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
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.
The company has just completed the 2010 grape crush, having harvested 2222 tonnes from company owned and leased vineyards.
The harvest is 10% lower than last year, and is typical for the industry after two years of bumper crops..
