French wine producer Pernod Ricard fears that it cannot meet the demand for its Sauvignon Blanc wines from the Marlborough region in New Zealand this year as harvests hit a decade low.
The company, which owns the Kiwi brands Brancott Estate, Church Stone, and Stoneleigh, revealed that it has 34% less Marlborough Sauvignon Blanc this year compared to last year’s vintage, which was already below the long-term average.
Harvests were impacted by “extreme” spring frost. The company also noted that bunch sizes decreased, bringing down juice extraction levels.
“The reality is that we are not going to meet the demand of Marlborough Sauvignon Blanc this year. Being an agricultural industry, the weather can be unpredictable, and periodically we do experience extreme weather events,” Pernod Ricard CEO Bryan Fry was quoted as saying.
The decline in Pernod Ricard’s Sauvignon Blanc volumes in the country has led to cost increases, compounded further by the rise in input costs and labor shortages.
Earlier in the month, New Zealand permitted the entry of seasonal workers from across the Pacific into the country, which was seen to resolve the lack of manpower in vineyards.
Despite the supply pinch, Fry is optimistic about the recovery of its Sauvignon Blanc wines given their popularity. “Our primary focus now is to maximise the supply we have got and hold our listings on shelf,” he added.
Moreover, the company official noted the “exceptional” quality of grapes this year, expecting to produce the “finest” Marlborough Sauvignon Blanc wines. “Our priority is to continue to make exceptional wines in a safe and sustainable way and fulfill [the] demand to the best of our ability.”
Sauvignon Blanc accounts for 71% of New Zealand’s wine production. It is mostly produced in the country’s largest wine region, the Marlborough region, which has a vineyard area of 22,369 hectares.
Pernod Ricard is one of the world’s largest wine and spirits producers. It owns a portfolio of brands produced in Australia, New Zealand, the United States, and Spain.
