Morton gives chance of champagne profits

Press, 9 March 1987, Page 14

Morton gives chance of champagne profits

By ADRIAN BROKKING Last year just about anything could be floated to sharemarket investors and it would be snapped up. Market conditions for new issues are not as rosy in March, 1987.

However, good issues by good companies should still find favour with investors. One such promises to be Morton Equities, Ltd, which is raising, as announced last week, $6 million through the issue of 12 million shares.

Initially, the larger part of Morton Equities will consist of the holding in Morton Estate Winery, Ltd, but the company has other strings to its bow. Undoubtedly, Morton Estate is one of the most distinguished middle-sized New Zealand wine companies. The winery was established only in 1982, yet has won eight gold medals for its wine and numerous silver medals and trophies. It is hardly an exaggeration to describe it as the Rolls-Royce of New Zealand wineries. Because it has consistently produced only quality wines, it has entirely avoided the current problems at the volume end of the market.

Apropos these problems, Mr Morton Brown, the managing director of

the new company and the founder of the winery, thinks that they have largely been overcome, and that this year will see a much better balance between supply and demand.

There is a saying in Europe that good wine does not need laurels. Mortons have never had any trouble selling its wines at premium prices. Of particular interest is the current development programme to produce a true “methode champenoise” wine, in other

words a champagne, although by international agreement it cannot be called that.

A purpose-built cellar has been constructed, capable of accommodating 9000 cases of wine, and the first vintage is due for release in October. A preview at a press conference last week demonstrated that this wine, although far from ready, showed great promise.

Mr Morton is a true entrepreneur, who has been involved in a variety of business ventures in Wellington and the Bay of Plenty, but has come especially into his own with the deregulation of markets in the last couple of years. Lately he has successfully promoted and estab-

lished investment partnerships involved in growing asparagus in the Waikato, and growing cherries in Marlborough for the Japanese market. But his interests are wider than horticulture, Mr Brown says, and other investments will provide an increasing contribution to the company’s growth.

These investments are likely, to involve the purchase or development of specialised operations with high-quality products or services.

Hamelyn Group, Ltd, a recently formed investment banking group that will itself seek stock exchange listing' soon, will have 20 per cent of the capital of Morton Equities, and Mr Brown will hold 40%.