Griffith wine exporter records first loss

The Mayor of Griffith, John Dal Broi says Casella Wines is feeling growing pains but he is confident the company will survive its current financial woes.

Casella has this week reported a $30 million loss for the last financial year.

The first ever loss has put the big exporter in breach of debt covenants and it has until the end of the month to report to its bank on cost cutting measures.

Casella is continuing with its joint venture with Coca Cola on a new beer line.

Councillor Dal Broi says the high dollar has been hurting in the winemaker's major market - the United States.

"We certainly hope that everything goes well in the future," he said.

"Because they're such a huge employer and huge purchasers of wine grapes in this area that, boy, we wouldn't like to see anything to happen to them. But we believe that they're strong enough in the market place that they'll pull through."

Councillor Dal Broi says Casella employs more than 450 people at Yenda and has very strong community support.

"They're such a huge enterprise there now that they really need the support of their banking institution because to see something like that grow in a relatively short period of time, there was always going to be growing pains and I think this is part of it."

Managing Director John Casella has been unavailable for comment.

Source: ABC News, 16 January 2013