Government backs premium US wine strategy

A cross-government strategy to support and promote the New Zealand wine industry, including a $1.2 million push into the United States market, was announced this evening at Parliament by Economic Development Minister Gerry Brownlee.

"Wine is one of New Zealand's fastest growing export sectors - only a decade ago the trade worth little more than $100 million a year.  Today wine exports are worth more than $1 billion to the economy."

Mr Brownlee said the government was committed to working with the industry to help achieve its goal of $2 billion in exports by 2020.  He said the industry's future lay in maintaining its premium branding across the globe.

"The industry must increase demand by developing new markets while strengthening its position in existing markets.  The US initiative is the first in a package of measures to help the industry build markets and maintain its premium branding.

"In support of that effort I am today announcing $1.2 million backing over the next two years for an initiative aimed at pushing high-end wine into the lucrative but relatively undeveloped United States market.

"The United States is already a significant market for New Zealand wine, but this initiative, which brings together 58 carefully selected wines from 21 of the country's most notable wineries, is an exciting first step in developing a super-premium New Zealand wine category in this important market."

Mr Brownlee said the industry's global strategy was about building and sustaining strong relationships with distributors and key influencers and brand position through proactive and smart marketing. 

"The premium wine producers preparing to push deeper into the United States are superb practitioners of this art, which is why the government has the confidence to back them." 

Mr Brownlee said the government's support for the wine industry was a true cross-government affair to provide support through better understanding of regulatory and technical access to markets.

Other government initiatives announced this evening include:

• Northern Europe market development initiatives, to fast-track building a strong New Zealand wine presence in selected markets including Germany, Scandinavia, Belgium, the Netherlands and Luxembourg. Initially this will involve in depth analysis of target markets and the ability of New Zealand wineries to supply. Further government support will depend on the outcomes of this initial work.


• Development of a New Zealand wine strategy in the emerging China market, with consideration of what further government support might be needed longer-term.


• Leveraging off Rugby World Cup promotional activity in Europe, Australia and New York to support New Zealand wine, including financial backing for wine promotion related to the Rugby World Cup.


• $200,000 from the Major Events Development fund to support Christchurch City Council's hosting of the Great Wine Capitals Network annual meeting and conference in November 2010.

Mr Brownlee said initiatives such as the Northern Europe plans were medium term, while others, such as developing the China market, were longer term.

"The government will continue to work with the wine industry to ramp up support as needed to ensure the industry succeeds.  The aim is to grow demand by government and industry coordinating efforts across all aspects of promotion, marketing and distribution."