Philip Gregan: New Zealand Winegrowers Chief Executive on the declining wine prices

The international fine wine market appears to be anything but fine as prices are dropping significantly. 

It is suspected that demand from China has dried up, which is hurting the market. 

Are fine wine New Zealand producers feeling the pinch too? 

New Zealand Winegrowers Chief Executive Philip Gregan joins the show. 

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Yes, and the international fine wine market appears to be
anything but find The price of Burgundy dropped fourteen percent
in the year to November, Bordeaux dropped eleven percent, and
vintage Champagne nearly ten percent. It's thought that demand from
China has dried up, which is hurting the market. And
New Zealand Wine Growers Chief Executive Philip Greegan joins me, Philip,

(00:37):
good morning, good morning, well close to home. Then I
find wine produces in New Zealand feeling the pinch.

Speaker 3 (00:45):
Oh. Look, I think, like the rest of the economy,
toppy in wine producers in New Zealand. It hasn't been
the easiest year in twenty twenty four. But you know,
our producers producing, you know, the very very best of
our wine, have developed a good reputation, a good name,

(01:06):
and I think about.

Speaker 2 (01:07):
Doing whys China becomes uninterested.

Speaker 3 (01:14):
Look, there's I've been a whole lot of things go
on in the Chinese wine market. A few years ago,
the wine market there was absolutely booming, from say, from
top to bottom. There was then a big austerity campaign
launched by the government which saw an end to big

(01:35):
banquets and gifting and all those sorts of things. And
then we've had COVID obviously, So it's been a period
of a rapid change in the in the in the
Chinese wine market, and the number speaks to themselves at

(01:56):
the moment.

Speaker 2 (01:56):
How has New Zealand is how as New Zealanders are
we consuming wine? Are we still going for the posh
stuff or do we like the cheap plank? Sorry, it.

Speaker 3 (02:10):
Ends very much on the individual circumstances of people, obviously,
but in New Zealand wine consumptions down quite quite markedly.
It's down over twenty percent in in the last ten
years and that's got to do with lifestyle changes and
a whole lot of other things as well. But we're
not certainly not drinking as much wine as we used to.

Speaker 2 (02:32):
So you've had a couple of years of declining prices.
Are you thinking things might turn around in twenty twenty five?

Speaker 3 (02:39):
What's the saying survived to twenty five? It's been a
tough year. But I think for the New Zealand wine
industry and general, as I said before, we've got a
very good reputation. We've built that up over a wrong time,
and that's a great foundation for the industry to build

(03:00):
into the future. So I think we're looking to twenty
five with a lot of optimism, and we've got a
vantage coming up and good weather continues, we'll be producing
some fine wines out of this next harvest.

Speaker 2 (03:15):
What actually will it take to turn things around?

Speaker 3 (03:20):
Look, I think one of the things that the industry
has been facing is there's a lot of supply built
up and supply chains during during COVID. We need to
see the end of that. I think just general turnaround
in the economy. People feeling better about things, and that's

(03:45):
that's always good good for the wine industry.

Speaker 2 (03:48):
When did New Zealanders drink the most wine? As we
sort of is it summer or is it when winter?
When when I sort of snuggle up with a nice
glass of red or.

Speaker 3 (03:55):
Something generally over summer because it coincides with the Christmas
and New Year's season, so there is a a waiting
towards the Christmas New Year January December through to March.
It tends to be the peak wine season and you
see it lots of barbecues, people outside lots of relaxing

(04:18):
with friends and family.

Speaker 2 (04:20):
What's your preferred tiple over the summer?

Speaker 3 (04:23):
Oh, it depends on the occasion.

Speaker 2 (04:25):
Are you going to have to mention every grape? Aren't
you just to be even handed?

Speaker 3 (04:30):
Great? But obviously you know at Christmas good sparkling you
seal on sparkling wine. I do do enjoy the wine
that's put us on the world stage, which is serving
on Bronc over summer. It's great to drink.

Speaker 2 (04:44):
Yeah, I can't argue with that. Hey, Philip, thanks so
much for your time. That's Philip Gregan.

Speaker 1 (04:48):
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