Yealands sale won't halt expansion

The Crossroads winery operation, including three vineyards, has been placed on the market.

Yealands is expanding in Hawke's Bay, despite putting its Crossroads winery and three vineyards on the market, says Yealands Wine Group chief executive Jason Judkins.

The sale does not include the Crossroads name.

"We are carrying on with the Crossroads brand and are going to expand and grow it internationally," he said.

"It is a great brand ... but we are moving away from owning our own vineyards to partnering with growers or leasing. We are not abandoning Hawke's Bay by any means.

"We decided our model out of Hawke's Bay is an expanded-grower model like we have in Central Otago."

With the expansion of its Marlborough winery "it makes sense, from a Marlborough perspective, to consolidate winemaking there".

Grape-growing contracts with Hawke's Bay producers will continue, with the grapes being transported to Marlborough.

Crossroads was a privately-owned boutique winery when established in 1987 and after a major upgrade in 2009 became part of Yealands in 2011.

The winery and cellar door are at the 10.98ha Home Block vineyard on Fernhill's Korokipo Rd, with the 700-tonne winery, administration centre, cellar door and tank farm housed on a 716sq m complex.

Also for sale are the 59.1ha Kereru vineyard in Maraekakaho's Kereru Rd and the the 11.83ha Gimblett Gravels vineyard bordering Omahu and Mere Rds near Hastings.

The Gimblett Gravels vineyard is part of the Gimblett Gravels Winegrowers Association for the renown 800ha grape-growing area. The vineyard produces syrah, cabernet franc, cabernet sauvignon and chardonnay grapes.

The other two vineyards grow pinot gris, chardonnay, gewürztraminer, sauvignon blanc and merlot. The Kereru Rd block has 14ha used for grazing, allowing for expansion.

Bayleys agent Glyn Rees-Jones said the properties were being sold by tender, closing on September 29, with Yealands open to selling individual parcels.

"The number of wine awards, trophies and accolades from these Hawke's Bay vineyards is an indication of the quality of grapes produced from all three properties," he said.

All blocks had established infrastructure: water-pumping stations, storage sheds, fencing, three-phase power and multiple water-extraction and waste-discharge permits.

Yealands is the country's sixth-biggest wine producer, with founder Peter Yealands selling 80 per cent of the company last year to community-owned lines company Marlborough Lines.

This year, Yealands bought a 266ha Marlborough farm for $4.35 million.

Mr Judkins said the new owner supported growth and while Marlborough was "obviously our lead" Yealands was not a regional company.

Grapes were also sourced from Gisborne, Central Otago and Nelson.

"We pool various varietals from around the country and believe in the whole New Zealand wine industry," he said.