One of New Zealand's largest and prestigous wine distributors will be created when a new company - to be called EuroVintage Ltd - is formed to take up the businesses of Wellington-based Eurowine and the Auckland-based Vintage Wines and Spirits Ltd.

EuroVintage is expected to sell about 500,000 cases of wine a year.

EuroVintage will start operations on Monday 30 August, assuming the operations and responsibilities of the two existing companies. Their respective chief executives, Brett Newell and Nick Hern, will be joint chief executives of the new business with Hern concentrating on the FMCG sector and Newell overseeing on-premise and fine wine business.

EuroVintage will take over Eurowine's offices in Wellington and Queenstown. Its Auckland office and warehouse will, in time, be combined in a new site along with the current Vintage Wines and Spirits premises in Northcote.

In one sense, there will be little change. At the same time, the trade will have access to one of New Zealand's most comprehensive and exciting wine portfolios. They will have the opportunity to offer their customers wines and other beverages from a portfolio with significantly greater depth and breadth. Sales coverage across the country will be greatly increased improving service and accessibiltity to the enhanced portfolio.

Eurowine is excited by the opportunities this development offers - which is subject to final consent of our shareholders.