Oatley Wines ready to try its luck in Canada

OATLEY Wines executive chairman Sandy Oatley is forging ahead with plans to expand his multi-million-dollar family business by moving into the Canadian market, despite the economic downturn.

"It is challenging, but our philosophy for wine, property and tourism is similar -- quality wins every time," he said.

Mr Oatley -- the son of billionaire Bob Oatley, a triple Sydney to Hobart yacht race winner -- says he is upbeat about the future of the family company's operations, which span wineries, thoroughbreds, cattle, olives, yachting, commercial property and tourism.

Mr Oatley said his wine business, which employs 60 people, started exporting to the US a year ago and was now entering the Canadian market.

"We are just opening our office in Canada," he said. "It is reasonably sized, so we are growing and have room to expand."

He said times were a little tougher at Hamilton Island, where the family owns the lease. "It has been a bit harder, and people are choosing their venues a bit more carefully.

"But we have found that occupancy on Hamilton Island is slightly up on last year.

"We have seven flights a day going in, so it is a busy spot. It is a long-term strategy for us."

The Oatley family officially opened its Hamilton Island yacht club at the weekend, coinciding with the start of the Hamilton Island Race Week, featuring 194 yachts.

The family will unveil about 30 newly built villas on the island in November. Almost all have been sold for at least $2.6 million each.

The $85 million-plus yacht club and residential project were carried out in a venture with Olympic yachtsman and business partner Iain Murray and were marked by a series of events, including a fashion show by high-profile Australian designers Collette Dinnigan, Camilla Franks and Gail Elliott. The Oatley family acquired the lease for the 650ha island on the Great Barrier Reef from the then-listed Hamilton Island company for $199 million in 2003, after a prolonged battle between the Oatley family's listed company 21st Century and GPT.

Since then, the family has spent more than $300 million on the island's infrastructure and facilities, which had been described as "dusty" and required refurbishment. Olympic yachtsman Glenn Bourke has been hired as chief executive of the Hamilton Island business, which involves 1000 employees, including several Oatley grandchildren -- some of whom have represented Australia at the Olympics in equestrian sports.

"You don't have to be a yachtie to work for us, but the style is hands-on, practical, and we like to have nice people around us," Mr Oatley said.

"We are not a fairly formal company, but we have strict guidelines."

Mr Oatley said Hamilton Island was the family's biggest business and largest investment. "We are probably having equally as much fun there as in the wine business."

So far, the group has built a $100 million, 60-room luxury resort, Qualia, on the northern point of the island. Room rates are $1300 a night.

A $30m 18-hole golf course has also recently been constructed on neighbouring Dent Island, which the Oatley family also owns.

There are plans to sell another 200 pieces of land for about $2m million each and to build another hotel. Dent Island land is still on the market, with one section recently selling for $3.5 million.

"We are looking at a boardwalk around the marina and another restaurant," Mr Oatley said. "We are changing things around. We have land set aside for a health retreat."

But he added that construction would not start until off-the-plan sales of residential development had begun.

Mr Oatley juggles his time between yachting, the Hamilton Island development and the wine business, which the family re-entered in 2006 with the formation of Oatley Wines.

The family's Rosemount operations, founded in the 1970s, was merged with Southcorp wines in 2001, which was sold to Foster's four years later for $3.7 billion.

The family business currently has 1200 acres of wineries in Mudgee, NSW, and 7000 acres of rural farm land overall.

Wines are marketed with the brands Wild Oats, named after the family yacht, and Robert Oatley.

Two new labels are on the way.