New Zealand wine hits the spot in the UK as sales buck global slowing trend

New Zealand wine is not only selling well but going at premium prices in the UK, as much of the wine producing world faces challenging times in tough market conditions.

Wine sales worldwide appear to be slowing, but for some reason New Zealand is bucking that trend. In fact last year sales were up 15 per cent in the UK, thanks to the very popular sauvignon blanc.

"Ten years ago I was adamant that the bubble would burst at some point with New Zealand sav," said Edward Robinson, a wine buyer in London.  

"Certainly it makes up the vast majority of what we drink over here from New Zealand. But the opposite is true - it keeps going on and on and on," he told 1 NEWS at the annual wine tasting trade show in the British capital.

And with that demand, the New Zealand wine industry is looking at tourism opportunities.

New Zealand Wine Growers global director Chris Yorke said one in four of all visitors to New Zealand visits a winery, "an amazingly high number". 

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It might be possible to find some opportunities for the wine sector here through, for example, a reduction in tariffs

—  David Evans | New Zealand Deputy High Commissioner to London

Mr Yorke said the industry group thinks this presents a major opportunity to partner with Tourism NZ and Air NZ to bring "premium tourists" into our region.

But Brexit is looming, and Melanie Brown of NZ Cellar UK said "our spends are down" and exchange rates are pushing prices up.

"So prices that we buy the wine for in the UK are getting pushed up, so it's pushing us further and further up."

But there could be a silver lining for Kiwi wineries long-term, with potential for tariff cuts.

"New Zealand and the UK are both talking about negotiating a free trade agreement which we'd look to do when the UK is in a position to do so," said David Evans, New Zealand Deputy High Commissioner to London. 

"And through that process it might be possible to find some opportunities for the wine sector here through, for example, a reduction in tariffs."

The UK has one of the highest wine duties in the world, making the wine tasting trade show that much more vital.