Over 14 million nine-liter cases of New Zealand wines were sold in 95 countries around the world in the recent fiscal year ended June 2007, equivalent to more than one billion glasses of wine. Exports from New Zealand to the United States exceeded 2.2 million cases, an increase of nearly 40%. The shipment value amounted to NZ$176 (US$120) million, an all time high according to the upcoming 2007 edition of The U.S. Wine Market: Impact Databank Review and Forecast.

Sauvignon Blanc accounts for the majority of New Zealand’s exports globally, rising 25% by volume in 2006, and white wines accounted for 85% share overall. But Pinot Noir is establishing itself as New Zealand’s second-most exported variety, surging 41% last year to easily surpass Chardonnay. Nearly 40% of Pinot Noir exports are destined for the U.S., which is on track to become New Zealand’s largest overall wine export destination by value in 2008, ahead of the U.K.

The U.K., the U.S. and Australia are the three largest markets for New Zealand wine exports, combining for 85% of shipment volume in 2006. There have also been encouraging gains in other markets, namely Canada, Denmark, Ireland, Japan and the Netherlands. A record harvest last year should provide enough supply to consolidate New Zealand’s presence in emerging areas, while also meeting the tremendous demand in its three core markets.

Rising taxes, a tough retail environment, as well as escalating production and shipping costs continue to present challenges to the wine industry. In addition, the relatively strong New Zealand dollar and fluctuations in the currency markets have been extremely challenging to wine exporters in recent years, exerting pressure on shipments in value terms. Nevertheless, global exports surged 30% to NZ$611 (US$416) million in 2006.