In conjunction with New Zealand Winegrowers, Deloitte is pleased to present the sixtth annual financial benchmarking survey of the New Zealand wine industry. New Zealand wineries across the spectrum have improved their profitability during the past financial year compared with results in 2010, according to the new survey.
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Wine industry
Take your vintage further.
The New Zealand wine industry is a very important contributor to the New Zealand economy. From creating jobs locally, to generating over $1 billion in export earnings in the year to June 2010 the success of the industry impacts most New Zealanders in some way or another.
Having established itself as a premium producer of wine, with a large variety of wines enjoyed both locally and overseas, the New Zealand wine industry looks set to continue its growth. Enormous opportunity still exists globally with strong demand from key markets, notably Australia, the UK and the US, as well as increasingly from Asian and continental European markets.
The industry has been a relative success story for New Zealand, growing from exports of approximately $200 million 10 years ago to now being one of New Zealand’s top 10 export earners.
However a couple of turbulent years in 2009 and 2010 have taken the sparkle off the industry a little. Impacts of oversupply together with the largest economic downturn in 20 years have affected everyone involved in the industry. Accordingly commentators have been quick to jump on the issues surfacing and regular features on these issues appear in the New Zealand media.
Oversupply has been blamed for a decline in profitability in Australia. So if supply is not carefully matched with global demand and care is not taken to protect New Zealand’s brand, exporters could find that they are unable to obtain the premium prices they require to remain profitable.
How can we help you?
Using our knowledge and expertise of the New Zealand wine industry we can help you work through these challenging times by:
- Undertaking operational reviews focusing on cost reductions and profit improvement
- Developing financial models to assist with your business decision making
- Achieving economies of scale through acquisition and organic growth
- Presenting tax saving ideas
- Conducting sustainability and/or CarboNZero audits
- Managing a recovery – should the unfortunate event of a receivership or liquidation be necessary
