New Zealand Expects Record Grape Harvest to Boost Wine Sales

By Tracy Withers

Feb. 21 (Bloomberg) — New Zealand expects a record grape harvest in 2008, boosting the outlook for wine sales, according to the industry’s national organization.

This year’s harvest is forecast to rise as much as 20 percent to 245,000 tons, New Zealand Winegrowers Chief Executive Officer Philip Gregan said in a statement e-mailed to Bloomberg News. The 2007 vintage was 205,000 tons.

Overseas sales of New Zealand wine by companies including Pernod Ricard SA and LVMH Moet Hennessy Louis Vuitton SA rose 36 percent to a record NZ$698 million ($556 million) in the year ended June 30, 2007, according to industry figures. Winemakers increased vineyard planting to keep pace with demand.

“As a result of strong demand, many leading wineries are now experiencing supply constraints and they are eagerly looking forward to a larger vintage,” Gregan said. “The increased supply will drive further export growth in the year ahead.”

The nation’s three largest winemakers — Pernod Ricard’s Montana unit, closely held Villa Maria estate, and Constellation Brands Inc.’s Nobilo winery — harvest more than half of total production. Louis Vuitton owns Marlborough vineyard Cloudy Bay.

Land planted with grapes increased 8 percent from last year to 27,000 hectares, Gregan said. Warmer spring temperatures increased yields, he said.

Growers in some regions began harvesting this month. Picking will continue until May.