Montana takeover 'for the good of all'

Winemaking giant Montana's proposed takeover of its biggest rival, Corbans, should go ahead for the good of the New Zealand industry, says an international wine consultant.

Bruce Kemp, Global Wine Advice chief executive and former boss of Southcorp, Australia's biggest wine company, said international wine production was on a clear and unstoppable move toward globalisation.

If Montana were to be a serious player in the world market, it needed the extra mass it could get from buying Corbans,he told the Grape Growers Council national conference in Nelson.

An enlarged, more globally competitive Montana would "help brand New Zealand to get out to the rest of the world and make it easier for the mid-sized and smaller companies."

Montana's bid is being considered by the Commerce Commission, which is due to announce its ruling on September 6.

Mr Kemp said the industry should not be concerned about the possibility that Montana could be taken over by an even bigger international wine company, as that would be "another step down the yellow brick road towards globalisation".

The trend was in part being driven by the demands of dealing with the giant retail chains, which wanted to deal with the smallest possible number of suppliers.

- NZPA