Winery to shut doors on 50 jobs
Guns make big business, small profit ‘The vast majority in New Zealand could [get a firearms licence] but wouldn’t bother.’
CLOSE to 50 people will be out of a job when Treasury Wine Estates (TWE) closes its Auckland winery and moves all production to Marlborough.
The Australian-owned company made the announcement yesterday, stating it was also closing the Matua packaging and cellar door site in Waimauku.
TWE produces wine in New Zealand under four brands: Matua, Secret Stone, Angle Cove and Squealing Pig.
A company spokesman said about 50 people worked at the Auckland site and the ‘‘majority of those roles will be impacted’’. A handful of staff may be relocated to the Parnell sales office.
Last year, TWE announced it would axe about 175 jobs across the organisation globally to cut costs by $35 million, as the company wanted to invest more in consumer marketing. Yesterday’s announcement was in addition to this, the spokesman said.
At this stage, the company would not be increasing its staff count in Marlborough, he said.
The decision to close the Auckland winery was not an easy one, but it made sense as the majority of their grapes were sourced from Marlborough, he said.
‘‘It was a difficult decision for us to make, especially considering the roles in Auckland, but we are FIREARMS are a growing business in New Zealand but retailers say they do not make much money from selling the weapons.
Gun sales are making headlines after a TV3 reporter claimed she had been able to buy a firearm online using fraudulent information. Only people with current firearms licences are able to buy the weapons.
The gun was purchased online from Gun City, one of the biggest retailers in the country. Gun City did not wish to comment.
Tim Wolland, of Hunting and Outdoor Supplies, said most gun retailers would buy their goods from about five main brand wholesalers in New Zealand.
A small number of guns were parallel imported and some retailers, such as Gun City, organise their own imports, as do some Trade Me sellers. trying to drive growth and investment and this is the best way.’’
Since taking full ownership of the Marlborough site in November 2012, the company had increased its crush capacity from 15,000 to 25,000 tonnes, with the installation of 48 150,000-litre tanks. It also constructed a wastewater treatment facility to handle expansion.
TWE chief supply officer Bob Spooner said the multimilliondollar expansion of the Matua Marlborough winery meant it was capable of handling the increase in production. ‘‘It makes sense to simplify and consolidate our production into one operation.’’
As well as closing its Auckland winery, the company will close its Great Western winery in Australia. As a result, about 30 people were expected to lose their jobs.
However, the site will be maintained while it considers the operational future of the winery, which may include a potential sale, Spooner said.
He admitted the decision to close two wineries would mean a significant change for the company’s Australian and New Zealand wine production, and would affect ‘‘a number of roles’’, he said.
The changes would not affect any of TWE’s brands or existing supply contract arrangements with grape growers, Spooner said.
The spokesman said the Auckland winery would be closed by March next year.
Anyone selling firearms must have a dealer’s licence.
It is estimated that 55,000 firearms are imported for sale each year. There is also a strong second-hand market.
Wolland said profit margins on gun sales were small. A rifle that sold for $2000 might earn a profit of $275 or $300, he said.
‘‘There’s 75 or so [guns] on the wall at the moment; that is a lot of capital tied up for a low margin.’’
The former owner of a shop that sold firearms, who did not want to be identified, said retailers expected to make up the difference through the sale of higher-margin accessories. But online competition was keeping a lid on prices.
Wolland said the market was steadily growing. More people were wanting to buy guns so they could hunt for meat, he said.
‘‘If someone shoots a mature female deer, that’s $2500 of meat in that deer if you were to pay retail.
‘‘So if you shoot one, the gun pays for itself.’’
Richard Munt, of Serious Shooters, said it was rare to sell high-price, high-margin guns. But he could sell two or three cheaper guns a day. ‘‘Other times, we do a special and sell more than 20 or 30 in a weekend,’’ he said.
Over the past 22 years, his shop had sold more than 20,000 firearms. Munt said shooters were ‘‘old-fashioned’’ shoppers and the move to online sales had not been as big as he had expected.
Some retailers such as Gun City market themselves heavily, with billboards and leaflets.
Alison Hopkins, of the Advertising Standards Authority, said it received regular complaints about gun advertising. However, it was not a breach of the advertising codes to advertise guns in a socially responsible way.
Rick Starr, a senior marketing lecturer at the University of Auckland, said retailers could grow the gun market by making people aware of what was on offer.
‘‘The biggest inhibitor is the licensing need. The vast majority . . . in New Zealand could [get a licence] but wouldn’t bother.’’
There are about 250 sellers offering firearms on Trade Me.
Trade Me head of trust and safety Jon Duffy said the site took great care explaining sellers’ obligations. Trade Me must see the buyer’s licence or receive a signed form from police.