Constellation Brands New Zealand has announced it has sold its Marlborough-based Riverlands Winery to Giesen Group.
One of three Constellation-owned wineries in New Zealand, the Riverlands Winery has been part of the company’s portfolio since 2006.
In a statement, Consellation said that while the facility is no longer suited to its ambitious growth plans, its capacity for smaller production runs ensured a great fit with Giesen’s production plans.
New Zealand’s largest exporter of New Zealand wine to the US, Constellation said the ever-increasing US demand for Marlborough Sauvignon Blanc, coupled with a decline in Pinot Noir demand has been a key driver in its decision to sell the winery, given its suitability to smaller parcel wine production.
“For us, the majority of our growth continues to be from Sauvignon Blanc and this divestment allows us to focus our efforts on our state-of-the-art Drylands operation to leverage its full efficiency in growing high-end Sauvignon Blanc,” says Simon Towns, Managing Director of Constellation Brands New Zealand.
Constellation’s $10 million+ expansion project of its Drylands Winery will support its continued growth.
The sale of the Riverlands Winery is planned to settle in mid-December this year, in time for the upcoming 2021 harvest, and Giesen is hopeful all current Riverlands employees will join the their team and be part of their future growth plans for the winery.
“It’s an exciting time for the Kiwi wine industry with global demand continuing to grow and we’re delighted to have sold Riverlands to such a reputable wine company with an equally impressive track record and growth projections,” says Towns.
“We know our small team of talented staff will continue to thrive under their leadership.”
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