The financial viability of Sauvignon Blanc in Marlborough has never been stronger, showing returns on investment for the 2015/16 season of 24.47%, now who wouldn’t chase returns like that? Growers and investors are purchasing the remaining bare flat land to develop and keep up with world demand this is seeing record prices paid for both bare land and existing vineyards.
I undertook a literature review in conjunction with interviewing three growers, I was better able to understand the characteristics of the Marlborough wine region its sub regions, and how these characteristics play out in the flavour of the wine, value of the land and the factors that are driving the current expansion.
What I wasn’t aware of before undertaking this report was just how well this industry was performing and had been over the last 5 years peaking last season as mentioned above, I quickly learned that if we suggest these things to be cyclic then it would appear to me that we are very high in the cycle right now, are we at the peak or do we still have room to move? This report will give you an understanding of where the market is today.