Foley Wines rescues embattled Toast Martinborough festival

Changes could be ahead for food and wine festival Toast Martinborough, after the event was purchased by Foley Wines.

NZX-listed Foley Wines has bought the financially struggling 30-year-old wine and food festival Toast Martinborough.

The annual Wairarapa festival, which attracts thousands every year, faced challenges worsened by the impact of Covid-19 and unfavourable harvest conditions, a joint statement said.

In response to financial constraints, the Toast Martinborough board had a capital raise among existing shareholders, but did not get the required support, the statement said.

Foley Wines had made an offer to buy out shareholders and provide the necessary funds to settle outstanding debts with suppliers.

Foley’s takeover of the event had been supported unanimously by festival shareholders, the statement said.

Foley Wines, already well-established in the Martinborough community through Te Kairanga and Martinborough Vineyard wineries, the Lighthouse Gin distillery, and the recently opened Runholder, would revitalise the festival and its format, the company said.

The acquisition also aligned with the wider Foley business’ broader interests in the region, including Wharekauhau Country Estate, and Wellington’s Pravda, Shed 5, and Crab Shack.

Foley Wines is 80 per cent owned by the Foley family of California, with about 6 per cent owned by New Zealanders. Established in 1988 as Grove Mill Wines, it merged with Foley in 2012. Brands include Vavasour, Dashwood, Grove Mill, Sanctuary, Te Kairanga and Mount Difficulty. The company also makes gin. Revenue in the 2022 financial year was $66.6m.

Pete Monk, former chairman of Toast Martinborough, acknowledged the hurdles faced by the festival in recent years and expressed gratitude that Foley Wines could step in.

“Toast has been an iconic event in the Wairarapa for three decades. However, the past few years have posed significant challenges,” he said.

“This outcome hands over custodianship to one of our founding shareholders, meaning the festival is in excellent hands for its next chapter.”

Foley Wines chief executive Mark Turnbull said it was an exciting move for the business, which was committed to maintaining the history of the festival while ensuring it remained relevant for the future.

“While the strategy is still evolving, our team intends to work collaboratively with the community to ensure Toast Martinborough remains an iconic event for years to come.

“Based on feedback from festival-goers, our initial view is that the festival may be better suited to February rather than November, and a Saturday rather than a Sunday, though further details will be provided in due course.”

Foley Wines had also covered the $5000 pledge to the Martinborough Youth Trust previously made by Toast Martinborough, the statement said.

This would be matched by Wharekauhau Country Estate and Foley Hospitality, bringing the donation total to $10,000.

The funds will go toward the Pump Track Project – a community-driven initiative to build a pump track in Considine Park.

The project is due to start this year.

Existing ticket holders for the 2024 Toast Martinborough would be contacted directly by the event’s ticketing provider, iTICKET NZ, to advise next steps and options.