New Zealand's Montana and South Australian-based Banksia Wines have signed a distribution agreement for Tatachilla, one of Banksia's flagship brands.

Under the terms of the deal, Montana will assume responsibility for the distribution of Tatachilla in key Australian eastern seaboard markets which, according to Banksia's managing director Keith Smith, would replace about six distribution networks currently used for the brand.

In a statement issued by the company Smith said that the agreement, which would take effect from 1 September 2001 would include provision for further cooperative arrangements to place Tatachilla in other Australian markets.