The company lifts total case sales by 7% to 1.09 million in the first half, with the strongest growth in North America.
Listed grapegrower Oyster Bay Vineyards has seen the price of its grapes drop by a fifth in its latest deal with sole customer Delegat’s as the oversupply issue continues to push prices down around the country.
The Marlborough grape grower confirmed today that it had completed negotiations with Delegat’s Wine Estate, which had achieved an average price of $1469 per tonne.
That figure was down 20.3% on the previous year, when an average of $1843 a tonne was paid.
Delegat’s profit, revenue and dividend payments are all on the rise, but the wine company’s share price stubbornly refuses to budge very far.
Currently sitting at the $2.50 level, the company’s share price has not changed all that much since reaching that mark soon after it listed in 2006, despite continued growth.
The war of words between winemakers Jim Delegat and Peter Yealands over Oyster Bay’s pricing systems is showing few signs of abating.
Speaking after Oyster Bay’s recent annual meeting, Mr Delegat was not in the mood to forgive or forget Mr Yealands' legal dispute with Oyster Bay, telling Private Bin the cost of defending the charges had been enough to wipe out a dividend from the company.
Bulldozer-cum-wine entrepreneur and Oyster Bay Marlborough Vineyards minority shareholder Peter Yealands says he is satisfied with the price it is selling its grapes to majority shareholder Delegats, but still has procedural issues with NZX’s oversight.
Mr Yealands says he is happy with the $1843 per tonne average, a price he describes as “fair”.