Evans & Tate has reassured the market that it expects the impact of an outbreak of phylloxera at Foster's vineyards in the Yarra Valley, Victoria, to be minimal on its nearby winery.

The company said that its Oakridge Winery is located within a 5km zone of the Foster's winery at which the phylloxera outbreak was identified. Preliminary investigations at Oakridge have not revealed any similar infestation.

However, Evans & Tate said its current estimates are that there will be a material impact to the production of Oakridge branded wine in vintage 2007 as a consequence of adverse weather conditions. That said, Evans & Tate said in overall terms this will not be material to the company's revenues or financial position.

The company said that it was working on sourcing alternative Yarra Valley fruit to minimise the impact of the bad weather.