From 1 July, Treasury Wine Estates’ global premium brands division will be rebranded as Treasury Collective, as the business looks to bring all premium labels from around the world into one cohesive unit. It will be led by Angus Lilley, currently MD of Treasury Premium Brands.
The announcement came as part of a market update, which revealed a drop in Penfolds sales in China but overall growth in the country.
Brands that will form Treasury Collective include 19 Crimes, Cali by Snoop, Matua, and Squealing Pig as well as regional brands such as Pepperjack and Wynns Coonawarra Estate. It will also take in the commercial brand portfolio including Wolf Blass, Lindeman’s and Yellowglen.
In August last year, TWE announced a $290 million non-cash impairment after tax against its Treasury Premium Brands (TPB) division, including Wolf Blass, Yellowglen, and Lindeman’s brands. At the time the brands contributed less than five per cent of the group’s gross profit.
But in February announced it was walking away from trying to sell the portfolio as offers were too low to be considered.
The consolidation of its premium labels follows the launch of TWE’s enhanced production capability in lower-alcohol, mid-strength, and no-alcohol wines, with that new facility includes $15 million investment in patent-pending technology at its Barossa Valley facility in South Australia.
Investor update
Treasury Wine Estates latest investor update revealed an expected drop in Penfolds sales in the coming year even though demand from the country has grown. CEO Tim Ford revised growth expectations from around 15 per cent to low to mid double-digits but said F25 EBITS were expected to be inline with expectations at $770 million.
NSR growth will be driven by increased availability for the Bin & Icon portfolio from the 2024 Australian vintage, with sell through weighted to 2H26 at around 55 per cent.
“Depletions performance for some ultra-luxury tiers, while growing versus the pcp, were below expectations, with additional resource and targeted ultra-luxury tier investment planned for FY26,” Ford said.
Meanwhile, luxury wine sales are growing in the majority of TWE’s markets and continue to outperform lower price segments.
Ford said FY25 EBITS are expected be around $770 million, driven by Penfolds and DAOU in the US.
In Treasury Americas, Ford said economic uncertainty and weaker consumer demand are being reflected in declining consumption across key sales channels, particularly in the sub-Luxury (below US$15) category.
DAOU’s performance and EBITS growth for the Americas was expected to grow, but modestly due to economic uncertainty and weaker consumer demand.
Ford also announced an on-market share buyback for up to five per cent of issued capital as the board believes the company is undervalued.
