Purchase offer not welcomed by all

As some grapegrowers prepare for a vintage without a contract, at least one winery is offering a solution – though others are warning that it could tarnish Marlborough's image.

Nelson-based winery Spencer Hill Estate has sent emails to various Marlborough growers offering $600 a tonne for sauvignon blanc grapes, which will then be turned into bulk wine.

In the email, from managing director Philip Jones, it offers to split the difference of any wine that is sold for more than $1.90 per litre from the winery.

The $600 per tonne would be paid in two parts – half on grape delivery and the remainder by the end of August.

"I am trying to be as fair as possible by providing you with a guaranteed payment and an upside if prices move up," the email said.

Mr Jones said the winery would retain $1 per litre for processing the wine which would help pay bills but not create profit.

A contract grower, who did not want to be named, forwarded his reply to The Marlborough Express.

In it he said, "We want to preserve the integrity and quality of Marlborough sauvignon blanc. This practice has to stop as you are damaging the whole of the New Zealand wine industry and shooting yourself in the foot."

The grower said the wine industry was in a precarious situation as it needed the market to catch up with production.

"I can't see us (recovering) for a long time unless we get control of the surplus production now."

The response from Mr Jones told the grower to "get real" and that the "fit will survive and the weak will go".

He also suggested the grower, if he was so concerned about the situation, should dump his grapes and let another grower have his contract.

The grower understood at least one person in the Awatere had taken Mr Jones up on his offer.

Mr Jones was unavailable for comment as he was preparing to go overseas.

Mahi owner Brian Bicknell said he was unaware of wineries doing what Spencer Hill was doing but heard rumours there were some big contracts which were bulk focused.

He said $600 per tonne was the reality for people making bulk wine.

"There is a real commercial reality that needs to be faced and companies, meaning both vineyard owners and wineries, will do what needs to be done to get through this period."

Mr Bicknell said accepting Mr Jones offer may help a grower get through this year where otherwise they might not.

However, he warned the bulk situation was bad for Marlborough as it brought down the overall price and associated quality perception.

After reading the emails between Mr Jones and the unnamed grower, Mr Bicknell said it appeared Mr Jones was just offering to buy fruit from growers who did not have a contract. This could be seen as helping them out.

Ad Feedback New Zealand Winegrowers chief executive officer Philip Gregan said it was up to individual wineries and grapegrowers to make their decision about what to do, but flooding the market with cheap wine was potentially damaging to New Zealand's brand.

"People make decisions for all sorts of reasons; cash flow is one."