Int. Investment Pours Into Kim Crawford Wines

More International Investment Pours Into Kim Crawford Wines

Kim Crawford Wines today secured an effective doubling of the Investment into New Zealand by parent company Vincor International, with the purchase of a Marlborough winery for more than seventeen million dollars.

Announcing the purchase Kim Crawford said

"When Vincor bought us nearly two years ago, it was a first for our wine industry, a brand only buy, not a vine, a square foot of land or a brick was sold, just intellectual property, the rights to the brand of Kim Crawford Wines. This investment today with the winery purchase, is proof of the success of that brand buy, for us and for Vincor International. I think this proves the worth of the work and focus on brand development and the brand model, not just for our business, but for the future of the New Zealand wine industry as a whole."

From a wine making perspective Kim Crawford says the winery purchase is boon to the business.

"The purchase of this winery means we have a winemaking team resourced to be focused entirely on our own wines and on our own vision without distraction. It's going to improve quality, guarantees we can manage increased supply and owning the winery outright, means a very welcome decrease in the cost of production."

Vincor International is the third largest beverage distributor in North America and Company Principal and Co-Founder Erica Crawford says Vincor's distribution networks have been crucial in allowing the strength of the brands to show through and deliver sales.

"In wine, distribution is everything, that is until you get your distribution right, once you've done that then brand is everything. Wine shelves and even the waiting rooms to see wine buyers the world over, are crowded and competitive places. It takes strong, lively brands to get through the noise, firstly to grab consumer attention, then to earn their loyalty."

Kim Crawford wines have had significant successes this year internationally, for example Kim Crawford 2004 Marlborough Sauvignon Blanc is the only NZ wine to be selected in the Top 100 Wines of The World in Wine Spectator Magazine, without doubt the most influential wine magazine in North America, if not the world.

Erica Crawford says profile and brand are important, but it all comes back to winemaking.

"Kim works very hard making excellent wines at every price point. We have tremendous success in supermarkets as well as at premium price points with our individual, small parcel, hand made-wines that only go to selected retailers and restaurants here and overseas.

This winery purchase is a tremendous vote of confidence in our approach, which is all about respect for the quality demands of NZ wine, as well as the demands of the consumer. In buying this winery, Vincor have moved to guarantee themselves a surety of supply of Kim Crawford Wines for the years ahead."

For comment please contact Erica Crawford mobile 021 386 140 ericacrawford@kimcrawfordwines.co.nz

Note to editors: Winery Purchase Summary KCW has secured the purchase of a Marlborough winery and some surrounding land, for $17.8 million. The winery is at Marlborough Valley Cellars in Riverlands Industrial Estate and Kim Crawford Wines have been leasing the winery since 2000 from NZ Wineries, a specialist design build and lease back company experienced in the provision of specialist wine and wine processing facilities. The winery has now been purchased from NZ Wineries.

2005 Royal Easter Show Wine Awards Wins For Kim Crawford Wines

In the just released 2005 Royal Easter Show Wine Awards, Kim Crawford Wines has been awarded Gold medals for 2004 Flowers Marlborough Sauvignon Blanc and 2004 Tietjen-Briant Gisborne Chardonnay, Silver medals for 2002 Anderson Vineyard Marlborough Pinot Noir, 2004 Marlborough Pinot Gris and the 2004 Doc's Block Hawkes Bay Chardonnay, as well as an additional six bronzes for the remaining wines entered.

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