A most dramatic change with long-term ramifications for the hospitality trade and New Zealand’s wine industry has occurred with the takeover of Eurowine by a new joint venture between Vintage Wines & Spirits and Bill Foley, of Foley Family Estates, owners of Vavasour Wines, as well as a number of wineries and brands in California. The new company will be known as Eurovintage.
According to Vintage managing director Nick Hern, “Things had to change. No one is making the money they used to. Eurowine are strong in fine wine and on-premise, and we are strong in grocery. Now our challenge is to put the two together successfully.”
One issue that will be of concern to the new company will be sustaining the close relationships Eurowine has built up with New Zealand’s leading wine producers. With many not aware of the announcement until yesterday (July 26th), there is a degree of concern that Eurowine’s goodwill has already been seriously damaged, but at Ata Rangi they are confident that it is the right decision, given the financial pressure on the wine distribution sector and Eurowine’s chances of surviving the next 12 months.
Te Mata’s Nicholas Buck told foodnews, “I think we will be well served by the new, bigger entity. Eurovintage combine a lot of strengths, covering all channels particularly well, and with the strongest portfolio in the market.
“We have had an incredible relationship with Eurowine, and I am confident that will continue. My dad and Nick Hern’s worked together in the trade years ago, so the personal relationship is already strong,” he added.
Eurowine head Brett Newell and Nick Hern will be joint chief executives of Eurovintage, and Newell believes that the bond between the new company and its premium wine producers will be maintained, which will be a key to the future success of the company in on-premise trade.
“Eurovintage has a better offer for the trade and improved services,” Newell told foodnews, adding that he will be talking to all principals individually over the next few days.
Officially Eurowine’s shareholders will need to approve of the sale of the business to Eurovintage, but the new operation is expected to proceed without hitches and be fully functional by the end of August 2010.
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