When former sharebroker and university lecturer John Coney bought the business in 1995, Morton Estate was producing 30,000 cases.
"It takes time for the new vineyards to come into full production but we now have the economies of scale to develop the domestic market and increase our exports," said Mr Coney, who made a flying visit to Katikati from his Canadian home in Whistler, near Vancouver.
Morton Estate's White Label Chardonnay and Nikau Reserve Chardonnay have just been selected for Air New Zealand flights - the initial orders were 500 cases of White Label to be served on domestic services and 1000 cases of Nikau for the international business class.
The Cellar Aged Merlot Cabernet and Merlot - which picked up silver and bronze medals at the recent Spiegelau international competition in Auckland - has gone into the country's top 15 Countdown supermarkets as premium wines.
Morton Estate, with an annual revenue of about $20 million, is eyeing the export markets of South-East Asia and, for the first time, is sending bulk wine overseas. "The world has changed and the new market is Asia. Merlot is coming on strong there," said Mr Coney. "The New Zealand wine industry is well placed, logistically and style-wise, to serve that market."
He said there was also much talk in the industry about exporting bulk wine. It was cheaper to bottle overseas and Morton Estate had just sent sauvignon blanc in bulk to Britain.
"Our production is ahead of our own branded markets and I think selling bulk wine is here to stay. Big supermarkets in the UK, for instance, want to use our wine for their own brands," Mr Coney said. "New Zealand has only 1 per cent of the world's total production, our costs are high and we can become a bulk wine exporter."
Morton Estate also exports to Japan, Europe and Australia, and has a sales force of 10.
The head office support staff remain in Katikati. Morton Estate, on the state highway just south of Katikati, was established in 1978 by kiwifruit grower Morton Brown and the original vineyard produced its first vintage in 1983 and soon picked up a succession of awards.
Its premium Black Label Chardonnay first won gold medals at the 1984 and 1985 Royal Easter Shows in Auckland.
The 1995 vintage was named the best chardonnay in the world after winning gold at the London Wine Challenge, and Morton Estate has been invited three times to pour at the New York Wine experience.
Morton Estate bought the Riverview Estate in Hawke's Bay in 1988 and then the Stone Creek vineyard in Marlborough's Wairau Valley, and the grape growing shifted from Katikati.
After taking over the business, Mr Coney developed the Colefield, Kinross, Tantallon and Campbell's Brook vineyards in Hawke's Bay and the latest Kuranui vineyard in the Awatere Valley near Blenheim.
Morton Estate now produces a full range of red and white wines, from chardonnay, sauvignon blanc (30 per cent of production), aromatics such as viognier, riesling, pinot gris and gewurztraminer to the Bordeaux-style merlot, cabernet franc, cabernet sauvignon, malbec, syrah, pinot noir, a new variety montepulciano - and, of course, the renowned methode traditionelle sparkling wine (only the French are allowed to call it champagne).
The Katikati wine company makes nine varieties of sparkling wine based on the traditional French method and its 2000 Blanc de Blanc Methode Traditionelle last month won gold at the Spiegelau competition.
Morton Estate's Black Label Methode Traditionelle was best in its class at the London International Wine and Spirit competition and the IQ3 (improving quietly over three years) was placed in the top 100 at the Sydney Wine Show.
Nic Millichip, Morton Estate winemaker, will let the sparkling wine lie in the cellar in bottles for up to five years and mature properly.
That's the case of the 2005 Blanc de Noirs which will be released later this month. It has already gained a 93 out of 100 from international judge and Master of Wine Bob Campbell.
A non-vintage sparkling rose will also be launched.
"The way we do it is what is done in France," said Mr Coney.
"We are the only company in New Zealand using the method of keeping back batches from every single vintage so we can back-blend and keep the consistency (taste and quality)."
Although the grapes are crushed and processed in the Hawke's Bay and Marlborough, all the juice is brought to Katikati for blending, bottling and storage in its temperature-controlled warehouse.
The Katikati winery has more than 100 storage and fermentation tanks ranging in size from 2500 to 200,000 litres.
Up to 30 staff, including 20 full-time, work at the winery, and bottling takes place six days a week, in two shifts, throughout the year.
During the past three years, Morton Estate has taken on 10 extra staff at Katikati, including five for the Saturday bottling shift.
Morton Estate uses the original Cape Dutch building alongside the main road for its Cellar Door retail sales and is looking to re-open its restaurant.
"We are making a strong contribution to the local economy, we have quality staff, and we are committed to Katikati. It's the soul of the company," said Morton Estate's sales and marketing director, Fiona MacDiarmid, who operates out of Auckland.
