NZ: Martinborough wineries to merge
By just-drinks.com editorial team | 16 January 2004
The directors of two New Zealand wineries, Martinborough Vineyard Ltd and Burnt Spur Martinborough Ltd, have agreed on a proposal to merge the two companies and their operations.
The proposal has the support of the shareholders of Martinborough Vineyard and will be put to Burnt Spur shareholders for their approval at a special general meeting on 4 February. If approval is given, the merger will take effect during February.
Because it is a public company, Burnt Spur will be used as the vehicle for the proposed merger, which will be accomplished by issuing new Burnt Spur shares to Martinborough Vineyard shareholders. The merged company will be called Martinborough Vineyard Estates Ltd.
The chairman of the new company will be Roger Gaskell, a Martinborough resident and currently a Director of Burnt Spur. Duncan Milne, currently executive chairman of Martinborough Vineyard Ltd, will be a director of the new company.
"The merger will combine the resources and skills of two successful yet relatively small Martinborough wine companies, allowing them to achieve better scale in their grape growing, winemaking and production, marketing and distribution. The new entity will have approximately 160 acres of premium varietal grapes under cultivation in its own vineyards," a statement said.
No staff redundancies are expected as a result of the merger, but there will be some changes in responsibilities and reporting lines.
Burnt Spur's chief executive Stephanie Hagen will head the new company.
Both the Martinborough Vineyard and Burnt Spur labels will be retained in the meantime, so that the new company can take full advantage of the reputation these brands have achieved in the marketplace. The companies' current arrangements with distributors and agents will also continue.
Combining the strengths of two existing producers will enable Martinborough Vineyard Estates Ltd to focus on its vision of making the best Pinot Noir in New Zealand, with a supporting portfolio of top quality fine wines," the statement concluded.