Montana pops the cork on a bumper harvest

By DITA DE BONI

As the winds of takeover speculation whirl overhead, Montana Wines has broken its silence to report a bumper harvest.

The company says the harvest this year was 9 per cent bigger than last year, with a 15 per increase in high-varietal grapes offsetting a 28 per cent decrease in generic types.

But its most distinct white varietal suffered from bad weather.

Sauvignon blanc yielded 15 per cent less due to unseasonal weather at flowering while 40 per cent fewer Muller-Thurgau grapes were planted this year due to their diminishing popularity.

New crops coming into vintage in Gisborne, Hawkes Bay and Malborough in the next three years are expected to boost Montana's quality grape resource.

The company is completing a five-year plan of capital expenditure, worth $90 million, in vineyard land and development, aiming to increase the number of grapes harvested from company-owned vineyards by 130 per cent by 2004.

Export sales are projected to increase during the period by 300 per cent to $150 million.

Montana Wines accounted for $48.8 million of total New Zealand export sales of $125.3 million last year.

The company's share price continues to react to market speculation of a sale to Australian brewing and wine giant Foster's.

On Friday, Montana rose 13c to end at $2 at the close of trading.