Treasury Wine Estates has unveiled Treasury Collective, a new reporting unit containing the group’s lower-priced wine brands.
The redraw, which takes effect from the start of next month, sees the retirement of Treasury Premium Brands, with its replacement also absorbing around a third of the sales currently credited to the Treasury Americas division. Going foward, the split between TWE’s three units by sales will be:
- Penfolds – 36%
- Treasury Americas – 26%
- Treasury Collective – 38%
Among the brands in the new operating division, which is led by 19 Crimes, Cali by Snoop, Matua and Squealing Pig, are Blossom Hill, Lindeman’s, Wolf Blass and Yellowglen, the latter four of which TWE chose not to offload earlier this year. CEO Tim Ford, who will step down at the end of September, said at the time that the ‘commercial’ brands would remain on board as the “offers received for these brands did not represent compelling value and therefore their retention is the best course of action”.
Positioned as the group’s ‘global premium division’, Treasury Collective, which will be led by Treasury Premium Brands MD Angus Lilley, will allow for “more effective and efficient allocation of resources to drive awareness and distribution, supported by tactical volume driving initiatives”. At the same time, the unit will also “recruit consumers to the category through disruptive innovation”.
TWE also provided a performance update on its current financial year, which ends on Monday (30 June). The main concern appears to come from the Americas, where “economic uncertainty and weaker consumer demand has been reflected in declining wine consumption trends across key sales channels throughout [January to June], with softening more pronounced at the below US$15 (sub-luxury) price points”.
The group will announce its fiscal 2025 figures on 14 August.
