Creating Value in the New Zealand Wine Industry

Abstract

The wine industry of New Zealand has rapidly developed and matured in the last decade to produce an international product that is highly desired by key global markets, and has become a major contributor to the economy. However, limited productive capacity, and macroeconomic forces have contrived to constrain the global marketing opportunities, essentially forcing New Zealand wines into niche markets. These forces include: global market forces, technological forces, global cost forces, and socio‐political macro‐economic forces. The impact of these forces are analysed in this article. Several analytical tools borrowed from ‘lean manufacturing’ are used to construct a conceptual value chain map of the generic industry. A key concept for success that will be a challenge to industry participants is to create and deliver ‘value’ in the minds of the final consumer. This can be achieved by mapping/measuring the value generated in different parts of the supply chain while still allowing for the synergies generated by the whole system.