When a business is worth more than £1.1 billion in global export value sales, it inevitably emits a megawatt beacon to international investors, who come hopping and pecking like glossy-winged magpies drawn to a sparkling jewel. As one of the wine trade’s most glittering gems, with 421 million bottles shipped out of the country last year (according to NZ Winegrowers), New Zealand attracts more magpies than most.
In November, Australian wine giant Treasury Wine Estates (TWE) became the latest to announce plans to acquire a “substantial” Marlborough vineyard. The considerable purchase in the region’s Wairau Valley will add heft to TWE’s existing land there to grow the company’s New Zealand footprint from 505ha to 750ha.
Kerrin Petty, TWE’s chief supply and sustainability officer, says the acquisition is an important step in expanding TWE’s premium wine portfolio, “and ensuring we can keep up with consumer demand – now and well into the future”.
However, TWE is by no means the first overseas investor to snaffle up fertile land in New Zealand for the purpose of winegrowing.
In 2010, French-owned LVMH took over the ownership of Cloudy Bay as part of its portfolio acquisition of Estate Brands. A few years later, in 2014, Mud House sold all five of its vineyards (totalling 596ha) to Hong Kong-based QWIL Investments (NZ) Pty Limited in a deal estimated to be worth around NZ$46.4m (£21.9m), with QWIL Investments subsequently agreeing to lease the vineyards to Australian wine company Accolade.
Pernod Ricard owns Brancott Estate, including its Stoneleigh and Church Road labels, while Constellation Brands has Kim Crawford, Selaks and Crafters Union on its books. Foley Family Wines, headquartered in California, owns 14 different New Zealand wine brands, including Te Kairanga and Clifford Bay.
Varying degrees of enthusiasm
The recent news of TWE’s expanding presence in Marlborough has been met with varying degrees of enthusiasm.
Natalie Christensen, chief winemaker for Yealands, believes that the increased interest in the region proves “there is a real strength, uniqueness and global demand for New Zealand Sauvignon Blanc that can only be sourced from Marlborough”.
Villa Maria sees similar commercial advantages to the arrival of international heavyweights. “Foreign investment has helped to establish an industry scale and reputation that has allowed consumers across the globe to fall in love with New Zealand wine,” Patrick Materman, director of winegrowing, tells the drinks business.
“Lifting the profile of our flagship wine varieties benefits everyone.”
However, as Materman puts it, being 100% New Zealand-owned places Villa Maria in a plum position. “We can be more agile, make decisions faster and respond to market and consumer demands,” he says.
For others, the news that TWE has acquired an even bigger slice of the pie smarts for reasons seeded centuries ago, and reaching beyond commercial rivalry.
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