New Zealand wine industry financial metrics remain sound
New Zealand wine industry benchmarking survey
Vintage is an annual financial benchmarking survey produced by Deloitte in conjunction with New Zealand Winegrowers.
The New Zealand wine industry continues to show sound financial metrics in 2015 on the back of profitability in all but the smallest wineries and stable or increased gross margins across the board, according to the tenth annual financial benchmarking survey released today by Deloitte.
It is without a doubt that looking at the survey results of the last 10 years, that the industry has come a long way through both growth in size, as well as resilience. From export values of $512 million in 2006 to the $1.5 billion today, with oversupplies and a financial crisis in between, the industry has certainly earned its keep to remain an important part of the New Zealand economy.
Vintage 2015 produced a harvest of 326,000 tonnes of grapes; down 27% from the peak of the consecutive record volumes of 2014 (445,000 tonnes) and 2013 (345,000 tonnes). This year’s lower harvest came as a relief for some in the industry
after the efforts of dealing with the increased supply from the volumes of prior harvests.
The turnaround in the New Zealand wine industry has continued in 2014 on the back of improved profitability across wineries of all sizes, according to the ninth annual financial benchmarking survey released today by Deloitte and New Zealand Winegrowers.
Vintage 2013 produced a record harvest of 345,000 tonnes of grapes; up significantly from the low 2012 vintage, however key learnings coming out of the tough times endured from 2008 are believed to be standing the industry in good stead to be able to deal with this increased supply.
The results of the seventh annual survey on the whole confirms further improvement but there is certainly still a long way to go to be at a point where the financial returns from the industry provide an appropriate financial return on the capital invested.
Trends that were present in past surveys of wineries being unable to make a profit, despite cutting costs and with relatively high inventory balances and debt levels remain.