Treasury Wine Estates has made upbeat noises about its ongoing consolidation programme, claiming the project is helping to “sharpen our focus”, including in its most recent quarter.
Speaking at the Penfolds owner’s AGM earlier today (15 October), CEO Sam Fischer provided a potted update on Treasury’s performance over the three months to the end of September, the first quarter of its fiscal 2027. At the same time, Fischer also confirmed plans for further brand and/or asset sales between now and the end of the year.
During what was described as a “positive” first quarter, Penfolds delivered depletion growth ahead of plan in China, while the ‘Power Brands’ portfolio, home to Penfolds as well as the Daou and Matua marks, reported “stronger depletions” in the US. Elsewhere, Australia was also home to increases in depletions for the Power Brands.
Reference was also made in Fischer’s presentation to the sales of Australian sparkling wine business Seppelt in September and the Rosemount, Ingoldby and Secret Stone brands earlier this week, with total proceeds from the programme so far estimated to be AUD50m (US$34.9m).
“We’re … finalising a number of additional divestments, which we expect to have signed by the end of the first half,” Fischer added. “The strategic and operational review of the US business is progressing, and we’re currently assessing alternatives to improve shareholder returns.”
Since the start of this month, Treasury has shifted to a revised operating model based on geography, a move announced back in April.
