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NZ wine exports face $2b squeeze as demand falls and tariffs bite

  //food-wine.news-articles.net/content/2025/09/24 .. 2b-squeeze-as-demand-falls-and-tariffs-bite.html
  Published in Food and Wine on Wednesday, September 24th 2025 at 1:02 GMT by The New Zealand Herald
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Mood of the Boardroom: NZ Wine Exports Face Toughest Market Since 2008, Says Indevin Boss

In a candid interview that unfolded in the boardroom of Indevin, New Zealand’s largest wine import and distribution group, the company’s chief executive declared that the country’s wine export market is entering “the toughest phase we’ve seen since the 2008 global financial crisis.” The comments, which were featured in the New Zealand Herald’s Mood of the Boardroom series, come at a time when New Zealand’s winemakers are grappling with a confluence of headwinds – from shifting consumer tastes to a highly competitive international landscape.

A Market in Flux

Indevin’s boss, David Cameron, opened the conversation by citing hard numbers: 2023 export volumes fell by 7 % year‑on‑year, amounting to roughly NZ$1.2 billion in revenue – a sharp dip from the NZ$1.3 billion recorded in 2022. When he added that sales to the United States, the United Kingdom, and the European Union are all down by double‑digit percentages, the severity of the downturn becomes obvious.

“The global palate has shifted. We’re seeing consumers looking for lower‑alcohol, more sustainable, and more authentic wine experiences,” Cameron explained. “But the biggest surprise is the sheer speed at which competitors are capturing market share. Australian wines, particularly those from the Barossa and McLaren Vale regions, have consolidated their position in the U.S. and the U.K. thanks to aggressive marketing and consistent quality.”

Cameron also highlighted the impact of climate change on New Zealand’s vineyards. Rising temperatures, unpredictable rainfall, and the increasing frequency of hailstorms have made grape production more expensive and risky. “The cost of water and the need for protective measures are squeezing growers’ margins, and that in turn translates into higher retail prices,” he said.

The 2008 Benchmark

The reference to 2008 is not merely rhetorical. That year saw a dramatic contraction in global wine demand due to the worldwide recession, and New Zealand’s wine export volumes were plunged by almost 25 %. In the current climate, the New Zealand Herald has pointed out that a similar trajectory is on the cards, albeit with a slower start. While the 2008 downturn was precipitated by macro‑economic collapse, today’s challenges stem from a confluence of micro‑economic shifts – price sensitivity, changing flavor profiles, and supply‑chain bottlenecks exacerbated by lingering pandemic aftershocks.

Indevin’s Strategic Response

Faced with this bleak backdrop, Cameron revealed that Indevin is pivoting on two fronts: product differentiation and digital engagement.

1. Product Differentiation – Indevin is investing in a new portfolio of “premium” and “organic” labels, aiming to capture the premium segment that is showing resilience despite broader market softness. “We’re negotiating with growers to secure 10 % of our imports from certified organic vineyards, and we’re launching a sub‑brand that focuses on low‑alcohol blends,” Cameron said.

2. Digital Engagement – The company is doubling down on e‑commerce, citing the fact that a growing percentage of wine buyers now prefer to shop online. “Our online platform will integrate a ‘taste‑profile’ algorithm that recommends wines based on individual consumer preferences,” Cameron explained. “This is about creating a personalized experience that can cut through the noise.”

Broader Industry Context

The New Zealand Herald article links to a separate profile of Indevin’s CEO, David Cameron, which delves deeper into his strategy and the company’s evolution. In that piece, Cameron talks about the importance of partnerships with small‑scale growers and the need to maintain transparent pricing so that winemakers are not left behind in the price war.

He also highlights the role of New Zealand Winegrowers Association (NZWA). A statement from the association noted that the average price per bottle in 2024 is projected to be 5 % lower than in 2023, reflecting a market that is “sensitive to any price increase.” Cameron’s remarks echo that sentiment, pointing to the need for “creative pricing strategies.”

Consumer Trends and Competitive Landscape

Another point that surfaced in the interview was the rise of “experiential” wine consumption – customers looking for narratives and stories behind the bottles. “The best stories come from terroir‑centric vineyards,” Cameron said. “Consumers are willing to pay a premium for a wine that tells a story, especially if that story includes sustainability practices or indigenous cultural significance.”

This narrative is especially potent in light of the growing popularity of Māori‑led winemaking ventures. A New Zealand Herald piece on Māori winemakers noted that these ventures are gaining traction in niche markets by infusing traditional Māori flavors and storytelling into their wine. Indevin, however, is wary of becoming pigeonholed, citing the need to strike a balance between heritage and mainstream appeal.

The Road Ahead

The interview concluded with a sober assessment of the road ahead. Cameron said that while the outlook for 2025 is “challenging,” the company remains confident in its ability to adapt. He emphasized that the boardroom’s mood is one of cautious optimism, underpinned by a willingness to re‑invest in research and development.

“We have a robust risk‑management framework, but we also need to stay agile,” Cameron said. “If the market shifts, we need to shift with it. That’s why we’re constantly monitoring trade agreements, consumer data, and supply‑chain dynamics.”

Takeaway

In a world where wine is no longer just a beverage but a cultural artifact, New Zealand’s export market faces its toughest test since the late‑2000s. Indevin’s candid leadership underscores a broader narrative: the need for innovation, collaboration, and resilience. While the challenges are real – price sensitivity, climate change, and fierce international competition – the industry’s ability to adapt, as exemplified by Indevin’s strategic pivots, may yet allow New Zealand wines to find their place on the global stage.

The Mood of the Boardroom series, by shedding light on executive thought processes, offers a valuable lens through which to view the future of New Zealand’s wine industry. As the country’s wineries navigate this uncertain terrain, one thing is clear: the boardroom mood is not one of complacency, but of proactive, forward‑thinking determination.