Wine lovers will have to pay more for their favourite tipple.
This year's grape harvest is down 18 percent.
New Zealand Winegrowers chief executive Philip Gregan says the reduced crop will introduce a new tension to the sector's supply-and-demand balance.
Mr Gregan says some of the great bargains that consumers have seen over the past three years are going to disappear.
"Some of the great bargains that consumers have seen over the past few years will no longer be there given the smaller vintage and tighter supply."
Mr Gregan says history has shown that wineries in a short supply situation tend to favour export markets over the domestic market, so there will definitely be less New Zealand wine available here in the coming year.