Charlotte Read: Winegrowers NZ General Manager of Brand on the challenges facing the wine industry

New Zealand’s wine industry is facing some troubles.  

The industry is facing hundreds of millions of dollars in extra tariffs, Donald Trump imposing a 15% rate on New Zealand while many competing markets will continue to face only 10%. 

Along with this, there is an oversupply issue and declining global demand, with nearly 100,000 tonnes of fruit remaining unharvested this season alone. 

Winegrowers NZ’s Charlotte Read told Mike Hosking that despite the challenging times, there is a very strong demand for New Zealand wines, which will continue to be sought after around the world. 

She says they have no long term reason for concern. 

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Episode Transcript

Speaker 1 (00:00):
As I asked you yesterday, do we have brewing no
pun intended issues in our famed wine sector. Tariffs obviously
are trouble for the States specifically, but we also have
a lot of produce being left unharvested on the vines.
Nearly one hundred thousand tons has been left this last season. Now,
Charlotte readers the gm AT brand at Winegroves, New Zealand And,
is will this Charlotte, very good morning to you.

Speaker 2 (00:22):
Good morning mate.

Speaker 1 (00:23):
One hundred thousand tons? Is that a lot? And is
it a worry.

Speaker 2 (00:29):
Look over producing more than demand in our industry? This
is just something that primary sectors often face now, I
think in the in the current climate where we have
very strong demands for our premium wines, This, you know,

(00:51):
is a is something that's happened now in our industry
and that the strong reputation of New Zealand wine will
continue to have our wine sought after around the world.

Speaker 1 (01:03):
As a contractor or a purchaser of land or a grower,
do I see THEE hundred thousand times and go I'm
not going to buy that block of land or I'm
not going to expand. Is that sort of thing happening.
Are we sort of maxed out on land and production
and growing grapes?

Speaker 2 (01:17):
I think undoubtedly for our sector at the moment it
is a very challenging time for industry. There are many
headwinds where've got uncertain times, whether it be the global economy,
our own economy here in New Zealand facing recession week
wine market for the tariffs of last week haven't helped

(01:40):
increased excise there. There are many headwinds, but uncertainty is
something that our industry has faced for many years. We
have been very lucky in the New Zealand wine industry
that we have really enjoyed twenty five years of continuous
growth pretty much. And yes, this it is a concern

(02:05):
at the moment for our industry, but our growers there
and wineries that they're really smart operators and they will
make decisions within their own businesses to help their supply
match international demand.

Speaker 1 (02:21):
How much of what's left on the vine is serving
on blanc and how much of it's in Marlborough.

Speaker 2 (02:27):
Yes, well, you would have seen various reports in the
recent week where figures were revealed about about the Marbile region.
You've got to remember in our industry that ninety percent
of our wine is exported and ninety percent of that
comes from Marlboro, and ninety percent of that is saving

(02:48):
Yon blanc. So yes, it is. It is largely a
savigon blanc issue that we are talking about here. But
what we are so encouraged by is that New Zealand
is making wine styles that the world wants and our
brand health tracking research shows that more refreshing wine styles,

(03:09):
lighter wine styles, and white wines are being increasingly turned to,
and savignon blanc from New Zealand really has been such
a success story around the world, so we have no
long term reason for concern.

Speaker 1 (03:24):
Sure the fall and demand globally around alcohol, the issue
around alcohol is, in your view, is that permanent?

Speaker 2 (03:33):
Well, I think we are definitely seeing the alcohol market
and the wine market evolving, and we are working hard
to keep connected with our consumers. That's what's led to
our success as being really closely connected to what international
consumers love to drink around the world. And so as

(03:55):
emerging emerging generations come through with their different habits, whether
they be digitally led in how they like to learn
about things, we've just got to keep ahead of the
game on how we connect with our consumers and ensure
that we are remaining relevant and we fight for occasion.

(04:18):
We're trying to fit people's lifestyles and you're seeing some
great innovation in our sector, whether it be lighter wines
or packaging formats that have evolved to more convenience in
the like.

Speaker 1 (04:29):
Okay, so generally you're bullish or not.

Speaker 2 (04:36):
We undoubtedly as an industry are facing a challenging time
in our industry. But where I sit in brand, where
we push our international reputation with the support of our
seven hundred wineries around the world, we have such a
strong position in the world. You know, in the UK

(04:59):
our old export market, one in every two bottles of
savignon blanc is from New Zealand. And in the US
and premium price points five that of the top ten
selling white wines are from New Zealand. So we whilst's
the concerning time at home and it's not easy for

(05:19):
our growers, we do need to take heart that there
are very very strong reputational strengths that we have. We're
about to actually have an industry wine business forum called
Embracing Growth and Sustaining the Future, and it's embracing change
rather and embracing changes. What it's all about, having the

(05:40):
ability to adapt to our changing world and continue to
make wines that the world wants.

Speaker 1 (05:45):
Good stuff. Sharp appreciate your time. Nice to talk to you,
Charlotte Read, who's the general manager at brand at Wine
grows New Zealand.

Speaker 2 (05:52):
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