Scheid Vineyards Inc. said its sales rose 6% in the fiscal year ended Feb. 28 to $59.3 million. Despite the sales gain, the company booked a net loss of $2.228 million for the year. A year earlier the company had recorded a profit of $14.2 million, or $15.84 a share.
The increase was driven by the Company's cased goods sales which increased 15%, as compared to a wine industry trend of flat sales growth. Offsetting the growth was a decrease in bulk wine and grape sales of 18%, from $14.4 million to $11.8 million, primarily as the result of a smaller than average 2022 grape crop. Winery processing and storage revenues were $8.5 million, up $1 million, an increase of 13%.
Scott Scheid, president/CEO, said: "Achieving a 15% increase in cased goods sales in fiscal 2023 in a market that has been relatively flat is a positive sign. This sales momentum is being driven by our low alcohol brand, Sunny with a Chance of Flowers, as well as increased sales in some of our private and exclusive brands. We realize, however, that there is much work to be done.
In order to build a business positioned for long-term success during turbulent times, we are focused on increasing margins through taking price increases and reducing costs, honing our sales focus on our key brands, pursuing new business through our innovative brand portfolio, and continuing to strengthen relationships with our trade partners."