Vintners and representatives from about 20 Gibbston, Wakatipu and Central Otago vineyards, wineries and restaurants set up stalls and enjoyed what many said was their busiest day of trade at the festival yet.
Gibbston Valley Station majority owner Phil Griffith said: "The continued success of all of us here in Gibbston is about creating it as a defined destination.
I'd like to think that five years from now, people will say `Queenstown, Arrowtown, Gibbston'."
Alan Brady, Gibbston Valley Wines founder and a Mount Edward director, said the wine industry was all about hospitality and conviviality and that was what he enjoyed about the festival.
For Wild Hare Wines, the smallest vineyard in the valley, the festival gave equal footing and exposure with the big players, co-owners Susan and Terry Stevens said.
"It's the rare occasion when people can come taste a small producer like us because we don't have a cellar door [shop]."
Englishman Richard Thomas was visiting his daughter, Nikky Busst, of Arthurs Pt, and they gave the festival their approval.
"It's a bit like going to an English country fair as it was 50 years ago," Mr Thomas said.
"I've only tried a couple, but New Zealand wine is quite rightly becoming very popular in Europe, because they do have real quality."
Bouncy castles and a barrel-rolling competition attracted plenty of youngsters.
The proceeds of the festival will go to the Arrowtown Cubs and Scouts.
