Decanter World Wine AwardsNew Zealand Wine Company 'significant loss'
- Monday 12 September 2011
NZWC, which produces the Marlborough eco-brand Grove Mill, reported a loss of NZ$3.18m (£1.63m) in the year to June 2011 in addition to a shortfall of NZ$1.89m (£97,000) the previous year.
Chief executive officer Rob White said, 'the combination of the over-supply of grapes, a strong NZ dollar and the global financial crisis has put intense pressure on revenue, margin, net earnings and cash flow management for all NZ wineries and grape growers and has resulted in NZWC posting a significant loss.'
It admitted it might be forced to reduce its activity in both the UK and US if the strong New Zealand dollar did not weaken against the pound and US dollar in the coming twelve months.
According to its accounts, NZWC owed a total of NZ$17.25m (£8.87m).
In June, ANZ bank agreed to waive a breach of a financial covenant ratio, subject to a review of the wine company's financial forecasts.
Have your say!
Steve Evans
September 12 14:31
Yes the market situation is challenging for NZ producers. But I can't help reflect that if producers maintain quality, and grow sales markets organically on a one to one basis with proper service models then the unique regional style will see them through. The situation at NZWC does not represent the all NZ producers
www.steveevanswine.com