We reviewed the market through a consumer lens, using the latest IWSR update on the brand health of New Zealand wine, along with the retail view.
The situation – our fortress remains strong
New Zealand wine is outperforming a stagnant wine market, delivering value and volume growth, and continues to dominate the premium Sauvignon Blanc category, with healthy conversion rates and consumer image attributes.
The complication – the demographic cliff
Our profitable core buyer is aging (55+) while overall wine volumes are shrinking as younger consumers moderate consumption drinking across categories and shifting toward refreshing RTDs and Seltzers.
The resolution – the refreshment pivot
To capture the 1.8 million ‘Potential Buyers’ that skew younger we must maintain our premium quality bedrock while pivoting our marketing to uniquely position New Zealand wine as the category’s most “Naturally Refreshing” option.
Conversion rate
With a conversion rate of 58%, we possess an unshakeable lead over international competitors in converting awareness into active consumption. We do not have an awareness problem. Once an Australian consumer is aware of our wine, we convert them at a rate second only to domestic Australian producers. Our mid-funnel efficiency is unmatched by competitors.
Our bedrock – taste, quality and trust
These metrics are stable and robust. They over-index heavily compared to Chile, Argentina, and South Africa. This premium reputation is what allows New Zealand to weather the current economic headwinds. We do not need to ‘fix’ our top three brand perceptions – aligned with key category sales drivers.
The ‘refreshing’ edge – our fastest growing image asset
More naturally refreshing wines was the only imagery attribute to show a statistically significant increase in the latest tracking. Historically, wine has not been viewed as a refreshing drink in Australia (unlike beer or RTDs). New Zealand wine is uniquely breaking this barrier aligning perfectly with the macro trend toward lighter, easy-drinking styles, and more casual occasions.
The full presentation is available in the members section of nzwine.com
