Deal brings more wine into stores

By SIMON HENDERY

Evidence of Lion Nathan's move into the wine business is about to appear on local supermarket shelves.

The transtasman brewer expanded into wine late last year, when it bought upmarket Australian winemakers Petaluma (100 per cent) and Banksia Wines (85 per cent).

As a result, Lion marketing subsidiary New Zealand Wines and Spirits has taken over the sales and distribution of Petaluma's portfolio of more than 30 wines.

New Zealand Wines and Spirits managing director Mark Brunton said the wines would begin to appear in liquor stores and supermarkets within the month.

Much of Petaluma's range has been available in New Zealand for several years, but the wines have been only "hand sold", mainly to high-end restaurants and specialist wine shops.

New Zealand Wines and Spirits will use its pulling power with supermarkets and liquor stores to raise the portfolio's profile, especially the central Victoria Preese label, which will sell for about $17.95 a bottle.

The company also took over the distribution of Delegat's Wine Estate's portfolio, which includes the Oyster Bay label, this month.

"I don't see us going hammer and tongs straight up against a Montana of this world because they have a large number of brands and a strong presence in supermarkets," said Brunton.

"But we certainly will be a player in the market. Delegat's alone is the fourth largest wine producer in New Zealand, so taking on their brands immediately takes us up into the top four."

Brunton said his company's main focus would be wines in the fast-growing $15 to $20 a bottle price bracket.

"What's happening is consumers are being positively spoilt for choice in terms of quality," he said.

"They're coming in [to supermarkets and liquor stores] saying, 'Okay, I'll trade up from a $12 bottle to a $16 or $18 bottle of wine because the quality is really worth it for that jump'."