Pernod will began laying off staff from March next year, with most expected to finish between April and June. The facility is expected to close for good in December, and production outsourced to "third-party support" in Auckland and to
its existing wineries in Blenheim and the Hawke's Bay.
The company told the Herald the facility was "difficult to sustain", and two major contracts had come to the end, impacting its decision to close the site.
"We have invested a lot in the site over the years, but with clearly ageing infrastructure, and the changing nature of the Glen Innes area, [it is] putting constraints on operations," Brett McKinnon, Pernod Ricard's chief operations officer, said.
"The site is proving difficult to sustain in its current state and we need to evolve - this is the primary reason for the closure. It is important that we improve our operational efficiency to create the conditions to better capture growth opportunities, both now and in the future."
Workers and about 25 E tū union members from the Tamaki facility were told of the company's plan to close the site in the second week of November, with the consultation process taking effect shortly after.
Raymond Wheeler, team leader at E tū, told the Herald "economic headwinds" had hit Pernod Ricard, along with the loss of a couple of major contracts, which had forced the company to make the decision to close the production facility.
The union said it was satisfied with how Pernod Ricard had handled the situation with its staff.
Millstream owns a number of New Zealand wine brands including Brancott Estate, Stoneleigh and Jacob's Creek.