New Zealand wine industry benchmarking survey
Vintage 2012 represents the seventh annual financial benchmarking survey produced by Deloitte in conjunction with New Zealand Winegrowers.
With annual export earnings of $1.2 billion the New Zealand wine industry is now ranked as New Zealand’s eighth most valuable export earner. This is a far cry from the small domestically focused industry that existed 30 years ago and despite the recent financial challenges experienced the industry has continued to grow.
In recent years the industry has experienced the impacts of the Global Financial Crisis, supply imbalances, high external debt levels, the increased presence of bulk wine sales, and winery struggles, failures and receiverships. Now in its seventh year the annual Deloitte financial benchmarking survey, produced in conjunction with New Zealand Winegrowers, has tracked the impact of these issues on the financial performance of wineries within the industry. Last year this survey reflected signs of an industry turnaround but the expectation was that it would take time to fully flow through to wineries.
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. Once again this year we collected two years of financial data so that we could make direct comparisons year on year rather than comparing to the previous surveys sample. We are pleased to report that all but the $20m+ category has recorded an increase in profitability from the prior year, which given all categories recorded increases last year (from 2010), confirms a turnaround is definitely present within the industry, and showing signs that it is sustainable.