The New Zealand Wine Company chairman Alton Jamieson says the “overhang of wine stock that is available for sale on the open market” is behind news that the company’s projected underlying net earnings for the June 2009 year will be down significantly compared to a year earlier.

However, sales volumes are on target, the company says, and Mr Jamieson says the company believes  that the underlying earnings and future growth opportunities for Marlborough sauvignon blanc remain positive for NZWC, once the current wine stock overhang is sold through and when supply and demand comes back into balance.

New Zealand’s wine exports to the UK in particular have been subjected to stiff competition.

The New Zealand Wine Company has announced an unaudited net profit after tax for the December 2008 half year of $702,000 – a decrease of 32 per cent on the prior 2007 year’s profit of $1,029,000.

Total revenue reported for the half year was $6,213 million – an increase of 11 per cent on the prior 2007 year’s figure of $5.601 million.