Oyster Bay Marlborough Vineyards is reviewing its capital structure after two years of lower grape prices.

Oyster Bay  chairman Sandy Maier says it’s completed negotiations with Delegat's Wine Estate on grape prices for the 2010 harvest.

Mr. Maier says total revenue received was down 28 per cent on the previous year at $8.3 million, resulting in a forecast end-of-year operating loss after tax of about $900,000.

Two years ago, New Zealand’s grape harvest soared 39% to 285,000 tonnes, resulting in about 27 million litres of over-supply after years of shortage, slashing wine, grape and land prices.