Foley suffers $1m+ quake damage to wine tanks
Winery near Blenheim affected
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Hawke’s Bay
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.
Staff reporter
Fri, 18 Nov 2016
Fri, 18 Nov 2016
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