NEW ZEALAND WINEGROWERS INCAnnual Report 2020

NEW ZEALAND WINEGROWERS INCAnnualReport2020200 Years CelebrationTe Whare Rūnanga, Waitangi

WITHER HILLSVisionAround the world,New Zealand is renownedfor our exceptional wines.MissionTo create enduring valuefor our members.PurposeTo protect and enhance thereputation of New Zealand wine.To support the sustainablediversified value growth ofNew Zealand wine.ActivitiesAdvocacy, Research,Marketing, EnvironmentCOVER PHOTO: NZW 200 YEARS CELEBRATION, TE WHARE RUNANGA, WAITANGI

NEW ZEALAND WINEGROWERS INCAnnualReport2020Chair’s ing20Financials29Statistics32Directory40

NZW 200 YEARS CELEBRATIONChair’sReportPerhaps more than any other year in recent times,this was a year of two halves.During the first half of the year thethriving New Zealand wine industryIn New Zealand, we were privilegedindustry celebrated its past, andwhere - every second of everyday -to be able to complete our grapelooked ahead with optimism. The80 glasses of its distinctive wine areharvest as “essential businesses”, butsecond half reminded us just howsold somewhere in the world.the effort and stress involved in doingunpredictable the world can be, howso safely was high. Our total 2020crucial it is to plan for the unexpected,A milestone was reached in February,harvest of 457,000 tonnes reflectsand react with agility when thewith the opening of the Bragatothe near perfect growing conditionsunexpected arrives.Research Institute’s Research Winery.experienced in most of the country,This new facility provides us a baseand a 2% increase in planted areaIn September we celebrated thefrom which to set the nationalto 39,935 hectares. The successful200th anniversary of the day onresearch agenda, trial world-firstharvest was good news for growerswhich the very first grape vinestechnologies, conduct commercialwho have only one opportunity eachwere planted into New Zealandtrials, and connect educators andyear to generate the income to carrysoils, by Reverend Samuel Marsdenstudents to science and industry. Ourthem through the next 12 months.at Kerikeri in the Bay of Islands.major levy-funded research projectsOver 100 winegrowers and othersfocus on sustainability (through ourFor wineries, the impact on salescommemorated the milestone with anvineyard ecosystems pest & diseaseof the lockdown and the COVID-19event at the Waitangi Treaty Groundsproject), diversification (through ourresponse has been highly variable.and a ceremony at the historic Stonelighter wines project) and qualityPositively, for those wineries whoseStore at Kerikeri, where a new vine(through our Pinot Noir project).focus is on supermarket and ‘big’was planted to mark the beginningA potential new project to developretail channels, sales have increased.of the next 200 years.new more resilient Sauvignon BlancThis reflects the positive reputationvines is under development.that New Zealand wines have withThis was a chance to acknowledgeconsumers and retailers.many of the industry’s pioneers,But these positive notes cannotand reflect on the difficult journeyobscure the turmoil that the COVID-19For other wine businesses the story isfrom colonial outpost through sixcoronavirus pandemic has inflictedmore challenging. Physical distancingo’clock closing, to painful economicsince it hit the world.measures have either halted orreforms, and ultimately to asignificantly slowed on-premise u2

BRAGATO RESEARCH INSTITUTE NEW RESEARCH WINERY“Despite the challenges of thepast 12 months, in the year ended30 June 2020 our industry managedto achieve record exports totalling 1.92 billion, up 6% on last year.”3

consumption in many markets, butonline sales have surged, whilstclosure of the border has cut-offthe flow of overseas visitors tocellar doors. For those New Zealandwineries whose markets and channelsare focussed on tourism or onpremise, sales and orders havefallen significantly.Some of these impacts weretempered by a brief rise in domesticNew Zealand tourism, with regionsclose to major centres now cateringto a surge of Kiwis exploring theirMARLBOROUGHNZ.COMown backyard. But the reemergenceof community transmission meansregions more dependent on touristswill be hurting, and we have initiatedsome economic research to betterunderstand the likely impactson smaller wineries, and whatgovernment support may be needed.government officials. They made itBoard decided to fund the comingIt is too early to say how the shockclear that the way individual membersyear’s Sustainable Winegrowingof a pandemic will alter consumers’were responding, and the wayNew Zealand (SWNZ) costs fromhabits, but many are likely to reflectNew Zealand Winegrowers (NZW) waslevy funding, which highlights theon their values and priorities andleading the wine sector response, wasimportance the Board places onmay adjust their purchasing decisionsprecisely what they were looking for.SWNZ and our commitmentto sustainability.accordingly. Ultimately, howNew Zealand wine is perceived by theSimilarly, although we set up a Safeconsumer in a post-Covid world willHarvest Hotline which could be usedSimilarly, the strength of our regionaldepend on the core fundamentals thatby the public or members to reportwinegrower associations is importantresearch tells us have underpinned ourany potential breaches of COVID-19to the diversity and sustainability ofsuccess to date: our reputation, ourmeasures or issues with workers,our industry. We are holding morecommitment to sustainability, and thewe were pleased that each of theregular meetings with regionaldiversity of our offering.issues reported had a satisfactorychairs, and believe these improvedexplanation, or was readily andrelationships between NZW and thewillingly resolved.regional associations will help ensureOur reputation was enhanced bymore effective collaboration on keythe exemplary way winegrowersindustry issues.responded to the COVID-19 crisis,Recognising the financial strainwhich cemented our place withinbrought by COVID-19, the NZWgovernment circles as an industry thatBoard made the decision to lowerCOVID-19 impacted the way we toldcan be relied on. During the Alertthis coming year’s levy rates backthe New Zealand wine story to tradeLevel 4 & 3 periods, we had regularto where they were before lastand consumers, and kept our owncalls with Ministers and senioryear’s 10% increase. In addition, themembers informed. Many promotional4

NZW 200 YEARS CELEBRATION“Our reputationwas enhanced bythe exemplaryway winegrowersresponded to theCOVID-19 crisis.”events have needed to be cancelled,people irrespective of gender. Wecurrent success – our reputation,and with borders closed, ourheld our first Young Leaders’ Forum toour diversity and our sustainabilityinternational visitor programme hasbring together and challenge twenty- we will build a strong foundationbeen suspended. To meet members’winegrowers from around the country,from which to continue to grow, andneeds in this changed environment,and both our Young Winemaker ofexpand the global presence ofwe have responded with a refocusedthe Year and Young Viticulturist of theNew Zealand wine.marketing effort, including digitalYear Competitions are attracting anoptions such as webinars and a moreexcellent calibre of contestant.In conclusion I want to acknowledgethe sterling efforts of our CEO andtargeted suite of information.Despite the challenges of the paststaff particularly during the periodAs we look to the future it is clear12 months, in the year ended 30 Juneof Covid lockdown and subsequent.that, for the short term at least, our2020 our industry managed to achieveThe initial effort to ensure we couldsector is going to need to be morerecord exports totalling 1.92 billion,operate as essential businessesself-sufficient in terms of personnel,up 6% on last year and domestic salesfollowed by the constant flow ofas access to offshore workers will beof around 500 million.information to help ensure the safetyof members and their staff duringlimited by border restrictions. Withwinter pruning nearly complete,Looking forward it seems likely thatvintage was no small task. Workingour focus is the workforce forNew Zealand’s borders will be largelyfrom home, reduced hours, reliancevintage 2021. We are working withclosed for the coming year. We willon zoom meetings and the absencegovernment agencies to attract newbe forced to re-think parts of ourof the “water cooler” conversationsworkers to our sector to ensure weworkforce, re-imagine our tourismapplied additional pressures and thathave the personnel in place to bringactivities, and cope with what seemsthey have shepherded our industryin the 2021 crop.likely to be a global recession.through in these circumstancesWe are fortunate we already haveFor some grape and wine businesses,programmes in place to supportthe outlook may be challenging. ButTheir challenges and those of theour New Zealand based workforce.as an industry, we will get throughBoard are by no means over, but ourThis year we held the Women init. By investing in the New Zealandreputation, diversity and sustainabilityWine mentoring programme for thewine category, by focussing onput us in good stead to navigate thesecond year, and due to populargood business practices, with goodturbulent waters ahead.demand added a NZW mentoringleadership and by keeping our eyeprogramme, available to all youngon the fundamentals of our past anddeserves all our appreciation.5

AdvocacyProtecting members’ability to produce,market and sellsustainably andcompetitively.Our Advocacy activities focusrequirements and support measureson guidance for members, winewere clearly communicatedstandards, government engagement,to members.intellectual property protection,growing our people, promoting socialWe set up a virus responseresponsibility, and encouraging freeinformation portal on the NZWand fair trade.website, response email addressesProviding COVID-19support to winegrowersand two dedicated 24/7 hotlines – oneto respond to member compliancequeries, and the other to allow rapidNew Zealand responded to thereporting and response for any publicoutbreak of COVID-19 by imposing aconcerns around harvest. Membersstrong national stay-at-home order,generously shared their own crisiswhich activated just as harvest wasprocedures and protocols, which webeginning. Ahead of that, havingsynthesised into generalised guidanceobserved early lockdown measuresfor members, updated every timebeing implemented overseas, NZWnew requirements or new guidancehad already begun preparations towas issued, and as we clarifiedensure the New Zealand governmentrequirements for labour movement,would recognise grape harvesting andaccommodation, transport and dozenswinemaking as “essential” underof other issues with MPI.any lockdown.The resulting COVID-19 webpageshad 35,000 page views, and thereThe government’s response to thewere over 21,000 user interactionspandemic was swiftly initiated as awith these pages, including downloadsset of high-level principles. It wasof our various documents, views ofdeliberately left up to industry toembedded videos etc. We respondeddesign and implement those practices.to many hundreds of calls and emails,NZW supported this devolvedand offered members a range ofapproach, but it required anwebinars both on the requirements,unprecedented response effort.and to provide support.The NZW Advocacy team workedAs the alert levels lowered (and astirelessly to ensure that our keyharvest concluded), we were ablecontacts at MPI and other governmentto move our focus to helping cellardepartments knew exactly howdoors, restaurants and other wineCOVID-19 restrictions were affectingtourism businesses reopen in awinegrowers, and to ensure thesafe way. ugovernment’s constantly evolving6

7MISTY COVE