New Zealand Wines Needs to Add Another Gear – for Ireland

Recently we were told that, ‘New Zealand’s wine industry is gearing up for its largest ever presence at the Prowein International Wine & Spirits Trade Show, following a record $1.54 billion in exports in 2015, up 14% on 2014’.

As I’ve blogged before, don’t read headlines to be impressed. Read them to be informed! Up 14% on what? 1.54 billion sounds impressive but with a conversion rate of 0.6 to the Euro the final result shows that its big but not THAT big!!

New Zealand by necessity needs to express itself well. It is far away from its export markets – especially the UK – and within a world scale of things it has a small, but important, wine trade. Without Sauvignon Blanc (66% of its 2105 harvest) its trade does not exist in any meaningful way and so gearing up ‘for its largest ever presence’ means a lot more Sauvignon Blanc than before. Nothing wrong with any of this.

Very often I can buy an excellent bottle of Lone Kauri New Zealand Riesling from SuperValu at €9.00 a bottle. I rate it very highly. Earlier this year the cover of Wine+.ie featured The Family of Twelve from New Zealand. In that we emphasised diversity, energy, innovation and quality available from New Zealand’s Vineyards. Chardonnay, Merlot, Pinot Noir, Riesling, Sauvignon Blanc are all excellent from New Zealand.

old060

Where are we going with this blog?

Right now NZ wines occupy a small single digit market share in Ireland. You might think that this is pretty good given the size of the Irish market, its distance from NZ and how important other markets must be to the New Zealand Wine Growers. Well, that’s where we are going here! It could, and with a degree of ease, be a whole lot better!

Currently Ireland ranks an impressive 9th in terms of value of wine exports from New Zealand sent to any country. Mind, you this only equates to 1.24% of the overall $1.54billion and falls seriously behind the likes of the US, Australia and the UK who account for 77% between them! Put it another way positions 7 to11 inclusive in the table account between them for only 5% of the export value from New Zealand. Ireland is in good company – Japan, Sweden, Hong Kong, Singapore. (Source table: New Zealand Winegrowers Annual Report 2015)

(As we have mentioned before) if we add in exports we  import from Germany and the UK via Tesco, Lidl, Aldi and others, we begin to eat into that 5% as a very valuable overseas export market for New Zealand.

Why does our market share hover in the low digits when we are clearly capable and willing to spend well for wines from a country as far away as possible as it is to get to from here? Surely we can do better.

old062

It all comes down to ‘The Message’. New Zealand needs a Champion. It needs to have, at a minimum, 1.25% of its marketing budget assigned to Ireland and it needs to meet with our trade in a way that more shelf space is allocated across our country to show off the diversity on offer from New Zealand.

The Message, via the New Zealand WineGrowers Annual Report, tells us that it’s Board has, ‘signed off on an important 10-year major events programme which will bring key global influencers to New Zealand as we showcase our wines and our unique story.’ All good. Potential champions will travel to NZ and bring The Message back with them.

To date that has meant one person from Ireland per year. That’s not enough and we should say so!

New Zealand tells us that its Marketing Programme lumps Ireland in with the UK. The result in terms of market visits to NZ are clear to see:

2015    Ireland             1          (John Wilson: Irish Times)

Japan 1             Singapore 1            Netherlands 2

Norway 2          Hong Kong 2            Germany 3

Canada 4               Sweden 4                     Taiwan 5

UK 6                         Australia 10                       US 12

China  27

The two biggest losers, or at least those missing opportunity, are the UK and Ireland. The UK has the office. It can look after itself. Ireland is the mug hoping for a few crumbs.

Two marketing strategies in the Irish wine market have been proven time and again. The first is to have a local champion. The second is DO NOT RUN US FROM AN OFFICE IN LONDON. We will be side lined and we will Miss the Message.

The numbers here speak for themselves. The wine is available. The Quality is available. The Diversity is available. The Value is available. The Interest is available.  So, come on New Zealand. Take another look at your own numbers and help us to spread the good word. You can take anywhere from 5% to 8% of the Irish market and hold onto it.

Don’t tell us that you’re gearing up for Prowein. Tell us that you’re gearing up for Ireland!

old061

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