Yealands export risks spilling NZ 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 founder Peter Yealands, former manager Jeff Fyfe and former chief winemaker Tamra Kelly have been convicted of a string of offences related to activity that took place from 2013 to 2015.
Under the direction of Fyfe and Kelly, sugar was added to wine after fermentation, 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.
A total of almost 4 million litres of wine was exported to Europe in breach of the export regulations, although Yealands Estate said this represented about 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 for 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 has been unable to report anything about the case after Yealands Estate was granted a wideranging suppression order against the news publisher back in July.
The offending took place before a controlling stake in Yealands Estate was sold to Marlborough Lines in mid-2015.
Marlborough Lines is owned by a trust, which is ultimately owned by anyone in Marlborough who buys electricity. Chairman David Dew refused to comment yesterday. ‘‘Now is not the time to talk.’’
MPI head of investigations Gary Orr said that at no time was there any risk to public health from the episode.
But he said the actions by the group put the reputation of the industry at risk. ‘‘This is unacceptable offending. It was deliberate deceit, designed to hide the offending from the regulator.’’
Yealands Estate said in a statement that the offending took place under its former ownership and steps had been taken to ensure it did not happen again.
Rachael Reed, a lawyer for Peter Yealands, said her client took responsibility for what happened, although she described the provision under which he had been charged as ‘‘obscure’’.
Kelly and Fyfe quickly left court after sentencing. Both have refused to comment.
Kaiko¯ ura MP Stuart Smith said it was ‘‘very disappointing’’ that the Marlborough and national industries’ reputations had been put at risk.
‘‘I think it’s a small risk, but it’s a risk nonetheless. This is a product that lives and dies by its reputation, and it should be a reputation for honesty and good practice.’’
‘‘It was deliberate deceit, designed to hide the offending from the regulator.’’ MPI head of investigations Gary Orr