Woollaston tightens belt

A tough world wine market has bitten at Woollaston Estates, with the Mahana winery laying off a couple of staff and "tightening its belt" to counter shrinking returns.

The business's chief executive and founder, Philip Woollaston, has also announced he will step down from day-to-day involvement in the winery in the new year.

Mr Woollaston is a shareholder in the multimillion-dollar winery and its associated vineyards and land holdings, along with American businessman Glenn Schaeffer, the majority shareholder.

Mr Schaeffer made his money in the Las Vegas casino industry, but his personal fortune has taken a hit during the past year's economic turmoil.

Mr Woollaston said that was not a direct factor in the changes at the winery.

He said the hardest decision was to lay off two staff, an office administrator and marketing manager Roz Speirs, who was expected to leave in April.

His own "semi-retirement" reflected that he was now 65 and that the business was on a footing where it could be managed without him. He would remain a director and keep a hand in various activities around the winery.

Mr Schaeffer's wife, Renee, who has split from her husband but remains active in the business, also intended to spend more time involved with the winery.

The winery had changed its business plan, which Mr Woollaston described as belt-tightening, to reflect tougher trading conditions and reduced margins on wine sales. It had slowed the production of grapes, from both established and new plantings, and was relying more on domestic sales.

Mr Woollaston said the moves reflected the effects of the recession and the high exchange rate, but also the recent over-production in Marlborough of New Zealand's most important variety, sauvignon blanc.

Woollaston Estates was increasing its sales, but intended to keep production at its current 16,000 cases in the year ahead.

He believed the business's experience was "very much the norm" in the wine industry and he expected it to be a couple of years before the return of good times.

Mr Woollaston, a former mayor of Nelson, launched the winery under his own name about 12 years ago at Wai-iti. It moved to a higher level after he attracted Mr Schaeffer as an investor and co-owner in 2006, shifting to an impressive winery and art-gallery complex at Mahana.

- © Fairfax NZ News

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