- Queensberry Cellars -
Ultra premium handcrafted wines from Central Otago, New Zealand
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Offer
Queensberry Cellars Ltd is looking to raise $NZ800,000 to build a small winery business. The funds will go towards free holding all buildings, equipment and land, developing a small inventory and providing the necessary working capital. Winemaker, Russell Lake (50% stakeholder) is seeking a small group of like-minded wine lovers to join him and is offering 1200 shares (50% ownership) at $666.67 per share.
Central Otago Pinot Noir
Central Otago is located on the 45th parallel, similar in the southern hemisphere to Burgundy and Oregon in the northern hemisphere (47th and 45th respectively). Both Burgundy and Oregon are recognised as producing the world’s finest Pinot Noir’s and over a very short time Central Otago has carved an enviable reputation that rivals the best these regions have to offer. Despite being a marginally cooler climate, Central Otago has hot summers and a lower rainfall over the ripening period. These factors allow the grapes to perfectly ripen over a long growing season without the associated disease risk common in wetter regions. Allowing grapes a longer hang time results in denser flavour and colour making Central Otago Pinot Noirs some of the finest the world has to offer.
Queensberry Cellars
Queensberry Cellars Ltd was established by Russell Lake in March 2004 to meet the grape processing requirements of the Central Otago wine industry. Since then the industry has grown, however the need for processing facilities remains. The winery will produce 400 cases of wine from selected vineyards, leased and managed by the winery. An additional 30 tonnes of grapes will be processed for other growers under contract. Initially proposed to process 35 tonnes, the site (over 11 acres) is permitted to expand to 500 tonnes. By positioning itself as a high quality processing facility offering small batch production Queensberry Cellars will become known for its wines and winemaking.
An opportunity to develop a winery and produce your own wines
Active participation in both the vineyard and the winery will be encouraged. Since owners will only be available for limited periods during the winemaking process, the winery website will provide details of the wines progress from harvest to bottle.
Limited release private label wine
Enjoy the fruits of your labour with family and friends when you receive your personal allocation of wine from each harvest. Premium Central Otago Pinot Noir’s are known for their intensely flavoured berry/cherry fruit and complex earthy characters that make then both distinctive and world class. The pleasure of drinking such exclusive wines is made that much more enjoyable in the knowledge that you have had a hand in producing it yourself.
Private internet access to “owners only” area
Owners will have exclusive access to information on the progress of their wine online. The “owners only” area will contain information and video footage of their wine being made. Footage will include vineyard operations like pruning and harvest and winery operations like crushing, pressing and bottling their wine.
Winemaking
Winemaker Russell Lake (B.Agr.Sci Hons Oenology B.Tech Industrial) has made wine in 4 continents and has completed over 20 harvests in countries as far reaching as Australia, Germany, France, USA and New Zealand. Queensberry Cellars will draw on this experience producing wines from organically grown grapes (chemical free) that have had minimal intervention (additives, oak etc.) in the winery. The winery has been designed to keep batches separate and thereby respect the distinctiveness of individual vineyards.
Winery design and development
The winery has been designed by Lake Wine Services Ltd using the principles of gravity flow and temperature control to create a building which maximizes the potential of the site. Practical winemaking experience in over 15 different wineries has brought an understanding to the design that is simple, practical and cost effective. Russell Lake will oversee the development of the winery which will be completed by February 2010.
Winery management
Russell Lake will have the role as winemaker/manager for the first four years. While most of the work will be undertaken over the harvest period (April/May) he will be available year round where he will offer services through his consulting company Lake Wine Services Ltd. Additional casual staff (including shareholders) will be used over the harvest period and when necessary throughout the year (depending on winery operations). External contractors will operate the leased vineyards under the direction of Lake Wine Services and sales of the 400 cases of wine will be the joint responsibility of the owners.
Opportunity for future expansion
Earlier work on a larger 500 tonne facility has been consented for the site and while the proposed winery only utilises a small proportion of the site (the ancillary bottling building) the opportunity for further expansion is available. The resource consent (valid until 2014) allows the staged development of up to 500 tonnes and also includes a small vineyard and tasting room that could be developed to enhance to winery aesthetic, provide grapes for the Queensberry label and an outlet for wine sales.
Financial
Income ($200,000 per annum) will be derived from two sources
1. Sales of own label wine (400 cases) - wholesale $360 per case, the estimated income is $140,000
2. Contract winemaking fees - 30 tonnes of contract fruit at $2000 per tonne is estimated to return $60,000.
And major costs ($100,000 per annum) will include
3. Own fruit, barrels, packaging and excise wages and power ($60,000)
4. Contract processing - Winery supplies, power and wages ($5,000)
5. Sales and marketing, administration overheads ($35,000)
This investment should be considered long term and suit wine lovers who wish to become part of the Central Otago wine industry. After an initial ramping up period (years 1 and 2) return on equity is forecasted at 5% per annum.
