Products and Services Market Development - WINE William TIEN May 13, 2002, 3:31pm
NexBanc will acquire approximately 2.3 million bottles of clean skin wine of the varieties of grapes currently grown by the Tuart Vineyard subsidiaries. The wine will be labelled to NexBanc's specifications and it is understood by Tuart that NexBanc intends to export the wine to oversees business networks, particularly throughout Asia.
Subject to the harvest yields being as predicted and Tuart confirming subcontracting of the wine production and bottling, the sale pursuant to the Memorandum of Understanding should produce gross sales for the 2003 harvest of over A$10,500,000.
The impact of this transaction is significant to the overall strategy of Tuart. Producing bottled wine also meets the expectations of growers in the Preston Vale Managed Investment Scheme.
NexBanc wishes to establish a label for the future and their intention is to secure long-term contracts. Tuart at this stage has made no commitments with respect to subsequent harvests. In addition,Tuart, in conjunction with NexBanc, is commencing feasibility studies on expanding plantings on available land at the Preston Vale Vineyard.
