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Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough

Tuesday 2nd June 2020

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2020 Harvest Result

Foley Wines Limited [NZX: FWL ] CEO Mark Turnbull today announced that the company has completed its harvest for the 2020 vintage. The harvest totalled 7,802 tonnes across the Marlborough, Martinborough and Mt Difficulty wineries, an overall decrease of 6% on last year’s harvest of 8,304 tonnes. The harvest decrease was predominately driven by contracted growers being down 15% on last year while fruit from FWL’s own vineyards was up 1.8%.

Mr Turnbull said, “While our total tonnage may be down slightly, our teams did an incredible job operating in accordance with the strict conditions associated with Alert Level 4. We along with the rest of the industry are very thankful of the work done by NZ Winegrowers and the different Government agencies to allow us to harvest this year’s vintage.”

Foley Wines Group Chief Winemaker Alastair Maling MW said, “With a long drawn out summer and perfect conditions over March and April in Martinborough, Marlborough and Central Otago the quality of wines from 2020 will be some of the best in recent years.”

June 2020 Outlook

The Directors forecast operating earnings (before tax) for the 12 months ended 30 June 2020 will approximate $7.5m. This represents an increase of approximately 50% on 2019.

Mark Turnbull CEO said, “Notwithstanding the fact that we met the criteria for the MSD wage subsidy in the last quarter, the performance is directly attributable to the ongoing premiumisation strategy and progress in developing new routes to market across the portfolio of brands.”

New Development in Martinborough

The company is delighted to announce that it will begin construction of a multi-million dollar development at the Te Kairanga winery in Martinborough later this year. The building will comprise of an underground barrel facility, new tasting room and restaurant which will seat 100 people inside along with an outdoor area capable of hosting weddings, and a private dining room. The building will also include a new distillery for Lighthouse Gin which will be designed to ensure that it can meet the future growth for the brand.

Mark Turnbull CEO said, “We have been working on this concept for the past two years or so. We felt it was critical to have a great destination for customers to experience our three Martinborough brands; Te Kairanga, Martinborough Vineyard and Lighthouse Gin. Wine Tourism has been a growth category in New Zealand and around the world. Clearly there’s going to be a subdued period, but given the project will take around 18 months, we feel we will be well placed to host our customers when international tourism returns.”

Bill Foley Chairman said, “I have always been passionate about the Wairarapa both in terms of the exceptional wines we produce but also its tourism. My family continues to invest in the Lodge we personally own in the region, Wharekauhau Country Estate. I believe that investment at Te Kairanga will benefit our brands incredibly but also the broader economy in the greater Wellington region”.

The company expects to tender the project in the next two to three months with construction to start immediately after. Resource consent for the project was granted on 12 May 2020.

Foley Rewards

During lock down, the company launched a reward programme where every purchase made from the Foley Wine Club (www.foleywineclub.co.nz) earns points to spend on local dining, travel, fashion and experiences.

The generous programme allows members to redeem vouchers from a list of local establishments (with more added all the time). Each voucher is purchased by Foley Wines at 100 per cent retail price, ensuring these local outlets benefit just as much as the Wine Club member.

“This is a long term initiative we had been planning to launch later this year, but at a time where a lot of local businesses have been hard hit, we saw that now was the right time to support the places that have been big supporters of our business. Foley Points is designed to reward our loyal wine drinkers and give back to local businesses during their time of need,” said Mark Turnbull CEO.

The Foley Wine Club was designed to enable its members to access wines not easily available in the market such as vintage releases, magnums and varieties that are harder to come by, such as the Mt Difficulty Ghost Town Syrah. We’ve got members all around the country buying from the Foley Wine Club which essentially enables members to access wines usually reserved for our cellar doors.

Source: Foley Wines Limited



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