| Decision | Consent granted Section 12(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | The Minister for Land Information and the Associate Minister of Finance |
| Decision Date | 12 April 2022 |
| Pathway(s) | Benefit to New Zealand (Benefit to New Zealand - S&I) |
| Investment | An overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in approximately 46.7669 hectares of land at 40 Alma Street North, Renwick, Marlborough; 78 Matthews Lane, Rapaura, Marlborough; and 164 Jacksons Road, Rapaura, Marlborough |
| Consideration | $17,000,000 |
| Applicant | Cloudy Bay Vineyards Limited France (66%); United Kingdom (34%) |
| Vendor | Giesen Group Limited New Zealand (100%) |
| Background | The Applicant is an established New Zealand winemaker, well-known for its Sauvignon Blanc wine which represents approximately 80% of its annual production 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 comprises three separate land parcels that each adjoin other vineyards owned by the Applicant) and replant approximately 5.3 hectares with new Sauvignon Blanc vines. The Applicant also plans to introduce additional investment for development purposes into New Zealand, including the purchase of a new grape press, new stainless steel tanks, vineyard equipment, and constructing a new cellar building to store the new tanks. The investment is likely to result in additional investment for development purposes (new vines, grape press, steel tanks, equipment, and cellar building), increased export receipts (premium price for its wine distributed through its luxury goods distribution network), new permanent jobs (vineyard operators and supervisor), and improved public walking access to the Gibsons/Ruakanakana Creek. 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 Email: catherine@catherinereid.co.nz(link sends e-mail) |
See the attached assessment report linked below, which was published in response to an Official Information Act request:
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