Try the gin, its bouquet is excellent

By DITA DE BONI

Montana Wines is to start distributing some 70 lines of spirits, beers and pre-mixed liquors to on-licence premises throughout the country on behalf of Lion Nathan-owned New Zealand Wines & Spirits.

The move, which will expand Montana's existing distribution channel to restaurants, bars and hotels, comes as DB-owned Allied Liquor officially winds up its marketing and distribution operations.

Montana's new portfolio for on-licence distribution will include Johnnie Walker Red scotch whisky, Gordon's Gin and Smirnoff Vodka - the top three spirits in their respective categories - as well as Steinlager and Lion Red beers.

Other entities, including New Zealand Wines & Spirits, will continue to supply the same brands to both on and off-licence premises.

Earlier this year, Montana added several smaller New Zealand wineries to its distribution list, including Babich, C.J. Pask and Te Motu labels.

Montana managing director Peter Hubscher said the disintegration of Allied had left a distribution gap that Montana had been asked to fill.

"We had a lot of comments from customers asking what could be done to replace Allied's distribution. We said, 'What do you need?' and they asked for a full-service, competitive portfolio.

"We can't carry absolutely everything but our range is now wide enough to meet people's reasonable needs - and people don't want to be dealing with numerous different distributors representing different things."

Montana would not try and take on distribution to off-licence premises like supermarkets, he said, as New Zealand was not large enough to accommodate two large-scale distributors.

Currently supermarkets and large retail stores are supplied by breweries and their distribution arms. They also often deal directly with wineries when buying wine.

Tasman Liquor Co - the distribution arm of NZ Wines & Spirits before being sold off - is now the largest distributor of a mixture of brands, including some of the Montana range, destined for off-licence premises.

Distribution of the new brands to the on-licence trade will account for only 10 per cent of Montana's total distribution volume, but Mr Hubscher declined to put a dollar value on the new business.

"It's hard to say how much the new business will mean in dollar terms - it's uncharted territory.

"But our advantage is service, not so much price."

The corporate affairs and sponsorship director of Lion, Graham Seatter, said the benefit to Lion would be that if a particular restaurant stocked Montana products, it would also be able to source beer and spirits products more easily.

He played down any possible conflict of interest between Lion's own distributors and Montana in competition for outlets.

"There may be other wineries and others who want to do the same thing [as Montana], but basically the distribution landscape is changing and strategic partnerships are becoming more and more important."