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This is one of the major weaknesses for New Zealand, as the major segment in which domestic producer target is the upper premium end. Price sensitivity which may occur from a recession or larger cost occurring from inelastic goods such as food and gasoline is likely to have a dramatic effect on demand...
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Unfortunately due to lower outputs and smaller operations, countries that also cater for these segments are likely to be use dumping as a form of push out competitors like New Zealand who have lower market share.
- Unlike France, New Zealand is not recognised as a traditional wine producer. This could pose as problem when considering that the countries wine is positioned in upper-premium market, the weakness is that consumers may associate high quality wine to be from France or Europe...
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