New Zealand Wine Growth Slows, But Continues To Outpace The Market

While wine imports to the U.S. suffered their second consecutive annual decline last year, brands from New Zealand continued to outpace the market in 2023, according to Impact Databank. White wines comprise over 95% of New Zealand wine exports to the U.S., with Sauvignon Blanc accounting for roughly 90% of shipments. In the U.S., New Zealand wines trailed only France and Italy in 2023 on a value basis. Five years ago, the U.S. became the largest market for New Zealand wines, surpassing the U.K.

Gallo’s Whitehaven ($17 and up in IRI channels) has been the fastest-growing New Zealand brand the past few years, but Constellation’s Kim Crawford is the clear market leader, with recent growth coming from innovation. Its Illuminate extension continues to be among the best-sellers in the wellness category, and Kim Crawford also received a lift last year from the launch of Sparkling Prosecco. In addition, Kim Crawford Rosé registered double-digit growth in 2023, according to Impact Databank.

Aside from Kim Crawford and Whitehaven, growth in the sector has been driven by other premium-priced New Zealand wines—sales volumes of New Zealand brands priced at least $15 grew 13% in IRI channels last year, compared to just 2.4% growth for New Zealand brands priced below $15 a bottle. Treasury Wine Estates is also a major player in the over-$15 segment with Matua, which also achieved success in the wellness category—Matua Lighter posted 31% growth last year, according to Impact Databank.

Beyond the largest-selling New Zealand brands, double-digit growth was also registered in 2023 by other higher-end labels such as Deutsch Family’s The Crossings, Terlato’s Wairau River, Delicato’s Stoneleigh, and Opici’s Giesen 0% non-alcoholic wine. New Zealand wine growth continues into 2024 as dollar sales in Nielsen/NIQ channels increased 3.7% for the 13 weeks ending March 23, compared to less than 1% growth for all imports, and a continued decline for the overall wine category.—Juan Banaag

Tagged : Constellation, Deutsch, Gallo, Giesen, Kim Crawford, Opici, Terlato, The Crossings, Wairau, Whitehaven

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