28 Oct 2026
Ask a specialist: Facing tough questions when business gets bumpy
A reader asks: Our family business has been struggling for some time. There have been recent indicators...
Ask a specialist: Wine industry poised to move on from a pressing time
A reader asks: With signs of recovery emerging in the wine industry, what should financially stressed growers do now to ensure they are in a position to benefit? What’s your overview and are prospects genuinely improving for vintners?
Time to read: 2 mins
Auckland business recovery expert and insolvency specialist Tony Maginness replies:
I’m pleased to see some of those stereotypical “green shoots” finally appearing for our winemakers during spring. Many businesses are still carrying the effects of recent “dry years”: Rising interest rates, higher labour and operating costs, weaker demand and surplus wine. Some growers have been unable to secure contracts for their grapes, while others have been forced to accept lower prices or leave grapes unpicked.
Yet as NZ Winegrowers pointed out recently, the local viticulture industry has been more resilient than elsewhere. Wine exports remain close to $2.1 billion annually, and demand is growing in emerging markets like China and South Korea. Changing consumer preferences towards lighter, fresher wines also play to New Zealand’s strengths.
Early indications for the 2026 vintage are positive, with favourable reports on ripeness, flavour and quality. More disciplined grape intake should also help reduce excess inventories and gradually restore the balance between supply and demand.
I undertook a significant amount of work in the horticulture and viticulture sectors following the Global Financial Crisis. We helped a number of businesses restructure their operations and finances to survive.
Many of the problems were similar to those facing growers today. What surprised me was how quickly conditions bounced back. Within a few years, grape prices recovered strongly and the value of some vineyards doubled. That experience provides some grounds for optimism today.
Nevertheless, the immediate priority for financially stressed growers remains creating enough breathing room to take advantage of any recovery. That will depend as much on their business setup as the growing conditions.
If you’re a grower, it’s key to review fundamentals like supply contracts and your financial capacity to fund future vintages, which could mean a restructure is needed despite the thaw in the weather.
A recovery is only meaningful for those in a position to reap the rewards.
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