By Nick Smith
Friday 8th March 2002 |
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Lion investor relations director Warwick Bryan said the brewer was looking for a top Marlborough Sauvignon winery to complement its premium-brand Australian interests.
It was also possibly in the market for a Pinot producer to round out its Australian Chardonnay, Cabernet Sauvignon, Riesling and Shiraz varietals, he said.
It paid nearly $A300 million for Petaluma and Banksia wineries after losing a bitter bidding war with UK giant Allied Domecq.
While critics pilloried Lion for the price it paid for the Australian companies and the way it made a dog's breakfast of its failed Montana takeover, Mr Bryan said the amount paid was "reasonable given the quality of the assets we acquired."
"It was a full price but we believe it was a reasonable price," he said.
"By 2005 we will be returning its cost on capital. We are on track to achieve that."
Lion was pursuing a long-term premium wine strategy but "to be successful in that business, you need an outstanding portfolio."
"Clearly there are two gaps [Sauvignon Blanc and Pinot Noir]. New Zealand is recognised as producing world-class Sauvignon Blanc. Obviously one of the places we are looking at is Marlborough.
"We don't have anything in our sights but, if the right opportunity came along, we would be interested."
Having decided to pursue the premium wine market rather than bulk wine production, Lion was more interested in a "small boutique winery."
Essentially, it was looking for a "clip-on" for its existing stable of Australian wines.
It was also looking at expanding its sales of ready-to-drink spirits in Australia, a market in its infancy compared with New Zealand.
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