The New Zealand wine industry has experienced explosive growth in its exports since the early 1990s. As the industry has matured and returns have been proven, foreign investmet has increased, thus causing a significant rise in competition between existing and new firms. Since the beginning of this growth period, the industry's participants have become largely polarized--indeed, the three top producers now control nearly 60% of the country's total production. Consequently, wineries at the smaller, or boutique, end of the market are beginning to struggle. Without firmly established distribution channels or economies of scale, the future is looking grim for the family owned vineyards and wineries. This paper will initially discuss a short history of the industry, followed by an analysis of the competitive positioning of the boutiques, and finally close with a presentation of solutions for the roughly 380 boutique wineries that occupy a dwindling share of the market.