New Zealand wine industry benchmarking survey
In conjunction with New Zealand Winegrowers, Deloitte is pleased to present the sixth annual financial benchmarking survey of the New Zealand wine industry.
In some respects, 2011 has shown welcome signs of an industry turnaround after successive years of declining profitability and rising indebtedness. However, it would be fair to say that this is yet to flow through to all producers and accordingly a number of wineries appear to still be struggling. There is certainly a hint of optimism around the resolution of some of the issues that had materialised within the industry over recent years.
As in past years we are not seeing significant financial volatility but 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. Overall, however, profitability has improved across the spectrum of winery sizes.
It is hoped that Vintage 2011 will be of interest to those connected to the industry and will help decision-makers plan for a hoped for further recovery in the year ahead.