'Cheers' to investment

The Shed function centre at Northburn Station. Photo supplied.
The Shed function centre at Northburn Station. Photo supplied.
The announcement one of the major global players in the wine industry has invested in Central Otago is exciting for the area, and builds on the hard work of the region's winemaking pioneers.

Following Overseas Investment Office consent, the Northburn Wine Company has been bought by Western Australia's Cloudy Bay Vineyards.

Cloudy Bay is part of the French Moet Hennessy Wine Division, which is part of LVMH, a merger of Moet Hennessy and Louis Vuitton.

It couldn't be more a case of the ''who's who'' of the wine world.

There is often debate about sales of land to overseas investors.

Detractors claim such ''land-grabs'' reduce the amount of prime land available to New Zealanders, and that what overseas investors can afford to pay prices average Kiwis out of the market.

Then there are concerns the profits go offshore, leaving the country poorer in every way.

Proponents see such investments as opening up or further cementing important relationships, ensuring our geographically isolated nation is connected globally.

Such connections mean ''Brand New Zealand'' is promoted, giving further opportunities for investment.

While some of the profit may go offshore, some is invested in infrastructure and jobs, of clear benefit to local communities.

In some cases, depending on the industry, word of mouth results in tourism, which also provides an economic boon for tourism operators, accommodation providers and retailers.

In its first such investment in the district, Cloudy Bay has bought about 46ha of land near Cromwell, which comprises the Northburn vineyard and The Shed cellar door and function centre.

The vineyard was established in 1999 by Northburn Station owners Tom and Jan Pinckney.

Details of the deal are confidential, but it can only be assumed it has been more than satisfactory financially and is a just reward for the Pinckneys' vision and hard work.

There can be little doubt there will be spinoffs for the region.

The clout of the wine companies involved means the Central Otago name and the quality of its wine - particularly its pinot noir, which Cloudy Bay wants to make as well known as its Marlborough sauvignon blanc - will be promoted internationally.

There may be opportunities for other vineyards, and winemakers, and tourism potential, too, as wine aficionados in a hugely increased marketplace get a ''taste'' of the region.

Cloudy Bay wines are exported to more than 30 countries including our biggest markets, Australia, the UK and the US, plus Europe and Japan.

Wine is New Zealand's 8th biggest goods export and is worth $1.3 billion - an increase of $1 billion in the past 10 years.

The steady growth has undoubtedly been helped by the low dollar, but the outlook for the industry is positive.

Emerging markets in Asia, particularly China, offer vast potential for further growth, and overall global economic growth will ensure demand for New Zealand commodities in general.

Wine is one of Central Otago's key industries, pumping millions of dollars into the local economy.

The area produces world-class wines and is gaining a reputation internationally.

A collaborative approach has aided in that success.

Any further investment is welcomed and is certainly an endorsement of the work of the region's winemakers.

Local leaders are certainly excited by the recent developments, and Cloudy Bay also says promoting the region is important to the company.

This is one more step towards making Central Otago pinot noir a luxury brand around the world.

There is surely much to toast.

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