Nelson’s Torrent Bay – Successful Synergies

All over the world some of the finest wines come from the estates that are firmly in family hands – where the personal passions of family members drive the business. Nowhere would that be more true than in New Zealand’s Nelson region. Nearly all the 20 or so producers are still firmly in family control and even the larger players are still owned and managed by family interests. There’s not a major corporate in sight!

But in the pressurised environment of today’s wine industry, retaining personal control can be difficult. Unless the business is determined to remain boutique in both size and outlook, the need for expansion brings all the problems associated with the increased investment and facilities. It’s a conundrum that leads almost inevitably to the acquisition of shareholders or the sale of vineyards and plant to the larger pockets of national and international corporations.

But two of the larger wine producers in Nelson may have hit on a solution that enables them to retain their personal, “hands on” approach to their wines while at the same time providing a secure platform for their own and Nelson’s expansion.

The first family is that of the Drummonds of Motueka, owners of Anchorage Wines.

Over the past 8 years Chris Drummond, his brother, father and brother in law have pioneered the Motueka area for grape growing with their first vines planted in 2000 and their first vintage under their own label in 2003.
With a background in orcharding that stretches back to the late 1800s they were well aware of the local horticultural environment and their viticultural efforts met with immediate success. Conversion of orchard land into vineyards has meant that their initial plantings of 20ha of Chardonnay, Pinot Gris and Sauvignon Blanc have expanded to 45ha and they have another 20ha yet to plant. Viognier and a small amount of Pinot Noir have been added to their portfolio. With all the land in full production it will make them one of the region’s biggest growers and a significant player not only on the Nelson scene but also nationally.

But with the expected expansion in production came the dilemmas of increased winery requirements and with the appointment of their own winemaker it was obvious to Chris that the establishment of their own facility was essential. A big call!

At the same time another family owned producer, Kahurangi Estate in Upper Moutere were facing similar dilemmas.

Greg and Amanda Day bought the old Seifried vineyards and winery in Upper Moutere in 1998 and have built the company to a stage where it has an extensive export portfolio and has increased production to the point where it is included in NZ Winegrowers catalogue as one of the “medium” category wineries with production of more than 200,000 litres of wine (more than 20,000 cases). They make two ranges. The premium range includes Riesling, Chardonnay, Gewurztraminer, Pinot Gris, Pinot Noir and Merlot under their Kahurangi Label while entry level wines under their Trout Valley label include Sauvignon Blanc, Chardonnay, Riesling and Pinot Noir with Pinot Gris to be added for the 2008 vintage.

But with this increased production Kahurangi needed greater winery capacity. “As an example of our increased growth I’m already out of 2007 Sauvignon Blanc,” Greg comments. “And I could certainly have sold more if I had had the capacity to make it. So as our own winery at Kahurangi came under increasing pressure from expanding volumes we could see a need not only for an outlet for our own increased yields but also the opportunity for a processing facility for many of the smaller producers in Nelson.”

“I’d considered building a new winery on our Moutere site but it would have taken considerable work to ensure resource consent and it would not have fitted in well with the more boutique flavour of our cafŽ and tasting room or the characterful accommodation that we offer at our present winery site. So I was looking at finding an existing facility that could perhaps be converted.”

“But in a serendipitous moment through contact with Justin Papesch, the newly appointed winemaker at Anchorage, the possibility of a joint venture winery and production centre was mooted. I had originally thought of a relatively small winery but once I met Chris and we talked it through, a partnership with Anchorage in a winery that would not only serve us both but also provide a contract facility for the Nelson area seemed the only way to go.”

As a result of their discussion Torrent Bay Vintner’s was born. Chris had access to a large packing shed that was admirably suited to conversion with cool handling and storage areas already in place, Both families are more than pleased with the results of their efforts.

“It enables us to retain our individuality and keep control of our own wines while at the same time pooling resources and even winemaking experiences,” says Chris. “If there are problems or if there is the need for consultation not only can we call on both the Kahurangi and the Torrent Bay winemakers but we can also add the experience of Greg and myself.”

Both families appreciate the fact that the new winery is on “their side” of town and that their fruit can be in the winery within minutes. Chris comments that he has noticed an immediate increase in quality since he has been able to get fruit into the winery straight from the vineyard without it having to be trucked over the hill to the crushing facility in Marlborough.

This year Torrent Bay crushed about 450 tonnes of Anchorage and Kahurangi fruit as well as some on contract for local suppliers. “We’ll probably be up to around 700 tonnes capacity next year,” says Chris. “And we already have a potential capacity for around a 1000 tonnes. It would be possible to expand to more than 2000 tonnes in the future but weÕll have to see what the demand is before we look at those sort of figures.”

In the meantime the partnership seems to be working well. Greg has a nearby custom made winery for his increasing export production and is likely to make Torrent Bay facility the home base for his Trout Valley label.

At the same time Chris and his family at Anchorage have secured a long term home for the increased production they are expecting from their new plantings. And Nelson has a “top of the line” juicing and crushing plant that makes the smaller producers in the area less reliant on the vagaries of the Marlborough facilities. To mangle a cliche even further – it’s win – win – win? MG