Overseas investment decision for case 200820019 - Pernod Ricard New Zealand Limited

1. 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; and
2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land over 0.4 hectares that includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993.

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's principal operations in New Zealand are the growing of grapes, production of wine, buying wine and the wholesaling and retailing of wine and other beverages in New Zealand and overseas.

Outline of the Investment:
The Applicant proposes to acquire a leasehold interest over the relevant land to undertake a vineyard development. The land, adjoins land already operated as a vineyard by the Applicant, contains approximately 22 plantable hectares which the Applicant intends to plant in Sauvignon Blanc.

Rationale for the Investment:
The Applicant believes that there is a huge demand that exists locally and internationally for Sauvignon Blanc produced under the Montana brand. The Applicant therefore wishes to expand its vineyards to provide for more Sauvignon Blanc grapes.

The proposed overseas investment is or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Act 2005:
s17(2)(a)(i) - Creation/retention of jobs;
s17(2)(a)(iii) - Increased export receipts;
s17(2)(a)(iv) - Added market competition, greater efficiency or productivity, or enhanced domestic services;
s17(2)(a)(v) - Additional investment for development purposes;
s17(2)(a)(vi) - Increased processing of primary products;

Overseas Investment Regulations 2005:
r28(e) - Previous investments.