Michael Anthony Erceg (26 March 1956 – 4 November 2005) was a New Zealand businessman who founded Independent Liquor, which was New Zealand’s largest independently owned liquor distributor, known for its Ready to Drink (RTD) brands such as KGB, Woodstock and Vodka Cruisers.[1]
Michael Erceg | |
|---|---|
| Born | Michael Anthony Erceg 26 March 1956 |
| Died | 4 November 2005 |
| Cause of death | Helicopter crash |
| Nationality | New Zealand |
| Education | Kelston Boys High School |
| Alma mater | University of California, Berkeley |
| Occupation | Businessperson |
| Years active | 1980s-2005 |
| Known for | Founding Calypso Beverage Company Ltd (renamed Independent Liquor) |
At the time of his death in 2005, Erceg as one of the New Zealand's wealthiest individuals.[2]
Early life
editErceg was born in West Auckland[citation needed] in to a Croatian winemaking family[3] who operated Pacific vineyard in Te Atatū South.[citation needed] He attended Kelston Boys High School.[3] He was one of four children. Erceg was a top pupil, who skipped sixth form and was awarded Dux of Kelston Boys High School in 1972.[3]
Erceg earned his PhD nine years later, from the University of California, Berkeley, and went on to teach math at university level.[3]
Business career
editFounding Independent Liquor (1987-2000)
editErceg soon returned to New Zealand to help with his ailing father's wine business in West Auckland.[4] However, after a family disagreement over the direction of the wine company, Erceg left the company and formed Calypso Beverage Company Ltd in 1987. This business evolved to Independent Liquor.[4]
Independent Liquor became New Zealand’s largest independently owned liquor distributor, known for its ready to drink (RTD) brands such as KGB, Woodstock and Vodka Cruisers.[1] Erceg relied upon alternative marketing strategies to combat the larger players in the New Zealand alcohol industry. He provided incentives to their retail customers that helped them increase their profit margins.[4] The company opened production facilities in Australia in 1999, with plants in Sydney and Laverton.[5] In late 2003, he was 8th on the National Business Review's rich list of New Zealanders, with wealth estimated at $300 million.[6]
Expansion and sales (2001-2005)
editIn November 2005, his personal fortune was estimated at $600 million, making him the second richest man in Auckland.[3] At the time, Independent Liquor had become the third largest liquor distributor in the country with a 65% market share for RTDs. Independent Liquor was also exporting their products to 70 countries.[3]
After his death in 2005, Independent was put up for sale. Erceg's family oversaw the sale of Independent Distillers Group in December 2006 to CCMP Capital Asia and Pacific Equity Partners. The amount was undisclosed, but reported in the press to be for $864 million.[7] The sale of Independent Liquor was approved by Erceg's widow in late 2006.[8] At the time of the sale, Independent had 65% of the NZ market and 30% of the Australian market for RTD products, with brands including Woodstock Bourbon & Cola, Vodka Cruiser, Pulse and Purple Goanna, among others.[5] Independent was sold to Asahi for $1.5 billion[9] in 2011.[10][11] In 2017, Independent Liquor was the largest "ready-to-drink" liquor company in New Zealand.[12] On July 1, 2019, Independent Liquor (NZ) Ltd officially changed its name to Asahi Beverages (NZ) Ltd.
Personal life and death
editHe and his wife Lynnette married later in his life. He has a stepson.[3]
In November 2005, Erceg died in a helicopter accident.[13] The helicopter he was piloting crashed near Raglan, New Zealand. Also killed was his passenger Guus Klatte, export director of Grolsch International. The wreckage was not found for two weeks.[14][1][15] His ELT antenna on his Eurocopter EC120B was broken, so distress pings went unheard. According to Smithsonian Magazine, "the ensuing hunt for Erceg would become one of the largest and most expensive search-and-rescue operations ever conducted in New Zealand." [16] He and Klatte were said to have died on impact.[10]
He was survived by his widow Lynette Erceg[17] and step son Matthew Pringle,[18] along with siblings Ivan,[19] Vinka[citation needed] and his mother Millie Erceg.[10] Two trusts he set up before his death, the Acorn Foundation and Independent Group Trust,[18] both involving shares in his businesses,[20] were later the subject of several legal battles involving beneficiaries.[21][20] Their value was estimated at $1.2 billion in 2005 and 2006.[9]
See also
editReferences
edit- ^ a b c "Millionaire's body found in wreckage – National – NZ Herald News". nzherald.co.nz. 19 November 2005. Retrieved 16 December 2016.[dead link]
- ^ "NBR rich list: Burger baron dining at top table – Business – NZ Herald News". nzherald.co.nz. 30 July 2014. Retrieved 16 December 2016.
- ^ a b c d e f g "Missing millionaire – the reclusive wunderkind – National – NZ Herald News". nzherald.co.nz. 6 November 2005. Retrieved 16 December 2016.
- ^ a b c "A Kiwi Success Story | Independent Liquor". independentliquor.co.nz. Retrieved 16 December 2016.
- ^ a b Erceg sells to private equity, Ausralian Financial Review, 14 December 2006
{{citation}}: CS1 maint: year (link) - ^ The liquid assets of the booze barons, The New Zealand Herald, 15 December 2003
{{citation}}: CS1 maint: year (link) - ^ PEP deal snaps up New Zealand distiller, The Age, 14 December 2006
{{citation}}: CS1 maint: year (link) - ^ Lion's cash bid expected to win the day in battle for Independent, Australian Financial Review, 8 December 2006
{{citation}}: CS1 maint: year (link) - ^ a b Billion-dollar battle heads to Supreme Court, The Shout New Zealand, 20 June 2016
{{citation}}: CS1 maint: year (link) - ^ a b c Erceg mother ordered to pay $27,000 in 'wasted' court costs, The New Zealand Herald, 30 March 2015
{{citation}}: CS1 maint: year (link) - ^ Brother of billion-dollar liquor baron Michael Erceg appeals in Supreme Court, Stuff New Zealand, 31 August 2016
{{citation}}: CS1 maint: year (link) - ^ Independent Liquor back in black on fatter margins in face of shrinking sales, BusinessDesk, 6 July 2017
{{citation}}: CS1 maint: year (link) - ^ "Tycoon at fault in crash - New Zealand News". 31 October 2009.
- ^ "NZ liquor baron fatally flew chopper into cloud - report". 19 March 2010.
- ^ "Crash Claims Liquor Chiefs – News, Obituaries, Society – NZEDGE". nzedge.com. 21 November 2005. Retrieved 16 December 2016.
- ^ How to Find a Missing Airplane, 'Smithsonian Magazine, November 2011
{{citation}}: CS1 maint: year (link) - ^ ERCEG, Lynette, NBR
- ^ a b Manuka honey marketer said to be seeking buyer, NBR, 15 June 2021
{{citation}}: CS1 maint: year (link) - ^ Ivan Vladimir Joseph Erceg v Lynette Therese Erceg and Darryl Edward Gregory as Trustees of Acorn Foundation Trust
- ^ a b Beneficiaries not always entitled to trust information, Otago Daily Times, 3 April 2017
{{citation}}: CS1 maint: year (link) - ^ Family fights over liquor tycoon's estate, Otago Daily Times, 11 June 2013
{{citation}}: CS1 maint: year (link)