Wine industry loses sparkle

Press, 4 February 1986, Page 16

Wine industry loses sparkle

The New Zealand wine industry, which has had more than its share of difficulties in 1985, appears to be in for more of the same in 1986.

The uprooting of 1200 hectares of vines will certainly reduce the 1986 harvest jbut will do nothing to relieve those companies which have entered into voluntary receivership because of cash flow problems.

Unless more sales can be made on a profitable basis, the cash flow will continue to be affected.

The signs so far this year indicate that, although prices will probably rise, discounting by the bigger companies will continue to be a feature of their marketing policy, thus maintaining the squeeze on the smaller producers. This will be accentuated by the Government seeing fit to remove the tariff protection for the local industry this year, instead of the projected date of 1990. The move leaves the way open for the introduction of cheap, imported wines five years ahead of time. It is difficult to rationalise the thinking which subsidises the industry to the tune of SIOM to reduce the grape crop and, at the same time, introduces measures to allow , a greater proportion of imported wines on to the {market in direct competition to the local product.

Not to be overlooked is the introduction of GST in October. Vigorous representations have been made to the Government to 1 reduce at least some of the punitive sales tax on wine so that the application of GST will result in approximately the same retail price level. So far, there has been no indication of any sympathy in this direction.

This means that if GST

Maurice Hunter’s

GRAPEVINE

is added to prices which already include sales tax, there will be a tax on tax, lifting the rate of tax to $1.45 per litre on table wine (from 99c to $1.09 per 750 ml bottle) and $2.38 per litre on dessert wine (from $1.62 to $1.78 per 750 ml bottle). It would seem that the Minister of Finance, Mr Douglas, said it all in the title of his book, “There’s got to be a better way.” Further upsets may be in store for the liquor trade this August, when the report of the working party on the liquor laws should be completed.

Under the chairmanship of Sir George Laking, the working party has been asked to examine the whole of the law governing the manufacture,

distribution, supply and sale of liquor, to formulate principles and policies for its reform and, in the light of these, to prepare new legislation. It is generally agreed that the Sale of Liquor Act, 1962, with its many amendments, is a complete mess and is well overdue for review.

Reviewing from the ground up is bound to produce many new lines of thought. It is equally as certain that the conclusions and recommendations will not suit everyone.

However, resolution in the face of adversity is a New Zealand trait. It was pleasing to receive advice from Villa Maria, the first of the small companies to announce its problems publicly by going into voluntary receivership, that it has arranged contracts for the purchase of its requirements for the 1986 crop, and that it is confident of being able to trade its way out of its difficulties. It is one of the ironies of fate that, almost simultaneously with the announcement of receivership, came the news of Villa Maria’s resounding success in the 1986 Australian national wine competition in Canberra.

Of 1600 Australian and New Zealand wines which

Ironically, as Villa Maria went into receivership, news came of its resounding success in the Australian wine competition

rived in Christchurch.

had already won awards in competitions in both countries, Villa Maria took all three eligible trophies. The 1984 private bin sauvignon blanc won the Westpac Banking Corporation trophy for the best New Zealand white table wine. The 1983 private bin pinot noir won both the National Capital Agriculture Society trophy, and the Australian New Zealand Foundation trophy for the best New Zealand red table wine and the best New Zealand table wine respectively. In line with the emphasis which Villa Maria has placed on varietal wines in the last few years, it was, I suppose, a natural progression to market a range of varietals in soft packs, which has just ar-

The Chardonnay semillon is a full-bodied dry white 50/50 blend in which the herbaceous semilion is subdued by the more delicate Chardonnay. The sauvignon blanc semilion, also a 50/50 blend, is dominated by the fruity sauvignon blanc, but with the semillon apparent in the finish of full flavour. Both of these wines are for the dry wine fan, having a definitely crisp finish but refreshing to the palate, particularly in the warm weather.

The Chardonnay Chenin blanc 60/40 blend is likely to appeal to a wider range of palates. The Chardonnay is softened. by the fruity Chenin blanc and . has just a hint of residual sweetness — very palatable.

The cabernet sauvignon pinotage, a 50/50 blend, is a soft style red which will be a welcome addition to the red cask wines. The typically "berryish” bouquet and flavour of the cabernet predominates. Although all four of these wines are marketed in the Maison Vin “no-frills-good-value” 3 litre packs, they are not, nor are they intended to be, “cheapies.” They are varietals, and will sell at between $l3 to $l6.