Foley suffers $1m+ quake damage to wine tanks

Foley Family Wines' Bill Foley
ffwadd to my Stocks
FFW Foley Family Wines Limited
$1.200
0.000 0.000%
Volume: 10,000

Marlborough wine minnow Foley Family Wines has experience significant damage to its bulk wine storage tanks in the Kaikoura earthquake.

In a statement to the NZAX, the company said the quake had affected several tanks at its Grove Mill winery in the Wairau Valley near Renwick, although buildings and finished wine stocks were relatively undamaged.

“The company is currently working through the process with its insurers and the claim is in its preliminary stages,” it said. “However, it is clear that the cost of the damage will exceed the insurance excess for earthquake claims of approximately $1m. The company has the resources available to cover its insurance excess.”

There would be no problem meeting customer orders for bottled wine, it said, and its other wineries were not affected.

As well as Grove Mill, Foley wine brands include Vavasour, Clifford Bay, Dashwood, Goldwater and Te Kairanga.

For the year to June the company reported revenue of $34.8 million and net profit of $6.5 million.

Shares in Foley Family Wines last traded at $1.50, valuing the company at $78 million.

Its annual meeting will be held in Wellington on November 23.

Foley Family Wines is 66% owned by interests associated with Bill Foley, an American investor who also owns vineyards and wineries in the US through his holding company Foley Wines Holdings. In the International section of NBR's Rich List he is valued at $1.9 billion.


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Sadly, the seismic requirements for tanks are not clear and only informed prudent owners have seismic protection. The codes need to be strengthened so seismic forces are taken into account, and insurers will demand safe seismically designed tanks. Fortunately seismic protection can be retrofitted. See also Mercer Stainless problems with milk tanks.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7320 0.0044 0.60%
AUD 0.9228 -0.0020 -0.22%
EUR 0.6228 0.0009 0.14%
GBP 0.5686 0.0029 0.51%
HKD 5.7283 0.0366 0.64%
JPY 79.9950 0.4640 0.58%

Commods

Commodity Price Change Time
Gold Index 1289.1 4.840 2017-08-17T00:
Oil Brent 50.8 0.700 2017-08-17T00:
Oil Nymex 47.2 0.280 2017-08-17T00:
Silver Index 17.1 0.110 2017-08-17T00:

Indices

Symbol Open High Last %
NZX 50 7870.1 7873.6 7870.1 0.04%
NASDAQ 6222.5 6254.2 6221.9 0.12%
DAX 12103.5 12178.1 12203.5 -0.31%
DJI 21724.9 21793.3 21750.7 -0.10%
FTSE 7387.9 7387.9 7387.9 -0.86%
HKSE 26999.6 27236.3 27344.2 -1.08%
NI225 19471.3 19543.1 19702.6 -1.18%
ASX 5779.2 5779.2 5779.2 -0.56%