Marlborough Grape Growers Cooperative (MGGC)

More than a decade after a grape growers’ cooperative began in Marlborough, it continues to help lift returns, says one of its founders. Ross Flowerday says the 2008 global financial crisis flattened grape prices in the region, but also kickstarted the grower-owned Marlborough Grape Growers Cooperative (MGGC). “We are there for the good of the industry. Without the co-op, the industry wouldn’t be what it is today.”

This story was written by BRENDON BURNS for the October 2023 edition of Winepress.

MGGC grew from Marlborough Grape Producers (MGP), which was established by three growers in 2001, after they became frustrated by the terms offered by major wine companies. MGP started producing Sauvignon Blanc for the open market and for The Wine Group (TWG), which is second only to Gallo in American sales. As demand grew, MGP turned to other growers they knew for supply, including marine electrician Dave Smith. By 2008, grape prices had crashed from around $2,500 a tonne for Sauvignon Blanc to around $1,200. Low prices continued for some years, while demand from TWG began exceeding what MGP could supply, and some MGP growers began discussing ways to boost numbers. An invite went out and 27 growers attended a meeting in June 2012. The following month 43 growers came along and agreement was reached to form a cooperative. An interim company was formed as a cooperative took longer to establish. As well as offering a higher price per tonne than the regional average, the cooperative did not have a tonnage cap, says Ross. “Wine companies would say, right, we’ll pick this amount of fruit and then you can’t sell the rest anywhere else either. It was like a sheep farmer only being allowed to grow three-legged sheep.”

He became the cooperative’s first chair, followed by Dave Smith, then current chair Ben McLauchlan. Winemaker Drew Ellis, who’d been MGP’s winemaker, joined the new organisation as its sole employee. Now it has five full-time staff, while many co-op members also come on board at vintage.

The initial vintage in 2013 saw 5,147 tonnes of Sauvignon Blanc grapes supplied to TWG, from the inaugural 43 growers. Last vintage 12,708 tonnes were supplied by 75 members. TWG pays for processing into wine at VinLink and takes two thirds of production – shipped as finished wine – for bottling and marketing in the US under its Cupcake brand, priced at around US$10 (NZ$17), as well as more premium brands. MGGC chief executive Mike Brown says the balance of fruit is made into bespoke blends, chiefly for Australian, UK and German markets, and is the biggest selling New Zealand Sauvignon Blanc in Germany. While there’s no cap on growers, they are expected to produce quality fruit at the level a vineyard can sustain. Mike says MGGC harvests when fruit is at optimal ripeness, which can make growers anxious but is appreciated by customers.

Last year, it launched a joint venture project with Cloudy Bay founder David Hohnen and his business partner to produce a super-premium Sauvignon Blanc. Marlborough Heartland launched in Sainsbury’s UK supermarkets earlier this year at £12.50 ($26) a bottle. “It’s the pioneer returning and working with mostly smaller scale growers who are the 'real heartland' of Marlborough,” Mike says.

The wine is a ‘game changer’, as the co-op moves to add branded wines to its successful business model as a producer of bespoke supply, he adds. Well-known Māori winemaker Steve Bird has just made a Pinot Gris and Rosé with MGGC fruit for the US market, representing a new varietal offering. Last October the co-op marked ten years since it was first incorporated as a company. Mike Brown says returns to its growers remain 10% ahead of the district average.

Few would have predicted Marlborough’s rapid ascent to become one of New Zealand’s preeminent – and internationally renowned – wine-growing regions. From August 2023 the region’s winemakers and growers are celebrating 50 years of Marlborough’s official beginning as a wine region, and inviting the country to re-discover the depth of Marlborough wine.

Discover the history of our region’s wine brands and explore stories about our people and place that make it special here. https://www.marlboroughwinenz.com/2023 

#marlboroughwinenz #marlboroughnz #celebrating50years