Wine resellers want guarantee from Montana

Press, 5 January 1980, Page 3

Wine resellers want guarantee from Montana

PA Hamilton New Zealand wine resellers are worried about the (ack of a firm guarantee from- Montana Wines that its Brother Dominic product can be legally sold from their shops. Montana, New Zealand’s largest winemaker, has been asked by the Health Department. for an explanation about the sales of the “alcoholic beverage.” Although clearly labelled as an “alcoholic beverage” Brother Dominic has been sold in wine shops with bag-in-box wine casks. The Wine Resellers’ Association executive, representing wine shop owners, has discussed’ the controversy surrounding the product. Comment from- Montana Wines was not available, but in a letter sent to liquor outlets, Montana said: “We believe Brother Dominic may be lawfully sold by wine , resellers.”

Public demand for the I product had shown there 1 was a .need for it on the ! market, and “after all. we are in the business to satisfy : the public demand,” the let- ’ ter said. “We believe wine resellers 1 should continue to stock , Brother Dominic and a re- , fusal to do so would be dis- ’ criminatory and a restraint , of trade.” Under the Sale of Liquor ' Act, wine resellers are limited to. selling New Zealand • made wines. The association’s executive officer (Mr W; Michie) said in Hamilton yesterday that resellers were concerned that as Brother Dominic was being marketed as an “alcoholic beverage” •it could be illegal for it to be sold in wine shops. i “We are unhappy that Montana has not given a firmer assurance than just a ; *we believe’ the product can be sold,” Mr Michie said.

The wine resellers could not understand why the country’s biggest wine maker should be marketing a non-wine product in direct competition with New Zealand wines.

The association executive decided to ask Montana for clarification on the exact origins of the product, and for a firmer assurance; on the legality of its sales; It also wants the Wine Institute to make its feelings known on the issue. Pressure is mounting from other winemakers for Government action-, over the product. : ’ In spite of the controversy surrounding- it,' sales of Brother .’.Dominic have continued to grow,- wine resellers report. Its success has ' caused concern to other wine makers, especially Penfolds Wines which is acknowledged as a leading wine cask seller, with Montana. “We are market leaders in that field, and are concerned that a non-wine product should be taking away our sales,” a spokesman for Penfolds said from Auckland. He was concerned that the Health Department had not immediately ordered Brother Dominic’s withdrawal from the market.