The defending series champions were thrashed 31-7 by England in a big upset.
England opened the scoring early in the first half before Gillies Kaka levelled it up minutes later for New Zealand.
However, the All Blacks Sevens conceded a try right on halftime to trail 14-7 at halftime.
England then ran riot in the second half scoring three unanswered tries to run away with the victory.
New Zealand made the quarter final after emphatically beating France 36-7, Japan 59-0 and Samoa 28-17 in Pool A group games.