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Summary
- The lack of international tourists due to COVID-19 has caused losses to several small wineries.
- Numerous local wineries have had to shift their focus on exporting their products as international borders remain closed.
- Small wine brands are revamping themselves completely to stay relevant amid the unprecedented times.
Worldwide, the tourism and hospitality sector has seen a downfall in the year 2020, with the lockdown and border restrictions caused by the pandemic. Almost each sector of the hospitality industry has suffered immensely due to the pandemic and the wine industry was no different.
Cellar door sales have been largely affected by the uncertainties of the virus. Several small wineries have suffered to the extent that they have shut operations for their bistros and restaurants, until borders reopen.
Image source: Shutterstock
Small boutique wineries have revealed that they are not getting tourists that used to bring revenue for them. Since restaurant sales have taken such a downward spiral, wineries have been focusing upon trade sales and exports.
With a major part to play in the country’s economy, wine is exported to different parts of the world by New Zealand.
Also Read: NZ wine exports growth trajectory persists, touches NZD 2 billion mark
Since last fortnight, people who are visiting the wineries are more interested in buying wine. Even amid lack of tourists, New Zealand currently, remains in a favourable position because local hotels and restaurants are still in business and the demand for wine is constant.
Besides, the international demand for Kiwi wine has not seen a decline despite the current scenario. North America is a robust market for New Zealand wines and big brands that had a wide grocery reach were thriving, even during the pandemic, as per chief executive, Marcus Pickens, Wine Marlborough.
Innovative measures by wineries
In order to boost sales, wineries have been trying various methods. In a similar initiative, a simple “Taste Nelson Wines” sticker was placed on Nelson Wine bottles to help them look visually appealing to the customers on a supermarket Aisle. It is the basic visual merchandising and seem to be working well for the firm.
Image Source: Shutterstock
The Chairman of Nelson Wines, Paul Miles revealed that local people already have their favourites, and these tiny stickers are just making it easier for people to find them. The test run for these stickers was done a month ago, and it showed good results.
Challenges faced by small wineries
Bigger wine brands like Marlborough are well connected with various offshore distribution channels for their products.
Smaller wine brands on the other hand, which are primarily connected with restaurants and hotels have had to rethink their entire plan of action for these uncertain times. There have been changes made in strategies and revamping of these small brands in order to be relevant and generate sales.
