Products and services of the firm

The products and services of the Delegat Group is as follows:

Oyster Bay Wines (Aus)
Delegat's Wine (UK)
Delegat's Wine Estate
Oyster Bay Wines USA
Other


Manufactures and markets wine and wine related products

Delegat Group Ltd makes and produces wines all over the world. The firm is able to make a
Super Premium branded New Zealand wines for the foreign and domestic markets and also
generates and markets Oyster Bay and Delegat's wines.

It runs its operation through its subsidiaries: Delegat's Wine Estate Ltd., Oyster Bay Wines
Australia Pty Ltd., Delegat's Wine Estate (UK) Ltd. and Oyster Bay Wines USA, Inc. Delegat
Group was founded in 1947 and is headquartered in Auckland, New Zealand.

Estimate the contribution margin


2012 2013
Delta NZD (in
Million)
Contribution
margins
NZD (in
Million)
Contribution
margins
Oyster Bay Wines (Aus) 82.32 38.3% 72.50 32.7% -13.55%
Delegat's Wine (UK) 55.37 25.7% 53.95 24.3% -2.63%
Delegat's Wine Estate 42.57 19.8% 192.92 86.9% +77.93%
Oyster Bay Wines USA 34.13 15.9% 44.65 20.1% +23.58%
Other 0.667 0.3% 1.95 0.9% +65.74%
Eliminations - - -143.94 -64.8%



Commentary on Contribution Margin
The major portion of sales in terms of contribution margin is Oyster Bay Wines
(Australia) and then followed Delegat Wine in UK.The other make up the rest of the products
and their respective contribution to the company.


Constraints and Discussion
The firm has stated it is performing up to the given expectations, but currency,
macroeconomic weakness, a continuing oversupply of wine, continue to pose challenges. The
constraints will be discussed as the currency does have bearing on the cost of raw material,
supplies and overhead expenses. The other constraints is the continuation of excess supply of
wine which might lead to supply problems and inventory issues leading to waste of resources.