New Zealand winemakers have produced their largest grape harvest on record in 2025, aided by optimal growing conditions across key regions. The industry is now turning its attention to managing the risks of surplus and uncertain international markets, with producers like Terra Vitae and Foley Wines posting bumper yields.
Ideal Weather Drives Yield and Quality Expectations
Industry leaders are expressing satisfaction with the growing season. Philip Gregan, Chief Executive of NZ Winegrowers, highlighted the strong conditions: “Harvest has gone well. The weather around the country has been good, so we winemakers are generally very happy.”
This sentiment is echoed throughout the sector, as early reports indicate not only high volumes but also excellent wine quality.
Delegat Group Responds with Controlled Supply Strategy
Delegat Group, one of the country’s largest producers, reported a 2025 harvest of 47,461 tonnes — a 39% increase from 2024’s low-yielding season and 5% higher than 2023. Despite the volume, Delegat continues to exercise careful supply control.
“This means that in years where the growing season delivers a particularly abundant crop, as was the case in 2025, we may choose to selectively reduce the intake at harvest to avoid excess inventory,” the company stated.
While the vintage has delivered high-quality wines, Delegat has lowered its full-year guidance for case sales and operating net profit. The cause: “significant uncertainty expressed by our US distributors regarding forward shipments for Q4 (April – June 2025),” largely due to new 10% tariffs imposed in April.
Market Analysts Highlight Risks to Pricing Stability
Analysts are flagging concerns around market saturation. Jarden’s Guy Hooper and Nick Yeo cautioned, “While generally a stronger harvest is positive and supports better gross margin realisation, the New Zealand wine industry is currently in a position of oversupply, with brands already participating in elevated promotional activity in order to clear inventories.”
They added, “The current harvest is likely to add further price pressure.”
Foley Wines Achieves Historic Marlborough Harvest
Foley Wines also enjoyed a productive season, with a total harvest of 8,638 tonnes — a 35% rise from 2024 and 6% up from 2023. The company achieved its largest-ever Marlborough harvest, with 6,864 tonnes. Interim CEO Mike Higgins confirmed the milestone last week.
Terra Vitae Records Growth Amid Global Pricing Pressure
USX-listed Terra Vitae harvested 5,362 tonnes in 2025, up 28% from the previous year. The ideal weather and controlled yields contributed the harvest that was completed quickly and cleanly.
“The conditions during the harvest were ideal for a good clean crop, which was completed in a very short time due to yield restrictions,” the company said.
“Market prices for wine have come under significant pressure around the world, including New Zealand, due to excess supply versus demand,” Terra Vitae reported. The company experienced “an average price reduction in 2025 compared to 2024 of over 16%,” however, global oversupply is weighing on pricing.
Export Market Dynamics Under Continued Scrutiny
The wine industry’s export value reached $2.1 billion in the 12 months to March — a 2.3% year-on-year increase. However, April’s trade data, expected from Stats NZ, will be closely watched for the first signs of the impact of new tariffs. As Gregan noted, the effects of these external pressures on forward shipments and international competitiveness are still unfolding.
New Zealand’s wine industry enters a delicate period following a standout 2025 harvest. Wine producers are planning for measured growth amid global headwinds, with supply up and prices under pressure.