Scheid Vineyards Inc. reports sales for the nine months ended Nov. 30, 2019, rose to $21.9 million from $18.9 million. The company’s net loss widened to $7.5 million from $5.5 million.
“Our case goods sales continue to increase over the previous fiscal year. Case goods revenues for the nine months ended Nov. 30, 2019, were up 16% over the same period last fiscal year. Demand for wine grapes and bulk wine continues to be weak, and as a result, grape sales decreased by 58% and bulk wine sales decreased by 30% from the same period last year,” said Mike Thomsen, CFO.
“Our annual grape harvest was completed in early November, and due to cool weather patterns in early spring and late summer, grape yields were down approximately 25% from long-term average yields, leading to a higher per-ton cost of grapes grown. The combination of weak demand and increased per-ton cost of grown grapes led to a drop in the Company’s margins on the sale of grapes and bulk wine, which was the primary factor in the increase in the net loss during the current nine-month period.”