Oyster Bay Pinot Noir 2022. Credit: Oyster Bay / Facebook

New Zealand-headquartered Delegat Group saw volumes from its 2024 harvest fall 24.7% as a cool spring impacted grape growing.

Unfavorable climatic conditions drove “significant, region-wide reduction in yield” in Marlborough and Hawke’s Bay in New Zealand and the Barossa Valley in Australia, the company said.

However, the Oyster Bay brand owner said it harvested “excellent” grapes in terms of quality in all regions.

Its 2024 harvest came in at 34,150 tonnes, down from 45,340 tonnes in 2023.

In a filing on the New Zealand stock exchange today (2 May), the company said it would provide updated guidance on case sales volumes for 2025 and 2026 at its annual results announcement.

As well as Oyster Bay, the family-owned group’s portfolio includes its namesake New Zealand brand and Australia’s Barossa Valley Estate.

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In its half-year results, announced in February, Delegat posted operating revenue of NZ$198.6m ($117.8m), down $0.2m versus the same period in 2023. Operating EBITDA edged up $0.6m to $74.8m.

The group exports 95% of the wine it produces, which amounted to 1.92 million cases in the six months to December 2023 (a reduction of 46,000 cases on H123).

Official harvest volumes for Oceania have not yet been released but trade body Wine New Zealand said anecdotal evidence suggested the country’s overall harvest volumes could be “significantly” down in 2024, despite a “lift” in volumes in northern regions. It did note “positive” quality expectations, however.

It follows a historically low harvest in Australia in 2022-23 as the industry attempted to tackle historically high inventory levels and challenging weather.

In the 2022-23 year, winemakers produced 964m litres, the lowest volume since the 2006–07 vintage and the first time it has fallen below 1bn litres since then, according to trade body Wine Australia.

Wine Australia put the small vintage down to “very difficult seasonal conditions, compounded by active steps by some growers and winemakers to reduce intake”.