The idea behind Craggy Range Winery began a decade before its birth in the minds of two people who shared a passion for wine, quality and a desire to bring the two together in a lasting legacy.

In 1987, Steve Smith was a prominent figure in the New Zealand wine industry, a respected viticulturist who spent the early years of his career with Dr. Richard Smart pioneering cultivation techniques now used in many of the world's vineyards. His various facets now include international consulting for a number of high profile new world wineries; an active role in protecting, promoting and elevating the quality of New Zealand's wine sector; and contributing to the production of wines which became some of New Zealand's benchmarks in the world market, not only under his own name but for Villa Maria Estate, with whom he worked for twelve years. In 1996, Steve became a Master of Wine, and remains the only specialist viticulturist in the world to hold that distinction.

But in 1987, Steve's sights were set on a small property in Hawke's Bay's Tukituki Valley, a dramatically beautiful site nestled to the east of the massive Te Mata Peak and overlooked by the Craggy Range Mountains. Steve's investigation uncovered a parcel of stony clay soils ideally suited to cultivation of Chardonnay. The property remained in his mind. At roughly the same time, international businessman Terry Peabody and his family made a determination to enter the wine business. His success gave him the latitude to be uncompromising in his search for the perfect place to make his investment, and after nearly a decade's research, his path led to New Zealand and to Steve Smith.

Initially in the role of consultant and charged with selecting only the finest vineyard sites, Steve advised Terry to make his first acquisition in what is now known as the Gimblett Gravels District of Hawke's Bay. The last remaining parcel of high quality winegrowing land in the district, the vineyard site was already caught up in Steve Smith's influence. Originally owned by the Gimblett family and used as a winter paddock for cattle and sheep, the 250-acre property was purchased in 1987 as a proposed gravel mine and quarry by an international concrete company. In 1989, a coalition of local growers, Steve Smith key among them, opposed the company's attempts to proceed, citing the property's viticultural potential. After two losses in the legislature, the company offered the land for sale in 1997, and, fittingly, Craggy Range Winery acquired it.

The Peabodys' second acquisition occurred during their first visit to Hawke's Bay in 1998. Equally seduced by the Tukituki property on which Steve had set his sights in 1987, they purchased it for the site of their beautiful winery and small but very special Chardonnay vineyard. In mid-1998, Steve joined the winery as Partner, Wine and Viticultural Director and General Manager, and immediately thereafter acquired the third vineyard property. On the east coast of the North Island as is Hawke's Bay but to the south, near the island's tip, lies the Martinborough District. This cool area is most strongly associated with Pinot Noir, of which the first vines were planted near the town of Masterton in 1897. Steve Smith was also convinced of its potential for Sauvignon Blanc, and after considerable research purchased the spectacular, 350-acre Te Muna Road property.

The two principal estates are climatically and geologically distinct. Although New Zealand has been associated almost exclusively with cool-climate growing areas, the northern zones of the North Island, at a latitude of 35º, are significantly warmer than the southern zones of the South Island, which extend to 45º. Hawke's Bay is one of these very few warm, dry areas that share a climatic profile similar to southern Napa and Bordeaux. A vine variety planted in Hawke's Bay ripens three to five weeks earlier than if it were planted in Martinborough. Within Hawke's Bay there are tiny pockets of austere, gravelly soil perfectly suited to Bordeaux varieties. Gimblett Gravels is the warmest of these, with a location sheltered from cool maritime breezes that is typically 3ºC warmer than immediately surrounding areas during the summer months. Average summer temperatures are only a degree or two cooler than Napa's Oakville district, but the heat summation is 1,400 degree days as compared to Oakville's 3,300. The warmth is enhanced by rock beds over 90 feet deep which act as incubators at night, releasing heat absorbed from the sun during the day. The effect is a terroir in which Cabernet, and particularly Merlot, consistently achieve a level of ripeness seldom attainable elsewhere in New Zealand. The Gimblett Gravels Winegrowing District covers only 1,500 acres, and it is the only viticultural district in the new world the boundaries of which are ultimately defined by soil type. Steve Smith was the founding Chairman of the GGWD grower's association.

Craggy Range's Gimblett Gravels vineyard was developed using both traditional and innovative approaches. The narrow-row vine architecture is planted to a very intensive density of between 1,400 and 2,100 vines per acre, with several plots trained low to the ground to benefit completely from the thermal conductivity and reflectiveness of the soils. Extensive deep soil preparations encourage deeply rooted vines to reach veins of sand, silt and clay immersed far into the gravel, and drip irrigation is applied only when required. Thirty-six varietal plots have been matched to the variations in depth and texture of the gravelly soils of the meandering old stream beds of the Ngaruroro River. The vineyard is planted on proven rootstocks and where possible to Bordeaux clones. Current plantings are in 93 acres of Merlot, 29 acres of Cabernet Sauvignon, 27 acres of Syrah, 14 acres of Malbec, 8 acres of Cabernet Franc and 19 acres of Chardonnay.

New Zealand's reputation for benchmark Sauvignon Blanc is a direct result of its predominantly cool, dry, sunny climate typified by Marlborough. In viticultural terms, New Zealand is unique in being a small island environment with no point further than 70 miles from the sea, surrounded by temperate waters. Exceptional illumination, low rainfall and the infertile, low-vigor, geologically young greywacke stone soils, which are the country's most prevalent, create an ideal environment for Sauvignon Blanc. Where older stone soils prevail, the climate is perfectly suited to Pinot Noir. Martinborough, at the south end of the North Island, and Marlborough, at the north end of the South Island, are very similar to each other in soil profile and climate. The small differences, however, are critical. While Martinborough's average 1,109 degree days are close to the 1,140 average in Marlborough, its spring is cooler and its autumn warmer, resulting in a harvest roughly ten days later than Marlborough. Rainfall is also nearly identical, but its distribution different: Martinborough is wetter in the spring and drier in the fall than Marlborough, removing the risk of rain with a late harvest. As a result, the wines are more extracted, complex and structured, with more subtle aromatics and greater elegance.

For all these reasons, Craggy Range chose the Te Muna Road vineyard in Martinborough over sites in Marlborough. This exceptional estate, roughly five miles from the center of the town of Martinborough, is divided into two terraces. The upper terrace lies entirely on the old, stony, decomposing Martinborough terrace soils that have become famous for Pinot Noir. As might be expected, this terrace is planted primarily to Pinot Noir and Chardonnay on proven rootstocks and, where possible, in new clones from Burgundy. The lower terrace is geologically distinct, dominated by greywacke stones interspersed with a little limestone, and is planted almost entirely to Sauvignon Blanc. The vineyard architecture is a very intensive, narrow-row structure with between 1,400 and 2,100 vines per acre. Current plantings stand at 130 acres in Sauvignon Blanc, 15 in Chardonnay, 5 in Riesling and 80 in Pinot Noir over 40 vineyard plots.

Craggy Range produced its first wines in the 1999 vintage from mature vineyards in Marlborough and Hawke's Bay with the philosophy to which Steve Smith is committed: to make the very best wine, expressive of the vineyard's highest potential, letting the character of the mesoclimate speak clearly in the finished wine with minimal intervention in the winery. He believes in an intensive hand management technique he calls "footprints in the vineyard". He has since applied this commitment to wines produced from the estate vineyards, which are exclusively estate grown, estate vinified and estate bottled.

Craggy Range produces two lines of wines under its label: the Varietal Collection and the Prestige Collection. The Varietal Collection is a range of single-varietal, single-vineyard estate wines produced from parcels planted to varieties specifically suited to each soil profile, bottled under a varietal designation. The Prestige Collection is a range of single-varietal and blended wines sourced from select estate terroirs which yield fruit of exceptional ripeness, expression and complexity. Produced on a small scale, they bear proprietary rather than varietal names. Whereas both the Gimblett Gravels and Te Muna Road vineyards contribute to the Varietal Collection wines, releases of the Prestige Collection wines are produced primarily from Gimblett Gravels.

Two winemaking facilities, both located in Hawke's Bay, serve all production. The beautiful Giant's Winery, dedicated in January of 2003 and located on the Tukituki estate, is specifically designed for and dedicated to the production of Craggy Range's Prestige Collection Bordeaux blends and Hawke's Bay Chardonnay from the Gimblett Gravels and Tukituki estates. Architecturally inspired both by tradition and innovation, it is also the site of the visitors center, guest lodge, administrative offices and a classic French country restaurant called "Terroir." A second, larger winery on nearby Highway 50, is technologically advanced and different in focus and feel, and produces primarily Sauvignon Blanc and Pinot Noir from the Te Muna Road estate and Merlot and Syrah from Gimblett Gravels. It also houses the laboratory and bottling line.

Steve Smith shares the winemaking responsibilities with Doug Wisor in a near-perfect division of labor. As viticulturist, Steve oversees management and technology of all the vineyards, and directs vinification of Cabernet Sauvignon, Merlot, Cabernet Franc and Malbec as well as assemblage of the blends. Doug, an oenologist, oversees management and technology of the wineries, and directs production of Pinot Noir and Syrah. They share production of Chardonnay and Sauvignon Blanc.