How Four Generations Built One of New Zealand’s Last Great Family Wineries

When 20-year-old Croatian immigrant Josip Babich filled his first oak barrel of wine by hand in New Zealand in 1916, building an internationally-renowned wine company wasn’t the first thing in his mind.

He was simply trying to make a living.

More than a century later, the family business he founded exports to more than 60 countries and has become one of New Zealand’s largest family-owned wineries – an increasingly rare achievement in an industry where many historic producers have disappeared or been absorbed into multinational conglomerates.

That remarkable journey was celebrated on June 23 in Shanghai, where Babich Wines marked its 110th anniversary with a gala dinner attended by more than 40 distributors, government officials and long-standing industry partners.

For many of the winery’s Chinese distributors, the evening was more than an anniversary celebration. It was the first time they had heard the story behind a brand they had represented for years.

Several guests remarked that while they had worked with Babich for a long time, they had never fully appreciated how the winery survived financial hardship, navigated two world wars and passed successfully through four generations of family ownership.

The evening featured remarks from Babich China Sales Manager Cai Lei, New Zealand Consul-General in Shanghai Ardi Barnard, New Zealand Trade and Enterprise (NZTE) China Regional Director Chris Metcalfe, and third-generation CEO David Babich, before concluding with a guided tasting hosted by David alongside Master of Wine Fongyee Walker. Guests tasted four flagship wines: Babich Winemakers’ Reserve Marlborough Sauvignon Blanc 2024, Babich Winemakers’ Reserve Marlborough Pinot Noir 2023, Babich Irongate Gimblett Gravels Chardonnay 2024 and The Patriarch 2018.

The war that saved the winery

Babich’s history is, in many ways, the story of New Zealand wine itself.

Founded in 1916, the winery began modestly after Josip Babich arrived in New Zealand to join his three brothers, who were earning a living digging and selling Kauri gum in New Zealand’s far north. That same year, he crafted his first wines under the name Babich Brothers, filling barrels by hand and selling locally.

The early decades were difficult.

For nearly 30 years, the young winery struggled financially, burdened by debt and operating in what was still a tiny domestic wine market.

Ironically, it was World War II that changed the company’s fortunes.

As thousands of American servicemen were stationed in New Zealand, many visited the winery during rest and recreation leave, buying Babich wines and paying in U.S. dollars. The wartime demand provided the cash flow the family desperately needed, easing years of financial pressure and laying the foundations for future growth.

Four generations, four transformations

Longevity alone does not explain Babich’s success. Each generation fundamentally reshaped the business.

Josip’s sons, Peter and Joe Babich, joined the winery in 1949 and 1958 respectively.

Peter modernised vineyard operations, becoming one of the region’s earliest growers to introduce tractors and mechanised spraying. Peter’s lifelong dedication to New Zealand’s wine industry and viticulture earned him a Member of the Order of the British Empire (MBE) in 1989.

Joe established Babich’s reputation for winemaking excellence, serving as chief winemaker for 35 vintages while also judging New Zealand’s national wine competitions for 35 consecutive years, including six years as Chief Judge.

Together, they transformed Babich from a small family winery into a nationally recognised producer.

The third generation brought another shift.

When David Babich joined the company in 2001, the focus increasingly turned beyond New Zealand. Seventeen years later, André Babich entered the business, reinforcing the family’s long-term succession plan.

The fourth generation has already begun its journey. In 2025, David’s son Peter participated in his first vintage, extending a family winemaking tradition that now spans more than a century.

One unexpected order changed everything

The winery’s international expansion began not with a grand export strategy, but with a chance encounter.

In the early 1980s, a visiting German wine merchant tasted Babich’s wines, offered to import them into Europe and paid in advance for an entire shipping container.

That single order became the catalyst for the winery’s export business.

Recognising the opportunity, Peter and Joe Babich invested aggressively in overseas markets. By 1997, export sales had surpassed domestic sales for the first time, marking a defining milestone in the company’s history.

International acclaim soon followed.

As Babich collected awards around the world, demand accelerated rapidly. Some overseas distributors requested volumes up to ten times greater than the winery could supply.

Meeting that demand required significant investment.

In 1997, Babich purchased Wakefield Downs in Marlborough’s Awatere Valley, establishing its first vineyard in what would become New Zealand’s best-known Sauvignon Blanc region. Further vineyard acquisitions followed over the next two decades, alongside investments in production facilities that enabled the company to scale while maintaining excellent quality and preserving the craft.

Today, Babich owns nine vineyards covering 711 hectares in Marlborough, five vineyards in Hawke’s Bay and operates wineries in both Marlborough and Auckland, producing approximately 750,000 nine-litre cases annually.

Growing without losing focus

Despite its expansion, David Babich says the company’s philosophy has remained remarkably consistent.

Fruit is harvested block by block before being blended from more than 150 individual fermentation lots, allowing the winery to preserve stylistic consistency while expressing the character of each region.

That approach has helped establish Babich as one of New Zealand’s benchmark producers of Marlborough Sauvignon Blanc. Its flagship Marlborough Sauvignon Blanc has received scores of 90 points or above from leading international critics for three consecutive vintages, including 95 points from Decanter.

The portfolio has also broadened considerably, spanning approachable everyday wines alongside cellar-worthy flagship labels such as The Patriarch.

Looking beyond 110 years

The global wine industry faces no shortage of challenges, from slowing consumption to shifting demographics.

Yet David Babich remains optimistic.

“The past 25 years have brought remarkable change,” he said. “Our business has grown significantly, and we’re now selling into more markets than ever before.”

That optimism reflects more than recent commercial success.

More than a century after Josip Babich filled his first barrels by hand, the company remains wholly family owned and managed – guided by the same long-term perspective that carried it through debt, war, international expansion and four generations of family stewardship.

In an industry increasingly shaped by consolidation and short-term pressures, Babich’s enduring legacy offers a reminder that sometimes the greatest competitive advantage is simply thinking not about the next vintage, but about the next generation.