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Speaker 1: As I asked you yesterday, do we have brewing no

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Speaker 1: pun intended issues in our famed wine sector. Tariffs obviously

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Speaker 1: are trouble for the States specifically, but we also have

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Speaker 1: a lot of produce being left unharvested on the vines.

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Speaker 1: Nearly one hundred thousand tons has been left this last season. Now,

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Speaker 1: Charlotte readers the gm AT brand at Winegroves, New Zealand And,

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Speaker 1: is will this Charlotte, very good morning to you.

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Speaker 2: Good morning mate.

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Speaker 1: One hundred thousand tons? Is that a lot? And is

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Speaker 1: it a worry.

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Speaker 2: Look over producing more than demand in our industry? This

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Speaker 2: is just something that primary sectors often face now, I

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Speaker 2: think in the in the current climate where we have

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Speaker 2: very strong demands for our premium wines, This, you know,

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Speaker 2: is a is something that's happened now in our industry

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Speaker 2: and that the strong reputation of New Zealand wine will

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Speaker 2: continue to have our wine sought after around the world.

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Speaker 1: As a contractor or a purchaser of land or a grower,

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Speaker 1: do I see THEE hundred thousand times and go I'm

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Speaker 1: not going to buy that block of land or I'm

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Speaker 1: not going to expand. Is that sort of thing happening.

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Speaker 1: Are we sort of maxed out on land and production

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Speaker 1: and growing grapes?

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Speaker 2: I think undoubtedly for our sector at the moment it

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Speaker 2: is a very challenging time for industry. There are many

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Speaker 2: headwinds where've got uncertain times, whether it be the global economy,

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Speaker 2: our own economy here in New Zealand facing recession week

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Speaker 2: wine market for the tariffs of last week haven't helped

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Speaker 2: increased excise there. There are many headwinds, but uncertainty is

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Speaker 2: something that our industry has faced for many years. We

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Speaker 2: have been very lucky in the New Zealand wine industry

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Speaker 2: that we have really enjoyed twenty five years of continuous

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Speaker 2: growth pretty much. And yes, this it is a concern

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Speaker 2: at the moment for our industry, but our growers there

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Speaker 2: and wineries that they're really smart operators and they will

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Speaker 2: make decisions within their own businesses to help their supply

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Speaker 2: match international demand.

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Speaker 1: How much of what's left on the vine is serving

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Speaker 1: on blanc and how much of it's in Marlborough.

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Speaker 2: Yes, well, you would have seen various reports in the

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Speaker 2: recent week where figures were revealed about about the Marbile region.

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Speaker 2: You've got to remember in our industry that ninety percent

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Speaker 2: of our wine is exported and ninety percent of that

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Speaker 2: comes from Marlboro, and ninety percent of that is saving

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Speaker 2: Yon blanc. So yes, it is. It is largely a

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Speaker 2: savigon blanc issue that we are talking about here. But

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Speaker 2: what we are so encouraged by is that New Zealand

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Speaker 2: is making wine styles that the world wants and our

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Speaker 2: brand health tracking research shows that more refreshing wine styles,

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Speaker 2: lighter wine styles, and white wines are being increasingly turned to,

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Speaker 2: and savignon blanc from New Zealand really has been such

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Speaker 2: a success story around the world, so we have no

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Speaker 2: long term reason for concern.

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Speaker 1: Sure the fall and demand globally around alcohol, the issue

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Speaker 1: around alcohol is, in your view, is that permanent?

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Speaker 2: Well, I think we are definitely seeing the alcohol market

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Speaker 2: and the wine market evolving, and we are working hard

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Speaker 2: to keep connected with our consumers. That's what's led to

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Speaker 2: our success as being really closely connected to what international

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Speaker 2: consumers love to drink around the world. And so as

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Speaker 2: emerging emerging generations come through with their different habits, whether

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Speaker 2: they be digitally led in how they like to learn

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Speaker 2: about things, we've just got to keep ahead of the

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Speaker 2: game on how we connect with our consumers and ensure

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Speaker 2: that we are remaining relevant and we fight for occasion.

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Speaker 2: We're trying to fit people's lifestyles and you're seeing some

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Speaker 2: great innovation in our sector, whether it be lighter wines

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Speaker 2: or packaging formats that have evolved to more convenience in

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Speaker 2: the like.

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Speaker 1: Okay, so generally you're bullish or not.

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Speaker 2: We undoubtedly as an industry are facing a challenging time

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Speaker 2: in our industry. But where I sit in brand, where

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Speaker 2: we push our international reputation with the support of our

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Speaker 2: seven hundred wineries around the world, we have such a

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Speaker 2: strong position in the world. You know, in the UK

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Speaker 2: our old export market, one in every two bottles of

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Speaker 2: savignon blanc is from New Zealand. And in the US

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Speaker 2: and premium price points five that of the top ten

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Speaker 2: selling white wines are from New Zealand. So we whilst's

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Speaker 2: the concerning time at home and it's not easy for

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Speaker 2: our growers, we do need to take heart that there

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Speaker 2: are very very strong reputational strengths that we have. We're

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Speaker 2: about to actually have an industry wine business forum called

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Speaker 2: Embracing Growth and Sustaining the Future, and it's embracing change

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Speaker 2: rather and embracing changes. What it's all about, having the

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Speaker 2: ability to adapt to our changing world and continue to

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Speaker 2: make wines that the world wants.

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Speaker 1: Good stuff. Sharp appreciate your time. Nice to talk to you,

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Speaker 1: Charlotte Read, who's the general manager at brand at Wine

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Speaker 1: grows New Zealand.

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