At the sweet spot

BUSINESS is brisk at the Highfield Estate vineyard in Marlborough, with packed restaurant tables and a busy tasting station. This is normal for a weekend, says Naomi Galvin, the sales manager. The happy scene reflects the broader health of New Zealand's wine industry, which had a bumper year in 2007. Wine overtook wool exports in value for the first time, and it is now the country's 12th most valuable export, worth NZ$760m ($610m), up from NZ$94m in 1997. New Zealand Winegrowers (NZWG), a national trade body, boasts that the industry sold 1 billion glasses of wine in nearly 100 countries. Exports to Australia are buoyant, and New Zealand accounts for over 10% of wines sold in Britain for more than £5 ($10). Interest in America is picking up too, judging by a recent showcase held in Phoenix, Arizona. Across the board, demand exceeds supply.

This success has several causes. The first is that winemakers are working hard to improve quality and are exploiting New Zealand's unique climate to produce distinctive wines. David Strada, NZWG's marketing manager in America, gives the example of New Zealand's characteristic Sauvignon Blancs and Rieslings, which show the thumbprint of the unusually long, cool growing season. The increasing quality of its Pinot Noir is also attracting attention. Just a few years ago, the country was known only for its Sauvignon Blanc.