French company, Pernod Ricard’s decision to exit the Gisborne wine growing region has cost the company almost NZ$100 million. According to the financial report made by Pernod-Ricard’s holding company in New Zealand, Millstream Equities the sale of Gisborne winemaking facilities, Gisborne-based brands and vineyards cost the company $99.1 million.

The sale of wine brands, Lindauer, Corbans and Saints, as well as the Gisborne winemaking facility and five Gisborne vineyards netted the company $88.3 million from purchaser, Lion and its wine venture partner, Indevin in 2010. However, the 2011 return writes off $83 million in inventory losses due to the sale, plus $33 million in goodwill losses due to the sale.

Since buying Montana Wines from Allied Domecq in 2005, Pernod Ricard has dropped the Montana brand, exited from Gisborne and shifted the executive function of what was once New Zealand’s largest wine producer from Auckland to Sydney.

Related posts:

1. Pernod quits Gisborne, sells Corbans
2. Wine to get selective treatment under new Pernod Ricard entity
3. Australians believe Pernod Ricard price is too cheap
4. Pernod Ricard looks to emerging markets to spruce up its profits
5. Pernod Ricard New Zealand announces sale of Lindauer and other associated brands to Lion Nathan New Zealand