Research and Markets: Demand For New Zealand's Wine, Kiwi Sauvignon Blanc, Has Rocketed and Producers Have Struggled to Keep Pace.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c42405) has announced the addition of "Southern Hemisphere Grape Supply and Wine Production - Forecasts to 2010" to their offering.

The global wine industry has gone through massive changes in recent years. Although still fragmented in terms of the sheer number of people producing wine around the world, consolidation at the top has left some of the worlds most powerful brands in the hands of fewer and fewer people: Constellation, through the Hardy Wine Company, FGL Wine Estates through Wolf Blass and the ex-Southcorp brands, Pernod Ricard through Orlando Wyndham and Jacobs Creek - all these are major multinational companies who have achieved significant economies of scale.

With many of wines new superpowers operating and farming in the Southern Hemisphere or, to be more accurate, in Australia in particular, our has published its first study of Southern Hemisphere grape supply and wine production.

Use this report to answer the following questions:

--Are the prices for key grape varieties rising or falling?

--What effect will new plantings have in the future?

--And what role will consumer tastes and preferences play in the next few years?

Following interviews with key industry executives, we offer an unrivalled guide to the supply situation in all the major wine-producing countries of the Southern Hemisphere, including Australia, New Zealand, South Africa, Chile and Argentina. For each of these countries, the report includes:

--A concise harvest report for 2006, supported by relevant data.

--An assessment of the current grape supply, demand and pricing situation for key grape varieties and regions, supported by historical data.

--Supply, demand and pricing forecasts for the same regions and varieties, reviewing trends such as new plantings and changes in consumer demand.

--Production issues, including grower/producer relationships, limitations on supply and planting restrictions.

--Major producer profiles, supported by production data.

What is happening in the major regions?

In Australia, the continuing grape glut affecting many areas is the main theme. Growers are increasingly desperate in an area which could lose A$50m-plus in income. Many contracts have been suspended or not renewed as beleaguered wineries like Evans & Tate and McGuigan Simeon try to cut down on unallocated wine inventories.

In 2004 New Zealand achieved a record crop at 165,000 tonnes, and last years was reasonably big at 142,000 tonnes. Demand for New Zealand Kiwi Sauvignon Blanc has rocketed and producers have struggled to keep pace. This year looks sure to be another record-breaker - but will it be enough to satisfy the global demand for New Zealands wines, particularly Sauvignon Blanc?

South Africa appears to have something of an identity crisis in its production model at the moment. Theres a broad consensus that premium wines at a higher price-points are the way forward, yet the country continues to be a source of bargain basement wine instead. Crop estimates for 2006 have fallen somewhat as the harvest has progressed, reaching a level just above 1.2m tons, 5% up on last year. But will that still be too big when stocks are still relatively high, and grape prices so low?

Chile as a nation has become a victim of its own success, with booming copper exports to China in particular causing the Chilean peso to surge up against the dollar. The result is falling profits for many big wine companies, who earn most of their money through dollar exports and are now keen to cut costs, particularly when buying grapes.

In Argentina, the main challenge continues to be the transformation of the industry from one focused on the domestic market to an export-led model; the demands of international markets in terms of grape varieties used, quality levels and wine styles are very different.

That said, Argentinas industry has the scale to supply large quantities of wine at keen prices, as was shown by exports rising by one-third last year, along with growing numbers of international companies keen to source wines and build brands there.

Key Chapters Covered Include:

Chapter 1 - - Introduction.

Chapter 2 - Australia.

Chapter 3 - South Africa.

Chapter 4 - Chile.

Chapter 5 - Argentina.

Chapter 6 - New Zealand.

For more information visit http://www.researchandmarkets.com/reports/c42405