For decades, cloudy Bay vineyards have been almost synonymous with New Zealand’s Sauvignon Blanc. The winery helps define the category with its first Sauvignon Blanc in 1985 Setting the benchmark This brings the country’s wine industry to the global stage.
But as competition increases, more and more producers have been looking for other places to expand their identity in the claims of Marlborough, the largest wine bay in New Zealand, acquired by LVMH (LVMHF) in 2003. With new investments in the central part of New Zealand’s South Island, Duoyun Bay is now deliberately making itself a serious player in Pinot Noir.
Pinot Noir has been part of Cloudy Bay’s portfolio for years, but over the past decade, the focus has risen. The extreme climate in central Otago, its growing seasons and dramatic temperature fluctuations both bring opportunities and challenges.
Nikolai S. “The way it developed here over time is an amazing story.”
According to the winemaker, the move is more than just diversifying the portfolio. This also involves ensuring medium- and long-term relevance in an increasingly competitive market. Demand for Sauvignon Blanc in New Zealand has grown significantly, but the sector is more crowded than ever. Once an undisputed leader, Duoyun Bay now faces long-standing competition with new producers. Sauvignon Blanc accounts for 85% All wine exports from New Zealandwhat is needed to stand out is more than name recognition.
“The demand for Sauvignon Blanc is high, driven by the brand in New Zealand,” said Adam Rogers, director of North America research at market research firm. IWSR. “Domestic American producers have responded with their Sauvignon Blanc’s works, creating an increasingly competitive market landscape.”
New Zealand is not immune challenge Now Trouble Global wine industry. In the 12 months ended June 2023, the country’s total wine exports reached Record $1.46 billionbut between July 2023 and January 2024 Exports fell The value is 22% and the quantity is 24%, marking a more turbulent market.
Sarah Campbell, head of Asia Pacific research at IWSR, also cites the fluctuations in New Zealand’s Sauvignon Blanc’s harvest (and therefore pricing).
“After a massive shortage a few years ago, there are now a lot of wine sitting in New Zealand tanks,” Campbell explained. “The upcoming harvest is expected to be large, with grape prices greatly reduced. These declines are unlikely to pass on it to consumers, for example, with the more competitive South Avighan Sauvignon Blanc, which has resonated with good imports with cash consumers.”
Vineyard area is dedicated to Pinot Noir in central Otago Have grown From 141 hectares in 1989 to 5,678 hectares in 2023, this huge expansion underscores the rise in prominence in the region. The wines in the region were once known for their bold and fruit-oriented wines, but the winemaking style has evolved.
“In the mid-2000s, the wine was huge and putting the area on the map,” said Daniel Sorrell, an operating winemaker at Cloudy Bay. “Now, our goal is to have more grace and live reflection. We’ve dialed back on the extraction, turned to more full-built fermentation, and fine-tuned our oak usage to make the purity of the fruit shine.”
The cloudy bay comes primarily from two main vineyard sites in central Otago: Northburn and Calvert. “Northburn is our base – its sturdy, wind-blowing, produces Pinot Noir, which is made up and driven by spices and red fruits,” Sorrell said. “Calvert, by contrast, has more clay in the soil, giving the wine a floral, silky elegance. The balance between these two locations is what makes our Pinot Noir so compelling.”
The brewery hopes that the end result is a high-end Pinot Noir expressing strength and skill, capturing the unique characteristics of the central terroir of Otago.
Expanding Pinot Noir production is also a strategic decision, focusing on the US market. Although Sauvignon Blanc continues to perform well in the United States, Pinot Noir brings new opportunities for growth. American consumers are already familiar with the breed, and central Otago’s reputation has grown steadily internationally.
That is, there are risks. “In the United States, New Zealand is mostly known for its Sauvignon Blanc products,” Rogers said. “Many regions, especially domestic regions, are known for their production of Pinot Noir. This makes it difficult for new regions to gain market share.”
Furthermore, expanding production of Pinot Noir in central Otago is not as simple as Marlborough. The climate is not very tolerant and the yield is low. “One of the biggest factors in brewing in central Otago is climate risk,” Sorrell said. “Frost is a major issue every spring. We have wind energy machines, we use water for frost protection, and of course, we have helicopters.”
Using helicopters for frost protection is nothing new, but it is essential. “We are actually the first person in the area to use helicopters for frost protection,” David Hohnen, founder of Cloudy Bay, told Observer. “At the time, it was an experiment – we had only one helicopter available and the pilot had to hover over the vineyard manually, stick his hand out the window and feel where the layer of warm and cold air was. Now, it’s more technical, and you’ll see hundreds of helicopters during frost season, but in frost season, it’s a change.
In addition to the challenge of vineyards, Cloudy Bay is also navigating how to position Pinot Noir in the Burgundy region of France and the Sonoma district of California, usually dominates the market in this category. Cloudy Bay’s goal is not to compete with these regions, but to highlight what makes central Otago unique.
“As the price of Burgundy Pinot Noir continues to rise and become inaccessible, there is a great chance of Pinot Noir in New Zealand,” Campbell added. “With many New Zealand brewers producing Pinot Noir in the Burgundian style, but with a more approachable price, they have the formula for victory.”
Put it in the background, when sold in the United States, the average bottle of premium red wine (such as Pinot Noir) costs between $20 and $30, According to wine stupidity. But the price of Pinot Noir in Burgundy ranges from $20 to $20 $25,000 per bottleyou will find a lot Wine List Instructions That Burgundy anything under $50 It’s bargaining. Given its smaller and younger category, the number of Pinot Noir in New Zealand is even scarce But on wine.commost bottles range from $20 to $50, and are priced above that range. The most expensive product is the Te Wahi Pinot Noir from Cloudy Bay, made in central Otago, for $100 a bottle.
The winery is still adjusting its viticulture practices to perfect Pinot Noir’s approach. “In the early days we focused on maturing maturity, but now we have taken a more precise approach, looking at canopy management, water pressure and choice decisions, focusing more on details,” Sorrell said. “We have moved away from over-ripening fruits and focus on phenolic ripening to ensure tannins are fusion and the wine has a longevity.”
The transformation of cloudy Bay does not mean that Sauvignon Blanc is becoming more and more important, which is unrealistic. For Campbell, it is unlikely that New Zealand Pinot Noir will have the same success as New Zealand’s Blank, who is the same length, for two reasons.
“First of all, Pinot Noir is a more niche style wherever it comes from, often with a higher price, so it is impossible to have the mass-market appeal of Acaciain Blanc,” Campbell said. “Secondly, to get Pinot Noir New Zealand to the size of Sauvignon Blanc, it would require replanting most of New Zealand’s vineyards.”
As the industry leads to changing demand and increasing competition, the continuous expansion of Pinot Noir by Cloud Bay is just a broader ambition: known for not just the wines that make it famous.
“Winemaking is about continuous improvement, raising the boundaries while respecting the nature of each vineyard,” said St. George. “Pinault Noir from the region continues to be recognized at the global stage and what excites us the most is the potential we still have to explore.”
