Film studios and distillery in Central Otago get government support to become biggest in NZ

Nicole Mathewson Reporter from Otago News

From reporter Debbie Jamieson:

A Cromwell whisky distillery and a Wānaka film studio proposal have been promised government support to help the region diversify beyond its reliance on tourism.

Regional Development Minister Kiri Allan announced a $2.9 million loan to help Scapegrace Distillery expand to help meet growing national and international demand.

The government will also underwrite $4.5m of the Silverlight Studios’ film studio project.

“I love what you guys are doing ... the whole aspiration for us is to support our regions to grow,” she said.

Scapegrace Distillery is a privately owned Central Otago business that produces whisky, gin and vodka, and aims to become New Zealand’s biggest distillery.

Founded by brothers-in-law Daniel McLaughlin and Mark Neal nine years ago, the company has more than 48 shareholders and exports to 35 markets.

McLaughlin said about 65% of its products are exported, but it was hoped that would increase to 80%.

The government loan would be used to help build a new distillery and temporary hospitality facility, creating 218 jobs during construction and 24 permanent roles once operational.

Ultimately, the Central Otago site will house four whisky barrel rooms, a world-class distillery and a full hospitality precinct with cellar door facilities, a bar and restaurant, and event spaces,

McLaughlin anticipated it would be completed in 2026 and would be New Zealand’s largest distillery, spanning 36 hectares of land and 4500m² of buildings.

Allan said the projected increase in capacity from 30,000 litres to 567,000 litres of product was a “game changer”.

“It’s an absolute privilege to stand alongside you as you embark on your new venture.”

Asked whether it was appropriate for taxpayers’ money to be used to support the alcohol industry, she said it was part of the food and beverage industry, an area identified for development in the region.

Speaking about the support for Silverlight Studios, Allan said the screen industry employed about 16,200 New Zealanders and contributed $3.3 billion to the economy every year.

It was a key component of Central Otago’s economic diversification initiatives, she said.

“Silverlight Studios will provide new opportunities for local talent to be at the forefront of an evolving industry in the region.”

Silverlight Studios chief executive Mike Wallis said concerns had been raised that the company’s $280m Wānaka plan, which includes 10 sound studios, was too much and too fast for the area.

The company had therefore “pivoted”, and will instead bring three fast-build modular sound stages to the site with auxiliary buildings.

The sound stages, which are fully sound-proofed and include lighting rigs, will come from Belgium and are already being used by the likes of Netflix and Amazon, Wallis said.

The government underwrite of $4.5m would provide confidence for investors in this stage of the project and enable the work to be completed in 12 to 14 months, he said.

“This gives them facilities with rain cover, and it’s big enough for an international large scale production, which is really our key market anyway, but also for the local market.”

The stages will be packed down and moved as the full studio development is completed.

It will ultimately include an 11ha artificial lake, film school, screening theatre, exhibition centre and up to 10 sound stages – making it the largest studio of its kind in New Zealand.

It will also include recreations of international film locations, including an Italian village, the canals and bridges of Venice, a generic seaside Hamptons-style village, blocks of New York City and a portion of New York’s Central Park.