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consumption in many markets, but online sales have surged, whilst closure of the border has cut-off
the flow of overseas visitors to
cellar doors. For those New Zealand wineries whose markets and channels are focussed on tourism or on- premise, sales and orders have
fallen significantly.
Some of these impacts were tempered by a brief rise in domestic New Zealand tourism, with regions close to major centres now catering to a surge of Kiwis exploring their own backyard. But the reemergence of community transmission means regions more dependent on tourists will be hurting, and we have initiated some economic research to better understand the likely impacts
on smaller wineries, and what government support may be needed.
It is too early to say how the shock
of a pandemic will alter consumers’ habits, but many are likely to reflect on their values and priorities and
may adjust their purchasing decisions accordingly. Ultimately, how
New Zealand wine is perceived by the consumer in a post-Covid world will depend on the core fundamentals that research tells us have underpinned our success to date: our reputation, our commitment to sustainability, and the diversity of our offering.
Our reputation was enhanced by
the exemplary way winegrowers responded to the COVID-19 crisis, which cemented our place within government circles as an industry that can be relied on. During the Alert Level 4 & 3 periods, we had regular calls with Ministers and senior
government officials. They made it clear that the way individual members were responding, and the way
New Zealand Winegrowers (NZW) was leading the wine sector response, was precisely what they were looking for.
Similarly, although we set up a Safe Harvest Hotline which could be used by the public or members to report any potential breaches of COVID-19 measures or issues with workers,
we were pleased that each of the issues reported had a satisfactory explanation, or was readily and willingly resolved.
Recognising the financial strain brought by COVID-19, the NZW Board made the decision to lower this coming year’s levy rates back to where they were before last year’s 10% increase. In addition, the
Board decided to fund the coming year’s Sustainable Winegrowing New Zealand (SWNZ) costs from levy funding, which highlights the importance the Board places on SWNZ and our commitment
to sustainability.
Similarly, the strength of our regional winegrower associations is important to the diversity and sustainability of our industry. We are holding more regular meetings with regional chairs, and believe these improved relationships between NZW and the regional associations will help ensure more effective collaboration on key industry issues.
COVID-19 impacted the way we told the New Zealand wine story to trade and consumers, and kept our own members informed. Many promotional
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