Foley Family Wines will take control of New Zealand Wine Company, adding the Grove Mill, Sanctuary and Frog Haven brands to its suite of local wines.

High New Zealand dollar and oversupply of local wine cuts into wine company's margins.

The New Zealand Wine Company has announced a change in CEO as Rob White elected to resign after eight years with the company

New Zealand Wine Company said surplus bulk wine is testing the financial sustainability of the industry as supplies are sold at less than the cost of production.

The company today signalled that it expects to make a loss in the year to June 30, 2010, after various accounting adjustments.

Directors were confident that cash-based underlying earnings would bounce back when wine supply and demand came back into balance.

Projected wine sales revenue in the year to June 30, 2010, would be 5-10 percent lower than the previous year.

Anyone buying cheap wine in supermarkets should spare a thought for the companies producing them, if a presentation in Blenheim today is anything to go by.

Prices for bottled wine, grapes and vineyard land are falling, according to The New Zealand Wine Company Ltd.

The maker of Grove Mill, Sanctuary and Frog Haven brands is listed on the NZAX and held its annual meeting today.

The problem is an oversupply of wine that has coincided with the global economic downturn to make 2009 a watershed year for the New Zealand wine industry.

The New Zealand Wine Company (NZWC) celebrated its 20th birthday with a record harvest and revenue figures; a problem as the company’s infrastructure was not prepared for huge increase in grape tonnage.

The company’s posted revenue $11.986 million and profit was $1,351,000 before biological bearer-asset adjustments for the year to June 30. This is an increase of 41 per cent and 6 per cent respectively on 2007.