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End of cheap Kiwi Sauvignon Blanc in the UK?

Cheap New Zealand Sauvignon Blanc could fast be disappearing from the UK's dinner tables. Mr Phillip Gregan CEO of New Zealand Winegrower's has been on a world tour outlining the future envisaged for their countries wines. As demand now outstrips supply, New Zealand no longer has to price its wines at the sub-£5 position and the future is more likely to be £7.28 (according to Nielsen figures), returning them back to the position they were in in 2008.

New Zealand winegrowers are now concentrating on producing quality, premium wine and concentrating on other grape varieties not always associated with New Zealand such as Chardonnay and Pinot Noir.

Not only is there a pricing issue but New Zealand are now focusing their efforts on the profitable North America market which will become New Zealand’s largest market for wine within two years. Gregan attributed the rising demand for New Zealand Sauvignon Blanc in North America to the “Hobbit movies” and the Americas Cup, which he said has “added to the interest in New Zealand and the interest in New Zealand wine.”

Wine writer Jamie Goode observed that this means there is now a brilliant moment for the Touraine region in France because some of the Sauvignons from here are on the shelves at £8, and are fantastic. The sweet spot for Touraine is £6-10, and that’s a price band New Zealand is rapidly heading out of he said. Ooh La La!