Treasury Wine Estates (TWE) has warned it will take a significant non-cash impairment against its Americas business, with the company preparing to write off at least all US goodwill valued at $687.4 million as at June 2025.
The company told the ASX the reassessment follows a further moderation in the US wine market, prompting TWE to adopt more conservative long-term growth assumptions for the region. The shift affects carrying values across the Treasury Americas and Treasury Collective – Americas cash-generating units.
In its 2025 Annual Report, TWE said that an 11 per cent annual reduction in future cashflows would remove all impairment headroom in its US business. While several brands – including DAOU, Frank Family Vineyards and Matua – continue to outperform the broader market, the slowing category outlook has triggered a downgrade in earnings expectations.
The final impairment amount will be confirmed with the release of TWE’s 2026 interim results, but the company said the scale of the downgrade means goodwill will be fully written off and other asset classes may also be affected.
Under accounting standards, impairments must first apply to goodwill before flowing through to tangible and intangible asset values.
In August 2024, the company registered a $290 million non-cash impairment against its Treasury Premium Brands division, including Wolf Blass, Yellowglen, and Lindemans.
The announcement comes as newly appointed CEO Sam Fischer prepares to brief investors and analysts in mid-December. The session will include performance updates across key markets, including the US and China, and outline Fischer’s early operational observations.
