FWL Harvest Result, Outlook & Martinborough Development

2 June 2020

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

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.



Authorised for public release.

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

- NOTES TO EDITORS –

About Foley Wines

Foley Wines is a collection of iconic wineries and brands from New Zealand’s most acclaimed
wine regions. Each with a unique story of New Zealand to tell, our wineries are linked by a
common unrelenting purpose; to make great wine that people love to drink around the world –
Made by Land & Hand.

Foley Wines is proud custodian of Martinborough Vineyard, Te Kairanga, Grove Mill,
Vavasour, Mt Difficulty and Lighthouse Gin.