Applicant
Framingham Wines Limited
Case number(s)
200810008
Decision date
Type
Decision
Decision number200810008
Application number200720084
Date24 January 2008
Offeror/applicantFramingham Wines Limited (formerly known as IW New Zealand Wine Company Limited)
Ultimate applicant beneficial ownership100 percent - Portugal, Sogrape Investimentos SGPS, SA
Beneficial overseas ownership 
- Asset current100 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Pernod Ricard New Zealand Limited and Framingham Wine Company Limited
100 percent - France, Pernod Ricard SA
Business activitiesAgriculture - Horticulture & Fruit - Viticulture
Details of land involved19.746 hectares of freehold situated at Condors Bend Road, Renwick, Blenheim being CTs MB6A/1091, MB6B/1274 and MB6B/1275 (Marlborough Registry).
Regions involvedNelson/Marlborough
Total considerationCONFIDENTIAL
Consent soughtTo acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
The Applicant is a special purpose vehicle established for the purposes of the proposed investment by Sogrape Investimentos SGPS, SA (Sogrape), a privately owned Portuguese wine company. Sogrape has entered into a conditional agreement with Pernod Ricard New Zealand Limited and Framingham Wine Company Limited to purchase the business and assets that comprise the Framingham wine business, including the relevant land.

The Investment:
The proposed investment will result in Sogrape acquiring a fully integrated wine producer situated in the Wairau Valley, Marlborough together with 15 hectares of vineyards to provide a grape supply. Framingham is an established Marlborough based winery producing wines under the Framingham, Red Hill and Tylers Stream labels. Framingham sources grapes from owned and leased vineyards in the Wairau Valley as well as from a number of contract growers.

Rationale for the Investment:
Sogrape owns an extensive range of wine brands all over the world, including Europe and the Americas, which it offers its customers. Sogrape does not own any Australasian brands. The proposed acquisition will enable Sogrape to integrate a New Zealand brand into its wine portfolio for global distribution through the Sogrape network.

The proposal is likely to result in the following benefits:

  1. the creation of new job opportunities in New Zealand;
  2. increased export receipts for New Zealand exporters;
  3. greater efficiency and productivity; and
  4. the increased processing of New Zealand's primary products.
ContactPip England/Nick Gilling
Chapman Tripp
P O Box 2206
AUCKLAND