NZ needs to be realistic about US push

The New Zealand government has finally approved funding for a New Zealand high-end initiative in the US, almost two months after I first broke the plans on decanter.com– that’s politics for you.

There was a lot of back slapping on twitter yesterday, with all the Kiwis congratulating each other on the initiative, particularly the 21 wineries involved.  Indeed, government-funding of NZ$1.2 million is a welcome boost to the industry and not to be sniffed at. However, this thing isn’t even up and running and everyone’s already heralding it as the best thing since sliced bread.

The government’s target is to add NZ$50 million of additional sales in the US by 2015. Last year, New Zealand wine exports amounted to $214m, so it’s about a 20% increase in five years. That seems achievable.

However, I don’t think it’s time to get carried away. A fellow wine journalist in the US acknowledged that it was a good campaign, but every other country had a similar project – and France alone has a plethora of initiatives. Why is New Zealand’s going to be any different from the rest?

Steve Smith MW, chair of the initiative explained there was a rigorous process for getting into this ‘ultra-premium’ wine selection, of which half are Pinot Noir – not Sauvignon Blanc. “We are going to lead with Pinot Noir,” he said. “It’s a wine style that’s fashionable in the US and can compete with the best from Oregon and California.” In fact, there will only be a “few high-end Sauvignon Blancs” with the remainder coming from the aromatics, Bordeaux blends and Syrah.

The 21 wineries include Nautilus, Craggy Range, Seresin and Mt Difficulty. However, there are a number of wineries that didn’t wish to be part of the initiative, citing prohibitive costs – the wineries involved must raise $400,000 between them. Smith responded, “I would argue that for every dollar put in you get three dollars from the Government. It works out less than $5000 a wine a year so I would not say that was a valid argument.”

I hope this initiative works and it’s effective but let’s not get ahead of ourselves.