Barry Sutton's vineyard dream has been corked.
Six years ago the Aucklander paid $3million for Awatere Vineyard Estates in Marlborough that is now $24m in debt and about to be put up for sale by receivers McGrathNicol. Westpac called the receivers in on June 1 after Awatere defaulted on a
loan.
Sutton, 63, planted sauvignon blanc and pinot gris on 128ha of the 299ha property. But irrigation problems meant the vineyard had to delay its first harvest until last year.
The year before the industry had enjoyed record sauvignon blanc sales, prices reaching $2400 a tonne.
"The wineries wanted everything they could get," he said.
To be conservative he had based his business plan on getting $2000 a tonne of grapes.
But by the time of the first harvest the tonnage price had slipped to $1600.
He partly blamed the collapse on people being "order takers" when the market was good instead of "order makers", where they had to compete in a competitive market.
He hoped to return to the wine industry soon.
"Everything I've seen about it is just magnificent."
