Now is the right time to invest in wine· Wine News
Oct 14th, 2011 | By Jayson Bryant | Category: Wine News
With the recent sale of Olssen’s vineyard in Bannockburn, Central Otago, to the head of the NZ stock exchange is now the right time to be investing in vineyards and wineries?
With vineyard/winery prices at rock bottom it would appear that the answer is yes. With astute business acumen, Mark Weldon, he and his wife, marketing and branding consultant Sarah Eliott, have bought Olssen’s Wines.
“The quality of the wine is already world-class and the wine maker is world-class, too. What Sarah and I will be able to add is our business skills.”
Winemaker Jen Parr would remain on staff, he said.
“She’s very committed and talented … we’ll be keeping her”.
Mr Weldon last week announced his resignation as chief executive of NZX, the operator of the stock exchange, and said he would leave early next year.
That was still his intention, he said yesterday.
The timing of his resignation and the purchase of Olssen’s was co-incidental, he said.
With all of the turbulence in the wine industry since 2008, reduced export markets, and high exchange rate, the landscape must obviously look attractive to investors for talent like Mark to invest. Is NZ finally at the bottom of the market, and have winery prices plateaued?
Olssen’s had been on the market for over 2 years and so would have been sold at a very attractive price. Are the banks starting to lend against previously poor investment opportunities, or did Mark buy out right? Whatever the finance situation it’s a very positive reflection on the New Zealand wine industry.
With a few more wineries also sold and Sauvignon Blanc balancing the order books once again, a reduction in exchange rate, the wine industry is showing sign of green shoots.