Mortgagee sales are becoming an increasingly common theme in the New Zealand wine industry, as vineyard owners are forced to put their properties up for sale.
The latest victim of the glut and economic downturn has been Clansman Vineyards, which had holdings in both the Wairarapa and Marlborough.
A quick website search of real estate agent, Bayleys, shows that in the last 6 weeks River Farm in Marlborough has gone on the market. Another mortgagee sale of a 167ha vineyard site 7km outside of Blenheim is also on the books, as well as pages of vineyard sales throughout the country.
Wineries that are handling the downturn could grab a bargain: estate agents report land prices have halved in the past four years plus interest rates are also relatively low, making it seem like a good time to buy. But who has the money to invest? Planting has come to a virtual standstill and inflation is high.
And foreign investors will be put off by the strong dollar – it’s value has increased by more than 30% in value in the past two years against the British pound, and 20% against the US dollar.
Then again, anyone who invests in a vineyard needs their heads checked in my opinion.
Consumers know Marlborough makes high quality, easy to drink Sauvignon Blanc but if you asked consumers to point to it on a map, it would be a pin the tail on the donkey exercise.
The latest research on the significance of region of origin by Wine Intelligence shows that at mainstream price points (£4 to £4.99) Marlborough, the Barossa Valley and Napa all feature in the top five regions from which UK consumers say they are likely to buy wine. Marlborough and the Barossa are still among the top choices when the same question is posed for purchases of £8 and above. So far so good.
Although prompted awareness of Marlborough is relatively low, consumers have a favourable view of New Zealand and say Marlborough wines are high quality, easy to drink and often recommended by friends. They are also more likely to be available in casual restaurants.
Research director Jean Philippe Perrouty said: “Bordeaux and Burgundy are known by 90% of UK consumers but only one in four or less say they would buy it. UK consumers say they are more willing to buy Marlborough, Rioja or Barossa - if they have heard of them - than Bordeaux or Burgundy. These wines have been able to create the perception of affordable quality.”
Still so far so good.
However, when it comes to knowing where Marlborough is or what the region is like, you’ll get a blank look. Many US consumers associate cigarettes with the region. How positive. Nevertheless it’s a similar story for Chianti, which conjures up images of Italy, red and Hannibal Lector.
Beyond country of origin, it seems most regions are failing to portray an effective image.
So where now?
Tourism is key. If you can get people to visit, they become ambassadors for the region. And it just so happens 85,000 people are heading this way for a few rugby matches in September.
Longer term, Marlborough should be shouting to the rooftops about tourism and food. The Marlborough Sounds are breathtaking, tell people about them. There’s great walking, mountain biking, and fishing on your doorstep. Plus, there are a wealth of artisan producers, from oyster farms, to pine nut orchards and cheese makers.
The Barossa has employed the skills of Paul Henry, ex general manager Wine Australia, to educate consumers that there’s more to the South Australian region than burly Shiraz. Perhaps Marlborough should be doing the same.
Playing classical music when you are number 31 in the queue to speak to an immigration officer does nothing for your stress levels.
It’s been five months since I applied for residency and they’ve just started processing it. I can’t imagine how hard it is for those whose first language isn’t English - yet that hasn’t deterred many from setting up homes and businesses here.
The wine industry has welcomed plenty of newcomers to New Zealand. The first vineyard in Marlborough was planted by a Scotsman and, most recently, Hawkes Bay’s Paritua Vineyard was purchased by a Milford-based Chinese investor, backed by shareholders in Shanghai, Beijing and Chicago.
China is getting a taste for fine red wine: five Bordeaux chateaux have been bought by Chinese firms in the past year.
Europeans and Americans have already made their mark on the country’s wine scene. Dalmatians were pioneers, particularly around Auckland, founding wineries such as Villa Maria, Nobilo and Kumeu River.
Today, Marlborough’s Fromm is Swiss-owned and nearby Clos Henri is very much a French venture. Austrians established Central Otago’s Quartz Reef and Nelson’s Seifried, the Schuberts said Auf Wiedersehen to Germany for a new life in Martinborough, and Americans are behind the artisanal Pyramid Valley and Craggy Range (mistakenly referred to as Shaggy Peak by a friend).
Attracted by New Zealand’s freedom from rigid wine-making laws, this melange of cultures makes the country’s wine scene richer and more exciting. Thank goodness they weren’t put off by the immigration department’s music.
2009 Petit Clos sauvignon blanc, by Clos Henri Marlborough ($19, Maison Vauron)
A gentle Marlborough savvy that doesn’t jump out of the glass and whack you around the chops. Elderflower, passionfruit and wet stone combine with a ripe, but not searing, acidity making you want another glass. And that’s not something you often get from $19 Marlborough wines. Allez les Francais!
2010 Schubert rosé, Martinborough ($25, Martinborough Wine Centre)
Made by German-born Kai Schubert, his latest rosé release is dry, poised and restrained. If you like a dollop of sugar in your rosé this ain’t for you, but it remains one of my favourite rosé in New Zealand.
2007 Fromm Vineyard pinot noir, Marlborough ($64, Glengarry, Fine Wine Delivery Co, Scenic Cellars)
This Swiss-owned producer really surprised me with its top pinot noir. Unadulterated and delicate, it reminded me of the top wines of Rippon Estate and Mt Maude. It’s kind of funky and has an offbeat smoky bacon and stilton nose, but that’s what rings my bell. Ding dong!
This article was originally published in the NZ Herald on Sunday 17 April 2011. To see the article on the NZ Herald site, click here
The first ever female on Unfiltered (apart from me, of course) is Anna Flowerday, co-owner of Te Whare Ra in Marlborough, formerly known as Beavertown (yes, really). She takes a break from the 2011 vintage and her two sets of twin daughters (yes, two sets!) to star on Unfiltered.
William Hoare, GM of Fromm in Marlborough, takes a break from the 2011 vintage and has his turn on Unfiltered. Why are they making Syrah in Marlborough and what is his fascination with Martinborough winemaker Larry McKenna?!