Scheid Vineyards Inc., Salinas has announced that it would be writing off vineyard assets in the approximate amount of $1,250,000.
Scott D. Scheid, President, explained this decision by noting that "As we do every year after harvest, management evaluates the productivity of our vineyards and their economic viability and discusses with current and potential customers the future contracting of grape production. After such evaluation, it was determined that lower producing acres without the potential for economic return would be taken out of production." Scheid continued by saying "At a meeting of the Board of Directors of the Company on December 5, the Board approved the write-off of these vineyard acres."
The Company expects to take the approximate $1,250,000 write-off in the fourth quarter of fiscal 2003. The 260 acres to be taken out of production represent approximately 7% of the Company's producing acres.
Scheid Vineyards Inc. is a leading independent producer of premium wine grapes and operates approximately 5,600 acres of vineyards, primarily in Monterey County. The Company sells most of its grape production under short and long-term contracts to wineries producing high quality table wines, and the Company also produces a small amount of ultra premium wine under its own label.