Framingham wines sold to Australian company

Marlborough company Framingham Wine has been sold to Australia's biggest wine and spirits company.

Orlando Wyndham, a subsidiary of French international drinks group Pernod Ricard, will acquire 100 per cent of Framingham subject to the approval of the Overseas Investment Commission.

The sale -- for an undisclosed amount -- includes the Framingham brand, its 1500 tonne winery and cellar door and surrounding vineyard, but the main vineyards, including the 120 hectare Kaituna vineyard, have not been sold.

Founder and chairman of Framingham, Rex Brooke-Taylor, said the decision to sell was based on the increasing difficulty of marketing wine, with more labels and increasing competition on the global market.

More and more companies, particularly smaller companies, would be hit by that changing market, and many would look for strong international partners, he said.

The sale echoes the sales of other wine companies to large players in recent years. In 2001 Montana Wines was sold for $1 billion to Allied Domecq, a company of similar size to Pernod Ricard.

Family-owned Wither Hills was sold to Lion Nathan in 2002 and last year Vavasour Wines in the Awatere Valley was sold to the New Zealand Wine Fund for between $10 and $15 million.

Mr Brooke-Taylor and Framingham chief executive Ken Rogers said the sale would see Framingham increase in size, with access to distribution chains in over 40 countries.

"One of the key things is that yes, we will be growing and we will be looking to increase our grower base," said Mr Rogers.

"We have got quite a strong growth curve ahead of us," said Mr Brooke-Taylor, who will stay on as director and grower.

Orlando Wyndham chairman and chief executive Laurent Lacassagne said Framingham would complement and add value to the company's existing brand portfolio, which includes its flagship brand Jacob's Creek and Wyndham Estate.

"Framingham is a well-established premium wine business and we look forward to taking advantage of immediate growth opportunities in New Zealand, Australia and, in the longer term, a number of other international markets."

He said Framingham would also benefit from Orlando Wyndham's winemaking and marketing expertise as well as Pernod Ricard's world-wide distribution network.

In 2001 Orlando Wyndham sold 900,000 cases of Jacob's Creek in Australia and 4.5 million cases internationally. Its other label, Wyndham Estate, sold 950,000 cases that year.

According to the company's website it owns or operates directly 2000ha of vineyards in the Barossa Valley, Padthawa, Coonawarra, Langhorne Creek, Hunter Valley, Cowra, Mudgee and the Riverland and in 2002 the company processed 175,000 tonnes.

In comparison, Framingham produce around 30,000 cases.

Framingham was established in 1991.

Mr Brooke-Taylor said establishing Framingham as a premium Marlborough wine brand had been an exciting experience over the past 13 years.

But he said he was pleased to see the company joining Orlando Wyndham's portfolio of premium brands and was looking forward to remaining involved in the next phase of Framingham's development on the international stage.

- NZPA