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Summary
- Launch of new online portal in February for selling New Zealand wines internationally.
- Despite COVID-19 challenges wine industry has fared well in New Zealand last year, as per the NZ Annual Winegrower’s 2020 report.
- Wine stocks like Folly Wines and Marlborough Wine Estates have witnessed increase in their revenues over pcp.
It has been recently reported that New Zealand would sell wines abroad though a new online portal. A major part of the wine experience in New Zealand is people from across the world visiting local cellar doors to understand the wine culture of the country. Tasting different blends, learning about what wines go with what food is part of the experience.
With COVID-19 related travel restrictions, wineries in New Zealand have suffered a lack of footfall.
The idea of this new initiative is to create an international channel where people from across the world can buy the choicest local wines without having to visit the nation. Online alcohol sales are on the rise and this initiative comes at the right time to harvest maximum profits to local wine producers, while also helping in the expansion of export markets.
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NZ Annual Winegrower’s 2020 report
The Annual New Zealand Winegrower’s report reflects upon the struggles local winegrowers had to face in the year 2020. It further revealed that the industry overall managed to record exports worth NZ$1.92 billion during the year closed 30 June 2020, which is a 6% increase from the same time last year. In the same period, there was a domestic sale of ~NZ$500 million witnessed too.
Efforts have been made to conduct research on creating the best wines possible in New Zealand. The wine producers stick by 3 R’s- reduce, re-use and recycle. Also, the New Zealand wine industry for above 2 decades has made sustainability as its essential component. More than 96% of NZ’s vineyard region is NZ certified sustainable winegrowing.
Let’s now take a peek at 2 NZX listed wine related stocks.
Folly Wines Limited
Folly Wines Limited (NZX:FWL), a leading local wine producer revealed in its annual report for the year ended 30 June 2020 about the operating earnings standing at $7,750,000 as compared to the $5,059.000 earned in the pcp (previous corresponding period).
On 13 January 2021, at the time of writing, Folly Wines was trading at NZ$1.950, down by 0.51%.
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Marlborough Wine Estates Group Limited
Another local wine producer Marlborough Wine Estates Group Limited (NZX:MWE) has witnessed total sales revenue of NZ$6.4 million, which is 19% more than that it earned in FY19. It cemented its position in the New Zealand market with the revenue earned by bottled wine sales having increased by 91% in comparison with FY19.
On 13 January 2021, at the time of writing, Marlborough Wine Estates Group was trading flat at $0.590.
