According to the latest Global Market Report released by Ciatti, New Zealand vineyards are selling for up to NZD400,000 per hectare in some parts of Marlborough, with prices increasing by almost 60 per cent this year.

The increase is a significant spike from last year’s NZD270,000 per hectare, a price that the report acknowledges had been stable for some time.

“Pricing has been dependent on yield, location, water availability and the fruit being free from any contractual obligations, as fruit pricing has been seen to reach as high as NZD2,200/tonne,” the report stated.

Whilst vineyard land in Marlborough is extremely limited, with Sauvignon Blanc accounting for 80% of existing vineyards planted, the report said high interest rates were to blame for the lower number of land purchases, combined with the rising farm costs.

New Zealand is one of only three major wine producing countries to produce more whites than reds, according to the Ciatti report.

“Red wine and especially Cabernet is in a highly imbalanced supply-demand position globally and – of the major wine-producing countries – all but Italy, South Africa and New Zealand produce more of it than the whites favoured by younger demographics (if they drink wine at all).”

The report went on to explain the challenges in appealing to younger demographics.

“According to Wine Intelligence, ‘Generation Z’ consumers (aged 18-24) represent just 5% of wine consumption in the UK and ‘Millennials’ (aged 25-39) represent 21%, while ‘Boomers’ (aged 55+) command more than double those two demographics combined, at 48%. Generation Z and Millennial consumers – interested in low and no-alcohol wines, natural or organic wines, canned wines, RTD wine spritzer drinks, and sparkling wines, enjoyed as just one part of a growing repertoire of alcohol drinks – are far harder to recruit with an “unstoried” GBP6.00 bottle of standard red than their parents and grandparents were.”

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