Otago’s Pinot Gold Rush is over

Fortunes were made in Central Otago during the 1860’s Gold Rush but not all who arrived left with their pockets lined and the good times didn’t last.

Likewise, the region’s Pinot Noir suddenly brought the world’s attention back to the area more than 130 years later but today producers admit the honeymoon is over.

The gold might have dried up but there’s more wine than ever. There’s plenty of good stuff still to be had but the global recession has certainly not passed over the region. On my visit, most producers admitted exports had slowed across all export markets. Some have been hit harder than others with one of the first wineries to set up shop here, William Hill (not to be confused with the UK chain of bookmakers) going out of business recently as well as Anthem Holdings.

Success has brought speculators. In 1992, there were only six wineries; today you’ll find over 30 wineries and more than 100 different labels. Many quality conscious producers are worried that the Central Otago brand will be dragged down by newcomers out to make a buck from the reputation they have worked hard to build. Jason Moss, general manager at Waitiri Creek said, “Once you put Central Otago on your label there is perceived value and that is a big concern for us.” Inevitably, wineries outside the region are keen to make Central Pinots and want to buy fruit to produce a Central Otago label and with more plantings coming on stream each year, there’s enough to sell.

While many won’t admit they’ve discounted their wines, they know ‘another producer’ who has done that this year. While this is destined to be a premium region due to its relatively high costs of production compared to Marlborough, which can attain much higher yields for Sauvignon than Pinot, there are Central Otago wines on the shelves for less than £10 in the UK. Matt Dicey, winemaker at Mount Difficulty said, “You are seeing the likes of Majestic Peaks for under a tenner. There has been a little bit of what Marlborough has seen in Central Otago.”

Blair Walter, winemaker at Felton Road argued, “Until the 2006 vintage there was always a market for the small crop at a high price. What we’re seeing is a natural progression from Grand Cru wines all the way to village level now.”

More on Otago in my next blog when I finally get round to talking about the wines.