Villa Maria in new deal with US

Villa Maria managing director George Fistonich. Photo / Paul Estcourt.

Villa Maria, one of New Zealand's largest privately owned wineries, has signed an exclusive export deal with St. Michelle Wine Estates in the United States.

The six-year export partnership will secure Villa Maria's position in the US market - where New Zealand wine imports are growing at 23 per cent a year.

Villa Maria has been exporting wines to the United States for the last 13 years.

George Fistonich, Villa Maria's founder and managing director, said the partnership was important given the challenges of branding and exporting in the huge United States market.

"We are delighted to partner with St Michelle Wine Estates to enable further market growth in the super and ultra premium categories and to cement our position as the leading New Zealand wine brand sold in the US," he said.

St Michelle Estates, based in Washington state, is one of the fastest growing wine companies in the United States. It owns more than 3,500 acres of vineyards and winery holdings in Washington State, California's Napa Valley and the Willamette Valley, Oregon.

Villa Maria will be the sole Kiwi wine brand in St Michelle's portfolio, alongside brands such as Antinori, Champagne Nicolas Feuillatte and Palmes d'Or.

Fistonich said the partnership with St Michelle had many benefits for Villa Maria.

"[St Michelle] understand viticulture, they understand wine making and they understand the importance of branding.

"Quality drives our decision making, so it was critical for us to affiliate with a company that has demonstrated a focus on quality in all areas of its business," he said.

He said all of St Michelle's "associations" were at the top end of the wine market.

"They don't deal with any wine companies that don't have the prestige and ability to produce top quality wines."

Fistonich said St Michelle would deal with all the marketing of Villa Maria wines in the United States. Staff exchanges would also take place between the two companies.

St Michelle's chief executive Ted Baseler said Villa Maria's "acclaimed portfolio" was well-positioned to capitalise on increasing consumer demand in the US.

"Consumers respond to brand authenticity, and Sir George's leadership in New Zealand and his ongoing commitment to innovation and quality initiatives are accomplishments that no other New Zealand winery can match," Baseler said.

Earlier this month the Herald reported on how Villa Maria dealt with a "freak of nature" grape harvest in 2008.

The 2008 harvest resulted in a yield 40 per cent above the usual quantity.

"We knew from our experience that the surplus would lead to discounting and price wars, however, we managed to sell all our stock because of our strong brand and international connections," said Fistonich.

Villa Maria produces its wines at two facilities in Marlborough and Auckland.