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Taking on the world : Montana and the New Zealand wine industry

Abstract

This case addresses the development of the New Zealand wine industry and the role and development of its largest company, Montana Wines Ltd which acquired Corban’s Wines and was subsequently acquired by the international liquor giant Allied Domecq in August 2001. The case first addresses relevant trends and developments in the global wine industry, after which the New Zealand wine industry is introduced. New Zealand’s position in the global wine industry is addressed focusing on the country’s clean green image, which has assisted the successful charging of premium prices for New Zealand wines. Montana Wines Ltd is introduced including its purchase of Corban’s Wines, which solidified Montana’s competitive position. Montana’s shift towards the production of premium rather than high volume wines is also addressed. The main challenge for wines, branded under the Montana label, which continue to be marketed after the acquisition by Allied Domecq, and the New Zealand wine industry in general, is to increase export revenues while maintaining a high quality reputation allowing the charging of premium prices. As a result of Montana’s acquisition by Allied Domecq, it is also important to consider Montana’s role within the wider global strategies of its multinational parent.

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Case Description
Business Case Study NoUA-2005-017
Number of Pages21
CategoryHistorical narrative; Teaching case
Teaching NotesTeaching notes available
CompanyMontana Wines Limited; Brancott Estate Limited
Setting - CountryNew Zealand
Setting - CityTauranga
IndustryFood and beverage

Source
SourceAuckland, NZ. Publisher: University of Auckland Business Case Centre. Pages: 1 - 22