The glamour New Zealand wine region of Central Otago, well known amongst international wine enthusiasts for the quality of its Pinot Noir wines, is up to its knees in surplus wine, mostly its much-vaunted Pinot Noir. More than 300,000 litres from the 2009 vintage remains unsold, more Pinot than from any other region.
Currently stocks of unsold New Zealand Pinot Noir from 2009 listed with brokers total more than one million litres, of which 52% are from Central Otago. The problem is that the region produced just 22.6% of all NZ Pinot Noir in that vintage.
The plight of Central Otago is symptomatic of the whole industry, which is facing a crisis of supply as international pressures and poor marketing force down the price of New Zealand wine.
While a report from Auckland University has prompted some comment from the region that Central Otago could one day match the Napa Valley as a significant wine region, this is unlikely to be the case in the short term. Prof Warren Moran’s report showing that there remain numerous areas of Central Otago suitable for successful winegrowing has attracted comment from local media that Central Otago could be larger than Marlborough.
This is unlikely, according to Nick Mills of the Central Otago Winegrowers Association. He said that growth for the region was likely to be slower than in the recent past, as circumstances that drove the recent boom have changed.
“After some years of strong growth our industry is going through a correction, with some seeking to sell, many others seeing the opportunity to buy and expand. This is normal given the economic conditions of the last two years and the strong growth phase we have had,” he told foodnews.
“The wine industry is in good heart. Central Otago’s flagship wine, Pinot Noir, maintains an enviable reputation here and in export markets. Central Otago vineyards will continue to build on that reputation and continue to increase their sales and exports,” he added.
He does acknowledge that current conditions for local winegrowers and wineries are difficult, but that the low cropping 2010 vintage should help restore some balance to the situation.
“There is some concern that one or two vineyards left grapes unpicked this year and some 2009 stock remains on the bulk market. This reflects management of stock levels to meet their particular market conditions,” Mills said.
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