New Zealand Sauvignon Blanc sees premiumisation spike

It seems that New zealand’s meteoric rise of Sauvignon Blanc continues with demand and sales unabated. Demand in the USA market is also very high and although many Aussies wouldn’t admit it they too are still drinking a lot of our wine.

The article below is written by By Eloise Feilden from Drinks Business. It’s short but a will bring you up to speed with some relevant information

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Premiumisation in Sauvignon Blanc has spiked over the last two years, with more highly priced wines accounting for three quarters of New Zealand Sauvignon sold on the UK market in 2021.

Sauvignon Blanc wines have seen a shift towards premiumisation over the last two years, New Zealand Trade & Enterprise revealed at a trade tasting last week. In 2019, wines from all regions in the £5.91-£7.29 price range (per 0.75L) dominated the category, with a 48% value share of the UK market.

Two years later, and wines in this bracket have lost their standing to more premium offerings. Sauvignon Blanc wines from all regions priced at £5.91-£7.29 made up just 31% value share of the market in 2021, a percentage decrease of more than a third.

In contrast, Sauvignon Blanc wines in the £7.29-£9.48 price bracket from all regions across the world saw a percentage increase of three quarters, from a 22% share of the market to a 39% share.

And for New Zealand Sauvignon in particular, this shift was even more drastic.

In 2021, Sauvignon Blanc wines from New Zealand within the £7.29-£9.48 price range accounted for a 74% value share of the region’s wines on the UK market.

These more premium wines made up just two fifths (40%) of the value share of New Zealand Sauvignon on the UK market in 2019.

New Zealand Sauvignon Blanc wines in the lower price category of £5.91-£7.29 fell from a 56% market share value to just an 18% share in the same two year period, highlighting the pivot towards more premium offerings from the region.

Sauvignon Blanc wines from New Zealand priced at £9.48 or above retain a small value share of the market, but this too has risen, from less than 3% to more than 5% in the UK over the last two years.

The data suggests that consumers are recognising the quality of New Zealand Sauvignon, and are willing to pay a higher price for it, when compared to wines from other regions across the world.

See the original article here: https://www.thedrinksbusiness.com/2022/05/new-zealand-sauvignon-blanc-sees-premiumisation-spike/?utm_source=AfternoonBrief&utm_medium=newsletter