Babich uncorks big-four deal

WELLINGTON - Growing local and international demand has seen Auckland-based Babich Wines buy into New Zealand's largest contract winery.

Babich is joining other leading winemakers - Shingle Peak Wines, Nautilus Estate and Wairau River Wines - as an equal partner in the Marlborough joint venture Rapaura Vintners.

Rapaura Vintners is a winemaking and bottling plant which processes up to 5000 tonnes of grapes a year.

Babich managing director Joe Babich said the arrangement would consolidate its position in the Marlborough region, where it has purchased several established vineyards to cater for rapid growth in both local and export markets.

Babich currently grows sauvignon blanc, pinot gris, riesling and pinot noir in the region.

"We are increasing our Marlborough grape tonnage, and the Rapaura facility is ideally suited to process this fruit," says Mr Babich.

"The new arrangement will guarantee us ongoing access to top quality production facilities."

Babich bought its 25 per cent shareholding from Foxes Island Wines, the founding shareholder in Rapaura Vintners.

Foxes Island managing director John Belsham says capital from the shares sale will be used to invest in the growth of the company, which produces premium chardonnay and pinot noir for markets in New Zealand, the US and Japan.

- NZPA