Co-chair of the Decanter Wine Awards, Master of Wine Michael Hill Smith, said the latest awards had seen some "exciting wines and revelations" emerging.
Craggy Range director Mary-Jeanne Hutchinson was delighted to hear of the award.
"Best in Show at the Decanter World Wine Awards is an immense achievement which we are very proud to receive," she said.
"We have always thought that Te Kahu punches well above its weight and consistently delivers an exceptional wine that represents what a truly exceptional site the Gimblett Gravels is."
Now in its 16th year, the Decanter World Wine Awards is the world's largest and most influential wine competition.
Judged by the top wine experts from around the globe, the DWWA is trusted internationally for its rigorous judging process.
Decanter is widely regarded as one of the most influential wine magazines in the world, both by industry insiders and its dedicated consumers.
Based in the UK, Decanter is published in over 90 countries and boasts an impressive online following.
Julian Grounds, chief winemaker at Craggy Range, described the elements that led to the 2016 Te Kahu.
"During our inception, as we looked to many of the different great vineyard sites of New Zealand, we always had in mind that the ultimate desire was to make a blended wine from Bordeaux varietals that could sit comfortably on the world stage," hew said.
"This led us to Gimblett Gravels, with its unique stone content in combination with Hawke's Bay's temperate weather, allowing the ripening of all the key varietals of this blend."
Grounds described the 2016 vintage as one of fantastic ripening weather.
"With warm days and dry weather conditions, we saw the accumulation of an abundance of flavour in conjunction with optimal tannin ripeness — truly a fantastic year."
Along with the Best in Show for Te Kahu, all seven of the wines entered by Craggy Range in the 2019 Decanter World Wine Awards received a medal, including gold for the 2016 Te Muna Road Vineyard Pinot Noir.