Wine consumption well down

Press, 8 September 1982, Page 17

Wine consumption well down

PA Auckland Wine drinkers have sipped 2.8 million litres less New Zealand wine this year than last year, but an industry spokesman said the unprecedented drop should not cause panic among winemakers. The annual report of the Wine Institute calls the drop “a serious setback in an industry geared to growth.” The institute's executive director. Mr T. J. Dunleavy, has said that since the industry began developing in the early 19605, it was the first time there had been a drop in consumption, from 38.8

million litres for the year ended June. 1981, to 36 million this year. "The picture disclosed by the report does not indicate any cause for panic," he said. One of the main reasons was the 53 per cent increase in the volume of imported wine. The change from import licensing to tariff quota meant there was no limit on the amount of overseas wine which could be imported. Another big factor was the new food and drug regulations which imposed new quality controls on fortified

wines and which had led to a temporary shortfall in those wines. "What the report does call for is a reassessment of where we are going, and a review of the goals set about four years ago in the original industry study," said Mr Dunleavy. That study, by the Industries Development Commission. brought forward recommendations which formed the base of the five-year wine industry development plan put into effect last year. The drop must raise some

doubts about the successful achievement of that plan, said the annual report. “The drop in sales volume has been accompanied by exertion of increasing discount pressures on winemakers by wholesale wine and spirit merchants, who control the distribution system. "The industry accepts that one of the aims of the development plan was to compel cost reduction by greater competition, but the institute feels that the process may be going a little too far for the long-term financial stability of the industry." it said.