Yealands risked spilling NZ’S wine reputation

One of Marlborough’s leading wine companies, its founder and two staff have been accused of putting the industry’s reputation at risk after millions of litres of wine was illegally exported to Europe.

Yealands Estate, its rich list founder Peter Yealands, former manager Jeff Fyfe and former chief winemaker Tamra Kelly were all convicted of a string of offences related to activity which took place from 2013 to 2015.

Under the direction of Fyfe and Kelly, sugar was added to post fermentation wine, with official records falsified to cover up the activity.

Although adding sugar to wine in the post-fermentation phase is allowed in most countries, it represents a crime in the European Union, related to ancient French law.

Close to 4 million litres of wine was exported to Europe in breach of the export regulations, although Yealands Estate said this represented around 7.5 per cent of its exports to the trading bloc during the period of the offending.

Yealands Estate was fined $400,000 by Judge Bill Hastings in the Blenheim District Court yesterday. Fyfe and Kelly were fined $35,000 each.

Yealands was found to be less culpable because while he was not directly involved in the activity, he knew of the offending but did nothing to stop it. He was fined $30,000.

The prosecution, brought by the Ministry of Primary Industries (MPI) after a two-year investigation, represented the first charges laid under the Wine Act 2003.

Officials are on high alert because of the risk that the incident could damage New Zealand’s reputation in Europe, where trade negotiators are trying to progress a free trade deal.

New Zealand’s wine exports have grown to be worth $1.3 billion a year.

Stuff had been unable to report anything about the case after Yealands Estate was granted a