Good Spring morning to you!

Is planting a new variety, a good idea?

Last we week were asked for an odd ball variety and an unproven clone of Chardonnay. We were interested, because neither have a track record in NZ and so we asked why they wanted to plant these combinations. The reply was, “... it seems there’s no safe options for what to plant, but we need to try and keep up with the times”.

There is a temptation in uncertain times to try new ideas, sometimes radical ideas, hoping for the big break. Launching into uncharted waters demands careful thinking and good business planning. The NZ agricultural landscape is littered with “boom and bust” cycles. Take for example Ostriches. The only people who made money were the Ostrich breeders, the poor old farmer never made a cent out of Ostrich meat because the market for it was not developed.

 

The Article

We noted with interested the article in the New Zealand Winegrower magazine (August/September) “What will be NZ’s next big thing”.

Misty Valley is in the position to supply the majority of varieties listed in the Winegrower article, but we are cautious. We are concerned about the number of growers who have told us they have planted and plan to plant new varieties in the belief that “new” will sell. This is a high risk approach without having a developed market, and then there’s the question of whether these varieties will be successful from a viticultural perspective.

Anyone can sell a couple of hundred cases of a new variety at their cellar door. But that is less than one acre of production. There are many hundreds of hectares of new varieties being planted. So most of it is going to have to be sold on the international market.

We want to share with you our experiences in the international wine market ...

When you get to travel widely and sell your wine (like we do), you hear what international markets are looking for. There will always be the possibility to sell new varieties. These opportunities are exceptions, typically available to the limited few who are first in the market and then it takes years to develop a significant volume.

Reality Check!

Then there is the ultimate reality check – the rest of the world is planting new varieties to overcome their over-supply situation as well. The fact is that the great majority of us are not going to be trail blazers.

The answer is to get connected with your customer.

We continually ask our customers what they are looking for from NZ. The answers might surprise you ...

Sauvignon Blanc:- Don’t give up on Sauvignon Blanc. For the foreseeable future this variety will remain the “bread and butter” of our industry. For the volume lines, our customers are looking for consistent quality. There is also a growing market for divergent styles.

Pinot Noir:- The market is ready to welcome our distinctively styled Pinot Noir. Our customers tell us that they have room on their shelves for Pinot Noir in a number of price brackets and range of styles from big bruisers to elegant and refined. They have to be well made and again the quality must be reliably consistent.

Syrah:- With the possible exception of the Australian market, what we do with Syrah in NZ has captivated the wine world. This variety has the potential to equal or better our Pinot Noir sales. The market has yet to catch-on to the numerous styles of Syrah we can produce.

Chardonnay:- The Cinderella variety. There is a market waiting for this beauty from NZ. The wealthy have never deserted Chardonnay. Just ask any retailer in a posh suburb anywhere in the world. They still have room on their shelf for well made complex Chardonnay from NZ.

Merlot and the Cabernets:- China is knocking on our door, they’re buying and best of all they pay prior to shipping. If you have some “sticky”, they’ll take that too.

So, ask yourself...

Have I connected with my customer? Do I have a market for the new variety I plan to plant? Is it one that we have a good reputation for or will it be looked at side-ways? Am I in a position to manage the risk?

 

If you’re thinking of planting something new, give us a call and let’s talk – we are growers and wine makers just like you.

 

Now for the sales pitch. Yes, we do have vines available at $4.50 plus GST so call us on 0800 444 614.

 

Kind regards

Rex Sunde and Donna Pecar

www.mistyvalley.co.nz

Phone: 0274 980183/021 849839

09 8387979

0800 444 614

Fax: 09 8387563