Kiwi Wines boosted by ‘Savalanche’

14 July, 2010 by

By Amy Looker

The popularity of New Zealand wine continues to go from strength to strength in Australia according to the latest Homescan Consumer Panel information released by Nielsen.

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The information, which is sourced through the tracking of household purchasing habits in Australia and New Zealand, reveals that an additional 74,000 Australian households have purchased Kiwi wine brands over the last year, up 38 percent compare to the total wine market.

“The New Zealand wine segment is characterised by having shoppers who are relatively heavier spenders. This is a healthy position to be in as we quite often witness brands experiencing a growth in household reach – but encountering a fall in annual spend levels,” said Michael Walton, Executive Director – Liquor Services, Nielsen Pacific.

However, Walton predicts that New Zealand wine brands need to invest in retaining drinkers to sustain long-term growth.

“Despite this growth, the challenge that lies ahead will be to retain these buyers – although repeat rates are growing steadily, it remains that over half (54.1 percent) will only ever shop for this varietal once on an annual basis. Encouraging trialists to remain within the New Zealand wine portfolio will be the key to sustaining this growth in the longer term.”

Sauvignon blanc now accounts for one third of white wine bottles sold in Australia, with 70 percent produced in New Zealand.