NZ: Squeeze goes on smaller wine players
NZ: Squeeze goes on smaller wine players
Dec 7, 2010 6
A new wine industry report shows the financial situation is getting grimmer for smaller wineries and grape growers.
Often new players or heavily in debt, smaller wine companies are continuing to watch their profitability eroded, according to a report on the 2010 vintage by accounting firm Deloitte.
Deloitte partner Paul Munro said while the new survey did not portray significant volatility among larger wineries, an increase in bulk wines selling at cheaper prices was hurting profits across the industry.
Deloitte's survey, representing about 30 per cent of export sales revenue, shows the wine industry's call to growers to voluntarily reduce their harvests had helped over the last two years, but more vines are due to come on stream.
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