Sustainable profit comes from partner solutions focus, says Sileni chief executive

Nigel Avery is the new CEO of Sileni Estates Winery, which exports to more than 80 countries. Photo / Duncan Brown

Sileni's Nigel Avery is looking forward to working in a team after being the company's "Lone Ranger" in the United States.

He recently returned to New Zealand to be CEO of the award-winning winery where he transferred in 2013 after several years in the family business.

He is looking for further growth for Sileni "in a planned sustainable way".

"If you are not growing you are going backwards," he said.

While the United State market was parochial it was also "very interested in other flavours".

Every state, including Alaska, had a wine industry so the established market was large.

Sileni's competitive edge was "consistent quality that over-delivers on value".

"That is what we have done since we started."

While Sileni was a success overseas the company was "a bit slow out of the box" in New Zealand.

His father Sir Graeme Avery, who has taken the strategic role of Sileni president, had extensive overseas experience when founding the company.

It came after growing medical publishing firm Adis International into a $100 million world-leading business that transformed the pharmaceutical industry by providing quality information on new drugs.

After selling Adis he founded Sileni Estates in 1997 and also led the formation of the Hawke's Bay Wine Country Tourism Association and started the Hawke's Bay Farmers Market.

Under his leadership Sileni grew from a production of 4000 cases in 1998 to more than 750,000 today, exporting to more than 80 world markets.

Nigel Avery said growing the New Zealand market was simply about people tasting the wine.

The Hawke's Bay wine industry was collegial at a production level "which is just awesome for the industry, because it means continual improvement for what we supply".

At a marketing level it was "perhaps not so collegial".

He said making a profit was about pricing that enabled the whole supply chain to be sustainable.

"There are different types of wine companies. We focus very much on providing business solutions for our partners - providing them with excellent product at a fair price where we can all make money.

"That then should naturally flow on to an increase in volume."

The many variables of wine production were a challenge but the changing value of the New Zealand dollar had "a huge effect on profitability".

He said the wider industry was still suffering from a glut of wine that started with a large harvest in 2008.

While new sales channels were developed thanks to lower prices consumers became accustomed to prices that weren't always sustainable.

"Once you drop your price it is nearly impossible to lift."

Despite New Zealand having a wide variety of wine styles he said Sauvignon Blanc would likely continue to dominate overseas sales.