Not enough wine to go around: Wine companies to prioritise customers

Morgane Solignac | Stuff Apr 29 2021

A dearth of grapes this vintage has forced a family-owned winery in Marlborough to turn down a new customer in Europe. But it’s not just the smaller operations struggling. One of the biggest players in the global drinks industry, Pernod Ricard, is also reporting it is unable to meet the global demand for Marlborough wine this year, in particular sauvignon blanc, due to the region’s low yield.

One estimate puts the take of sauvignon blanc grapes down 30 per cent against long-term averages, due to early frosts and cool weather during the flowering season.

A Pernod Ricard Winemakers spokesperson said the company was in talks with its partners to determine how it should prioritise supply for customers “in the context of the strong ongoing global demand for the sauvignon blanc category”.

The volume shortage meant the family-owned Marisco Vineyards had to walk away from a deal in Germany to make sure it could supply its long-time customer base.

Marisco Vineyards general manager sales and marketing Siobhan Wilson said the winery, which employs about 80 people, didn’t want to sacrifice one market for another.

“The key focus for us this year is to look after the partnerships we’ve developed over the years … We have a long-term contract with annual supply conversations starting around January-February, which is tricky as vintage happens [March-April].

“So I have to take what our customers would like versus what we have got coming in.”

Marisco started blending this week, so it would have a full picture of what was available, and when, in the next couple of weeks, Wilson said.

New Zealand Winegrowers chief executive Philip Gregan said Aotearoa hit a record-breaking $2 billion in New Zealand wine exports at the end of last year.
“Exports to our key international markets have increased beyond expectations over the past 18 months, and we saw an increase of 19 per cent for the first four months of the new export year (July to October 2020), at the same time in 2019.

“We are already seeing supply and demand tension as a result, and we expect that many wineries will face tough decisions on who they can supply in their key markets over the next year,” Gregan said.

And while increased demand and reduced supply might push up prices, Wilson said they had to be careful.

“We are not just going to put the price up because it is in short supply, because next year what happens if we have a bumper vintage, and we’ve got plenty of wine, do you then discount it?

“What is important when you are selling wine, and when you are building a brand, is a consistency of quality and price.

“So, we all have a responsibility to ensure that we sell at a good price and the right price,” Wilson said.

Ongoing labour shortages, due to the closure of New Zealand’s borders and the restricted number of RSE workers, had also piled pressure onto wine companies.

Wilson said they had challenges coming at them every day and a short vintage was just one of them.

“We have got massive challenges in Marlborough getting wine shipped offshore because of the shortages of boats coming in, the restriction of space … and it is all the result of the pandemic.

“At Marisco Vineyards we are really resilient, my team have been working for me for a long time, and they have experienced many challenges over the year, so we just deal with it.

“The key thing is the communication with our customers and being really honest with them about the situation,” she said.

Forgotten corners: Boosting biodiversity on Marlborough vineyards

Winepress | Sophie Preece – 12/8/19

Pernod Ricard's Kaituna wetlands project has seen large numbers of natives planted | Derek Flynn
Pernod Ricard’s Kaituna wetlands project has seen large numbers of natives planted | Derek Flynn

Thousands of “forgotten corners” in Marlborough vineyards could be planted with native species, enriching the region’s biodiversity. That might require a change in mindset for growers who like their rows straight and their fence lines sprayed, says Marlborough District Council environmental scientist Matt Oliver.

But it would help mitigate the monoculture of Marlborough, he adds. “We have imposed our will on nature across the Wairau and Awatere Plains. The very least you can do is give up a bit of control in these little pockets of land.”

He describes forgotten corners as “the annoying space that every vineyard manager has in their vineyard, whether it’s a funny shaped piece that is not big enough for vines or a few sheep or a drain that you have to spray twice a year”.

Planting those areas in native grasses, flax and kowhai would cost a few hundred dollars. They will require a bit of weeding initially but this could be done in the time operators would have otherwise have spent backing the tractor in to spray, he says. “In a few years’ time, you might have tui in the kowhai and giant kokopu in the drain. You’ll find you’ve saved a bit of money and done something good. It might even make a good photo for your marketing.” Wine Marlborough advocacy manager Vance Kerslake says the organisation fully supports industry front-footing biodiversity projects.

“We sponsor the Cawthron Marlborough Environment Awards and love to see and promote the work being done by growers and wine companies to mitigate monoculture,” he says. “Industry members are increasingly seeing how important that is for the environment, primarily, but also how it adds richness to the story of individual companies, as well as the reputation of brand Marlborough.” MDC biodiversity coordinator Mike Aviss, who runs the Significant Natural Areas project, as well as Tui to Town, says the plains have lost 99 per cent of their natural cover since Europeans settled here. “All the drainable wetlands have virtually been drained, along with the
kahikatea and swamp forest. This was once a huge wetland system.”

With every change in land use there’s loss of native land cover, he says. That is certainly true of vineyard conversions, which typically run in straight lines, putting creeks and trees at risk. “It really depends on how focused the developer is on wanting to get the most out of the land,” says Mike. “Whether they are driven by converting every inch to grapes, or see themselves as part of the landscape, and can see the value in keeping areas of natural habitat.”

Some companies already have biodiversity targets that include small pockets of new plantings or large expanses of restored natives, including Pernod Ricard’s Kaituna wetland, Wither Hills‘ nationally significant Rarangi wetland, and Spy Valley‘s Hillocks Rd restoration. “There are some pretty neat forgotten corners out there,” says Matt. “But there are so many more to develop.” The Forgotten Corners is not a council policy, but Council can assist with funding through the Tui to Town project and other funding to assist landowners. In the meantime, Matt and Mike hope vineyard owners will spring the $2.50 for a native grass or $3.50 for a kowhai and do their bit for biodiversity.

NZ wine to be showcased in new podcast series

thedrinksbusiness.com | 18 February 2019

Industry body New Zealand Winegrowers has teamed up with podcast creator Lawrence Francis of Interpreting Wine in order to provide in-depth coverage of its annual tasting.

The podcast series will take the form of seven episodes, featuring interviews with four winemakers and three regional masterclasses.

The first episode will be unveiled today (18 February) with all seven due to be released by 24 February.

The podcasts are available free of charge on major platforms including Spotify and iTunes. They will also be made available on the New Zealand Winegrowers website at a later date.

The episode schedule is as follows: episode one, Jamie Marfell, group winemaker at Pernod Ricard; episode two, Warren Gibson, winemaker at Trinity Hill; episode three, Sam Bennett, winemaker at Te Pa Wines; episode four, Kevin Judd, winemaker and owner at Greywacke; episode five, Rebecca Gibb MW, a masterclass on Central Otago, episode six, Ronan Sayburn MS and Kevin Judd, a masterclass on Marlborough; and episode seven, Rebecca Gibb MW, a masterclass on Hawke’s Bay

Europe marketing manager at New Zealand Winegrowers, Chris Stroud, commented: “We were delighted when Lawrence approached us to cover our annual tasting on his podcast. This series allows people who were not able to attend our tasting the opportunity to hear directly from the winemakers and learn from the regional masterclasses. We hope it brings a flavour of New Zealand to them.”

Lawrence Francis, content director at Interpreting Wine added: “Podcasting is a versatile and effective tool for wine communication. I know farmers who listen to the show on their tractors and others who play it while driving or working off their wine calories in the gym. In September 2018 Ofcom found that half of UK podcast listeners are under 35 so I think it’s an excellent way to connect with young wine drinkers.”

New Zealand Winegrowers’ annual London tasting took place on 16 January this year. You can listen to the podcast series here.

Montana Wines dumps Kiwi grapes in favour of Australian

Belinda Feek | NZ Herald reporter based in Hamilton | belinda.feek@nzherald.co.nz | @ought2bee

A top Kiwi wine brand has ditched its award-winning Marlborough grapes for some of its wines – in favour of those from Australia.

A Kiwi wine reviewer has slammed one of the country’s best-known wine labels for its decision to start using Australian grapes in some of its wines.

Montana has ditched its award-winning Marlborough grapes for those from across the ditch to keep it cheap for consumers.

And many consumers looking for a well-priced New Zealand wine will not be aware of the change unless they check the back of the bottle.

At this stage, the move is just for its Montana Classic 2017 sauvignon blanc and Montana Classic 2016 pinot noir. Wine aficionado Bob Campbell wrote about his disgust in the move in his latest column online.

He dubs the move legal but “deceptive” and says the Montana brand is “as Kiwi as Buzzy Bee, Jaffas and Fred Dagg”.

Montana was bought by alcohol distribution giant Pernod Ricard in 2010 and eventually renamed Brancott Estate to avoid confusion in the United States.

An image of a Montana Sauvignon Blanc from 2010 proudly boasts that it’s from Marlborough. The company is using grapes from Australia for its 2017 wine.

Montana’s classic range has been selling for $9.99 recently, a price Campbell believed now justly depicts the quality of the wine.

Campbell said that although he is yet to taste the drop, there was a reason for the price difference.

“Australian sauvignon blanc is, by and large, inferior.”

Campbell told the Herald Montana wine was close to his heart as he was working for it in 1973 when it planted its first grapes.

“I began my wine industry career in 1973 as an accountant with Montana so I guess it’s kind of personal. I might be overstating the case but it’s just that, to me, Montana and Marlborough are inextricably linked.”

The sauvignon blanc was due to be released this month, he said.

He described Marlborough sauvignon grapes typically producing “punchy, aromatic, zesty, tropical” flavours, as opposed to Australian grapes having “much less” character.

He’d been in touch with Pernod Ricard, which had confirmed the company had been trialling Australian grapes for two of its wines last year. It was also keen to keep delivering good wines in the under-$10 category.

Pernod Ricard New Zealand managing director Kevin Mapson said increased demand and the rising costs of New Zealand grapes meant it was increasingly challenging to produce New Zealand-sourced wine that could be sold for under $10.

“By sourcing grapes from Australia, we can continue to make wines of the quality that Montana consumers expect at the same price point. This sourcing transition only applies to the Montana Classics and Montana Affinity ranges. All the other Montana ranges will continue to be made from New Zealand grapes,” Mapson said.

He said the company had worked hard to minimise the change in style but said it was true Australian sauvignon blanc was less “aromatic” than that from Marlborough so would seem more “subdued” but disagreed the grapes were inferior to New Zealand’s.

Mapson said the company had adhered to all the legal requirements for labelling so consumers were aware of the country of origin and were communicating the change to trade customers.

Over time most of the Montana Classic and Affinity wines would be made from Australian grapes, he said.

But he maintained the company was committed to its Kiwi heritage and had recently invested in the Montana Reserve range and that, along with its Montana Festival Block and Winemaker Series, would all continue to be sourced from New Zealand grapes.

Marcus Pickens, the general manager of Wine Marlborough, said they were aware of the move and it would be discussed at their next board meeting.

He said there were rules in New Zealand around the labelling of wine, which Montana would be aware of, as there was evidence it caused confusion for customers.

NZ Wine Growers Association declined to comment.

When Montana wines made with Australian grapes will hit the shelves:

  • Montana Classic pinot noir 2016 – December 2017
  • Montana Classic sauvignon blanc 2017 – January 2018
  • Montana Classic chardonnay 2017 – August 2018
  • Montana Classic merlot cabernet – August 2018
  • Montana Affinity sauvignon blanc 2018 – November 2018
  • Montana Affinity pinot gris 2018 – November 2018