Foley Family Wines (FFW) Mt Difficulty Acquisition Update

24 October 2018


Foley Family Wines Limited (FFW) Mt Difficulty Acquisition Update

Foley Family Wines Limited [NZX: FFW] refers to its previous announcements in connection
with the agreement in principle reached with Mt Difficulty Wines Limited (MDW) to extend
the time period for FFW to obtain OIO approval for its purchase of the Mt Difficulty Wines
business, and FFW’s commitment to the expansion of Mt Difficulty Wines’ cellar door and
restaurant as part of the deal to buy MDW’s business.

FFW now advises that, as a result of the above, FFW and MDW have now agreed to amend the
sale and purchase agreement signed for the purchase of the Mt Difficulty Wines business in
November 2017.

Under the terms of the amendment, the purchase price is reduced to $52m, provided that if
the total cost to FFW of the cellar door and restaurant expansion (exclusive of GST) is less than
$3m, FFW will pay, as an adjustment to the purchase price, the difference to MDW. Any
adjustment payment would be due when the expansion has been completed and is operational.

Strong First Quarter Sales

FFW total case sales were up 34% to 129,000 for the quarter compared with 96,000 for the
same period last year. Bottled sales revenue was up 40% to $10,901,000 for the quarter
compared with $7,771,000 for the same period last year.

Mark Turnbull, CEO Foley Family Wines said “It’s been a strong first quarter when compared
with the recent industry data which showed a 1% decline in packaged wine for the 12 months
end July 2018. We continue to see significant interest in our entire portfolio internationally
and clearly the quality of our wine is extremely appealing to consumers around the world."


Authorised for public release.

For further information please contact:
Mark Turnbull
CEO, Foley Family Wines Limited
PO Box 67, Renwick, 7243, Marlborough
Tel: +64 21 714 885
Email: mark@ffw.co.nz