This small country is winning in the export market
IN THE HEADLINES
Treasury Wine Estates will close its commercial Victoria Winery, Karadoc, triggered by rising costs and a decline in commercial wine consumption. Production for leading brands like 19 Crimes, Lindeman’s, Wolf Blass, and Yellowglen, will be carried out at a partner winery.
According to the Cult Wines Global Index, Bordeaux underperformed in June, representing a “broader market correction”, caused by the stronger UK pound relative to the US dollar, coupled with pricing fluctuations felt throughout the 2022 EP campaign.
Idris Elba’s King’s Cross’s wine bar, Porte Noire, received a “damning” one-star score for hygiene after a spot inspection from Camden Council.
Diageo-baked paper bottle-maker, Pulpex, has secured funding to deliver a commercially scalable production line. By 2028, the company aims to manufacture 2bn bottles to meet growing consumer demand for sustainable packaging.
MARKET COMPARISON
New Zealand makes huge gains in global exports
After the disastrous 2021 vintage in New Zealand, questions arose over the sustainability of New Zealand's hyper-dependency on Sauvignon Blanc. The wines of NZ represent only 1% of global production and despite a small 2023 vintage and "surging production costs", exports rose by 25% to $2.4 billion in the 12 months to May 2023, meaning the country is set to become the 6th biggest exporter by value. Breaking the US market (the holy grail) has been the key to New Zealand’s success. Read more here.
Neighbouring Australia has not been so lucky. A “perfect storm” driven by a myriad of factors has led to a dire situation with hundreds of wineries up for sale. The country lost its largest foreign market, China, when they were slammed with tariffs of “up to 212%”, just two years ago, leaving producers with a “400 million-litre wine glut”, grappling to find replacement markets. Worse still, wines to the UK, another critical market, may be hit by the impending 10% increase in excise duties for higher alcohol wines. Add to this the continued inflationary pressures and the situation seems pretty hopeless.
RETAIL
E-commerce platform with cool vibes
An article by Emily Wilson for Vogue, promotes a new online wine service in the US called The Waves, which has come up with a fun and innovative formula for selling wine.
Focusing on natural wines, the company stands apart from competitors by offering a shopping experience that’s “simultaneously educational and fun”.
Wines are organised by lifestyle, rather than grape variety or region, and customers are not expected to have any prior level of wine knowledge. Instead, upon arriving on to the site, “wavemakers” will be prompted with questions to address particular needs and occasions like a “poolside party”. Wines are filtered by “vibe”, such as “show p in style”, “unplug & chill”, “dance-floor drinker,” or “foolproof with food”.
The idea is separate wine from “pretentious traditional wine speak”.
QUOTED
Sarah Heller MW for Club Enologique on the virtues of Cabernet Franc
"Cabernet Franc is not simply Cabernet Sauvignon with less tannin and some greenish perfume; it is a wine of a completely different shape – an even, oblong frame of sinewy, crisp-edged tannins with airy spaciousness through the middle. Cabernet Sauvignon is instead typically broad on both entrance and exit, with a lean, compact centre that craves some plumping Merlot."