Lion with exclusive distributor

By SIMON HENDERY

Brewer Lion Nathan's ongoing strategy of diversifying into premium wines has taken a step forward with the appointment of a major luxury wine marketing company to sell its brands in the US.

The exclusive distribution agreement with Illinois-based Paterno Wines is welcomed by New Zealand winemaker Brent Marris, who sold his Wither Hills winery to Lion last year.

Paterno has a global portfolio of 27 wine producers and markets more than 35 per cent of wine sold for over US$14 ($24) a bottle in the US.

"That fits totally with the Wither Hills profile," said Marris, who sold the family business last September for $52 million and has stayed on to run it.

"The US is the next big market for our attention and we're approaching it very seriously with Paterno.

"We'll let the next 12 months quietly unfold and then take it from there."

The distribution deal also covers three of Lion's premium Australian wine brands - Petaluma, St Hallett and Argyle and may be extended in time to other labels.

Lion chief executive Gordon Cairns said the company recognised that a key component of entering the US market was an alignment with a fine wine dealer like Paterno.

"Paterno has the most professional premium wine sales force in the United States and their commitment to brand building, channel management and customer education is impressive."

Paterno already has Marlborough label Wairau River on its books.