Sun sets on liquor empire

The late Michael Erceg's liquor empire Independent Distillers has formally been put on the block.

The family of the liquor baron, who died in a helicopter crash last November, has appointed investment bank UBS to advise the family on ownership options, which could include a float or a sale. The bank yesterday confirmed the appointment but declined to comment further.

Observers say a trade sale is the most likely outcome and believe the business could fetch between $700 million and $1 billion.

Brewers Foster's and Lion Nathan are tipped as the front-runners as they would be able to pay more than others because of the expected cost savings from taking over Independent.

Lion is most favoured because of its strong market position here, although it may have to divest parts of the business to satisfy objections from the Commerce Commission.

Other bidders include private equity buyers and international players such as Diageo, Constellation Brands and Pernod Ricard.

Founded by Erceg in 1987, Independent Distillers popularised ready-to-drink beverages such as Purple Goanna, Vodka Cruiser and Woodstock Bourbon and Cola in New Zealand.