| Decision | Consent granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 23 February 2021 |
| Pathway(s) | Sensitive land – substantial and identifiable benefit to New Zealand |
| Investment | An overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in approximately 11.77 hectares of land at 128 Bedford Road, Renwick, Marlborough (Land). |
| Specify amount type | $2,350,000 |
| Applicant | Cloudy Bay Vineyards Limited Diageo Plc, United Kingdom (34.0%) LVMH Moёt Hennessy Louis Vuitton SA, France (66.0%) |
| Vendor | Bedford Estate Wines Limited New Zealand (100%) |
| Background | The Applicant is an established New Zealand winemaker, well-known for its sauvignon blanc wine which represents approximately 78% of its output and of which 98% is exported. Cloudy Bay is ultimately 66% owned by LVMH Moёt Hennessy Louis Vuitton SA, a multinational luxury brand conglomerate, and 34% owned by Diageo plc, a United-Kingdom based alcohol beverage company. The Applicant seeks to acquire the Land, which adjoins one of its existing vineyards, and is currently planted in 4.98 hectares of chardonnay vines and 5.09 hectares of sauvignon blanc vines. It plans to replant 1.19 hectares of chardonnay vines in sauvignon blanc at a higher vine density and apply its labour-intensive harvesting techniques. It also plans to introduce additional investment for development purposes into New Zealand. The Applicant’s long track-record of wine production and its existing global distribution networks will assist in its ability to command a premium overseas as compared to average New Zealand sauvignon blanc prices. |
| More information | Catherine Reid Barrister |
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