and Plant and Food Research (Various) Jointly funded by NZW and MBIE

Risk Assessment of Nutrient Losses from New Zealand’s Vineyard by Mechanistic Modelling. Plant and Food Research (B Clothier). Sector weather data licence & tools –HortPlus (NZ) Ltd.

Effects of undervine vegetation management on grape quality, wine sensory properties, vine performance, grape composition, weed ecology, and soil chemical and physical properties. Thoughtful Viticulture (M Krasnow)

Cost efficient optimisation of weed management in vineyards. Thoughtful Viticulture (M Krasnow)

COST REDUCTION/INCREASED PROFITABILITY

Grapevine growth stage monitoring for prediction of key phenological events. Plant and Food Research (R Agnew) Supported by MPI Sustainable Farming Fund

RESEARCH PUBLICATIONS AND PRESENTATIONS 2015/2016

RESEARCH REPORTS

Influence of juice pH on thiol production. C Grose et al. (Plant and Food Research)

Nutrient leaching under vineyards. B Clothier and S Green (Plant and Food Research)

Virus diversity in New Zealand grapevines: sequence, ecology and impact. A Blouin (University of Auckland)

The Organic Focus Vineyard Project final report. Organic Winegrowers NZ (OWNZ)

Preliminary investigation of factors responsible for the variability in tartaric acid additions to Pinot Noir R Harrison (Lincoln University)

Virus-free vineyards: replants and beyond, Hawke’s Bay and Marlborough. Final report, August 2015. V Bell et al. (Plant and Food Research)

Developing powdery mildew best practice Gisborne & Blenheim 2014-15 Interim report. T Lupton et al. (Lewis Wright Valuation and Consultancy Limited)

AWRI CMC Benchmarking Trial – Long-term stability. T Tran and K Hirlam (The Australian Wine Research Institute)

Sensory evaluation of Sauvignon blanc wines varying systematically in alcohol, acid and sugar contents. B Pineau et al. (Plant and Food Research)

A review of non-sensory factors influencing wine preference and choice, with special reference to reduced alcohol wines. J Prescott (Plant and Food Research)

Sensory evaluation of 2013 vintage commercial lifestyle and standard New Zealand Sauvignon blanc wines. B Pineau et al. (Plant and Food Research)

15

Research

Harvest Timing Annual Report. D Martin (Plant and Food Research Limited)

Production of lower-ethanol wines though juice manipulations. F Pinu et al. (Plant and Food Research)

Screening of Saccharomyces cerevisiae and non- Saccharomyces yeast candidates for their potential to reduce final alcohol content in Sauvignon blanc wine. S Knight and M Goddard (University of Auckland) Sustainable management of grass grub (Costelytra zealandica White, 1846) in Marlborough vineyards. M Gonzales Chang (Lincoln University)

Annual Lower Alcohol Marketing Report 2015. R Lee (New Zealand Winegrowers)

Influence of Nitrogen and Potassium nutrition on mineral content of petioles and pre-fermentation juice composition. S Neal et al. (Plant and Food Research)

Supplementary report: Influence of nitrogen & potassium deficits in grapevines on Sauvignon blanc finished wine composition. Grose C et al. (Plant and Food Research)

Influence of canopy trimming and harvest time on Sauvignon blanc berry maturation and pre-fermentation juice composition. J Bennett (Plant and Food Research)

Supplementary report: Influence of canopy trimming and harvest time on Sauvignon blanc finished wine composition. C Grose (Plant and Food Research)

ARTICLES:

Grapevine growth stage monitoring for prediction of key phenological events. R Agnew et al. (Plant and Food Research)

Pinot Noir vine performance and grape and wine composition as affected by soil type and irrigation reduction in the Waipara region G Creasy et al. (Lincoln University)

The influence of cane diameter on yield and revenue. M Eltom (New Zealand Winegrowers)

Bridging the quantitative gap in pruning management. A Kirk

Retreat from 15% – reducing wine alcohol levels. New Zealand Winegrowers

Recommendations for managing grapevine leafroll disease in red berry varieties. V Bell and J Walker (Plant & Food Research)

A cost-effective technique to identify leafroll 3 virus in white varieties: the ‘sentinel graft’. C Thompson (Spatial Solutions) G Pietersen (University of Pretoria) and P Holley (Mission Estate Winery)

Developing powdery mildew best practice. T Lupton et al. (Lewis Wright Valuation & Consultancy Ltd)

A review of leafroll virus and mealybug monitoring in Marlborough vineyards. V Bell et al. (Plant & Food Research)

How yeast handles excess sulphur. M Kinzurik et al. (University of Auckland)

The efficacy of sulphur for powdery mildew control. T Lupton et al. (Lewis Wright Valuation & Consultancy Ltd)

The effect of Leafroll 3 genetic variants on grapevines. K Chooi (Plant and Food Research)

The upsides of viruses. A Blouin (Plant and Food Research)

Microbes contribute to a wine’s terroir. S Knight (University of Auckland)

Grape botrytis resistance to AP and SDHI fungicides. R Beresford (Plant and Food Research)

Advancing strategies for grapevine trunk disease management. M Sosnowski and D Mundy (South Australian Research & Development Institute and Plant & Food Research)

BOOKS:

Leafroll 3 Virus and How to Manage It. R Andrew, V Bell, N Hoskins, G Pietersen and C Thompson

FACT SHEETS:

• Managing Powdery Mildew• Vine Removal and Leafroll 3• Vine Establishment for Replants

“The New Zealand wine industry has made an amazing investment into understanding Sauvignon Blanc, and I think you could say that the research has, in effect, created a model for understanding what makes a variety and its wines so distinctive.”

JAMIE GOODE, LONDON-BASED WRITER, BLOGGER (THE WINE ANORAK) AND WINE COLUMNIST (THE SUNDAY EXPRESS).

16 SECTION

Information Resources

17

New Zealand Winegrowers information resources are highly valued by our members.

A core function of New Zealand Winegrowers is the provision of up-to-date information delivered in a timely manner to members, and a wider trade and consumer audience.

In addition to the information and reports downloadable from the members’ website nzwine.com/members

New Zealand Winegrowers also produces a wide range of printed publications, brochures and promotional items, ranging from spray schedules to varietal sales guides.

Information Resources

SURVEYS, PUBLICATIONS AND REPORTS

INDUSTRY SURVEYS AND REPORTS

Monthly New Zealand Wine Export Report. New Zealand Winegrowers

Monthly Domestic Market Reports. New Zealand Winegrowers

New Zealand Wine Industry Key Performance Indicator Snapshots. New Zealand Winegrowers

New Zealand Winegrowers Export Wine Grape Spray Schedule. New Zealand Winegrowers

Vineyard Register Report 2015. New Zealand Winegrowers

Viticulture Monitoring Programme. New Zealand Winegrowers

LABELLING AND INTERNATIONAL MARKET ACCESS

International Labelling Guide (24th Edition) Updated. New Zealand Winegrowers

VINEYARD, WINEMAKING AND CELLAR DOOR PRACTICES

International Winemaking Practices Guide (9th Edition) Oct 2015. New Zealand Winegrowers

MARKETING AND COMMUNICATIONS

‘What’s Fermenting?’ Monthly Newsletter to Members. New Zealand Winegrowers

New Zealand Winegrower Magazine. Published By Rural News Group Ltd under Authority of New Zealand Winegrowers

New Zealand Winegrowers Post Event and Seminar Reports. New Zealand Winegrowers

New Zealand Winegrowers Board Meetings Reports. New Zealand Winegrowers

Annual New Zealand Wine Marketing Programme. New Zealand Winegrowers

Annual New Zealand Wine Events Programme. New Zealand Winegrowers

Euromonitor Country Market Reports for 18 Countries. New Zealand Winegrowers

New Zealand Wine Promotional Material (Varietal and Regional Guides, Maps, Promo Items, etc.). New Zealand Winegrowers (Available For Purchase)

Nielsen Scantrak Data Reports (UK). New Zealand Winegrowers

Sustainability Communications Resources (Videos, Presentations, Consumer Brochure, Media Kit, etc.). New Zealand Winegrowers

Guides to Market (Australia, Canada, USA, Germany, The Netherlands, Sweden, UK). New Zealand Winegrowers

Ireland Market Report. New Zealand Winegrowers

Debra Meiburg’s Guide to the Wine Trade (Beijing, Hong Kong, Shanghai, Singapore, Taiwan). New Zealand Winegrowers

Wine Intelligence Reports for 3 Countries (Within Europe). New Zealand Winegrowers

Pricing Calculators (Australia, Canada, UK, China, Germany, Japan, Sweden, The Netherlands). New Zealand Winegrowers

New Zealand Wine Educational Textbook (in English and Mandarin). New Zealand Winegrowers

New Zealand Wine Overview Presentation. New Zealand Winegrowers

18

SustainabilityCreating and communicating a legacy of sustainability.

19

DEMONSTRATING OUR COMMITMENT TO THE WORLD

A key aspect of the Sustainability Communications Plan in 2016 involved using New Zealand Winegrowers’ International Visitor Programme to drive increased awareness of the industry’s commitment to sustainability.

A high calibre group of international influencers, invited to the International Sauvignon Blanc Celebration (ISBC) in February, were hosted by Sustainable Winegrowing New Zealand (SWNZ) at a post-ISBC event. 25 top international media attended an intimate brunch where programme participants spoke about the sustainable practices they employ in everyday operations, and a selection of sustainable New Zealand wine was available to taste.

Media from the UK and China were brought to New Zealand on additional tailored visits. Touring Sustainable Winegrowing New Zealand, organic, and biodynamic vineyards and wineries, they experienced first-hand the commitment of New Zealand wineries and vineyards to lessen the environmental footprint of their operations.

Sustainability retained a high profile at New Zealand Winegrowers international trade and consumer events, with all international event catalogues featuring two informative pages about sustainable winegrowing in New Zealand.

Further activities to promote Sustainable Winegrowing in New Zealand in global markets have included:

Wine.com promotion

• A promotion in the U.S. with mail-order wine giant Wine.com saw New Zealand Wine sustainability brochures inserted into 20,000 boxes of wine sent to customers.

• New Zealand Winegrowers also ran a three month user-pays promotion with Wine.com. Email and banner advertising from Wine.com linked customers to a page of sustainable New Zealand wine, with a discount code to use when purchasing.

• Wine.com indicated that the campaign increased the volume of sales by 113% and the value by 114% (year-on-year). The number of unique customers who purchased

Sustainability

The sustainability story of New Zealand wine is being shared with wine influencers and consumers around the world.

New Zealand wines during that period grew by 97%.

• The New Zealand Winegrowers ‘Sustainable Because’ video link was added to Wine.com

Over 20 articles were published in the international media as result of visits and events, with press featuring in digital and hardcopy publications in China, the UK, Australia and the U.S.

Sustainable Winegrowing New Zealand Seminar in London

• Lifestyle media were invited to a sustainability seminar event, hosted by well-respected UK wine influencers Monty Waldin and Fiona Beckett. The event aimed to share coverage of New Zealand’s sustainable winegrowing story in a new segment of the press.

The event outlined sustainability initiatives undertaken by SWNZ members, as well as a wine tasting, and wine and food pairing session featuring member wines.

Credit: Robert Holmes Photography (Left: Ata Rangi) (Right: Felton Road Wines).

20

Sustainability

SUSTAINABLE WINEGROWING NEW ZEALAND

Sustainable Winegrowing New Zealand (SWNZ) has been working to operationalise the programme’s strategic vision this year to ensure members will continue to be recognised as world leaders in sustainability industry-wide.

Building on last year’s success a business process review was implemented, which included the recruitment of two new staff members. The Business Manager and Systems Administrator took up their roles in February, and have already made substantial contributions in terms of their skills and experience.

The Continuous Improvement (CI) project is a fundamental part of the strategy to enable SWNZ to retain its world leading position. The project was approved by the New Zealand Winegrowers Board and the design phase is underway.

The year to JYE 2016 saw the largest number of member audits undertaken since the inception of SWNZ. Positively, a record number of members passed their audits first time around, demonstrating that members understand the preparations and processes required to achieve SWNZ certification.

formed to undertake the review and make recommendations. This work began with a comprehensive scorecard evaluation, to reassess programme sustainability criteria, and included confirmation of the first principles that SWNZ operates under. Any changes will be implemented in a staged approach over the next financial year.

BIOSECURITY

New Zealand Winegrowers’ activities will maximise the protection to members afforded by New Zealand’s biosecurity system.

Undertaking biosecurity activities to help ensure the ongoing sustainability of New Zealand’s wine industry has long been part of New Zealand Winegrowers’ mission and purpose.

The appointment of a Biosecurity Manager in December 2015, within New Zealand Winegrowers’ Sustainability portfolio, marked a new era for biosecurity activity coordination within the industry.

New Zealand Winegrowers’ Biosecurity Strategy, approved by the Board in June 2016, sets out the direction and activities that the industry will undertake, and identifies milestones to be achieved by the end of 2017.

The electronic submission of spray diaries has been widely adopted by SWNZ members, who find the new system much faster and more user-friendly. This advent of online submissions has enhanced the ability for SWNZ to gather more comprehensive data, which will improve the quality of reporting that members receive.

The increased level of detailed data collected has enabled ‘in-season’ benchmarking reporting to be delivered. This has provided members with timely information to support the decisions they need to make during the spray season. Individual member reports for Powdery Mildew control were released in late November, December, January and February. Members could download the tailored reports from the website, and a steady increase in reports being accessed and downloaded was noted.

Building on the implementation of WiSE (Wine Industry Sustainability Engine), members can now access and print their own status letters. This has simplified and increased the speed of the process, and has enabled a better flow of information between growers and wineries.

SWNZ is planning a thorough programme review over the coming year. A technical advisory group of experienced practitioners has been

Credit: Milton Vineyards.

21

Sustainability

“New Zealand is the most exciting place in the southern hemisphere for sustainability. The NZ wine industry has all the building blocks in place – knowledge, organisation, communication, enthusiasm, talent and terroir (and brand) andit is fantastic to see wineries and growers collaborating together for the common good.”

MONTY WALDIN CHATEAUMONTY.COM, EUROPE.

The strategy outlines three key objectives:

1. Members’ capability to influence biosecurity decision making across the scope of the system is maximised.

2. Members’ awareness of biosecurity risks and mitigations is maximised.

3. Members’ participation in biosecurity activities is maximised.

In June 2016, New Zealand Winegrowers launched a consultation with members to determine a mandate to sign the Government Industry Agreement (GIA) Deed.

The GIA is a new way of joint decision making and cost sharing between industry and government in an effort to improve New Zealand’s biosecurity system. If a mandate is achieved this work will be the top priority in the coming year.

Additional key biosecurity achievements at JYE 2016 include:

May 2016

• Regular biosecurity columns in New Zealand Winegrower and selected regional industry publications

June 2016

• Release of 2015 Vineyard Register

• Version 3 of the Grafted Grapevine Standard finalised and released

• New Zealand Winegrowers Board decides New Zealand Winegrowers should join the National Biosecurity Capability Network

ORGANICS

New Zealand’s first major Organic and Biodynamic Winegrowing Conference, held in Marlborough in July 2015, was a resounding

success. Over 250 delegates attended three days of sessions on organic viticulture, winemaking and wine business, and organic wine tastings. Due to popular demand, Organic Winegrowers New Zealand plans to make this a biennial event, with planning already underway for the June 2017 conference.

The New Zealand organic wine industry continues to mature, with over 50 wineries now producing certified organic wines. This year Organic Winegrowers New Zealand launched a new website celebrating these organic wines: www.organicwinenz.com.

Extension and research continue to be top priorities to support growers in making the organic transition. Marlborough-based organic vineyard seminars on topics such as nutrient management and compost-making were well attended this year. Organic Winegrowers New Zealand organises these events and educational projects for the wine industry with support and collaboration from New Zealand Winegrowers.

22 SECTION

MarketingDeveloping and supporting the growth of the New Zealand wine brand.

23

Marketing

International Visit Programme 2015 - 2016

INDIVIDUAL WINERY VISITS

604REGIONALOVERVIEW TASTINGS

56

UNIQUE VISITORS PER MONTH

54ONLINE ARTICLESON PLATFORMS TOTALLING

174 MIL

LIO

N

100%SATISFACTION RATE

(POST VISIT SURVEY RESULTS)

ONE MILLIONFOR ONE RADIO & TWO TELEVISION SEGMENTS

OVER

VIEWERS/LISTENERS

58 NEW WINE LISTINGS 20 SEMINARS HOSTED 3 RETAIL/RESTAURANT PROMOTIONS

*International Sauvignon Blanc Celebration – held in Marlborough, New Zealand

18 FROM THE USA 8 FROM CANADA 11 FROM THE UK & IRELAND 10 FROM MAINLAND EUROPE** 24 FROM ASIA** 18 FROM AUSTRALIA

**with support from NZTE

89INTERNATIONAL TRADE & MEDIA

2.3 MILLION CIRCULATION

NZ$681,000ESTIMATED PRINT ADVERTISING VALUE

464,000 TW

EETS

TIMELINES

OVER

MILLIONDURING ISBC2016*, REACHING

“You’ve had your luck, you’ve got your talent… The rest is continued success, enjoy it.’’

MATT KRAMER (WINESPECTATOR.COM) ON NEW ZEALAND SAUVIGNON BLANC SPEAKING AT THE 2016 INTERNATIONAL SAUVIGNON BLANC CELEBRATION.

Credit: Man O’ Vineyards (Left).

64INTERNATIONAL TRADE & MEDIAATTENDED ISBC2016*

24

CHONGQING

HAMBURG

DÜSSELDORF

STOCKHOLM

MALMO

AMSTERDAM

ZÜRICH

SHANGHAI

BEIJING

CHENGDU

HONG KONG

CHONGQING

NANNING

QINGDAO

SHENZHEN

TOKYOSEOUL

SINGAPORE

TAIPEIGUANGZHOU

Mainland Europe MARKETING PROGRAMME

Seminars: 18Trade/media visitors: 10(NZTE supported)

USER PAYS EVENTSEvents: 4Trade/media: 55,400Consumers: 350 Wineries showcasing*: 116 Wines*: 509

UK & Ireland MARKETING PROGRAMME

Seminars: 13Trade/media visitors: 11

USER PAYS EVENTSEvents: 10Trade/media: 700Consumers: 9,400 Wineries showcasing*: 223 Wines*: 1,028

Asia MARKETING PROGRAMME

Seminars: 25 Trade/media visitors: 24(NZTE supported)

USER PAYS EVENTSEvents: 9Trade/media: 19,000Consumers: 400 Wineries showcasing*: 133 Wines*: 927

Marketing

ROTTERDAM

LONDON

DUBLIN

EDINBURGH

CARDIFF

WINCHESTER

MANCHESTERCHESHIRE

25

MELBOURNE

SYDNEY

BRISBANEPERTH

VANCOUVER

TORONTOMONTREAL

CHARLOTTETOWN

MISSISSAUGA

OTTAWA

NEW YORK

SAN FRANCISCO

LOS ANGELES

MENDOCINOCHICAGO

BOSTON

HOUSTON

NEW ORLEANSATLANTASANTA BARBARA

Australia MARKETING PROGRAMME

Seminars: 7Trade/media visitors: 18

USER PAYS EVENTSEvents: 3Trade/media: 85Consumers: 1,700 Wineries showcasing*: 54 Wines*: 72

Canada MARKETING PROGRAMME

Seminars: 10Trade/media visitors: 8

USER PAYS EVENTSEvents: 3Trade/media: 550Consumers: 680 Wineries showcasing*: 58 Wines*: 220

Plus participation in numerous consumer events across Canada.

USA MARKETING PROGRAMME

Seminars: 21Trade/media visitors: 18

USER PAYS EVENTSEvents: 7Trade/media: 530Consumers: 100 Wineries showcasing*: 211 Wines*: 780

Marketing

*Calculated per event, some wineries/wines counted more than once.

SAN FRANCISCO

LOS ANGELES

MENDOCINOCHICAGO

HOUSTON

NEW ORLEANSATLANTA

HONOLULU

MAUI

SANTA BARBARA

26

Marketing

THANKS TO OUR PARTNERS

“... If you like cool-climate wines including Chardonnay, Riesling, Sauvignon Blanc, Cabernet, Merlot, Pinot Noir and Syrah then New Zealand is a vinous treasure trove – and all within reasonable reach.’’

PETER NIXON, BUSINESS MANAGER OF FINE WINE AT DAN MURPHY’S AUSTRALIA, FROM HUFFINGTONPOST.COM.AU.

International Education Programme 2015 - 2016

21 IN THE USA 10 IN CANADA 13 IN THE UK & IRELAND 18 IN MAINLAND EUROPE* 25 IN ASIA* 7 IN AUSTRALIA

FROM OVER 200 INDIVIDUAL WINERIES

75091SEMINARS, MASTERCLASSES, EDUCATION PROGRAMMES & SELF-POURS IN 14 MARKETS

INDIVIDUAL WINES POURED

*with support from NZTE

OVER 99%SATISFACTION RATE

(POST SEMINAR SURVEY RESULTS)

“New Zealand Sauvignon Blanc is such a pleasant creature for the world of wine, it’s refreshing, vibrant and energetic!”

YANG LU (GROUP WINE DIRECTOR, SHANGRI-LA HOTELS AND RESORTS, HONG KONG) AT THE 2016 INTERNATIONAL SAUVIGNON BLANC CELEBRATION.

27

Wine Awards

Bragato Trophy and Champion Single Vineyard WineVilla Maria Single Vineyard Ihumatao Chardonnay 2013Ihumatao Vineyard, AucklandBrett Donaldson

Richard Smart Trophy and Champion Domaine WineVilla Maria Reserve Gimblett Gravels Hawke’s Bay Cabernet Sauvignon Merlot 2013Vidal Vineyard, Hawke’s BayPhil Holden

Friedrich Wohnsiedler Trophy Winner and Champion RieslingThornbury Waipara Riesling 2015Waiata Vineyard, WaiparaRoyce McKean

Brother Cyprian Trophy Winner and Champion Pinot GrisChurch Road Pinot Gris 2015Matapiro Estate, Hawke’s BayMax Bixley

Champion GewürztraminerBlackenbrook Nelson Gewürztraminer 2014Blackenbrook Vineyard, NelsonDaniel Schwarzenbach

Air New Zealand Champion Wine of the ShowChurch Road McDonald Series Syrah 2013

O-I New Zealand Reserve Wine of the ShowLake Chalice The Raptor Chardonnay Marlborough 2014

JF Hillebrand New Zealand Champion Pinot NoirBrightwater Vineyards Pinot Noir Nelson 2014

Label and Litho Ltd Champion Sauvignon BlancDelta Hatters Hill Sauvignon Blanc Marlborough 2014

Rabobank New Zealand Champion ChardonnayLake Chalice The Raptor Chardonnay Marlborough 2014

Bite Magazine Champion Sweet WineSeifried Winemakers Collection Sweet Agnes Riesling Nelson 2015

Coast FM Champion Merlot, Cabernet and BlendsSaint Clair Pioneer Block 17 Plateau Merlot Hawke’s Bay 2014

Fruitfed Supplies Champion SyrahChurch Road McDonald Series Syrah 2013

Guala Closures New Zealand Ltd Champion Pinot GrisYealands Estate Single Vineyard Pinot Gris Awatere Valley, Marlborough 2015

Liquorland Champion Open Red WineSpy Valley Pinot Noir Marlborough 2013

New World Champion Open White WineRapaura Springs Reserve Sauvignon Blanc Marlborough 2015

New Zealand Winegrowers Champion GewürztraminerJohanneshof Cellars Gewürztraminer Marlborough 2014

Plant & Food Research Champion RieslingPeter Yealands Riesling Marlborough 2015

Port Nelson Limited Champion Other White StylesWaimea Family Estate Albariño Nelson 2015

Toast by Liquorland Champion RoséAspiring Flats Rosé Central Otago 2015

WineWorks Limited Champion Sparkling WineNautilus Cuvée Marlborough Brut NV

Rangitikei Chicken Champion Exhibition White or Sparkling WineMission Estate Jewelstone Chardonnay Hawke’s Bay 2014

Nelson Airport Limited & Nelson Tasman Tourism Champion Exhibition Red WineBeach House Syrah Hawke’s Bay 2014

Champion Other White WineSaint Clair Marlborough Premium Grüner Veltliner 2014Hawkesbury Farm Ltd, MarlboroughRobert & Heather Goulter

Champion Sweet WineVilla Maria Reserve Marlborough Noble Semillon Botrytis Selection 2011Hammond Vineyard, MarlboroughRob Hammond

New Zealand Wine Cellars Spence Brothers Trophy Winner and Champion Sauvignon BlancStoneleigh Rapaura Series Sauvignon Blanc 2015Stoneleigh, MarlboroughRod Brailsford

Champion Sparkling WineAkarua Vintage Brut 2010Akarua Wines, Central OtagoMark Naismith

Bill Irwin Trophy Winner and Champion ChardonnayVilla Maria Single Vineyard Ihumatao Chardonnay 2013Ihumatao Vineyard, AucklandBrett Donaldson

Champion RoséWhitehaven Rosé 2015Whitehaven Wine Company Limited, MarlboroughSioban Harnett

Mike Wolter Memorial Trophy Winner and Champion Pinot NoirMaude, Mt Maude Vineyard, Pinot Noir 2014Mount Maude Vineyard, Central OtagoTerry Wilson

Tom McDonald Memorial Trophy Winner and Champion Classical Red WineVilla Maria Reserve Gimblett Gravels Hawke’s Bay Cabernet Sauvignon Merlot 2013Vidal Vineyard, Hawke’s BayPhil Holden

Alan Limmer Trophy Winner and Champion SyrahTalisman Syrah 2013Elms Vineyard, Hawke’s BayPeter Yealands

BRAGATO WINE AWARDS 2015

AIR NEW ZEALAND WINE AWARDS 2015

28 SECTION

Statistics

29

NEW ZEALAND WINE INDUSTRY2016: A SNAPSHOT

Statistics

NORTHLAND 64 HA (0.2%)

AUCKLAND 350 HA (1.0%)

HAWKE’S BAY 4,744 HA (13.1%)

WAIRARAPA 1,002 HA (2.8%)

MARLBOROUGH 24,020 HA (66.4%)

WAIPARA VALLEY 1,238 HA (3.4%)

CANTERBURY 198 HA (0.5%)

OTAGO 1,943 HA (5.4%)

WAIKATO 16 HA (0.1%)

NELSON 1,169 HA (3.2%)

GISBORNE 1,448 HA (4.0%)

TOP PRODUCING VARIETIES

RED VARIETIES WHITE VARIETIES

PINOT NOIR 70%

SYRAH 6%

MERLOT 16%

MALBEC 2%

CABERNET SAUVIGNON 4%

OTHER 1%CABERNET FRANC 1%

SAUVIGNON BLANC

74%

PINOT GRIS 9%

CHARDONNAY 11%

REISLING 3%OTHER 2%GEWÜRZTRAMINER 1%

36,192 HA

21,016 HA

2040

17.4 HA

2016 PRODUCING AREA BASED ON PROJECTIONS SUBMITTED IN 2015 VINEYARD REGISTER

7,960 HA28,231 HA

RED

WHITE

Credit: Pegasus Bay Wine (Left)

30

Statistics

SUMMARY OF NEW ZEALAND WINE (2007- 2016)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Wineries 543 585 643 672 697 703 698 699 673 675

Number of Growers 1003 1060 1117 N/A 791 824 833 858 762 747

Producing Area (hectares)

25,355 29,310 31,964 33,200 34,500 35,337 35,182 35,510 35,859 36,192

Average Yield (tonnes per hectare)

8.1 9.7 8.9 8.0 9.5 7.6 9.8 12.6 9.1 12.0

Average Grape Price (NZ$ per tonne)

1,981 2,161 1,629 1,293 1,239 1,359 1,688 1,666 1,732 N/A

Tonnes Crushed 205,000 285,000 285,000 266,000 328,000 269,000 345,000 445,000 326,000 436,000

Total Production (millions of litres)

147.6 205.2 205.2 190.0 235.0 194.0 248.4 320.4 234.7 313.9

Domestic Sales of NZ Wine (millions of litres NZ Wine)

51.0 46.5 59.3 56.7 66.3 64.6 51.7 49.9 61.5 56.3*

Consumption per Capita NZ wine (litres NZ wine)

12.2 11.1 13.9 13.0 15.2 14.7 11.6 11.2 13.6 12.2*

Total domestic sales of all wine (millions of litres)

91.8 87.4 92.7 92.1 93.9 91.9 92.5 90.6 96.0 93.0*

Consumption per capita all wines (litres)

21.7 20.8 21.5 21.1 21.3 20.9 20.8 20.3 21.2 20.2*

Export Volume (millions of litres)

76.0 88.6 112.6 142.0 154.7 178.9 169.6 186.9 209.4 213.4

Export Value (millions of NZ$ FOB)

698.3 797.8 991.7 1,041 1,094 1,177 1,210 1,328 1,424 1,570

* Estimate only

31

Statistics

NEW ZEALAND WINEGROWERS MEMBERSHIP (2007-2016)

WINERIES BY CATEGORY 1 2007 1 2008 2 2009 2010 2011 2012 2013 2014 2015 2016

Category 1 483 523 577 605 697 622 617 611 587 581

Category 2 51 56 60 61 60 71 71 65 69 78

Category 3 9 6 6 6 6 10 10 23 17 16

TOTAL 543 585 643 672 697 703 698 699 673 675

1 Up to 2007: Category I — annual sales not exceeding 200,000 litres Category 2 — annual sales between 200,000 and 2,000,000 litres Category 3 — annual sales exceeding 2,000,000 litres

2 From 2008: Category I — annual sales not exceeding 200,000 litres Category 2 — annual sales between 200,000 and 4,000,000 litres Category 3 — annual sales exceeding 4,000,000 litres

WINERIES BY REGION 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Northland 11 14 14 14 15 16 13 15 14 15

Auckland 92 103 109 111 117 118 116 114 111 110

Waikato/Bay of Plenty 17 19 20 21 17 15 13 13 12 9

Gisborne 19 22 24 26 24 24 21 19 18 18

Hawke's Bay 67 71 79 85 91 84 77 76 75 76

Wairarapa 57 58 61 63 64 64 65 67 67 68

Nelson 28 32 34 36 38 36 38 37 35 36

Marlborough 104 109 130 137 142 148 152 151 140 141

Canterbury/Waipara 52 54 62 61 66 68 70 66 67 31

Waipara 33

Central Otago 89 95 103 111 115 120 124 132 127 133

Other Areas 7 8 7 7 9 10 9 9 7 5

TOTAL 543 585 643 672 698 703 698 699 673 675

Note: Waipara data was collected separately from Canterbury in 2016

GRAPE GROWERS BY REGION AUCK WAIK GISB HB WAIR NELS MARL WAIP CANT OTAGO TOTAL

2007 25 4 100 186 25 58 530 12 4 63 1,007

2008 38 13 89 172 44 57 524 20 41 75 1,073

2009 44 11 87 171 48 62 568 22 38 77 1,128

2010 17 2 57 122 24 39 544 11 2 35 853

2011 9 2 54 103 24 38 551 6 2 35 824

2012 11 2 53 104 30 40 548 12 2 33 835

2013 11 0 48 102 17 52 581 14 1 32 858

2014 10 0 41 74 14 38 535 14 4 32 762

2015 5 0 41 71 15 36 534 10 4 31 747

32

NEW ZEALAND PRODUCING VINEYARD AREA (2007 - 2016)

BY GRAPE VARIETY (HA) 2007 2008 2009 2010 2011 2012 2013 2014 2015 ^2016

Sauvignon Blanc 10,491 13,988 16,205 16,910 16,758 20,270 20,015 20,029 20,266 21,016

Pinot Noir 4,441 4,650 4,777 4,773 4,803 5,388 5,488 5,509 5,564 5,573

Chardonnay 3,918 3,881 3,911 3,865 3,823 3,229 3,202 3,346 3,361 3,211

Merlot 1,447 1,363 1,369 1,371 1,386 1,234 1,255 1,290 1,320 1,271

Riesling 868 917 979 986 993 770 787 784 777 767

Pinot Gris 1,146 1,383 1,501 1,763 1,725 2,485 2,403 2,451 2,456 2,455

Cabernet Sauvignon 524 516 517 519 519 305 301 289 300 283

Gewürztraminer 293 316 311 314 313 347 334 376 367 258

Syrah 257 278 293 297 299 387 408 433 435 443

Semillon 230 199 201 185 182 77 76 82 80 48

Cabernet Franc 168 166 163 161 161 119 119 113 112 108

Malbec 160 156 156 157 157 140 142 127 134 131

Muscat Varieties 139 135 135 125 125 48 49 37 37 36

Müller Thurgau 106 79 79 78 78 2 3 2 2 2

Pinotage 88 74 74 74 74 50 38 46 45 34

Chenin Blanc 50 50 50 47 47 21 26 24 24 24

Reichensteiner 66 72 72 72 72 14 14 14 14 14

Other & Unknown 963 1,087 1,171 1,731 2,085 449 525 559 564 399

TOTAL* 25,355 29,310 31,964 33,428 33,660 35,335 35,182 35,511 35,859 36,192

BY REGION (HA) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Auckland/Northland 533 534 543 550 556 411 414 392 398 350

Northland 64

Waikato/Bay of Plenty 145 147 147 147 147 24 24 25 24 16

Gisborne 2,133 2,142 2,149 2,083 2,072 1,635 1,599 1,915 1,914 1,448

Hawke's Bay 4,665 4,899 4,921 4,947 4,993 5,030 4,846 4,774 4,773 4,744

Wairarapa 827 855 859 871 882 979 991 995 1,006 1,002

Marlborough 13,187 15,915 18,401 19,295 19,024 22,956 22,819 22,907 23,203 24,020

Nelson 782 794 813 842 861 1,011 1,095 1,123 1,139 1,169

Canterbury/Waipara 1,034 1,732 1,763 1,779 1,809 1,371 1,435 1,488 1,451 1,436

Central Otago 1,415 1,552 1,532 1,540 1,540 1,917 1,959 1,932 1,951 1,943

Other & Unknown 634 770 836 1,374 1,516 0 0 0 0 0

TOTAL* 25,355 29,310 31,964 33,428 33,400 35,334 35,182 35,511 35,859 36,192

Note: Northland data was collected separately from Auckland in 2016 ^Forward Estimate from 2015 Vineyard Register Report * Total corrected to account for assumed Vineyard Survey underestimation Source: New Zealand Winegrowers' Vineyard Surveys / Vineyard Register

Statistics

33

NEW ZEALAND VINTAGES (2007-2016)

Statistics

BY GRAPE VARIETY (TONNES) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sauvignon Blanc 102,426 169,613 177,647 174,247 224,412 181,121 228,781 310,240 216,078 303,711

Pinot Noir 20,699 32,878 27,547 23,655 31,156 23,285 31,775 36,499 25,763 35,661

Chardonnay 38,792 33,346 34,393 26,322 25,580 22,855 27,184 28,985 27,015 29,162

Pinot Gris 6,053 12,417 11,410 12,810 17,787 15,347 22,042 23,880 19,707 24,892

Merlot 11,714 10,166 11,723 8,885 9,092 8,046 10,076 10,756 9,397 9,321

Riesling 6,017 8,547 6,316 5,416 6,118 4,989 5,932 6,013 4,535 5,937

Gewürztraminer 2,052 2,101 2,123 1,556 1,836 1,249 1,788 2,264 1,761 2,221

Syrah 1,514 1,452 1,500 2,112 1,741 1,431 2,240 2,178 1,497 1,756

Cabernet Sauvignon 2,462 2,270 2,304 2,203 1,667 1,120 1,465 1,742 1,376 1,537

Other White Vinifera 2,064 1,245 848 408 698 424 850 1,381 1,045 726

Viognier 543 573 784 854 781 839 519 1,148 720 771

Malbec 1,086 1,036 972 761 764 694 825 1,135 586 483

Cabernet Franc 819 688 735 552 488 414 421 582 485 616

Other Red Vinifera 227 291 262 602 556 307 262 537 457 677

Semillon 2,929 2,561 1,667 1,362 689 596 721 507 425 466

Muscat Varieties 2,017 1,697 1,505 793 550 578 634 455 301 329

Pinotage 890 719 694 467 476 292 400 425 494 374

Grüner Veltliner 341 228 276

Arneis 163 220 336 268 257

Reichensteiner 512 681 0 410 158 194 183 263 249 0

Chenin Blanc 212 151 93 79 78 80 94 26 0 0

Müller Thurgau 1,437 847 506 81 77 2 2 3 0 0

All Hybrids 8 69 17 30 42 1 19 2 0 1

SURVEY TOTAL 202,823 282,352 282,447 263,445 324,591 263,944 336,337 429,669 312,387 420,356

INDUSTRY TOTAL * 205,000 285,000 285,000 266,000 328,000 269,000 345,000 445,000 326,000 436,000

BY REGION (TONNES) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Northland 203 204 148 178 111 92 130 210 203 92

Auckland 1,241 1,604 1,615 1,325 1,464 1,220 789 1,392 824 1,267

Waikato/Bay of Plenty 212 192 202 118 51 7 12 63 ND 18

Gisborne 26,034 23,911 23,093 18,316 14,450 15,590 15,567 16,192 17,280 15,944

Hawke's Bay 41,963 34,284 40,985 38,860 35,533 32,793 38,829 44,502 36,057 42,958

Wairarapa 1,949 4,105 4,421 3,942 3,598 4,271 4,798 5,743 3,559 5,049

Marlborough 120,888 194,639 192,128 182,658 244,893 188,649 251,630 329,572 233,182 323,290

Nelson 5,190 7,002 7,740 5,963 7,854 6,129 7,777 10,494 6,777 10,028

Canterbury/Waipara 1,699 6,881 5,476 5,870 9,485 7,079 8,348 10,962 5,395 12,170

Central Otago 3,434 9,495 6,218 6,196 7,104 8,115 8,407 10,540 8,951 9,177

Other 421 19 49 0 0 0 159 363

SURVEY TOTAL 202,823 282,352 282,447 263,445 324,591 263,944 336,337 429,669 312,387 420,356

INDUSTRY TOTAL * 205,000 285,000 285,000 266,000 328,000 269,000 345,000 445,000 326,000 436,000

* The data shown are the results from the New Zealand Winegrowers’ Annual Vintage Surveys, whereas ‘Industry Total’ represents the tonnes crushed by the total wine industry. The difference between ‘Total’ and ‘Industry Total’ is data from wine companies who did not respond to the Vintage Survey.

ND: No data availableSource: New Zealand Winegrowers' Annual Vintage Surveys

34

NEW ZEALAND WINE EXPORTS BY MARKET (2007 - 2016)

Statistics

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

USA L NZ$

18.712 175.515

19.492 159.787

22.181 223.666

26.360 211.613

32.223 231.922

39.481 251.329

43.362 283.651

48.914 328.049

53.858 372.241

61.636 460.600

United Kingdom

L NZ$

27.573 227.418

29.646 240.730

36.212 267.913

47.995 298.656

52.930 293.631

57.657 284.021

47.622 278.415

51.868 318.611

59.745 353.931

58.936 381.809

Australia L NZ$

18.632 179.933

24.633 246.696

37.343 323.312

45.937 327.098

45.263 337.740

53.474 380.473

49.764 373.048

53.709 380.851

57.528 362.188

52.960 361.677

Canada L NZ$

3.182 33.870

5.219 47.060

5.055 49.498

7.143 59.141

5.705 59.180

6.509 70.906

7.272 78.177

7.703 78.941

9.583 94.906

10.612 107.372

Netherlands L NZ$

1.559 13.318

1.363 12.808

2.354 20.831

2.746 21.576

4.060 27.369

4.586 26.744

4.128 26.743

5.022 33.383

6.744 41.479

6.801 44.480

China L NZ$

0.204 2.124

0.238 2.436

0.544 6.130

1.425 17.165

1.489 16.872

2.200 25.234

2.219 26.868

1.810 24.803

1.858 27.069

2.028 27.593

Singapore L NZ$

0.474 5.996

0.756 9.507

1.000 13.370

1.031 12.464

1.164 13.984

1.149 14.515

1.285 16.148

1.572 21.326

1.580 20.691

1.567 20.570

Ireland L NZ$

0.853 8.920

1.496 15.012

1.498 16.501

1.816 15.784

1.844 15.643

2.158 16.326

2.052 14.420

2.212 16.353

2.512 17.472

2.888 21.309

Hong Kong L NZ$

0.444 4.528

0.610 6.171

0.624 8.870

0.947 11.951

1.307 17.629

1.524 18.393

1.570 20.474

1.348 16.853

1.399 17.680

1.283 17.333

Sweden L NZ$

0.516 5.033

0.545 5.445

0.604 6.105

0.942 8.747

1.367 11.365

1.459 11.554

1.563 13.090

1.562 13.020

1.630 13.163

1.843 15.276

Germany L NZ$

0.382 3.699

0.462 5.342

0.530 5.680

0.586 4.954

0.748 5.302

1.429 7.639

1.532 9.532

2.682 14.459

2.073 10.018

2.667 14.501

Japan L NZ$

0.484 6.665

0.545 7.299

0.504 7.837

0.674 9.026

0.897 11.017

1.119 12.891

1.152 13.646

1.196 13.908

1.193 13.773

1.150 13.796

Denmark L NZ$

0.654 6.029

0.654 5.836

1.019 6.510

1.013 5.946

0.976 6.646

1.004 6.566

0.790 5.388

0.864 6.652

1.191 8.042

0.942 7.182

Norway L NZ$

0.037 0.338

0.033 0.337

0.069 0.621

0.068 0.623

0.169 1.529

0.205 1.483

0.224 1.591

0.334 2.742

0.270 2.045

0.284 2.511

Finland L NZ$

0.134 1.428

0.121 1.202

0.122 1.502

0.164 1.528

0.276 2.532

0.219 2.134

0.185 1.572

0.259 2.283

0.310 2.455

0.258 2.388

Others L NZ$

2.184 23.488

2.822 32.129

2.987 33.374

2.010 23.358

4.243 41.614

4.706 46.638

4.942 47.758

5.834 56.124

7.947 67.307

7.516 70.938

TOTAL L

NZ$

76.024

698.303

88.636

797.797

112.647

991.721

142.032

1,040.529

154.661

1,093.973

178.880

1,176.847

169.669

1,210.525

186.889

1,328.358

209.419

1,424.461

213.371

1,569.515

Note: All figures are in millions Source: Statistics New Zealand

35

Statistics

WHITE 750ML

WHITE OTHER

WHITE TOTAL

RED 750ML

RED OTHER

RED TOTAL SPARKLING FORTIFIED TOTAL

U.S.A

L $

$/L

37.496 326.500

$8.71

22.165107.204

$4.84

59.661 433.704

$7.27

1.916 26.287 $13.72

0.270.209 $13.64

1.943 26.496 $12.06

0.032 4.02

$12.56

61.636 460.602

$7.47

United Kingdom

L $

$/L

31.411 241.978

$7.70

22.99392.665 $4.03

54.404 334.643

$6.15

3.309 37.594 $11.36

0.935 6.039 $6.46

4.244 43.633 $10.28

0.288 3.533

$12.27

58.936 381.809

$6.48

Australia

L $

$/L

31.687 240.562

$7.59

16.140 63.489

$3.93

47.827 304.051

$6.36

3.81046.111 $12.10

7.34 4.336 $5.91

45.44 50.447

$11.10

0.589 7.109

$12.07

0.0010.071

$71.00

52.960 361.677

$6.83

Canada

L $

$/L

9.25894.877 $10.25

0.4901.583

$3.23

9.74896.460 $9.90

0.80710.225 $12.67

0.807 10.225 $12.67

0.057 0.687

$12.05

10.612 107.372 $10.12

Netherlands

L $

$/L

4.798 33.744

$7.03

1.612 6.934 $4.30

6.410 40.678

$6.35

0.3583.614

$10.09

0.024 0.108 $4.50

0.382 3.722 $9.74

0.009 0.08

$8.89

6.80144.480 $6.54

China

L $

$/L

0.777 9.391

$12.09

0.014 0.146

$10.43

0.791 9.536

$12.06

1.201 7.303

$14.41

0.022 0.445

$20.23

1.223 17.748 $14.51

0.009 0.087 $9.67

0.005 0.221

$44.20

2.028 27.593 $13.61

Singapore

L $

$/L

1.080 14.243 $13.19

0.1 0.338 $3.38

1.180 14.581 $12.36

0.380 6.080

$16.00

0.001 0.013

$13.00

0.381 6.093

$16.00

0.005 0.075

$15.00

1.567 20.749 $13.26

Ireland

L $

$/L

2.744 19.909

$7.26

2.744 19.909

$7.26

0.129 1.250 $9.69

0.129 1.250 $9.69

0.015 0.15

$10.00

2.888 21.309

$7.38

Hong Kong

L $

$/L

0.942 10.525 $11.17

0.002 0.018 $9.00

0.944 10.543 $11.17

0.326 6.525

$20.02

0.005 0.134

$26.80

0.331 6.659

$20.12

0.008 0.131

$16.38

1.283 17.333 $13.51

Sweden

L $

$/L

1.504 11.576 $7.70

1.50411.576 $7.70

0.261 2.909 $11.15

0.028 0.237 $8.46

0.289 3.146

$10.89

0.050 0.530

$10.60

1.843 15.276 $8.29

Germany

L $

$/L

0.630 5.077 $8.06

1.752 7.430 $4.24

2.382 12.507 $5.25

0.044 0.709 $16.11

0.240 1.284 $5.35

0.284 1.993 $7.02

2.666 14.501 $5.44

Japan

L $

$/L

0.719 7.356

$10.23

0.100 0.463 $4.63

0.819 7.819

$9.55

0.295

5.400 $18.31

0.003 0.202 $67.33

0.289 3.146

$18.80

0.033 0.375 $11.36

1.150 13.796 $12.00

Denmark

L $

$/L

0.475 3.681 $7.75

0.336 1.466 $4.36

0.811 5.147

$6.35

0.131 2.035

$15.53

0.131 2.035

$15.53

0.942 7.182

$7.62

Norway

L $

$/L

0.211 1.747

$8.28

0.211 1.747

$8.28

0.061 0.633

$10.38

0.012 0.131

$10.92

0.073 0.764

$10.47

0.284 2.511

$5.44

Finland

L $

$/L

0.134 1.313

$9.80

0.1341.313

$9.80

0.028 0.379

$13.54

0.028 0.379

$13.54

0.096 0.695 $7.24

0.258 2.387 $9.25

Others

L $

$/L

4.391 45.660 $10.40

1.844 8.436 $4.57

6.235 54.096

$8.68

0.912 13.167

$14.44

0.228 1.816 $7.96

1.140 14.983 $13.14

0.141 1.841

$13.06

7.516 70.938 $9.44

TOTAL

L $

$/L

128.257 1,068.138

$8.33

67.548 290.196

$4.30

195.805 1,358.334

$6.94

13.968 180.221 $12.90

2.258 14.954 $6.62

16.226 195.175 $12.03

1.332 15.696 $11.78

0.006 0.310

$51.67

213.369 1,569.515

$7.36

Source: Statistics New Zealand

NEW ZEALAND WINE EXPORTS BY MARKET (YEAR END JUNE 2016)

36

NEW ZEALAND WINE EXPORTS BY VARIETY (2008 - 2016)

Statistics

2008 2009 2010 2011 2012 2013 2014 2015 2016

Sauvignon Blanc 66.849 91.527 115.810 131.653 150.883 144.551 160.580 177.776 181.944

Pinot Noir 5.703 6.183 8.207 9.498 10.560 10.170 10.705 10.886 12.171

Pinot Gris 1.256 2.036 2.769 2.648 4.091 3.612 4.688 4.479 4.713

Chardonnay 5.541 4.789 5.234 4.888 5.510 4.914 4.627 5.277 6.063

Merlot 1.876 1.931 2.618 2.347 2.379 2.059 1.765 1.711 1.906

Sparkling 2.064 1.976 1.737 1.271 1.392 1.451 1.700 1.441 1.412

Cabernet or Merlot Blend 1.072 1.067 1.022 1.094 1.254 1.424 1.030 0.754 0.836

Riesling 1.003 0.776 0.971 1.062 1.057 0.924 0.996 0.113 0.150

Rosé 0.963 0.704 0.559 0.622 0.586 0.490 0.712 0.835 0.942

Syrah 0.137 0.155 0.227 0.307 0.309 0.270 0.242 0.954 1.065

Gewürztraminer 0.131 0.146 0.162 0.306 0.202 0.192 0.212 0.017 0.026

Other White Varietals 0.039 0.081 0.069 0.076 0.118 0.103 0.127 0.282 0.341

Sparking Sauvignon 0.000 0.000 0.000 0.000 0.217 0.360 0.107 0.175 0.183

Other Red Varietals 0.089 0.049 0.060 0.087 0.095 0.085 0.068 0.041 0.048

Generic White 0.700 1.117 0.991 0.532 0.719 0.266 0.043 0.384 0.380

Chardonnay Blend 0.159 0.208 0.426 0.415 0.149 0.997 0.047 0.005 0.132

Sweet Wines 0.043 0.034 0.027 0.039 0.055 0.038 0.037 0.085 0.134

Sauvignon Blend 0.024 0.128 0.154 0.077 0.140 0.422 0.034 0.014 0.013

Chenin Blanc 0.008 0.009 0.010 0.017 0.013 0.016 0.017 0.041 0.028

Semillon 0.013 0.003 0.001 0.008 0.002 0.003 0.008 0.009 TBC

Cabernet Sauvignon 0.015 0.014 0.043 0.020 0.030 0.046 0.006 0.012 0.013

Fortified 0.026 0.030 0.011 0.001 0.001 0.001 0.004 0.002 0.011

Generic Red 0.082 0.035 0.068 0.022 0.021 0.043 0.002 0.170 0.087

TOTAL* 87.793 113.000 141.139 156.990 179.783 172.437 187.757 205.460 212.594

* Data will differ slightly in total volume to those obtained through Statistics New ZealandNote: All figures are in millions of litres Source: Wine Export Certification Service

37

WINE IMPORTS INTO NEW ZEALAND (2007 - 2016)

Statistics

BY COUNTRY OF ORIGIN 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Australia 36.497 22.412 20.019 26.502 22.512 21.897 32.564 31.658 25.668 28.715

Chile 0.953 2.593 0.858 0.102 0.062 0.530 1.935 2.456 1.373 1.086

France 1.157 1.990 1.872 0.984 1.095 1.449 2.023 2.153 1.905 1.842

South Africa 0.768 10.414 7.594 5.860 1.710 1.694 2.579 1.732 1.023 1.308

Spain 0.494 0.486 0.493 0.207 0.230 0.311 0.429 0.518 2.344 2.869

Argentina 0.371 0.362 0.380 0.053 0.051 0.082 0.112 0.161 0.641 0.578

Italy 1.850 2.312 1.523 1.067 0.995 0.858 0.865 0.94 0.229 0.212

Others 0.288 0.381 0.605 0.283 0.631 0.511 0.382 1.106 1.307 0.603

TOTAL 42.378 40.949 33.344 35.059 27.287 27.331 40.892 40.724 34.49 37.212

BY PRODUCT TYPE 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

White 21.251 17.014 11.312 13.773 8.005 7.555 16.76 17.28 11.217 14.088

Red 18.241 20.763 18.633 18.475 16.012 17.011 20.958 20.541 19.83 19.07

Sparkling 2.309 2.444 2.762 2.376 2.760 2.008 2.962 1.849 2.268 2.632

Champagne 0.438 0.609 0.559 0.381 0.447 0.679 0.883 0.896 1.049 1.364

Fortified 0.138 0.119 0.077 0.054 0.063 0.078 0.0211 0.158 0.126 0.058

TOTAL 42.378 40.949 33.344 35.059 27.287 27.331 40.892 40.724 34.49 37.212

Note: All figures are in millions of litres

COUNTRY OF ORIGIN WHITE RED SPARKLING FORTIFIED TOTAL

Australia L $

11,962,216 18,306,915

14,909,077 61,440,511

1,820,178 8,419,143

23,929 846,478

28,715,400 89,013,047

South Africa L $

411,206 866,156

630,971 1,995,882

43,337 221,507

290 11,637

1,085,804 3,095,182

Chile L $

1,111,957 1,778,170

728,732 1,630,046

941 17,262

1,841,630 3,425,478

Italy L $

117,465 992,418

674,823 4,478,824

514,301 3,871,937

1,645 72,153

1,308,234 9,415,332

France L $

196,761 2,864,702

1,305,669 11,213,494

1,364,498 49,972,696

1,599 122,482

2,868,527 64,173,374

Spain L $

26,155 241,540

430,629 2,596,588

115,674 722,498

5,775 374,612

578,233 3,935,238

Argentina L $

6,798 44,584

204,557 1,325,876

302 3,128

211,657 1,373,588

Others L $

255,115 2,449,042

185,506 2,057,911

137,289 1,014,305

24,768 1,680,534

602,678 7,201,792

TOTAL L $

14,087,673 27,543,527

19,069,964 86,739,132

3,996,520 64,242,476

58,006 3,107,896

37,212,163 181,633,031

Note: All figures are in millions Source: Statistics New Zealand

WINE IMPORTS INTO NEW ZEALAND (YEAR END JUNE 2016)

38

WINERIES NZW WINZ

CATEGORY ONE

Steve Green, Carrick Chair Chair

Paul Dunleavy, Te Motu Vineyard Member Member

Christine Kernohan, Gladstone Vineyard Alternate Alternate

CATEGORY TWO

Peter Holley, Mission Estate Winery Member Member

Blair Gibbs, Spy Valley Member Member until July 15

Clive Jones, Nautilus Estate Member Member from Dec 15

Mike Brown, Kono Beverages — Tohu Winery Member Member until Dec 15

CATEGORY THREE

Patrick Materman, Pernod Ricard New Zealand Member Member

Fabian Yukich, Villa Maria Estate Member Member

Sam Glaetzer, Constellation Brands New Zealand Member Member

Jim Delegat, Delegat’s Wine Estate New Zealand Alternate Alternate

GRAPEGROWERS NZW NZGGC

John Clarke Deputy Chair President

Gwyn Williams Member Vice-President

Dominic Pecchenino Member Member

Richard Rose Member Member

Chris Howell Member Member

Doug Bell Alternate Member

Alan Knight Alternate Member

Xan Harding Alternate Member

James Dicey Alternate Member

INDUSTRY BOARDS

DIRECTORY

39

PRESIDENTS OF THE NEW ZEALAND GRAPE GROWERS COUNCIL (NZGGC) 1979-1984 Bill Walsh 1984-1994 Ross Goodin 1994-1999 Kevyn Moore QSM 1999-2003 William Crosse 2003-2005 John Webber 2005-2006 Ian Miller 2006-2012 Stuart Smith 2012-Present John Clarke

ROLL OF HONORARY LIFE MEMBERS

NEW ZEALAND WINEGROWERS2005 Margaret Harvey MW

WINE INSTITUTE OF NEW ZEALAND1997 Bryan W Mogridge ONZM, BSc1998 James S Fraser B.Food Tech, Dip.Dy1999 Stanley L Harris QSM

ROLL OF LIFE MEMBERS NEW ZEALAND GRAPE GROWERS COUNCIL 1995 Ross Goodin ONZM, QM 2000 Kevyn Moore QSM 2004 Jim Hamilton 2005 Willie Crosse

CHAIRS OF THE BOARD OF DIRECTORS

NEW ZEALAND WINEGROWERS (NZW)2002-2004 Peter V Hubscher MNZM2004-2006 Brian J Vieceli2006-2012 Stuart Smith2012-Present Steve Green

WINE INSTITUTE OF NEW ZEALAND (WINZ)1975-1979 Alexander A Corban OBE, BSc, RDOen1979-1980 George T Mazuran OBE, JP1980-1982 Thomas B McDonald OBE, JP1982-1985 Mate G Brajkovich OBE1985-1991 Bryan W Mogridge ONZM, BSc1991-1996 John Buck OBE1996-1999 Ross R Spence QSO1999-2004 Peter V Hubscher MNZM2004-2006 Brian J Vieceli2006-2008 Sir George Fistonich2008-Present Steve Green

ROLL OF FELLOWS

NEW ZEALAND WINEGROWERS 2006 Ross R Spence QSO2006 Reid Fletcher2008 Tim Finn2008 John Webber2012 Robin Dicey2013 Stuart Smith2013 Sir George Fistonich 2014 Hermann Seifried 2014 Agnes Seifried 2014 Richard Riddiford 2015 Kate Radburnd 2015 Mike Trought 2015 Alan Brady

WINE INSTITUTE OF NEW ZEALAND1982 George T Mazuran OBE, JP Bogoslav (Bob) Sokolich Alexander A Corban OBE, BSc, RD Oen Thomas B McDonald OBE, JP1987 Mate G Brajkovich OBE1988 Peter D Fredatovich MBE, JP1990 Mate I Selak1991 Joseph A Corban MBE1992 Frank I Yukich 1993 John (Jock) C Graham MNZM1994 Robert O Knappstein RD Oen1995 Peter J Babich MBE1996 Terence J Dunleavy MBE, JP1997 Donald M Maisey1998 Anthony F Soljan1999 John Buck OBE2003 Kerry Hitchcock

40

REGIONAL WINEGROWING ASSOCIATIONS

HAWKE’S BAY WINEGROWERS ASSN INCMelisa Beight+64 6 876 3418melisa@wine.co.nz www.winehawkesbay.co.nz

MARLBOROUGH WINEGROWERS ASSN INC & WINE MARLBOROUGH LTDMarcus Pickens+64 3 577 9299marcus@winemarlborough.co.nzwww.winemarlborough.co.nz

NELSON WINEGROWERS ASSN INC & WINE NELSONMeg Matthews (Marketing) 021 747 417 marketing@winenelson.co.nz Jane Docherty (Admin) 021 779 897 info@winenelson.co.nz www.winenelson.co.nz

WAIRARAPA WINEGROWERS ASSN INCTania DeJonge+64 27 6411517info@wairarapawinegrowers.co.nz

CENTRAL OTAGO WINEGROWERS ASSNGlenys Coughlan (General Manager)+64 27 555 1051glenys@cowa.org.nzNatalie Wilson (Executive Officer)+64 21 104 2513info@cowa.org.nzwww.cowa.org.nz

GISBORNE WINE GROWERS SOCIETY INCAlan Knight+64 6 862 7507al@vigneto.co.nz www.gisbornewine.co.nz

WAIPARA VALLEY NORTH CANTERBURY WINEGROWERSGill Walsh +64 3 312 5553 admin@waiparawine.co.nz www.waiparavalleynz.com

NORTHERN WINEGROWERS & GRAPEVINE IMPROVEMENT ASSN INCStephen Nobilo+64 9 411 9982nwgvig@xtra.co.nz or stephen@waimariewines.co.nz

WINES OF CANTERBURY INCGill Walsh+ 64 3 3125553gill.walsh@winesofcanterbury.co.nzwww.winesofcanterbury.co.nz

SUB-REGION WINEGROWING ASSOCIATIONS

WAIRARAPA WINES INC Liz Pollock +64 27 477 4717 info@wairarapawines.co.nz www.wairarapawines.co.nz

WINES FROM MARTINBOROUGH Sue McLeary +64 6 306 9183 info@winesfrommartinborough.com www.winesfrommartinborough.com

WAIHEKE ISLAND WINEGROWERS ASSOCIATION Craig Biggs +64 9 372 6846 craig.biggs@temotu.co.nz

WEST AUCKLAND WINE GROWERS Michael Brajkovich +64 9 412 8415 michael@kumeuriver.co.nz

MATAKANA WINEGROWERS INC Gary Heaven +64 9 425 0306 info@matakanawine.co.nz

NORTHLAND WINEGROWERS ASSOCIATION Glenda Neil +64 27 487 8750 admin@northlandwinegrowers.co.nz

WAITAKI VALLEY WINEGROWERS ASSN Jim Jerram +64 3 436 0545 jim@ostlerwine.co.nz

CENTRAL OTAGE PINOT NOIR LTD Vikki Kricher +64 21 056 7336 vikki.kircher@centralotagopinot.co.nz www.centralotagopinot.co.nz

NEW ZEALAND SOCIETY OF VITICULTURE & OENOLOGY

c/o New Zealand Winegrowers

PRESIDENTGlen Creasy

INDUSTRY ORGANISATIONS

WINE INSTITUTE OF NEW ZEALAND INC.

c/o New Zealand Winegrowers

EXECUTIVE OFFICERJeffrey Clarke

AUDITORKPMGPO Box 1584, Auckland

NEW ZEALAND GRAPEGROWERS COUNCIL INCORPORATED

c/o New Zealand Winegrowers

EXECUTIVE OFFICERJeffrey Clarke

AUDITORKPMG PO Box 1584, Auckland

41SECTION

NEW ZEALAND WINEGROWERS

PO Box 90276, Victoria Street West, Auckland 1142Level 3, 52 Symonds Street, Auckland Central, Auckland 1010Ph +64 (09) 303 3527, Fax +64 (09) 302 2969info@nzwine.com, www.nzwine.com

CHIEF EXECUTIVE OFFICERPhilip Gregan MA (Hons)

PH +64 9 306 5555philip@nzwine.com

OFFICE MANAGERLorraine Rudelj PH +64 9 303 3527lorraine@nzwine.com

FINANCIAL ACCOUNTANTSuzanne HillPH +64 9 306 5554suzanne@nzwine.com

COMMUNICATIONS MANAGERCandice SearsPH +64 9 306 5553candice.sears@nzwine.com

MARKETING

GLOBAL MARKETING DIRECTORChris Yorke BSc (Comb Hons)

PH +64 9 306 5551chris@nzwine.com

EUROPEChris StroudPH +44 207 973 8079cstroud@nzwine.com

USADavid StradaPH +1 415 567 5511dstrada@earthlink.net

Ranit Librach PH +1 212 254 2729ranit.nzwine@gmail.com

CANADARobert Ketchin PH +1 705 444 0195rketchin@ketchin.com

ASIANatalie PottsPH +852 2511 3883natalie@nzwine.com

AUSTRALIACatherine WansinkPH +61 39614 7577catherine.wansink@nzwine.com

MANAGER GLOBAL EVENTSAngela WillisPH +64 9 306 5642angela@nzwine.com

RESEARCH

GENERAL MANAGER RESEARCH Dr Simon Hooker BSc, MSc, PhD, Grad Dip Bus Admin

PH +64 9 306 5556simon@nzwine.com

SUSTAINABLE WINEGROWING NZ

BUSINESS MANAGERJustine TatePH +64 3 577 2379justine.tate@swnz.org.nz

SUSTAINABILITY BIOSECURITY MANAGEREdwin MasseyPH +64 3 65 4957edwin.massey@nzwine.com

KEY CONTACTS

ADVOCACY

GENERAL MANAGER ADVOCACY + GENERAL COUNSELJeffrey Clarke BA, LLB PH +64 9 916 1561 jeffrey@nzwine.com WINE EXPORT CERTIFICATION MANAGER Sue ChurchPH +64 9 306 5552sue@nzwine.com

nzwine.com