42 Below founder to be multi-millionaire

Geoff Ross could make up to $35 million from the sale of 42 Below.

Seven years after selling his first bottle of New Zealand-made vodka from his Wellington garage, Geoff Ross is about to become a multi-millionaire.

His vodka company, 42 Below, has been sold to Bacardi Ltd for 77c a share, rocketing his personal fortune from next to nothing to more than $35 million.

The cash offer -- a 35 per cent premium on the closing price yesterday of 57c -- represented a $138 million investment by Bacardi, which said it planned to turn the vodka into a global brand sold in more than 130 countries.

42 Below produced 90,000 cases in the last financial year.

Mr Ross said today that with the marketing and financial input from Bacardi, that could easily become 200,000 to 300,000 cases a year, within two or three years.

Mr Ross holds a 26 per cent stake in the company, but said his investment was not something he had focused on since serious production of the vodka began in 2002.

"We have been investing in the brand. We haven't delivered dividend. It is not about returning a profit, we haven't been in that mode. We have been in growth mode."

Mr Ross said the growth of his personal wealth had been as fantastic for him as it had been for other shareholders.

He said while New Zealanders were not traditionally vodka drinkers, they were not traditionally wine makers or high fashion designers a few years ago either.

In the company's first year or so, there were many cynics who said New Zealand could not make vodka.

"When you presented the brand overseas, it was fantastic -- a brand from New Zealand."

He said vodka was the fastest growing spirit in the world and the Bacardi purchase of the company would see "a hell of a lot more marketing and advertising".

He said Bacardi approached his company in June.

The vodka would continue to be made in New Zealand and the vodka bottle would remain largely unchanged with its New Zealand icon.

"The name is 42 Below, which relates to its origin. There is a map of New Zealand on the bottle and that is such a vital part of the brand.

"It will always be New Zealand in a bottle," he said.

The Bacardi offer was for the company and its range of products, including 42 Below, South gin, Seven Tiki rum, Stil vodka, Tahiti dark rum and 420 spring water.

The Bacardi offer was conditional on it obtaining 90 per cent of the company. Formal offers would be sent to shareholders early in November.

- NZPA