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Treasury Wine Estates (TWE), the Australian wine giant, has announced plans to divest its commercial brand portfolio, including Wolf Blass, Lindeman’s, Yellowglen and Blossom Hill.
The decision is part of TWE’s ongoing restructure prioritising the Premium Brands Division, which features wines priced between A$10 ($6.60) and A$30 ($19.80).
In a statement, TWE said: “Following the latest review of the carrying value of the Group’s assets as part of its annual impairment testing process, TWE will recognise a non-cash impairment charge of $354m ($290m post-tax) in its financial result for the year ended 30 June 2024 in relation to the TPB division”.
“Adverse trends [in Commercial wine] have offset the benefits from TPB’s strategic focus to premiumise its portfolio, where it has delivered a three-year NSR CAGR of 10% for its priority Premium brands, which include Wynn’s, Pepperjack, Squealing Pig and 19 Crimes”, it added.
Penfolds CEO Tim Ford commented: “By leveraging our unique Penfolds brand status to drive ongoing demand, we remain steadfast on our clear ambition to be the number one luxury wine brand in the market”.
The decision follows a recent announcement by TWE that it intended to re-enter the Chinese market with its Penfolds range following the removal of tariffs on Australian wine imports.
Source: Drinks Retailing News / Just Drinks / Treasury Wine Estates
