Waipara winery Muddy Water has been sold for an undisclosed sum to fellow Waipara producer Greystone.
Jane East, co-owner of Muddy Water told rebeccagibb.com: “The reality is that our children do not want to go into the wine business so we didn’t have a line of succession.”
Greystone was looking to build a winery and after initial talks with the Easts decided to make an offer.
Muddy Water is certified organic and Greystone’s Angela Clifford confirmed it would remain organic and separate to the non-organic Greystone brand.
It is unclear if there will be any job losses at this stage with overlaps between the two producers inevitable but East indicated “most of the staff will be staying on”.
It’s an interesting time to be expanding after the February 22 earthquake devastated Waipara’s main, and most profitable, market. Its loss of the Rugby World Cup games will also have a significant impact on winery visitor numbers.
Yet this is a positive move by Greystone in a difficult period. This acquisition could be a sign of things to come in the industry: are the banks now more willing to lend money to wineries to expand and go on the acquisition trail?
