Inventory consists of the following:


(in thousands)	March 31, 2024		June 30, 2023
Bulk wine, spirits and cider	$	60,765	$	84,602
Bottled wine, spirits and cider		63,863		100,075
Bottling and packaging supplies		6,996		15,690
Nonwine inventory		1,263		996
Total inventory, net of reserve	$	132,887	$	201,363

Inventories of bulk and bottled wines, spirits, and ciders and inventories of non-wine products and bottling and packaging supplies are valued at the lower of cost using the FIFO method or net realizable value. Costs associated with winemaking, and other costs associated with the manufacturing of products for resale, are recorded as inventory. Net realizable value is the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with either the eventual sale or the disposal of the asset in question. Inventories are classified as current assets in accordance with recognized industry practice, although most wines and spirits are aged for periods longer than one year.

During the second quarter of fiscal 2024 and as a result of continued simplification of the business, the Company performed a detailed review of its bottled wine, spirits and cider inventory and reduced the value of non-core lower margin products and aged inventory by $9.0 million. This allowed the sales team to focus on the Company's priority brands. Since the most recent harvest, the bulk wine market has been softer than expected. As a result, the Company recorded a $23.3 million charge against its bulk wine inventory to reflect market prices for unallocated product and to reserve for product related to non-core lower margin products. The Company recorded provisions for inventory reserves for the three and nine months ended March 31, 2024 of zero and $32.5 million, respectively. For the three and nine months ended March 31, 2023, the Company recognized costs related to reducing inventory to its net realizable value of $9.6 million and $10.1 million, respectively. Due to the inherent uncertainties in the reserve estimate, which is based primarily on market assumptions for the Company's products and bulk wine, the actual results could differ significantly from our estimates.

Inventory valued at $16.5 million is included in Assets held for sale, net on the Company's condensed consolidated balance sheet as of March 31, 2024.