Pernod Ricard to close Tamaki site, 90 jobs at stake

Pernod Ricard will close its Auckland production facility that produces Brancott Estate wine. Photo / File

French wine and spirits company Pernod Ricard is set to close its Tamaki production facility next year, leaving the future of 90 jobs up in the air.

A spokesman for the company confirmed it was currently in consultation with employees but would not provide details on how many jobs would be cut.

"To improve our operational efficiency, we have taken the difficult decision to close the Tamaki site in the next 12-18 months," Brett McKinnon, Pernod Richard global operations manager, confirmed to the Herald.

"Our number one priority is the wellbeing of the team, and we are working closely with them to minimise the impact wherever possible."

The site could close as early as March next year, the Herald understands.

Following the closure of the site, which produces local wine brands, including Brancott Estate and Stoneleigh, the company plans to utilise other "Pernod Ricard Winemakers facilities and third party support in Auckland" to carry on production, a spokeswoman for the company said.

She did not specify if this would include offshore facilities.

E tū, the union for Pernod Ricard workers, has been contacted for comment. The union will visit its members at the Tamaki site tomorrow.

Pernod Ricard is also the manufacturer of wine brand Montana, G.H.Mumm, Absolut Vodka and Malibu, among other brands.

Last year, Pernod Richard's New Zealand division took a hit. Local holding company Millstream Equities reported a net loss of $182.4 million in the 12 months to June 30, 2018, according to financial statements lodged with the Companies Office.

Its annual loss for the 2018 financial year widened after writing down the value of its assets and investments by $119m. Its loss increased from a net $105.3m posted a year earlier.

Pernod Ricard's gross profit almost halved in the 2018 year following an 8.7 per cent fall in sales. Higher costs also flattened its margins.

The company closed its Hawke's Bay Winery in Napier in 2017 moving production to the Church Road winery down the road.

- additional reporting BusinessDesk.