"We are very pleased with a lot of the awards we have won but this is probably the most prominent award in the wine industry.
"The award is recognition of the meticulous attention to detail we have given to ensure our wines are never compromised at any step of their journey."
Mr Peabody established the vineyard in 1997 with his wife, Mary, and the ambition of creating a lasting family legacy.
"We set out with the aim of creating a new world wine legacy that will prevail for 1000 years, where the wines are inspired by old world styles but nurtured in the finest new world terroir."
Wine Enthusiast managing editor Joe Czerwinski said the New Zealand vineyard had shown promise in a short space of time.
"The first vintage released was in 2002 ... but from its very inception its wines are very progressed."
He said the vineyard had produced quality wines that impressed judges and beat out competition from around the world.
"Not only are they making really quality wine but they are doing it on a scale large enough to warrant recognition on the world stage.
"There are lots of really boutique wineries, but the way the Peabody family has approached it, they have really gone for it with all the acreage they have harvested and planted and made wine from, they have affirmed that they have really lofty ambitions."
Aside from the wine, the architecture of the vineyard's buildings, its high- quality restaurant and landscape of its grounds were also admirable, said Mr Czerwinski.
NZ Wine Growers Association chief executive Philip Gregan said the recognition was a coup for Craggy Range, but also for the country's wine industry.
"Obviously a great result for Craggy Range but also very positive affirmation for NZ wine in a very important market." Craggy Range is the second New Zealand vineyard to win the award, with Villa Maria New Zealand also being recognised in 2007.
