Anishka Jelicich: New Zealand Winegrowers CEO on wine exports exceeding $2 billion in the year to June

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What are the latest New Zealand wine export figures and why are they significant?

Mike Hosking 0:00
More good news from our wine industry. So exports, latest figures, exports of top 2.1 billion. Latest Winegrower's report shows export volumes rose to 306 million litres. Overall sales are up 8%. Came from a smaller harvest too, which is good. Anishka Jelicich is the Winegrower's CEO and is with us. Very good morning to you.
Anishka Jelicich 0:19
Good morning, Mike. You
Mike Hosking 0:20
happy?
Anishka Jelicich 0:21
Very happy.

Which traditional markets are driving the export growth and how much did each increase?

Anishka Jelicich 0:22
It's a very encouraging result in a difficult global wine market. We are winning against the category.
Mike Hosking 0:27
Yes, you are. Quality versus quantity. That's the key to all of this, isn't it?
Anishka Jelicich 0:31
We would like to grow both if we can, ideally. That's what we want to deliver for our members, both value and volume growth. And the exciting thing is we see both happening.
Mike Hosking 0:40
Who are the markets that are working well for us still?
Anishka Jelicich 0:43
Well, the traditional markets have done very well.

How are emerging Asian markets like South Korea and China contributing to New Zealand wine sales?

Anishka Jelicich 0:46
If we look at the UK, it was up 14% by volume. Canada, 16%. Even the US was up by 2%. And then if we look further afield to the emerging Asian markets, South Korea has shown very positive growth. A lot of my small and medium-sized members are talking to me about that. 20% and China is up 72% from a smaller
Mike Hosking 1:06
base. 72% in China? I thought China were already buying decent amounts.
Anishka Jelicich 1:12
It's a big market, as you know, Mike, and the world discovers how well our lighter, fresh, aromatic styles go with their food. I think we're going to see a lot more of that growth.

Is the growth in Asia driven more by brand perception or price positioning?

Anishka Jelicich 1:21
That's
Mike Hosking 1:21
interesting. When you say things like emerging, when you look at a place like South Korea, when does it go from emerging to stable or established or mature? I mean, how much growth do you see in a place like South Korea?
Anishka Jelicich 1:33
I think at this stage, wine is a relatively new category for South Korea, and particularly in terms of white wine consumption. So we've got a long way to go before we start to see it going through all the channels, even going from being sort of an on-premise offering right through to retail and consumer.
Mike Hosking 1:53
Okay. How much of it's brand? How much of it's price? Or is it both? I mean, are we cool and trendy, therefore you'll pay a bit extra?

Beyond Sauvignon Blanc, what other premium varieties is New Zealand producing?

Mike Hosking 1:58
Or is it all about price?
Anishka Jelicich 2:01
No, a lot of it is brand. It's the recognition that we are making those distinctive, premium, fresher, lighter styles that the consumers want rather than the heavier, higher ABV styles that some of our competitor countries have been making. Is it all Sauvignon Blanc
Mike Hosking 2:17
still? We had Steve Smith on the program yesterday with a Chardonnay experiment. He thinks Chardonnay is off to the races. But is it basically just a lot of Sauvignon Blanc or is there more to it than that?
Anishka Jelicich 2:28
Oh, there's definitely more to it. I mean, obviously, we make a very distinctive Sauvignon Blanc that others have tried to emulate and failed. But on the back of that, we're making some exceptional Chardonnays.

What does the future look like for New Zealand wine in global markets according to the CEO?

Anishka Jelicich 2:38
I was at the AOTS Royal Chardonnay Conference last week where we had some of the world's top wine writers coming in. And looking at the quality wines we're producing, we make great Pinot Noirs. We've got excellent Rosés. The list is endless, Mike. We've got a lot to be proud of here.
Mike Hosking 2:54
I love it. I love the enthusiasm in your voice. Anishka Jelicich, who's the Wine Growers CEO. For more from the Mike Hosking Breakfast, listen live to Newstalk ZB from 6 a.m. weekdays or follow the podcast on iHeartRadio.

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