Treasury Wine Estates (TWE) says it is dropping the value of its US business by a further $558 million in write-downs. This follows the $687 million of write-downs the wine maker made against the business unit in December 2025.
The reset will include cuts to the North Coast vintage make sizes, a write down bulk wine inventory, and $100m in brand write-downs, predominantly to DAOU, Frank Family Vineyards and Beaulieu Vineyard. TWE bought DAOU for $1.6 billion in 2024 and Frank Family Vineyards for $434 million in 2021.
At the same time, the company said unaudited FY26 group EBITS would come in ahead of guidance at $492.3 million, against the $480-490 million range set at its Investor Day on 4 June. Leverage is expected to peak in FY26 at 2.8 times, better than the 2.9 times flagged in June. Guidance for FY27 EBITS to be at least equivalent to FY26 is unchanged.
TWE flagged a strategic and operational review of the Americas at its Investor Day, pointing to “structural misalignment” in the US supply chain. Softer demand had left the business with excess capacity across vineyards, wineries and packaging, and elevated inventory from recent vintages.
It will reduce North Coast vintage make sizes from 2026, including fallowing vineyards to cut annual grape intake, with associated asset impairments reflecting lower intended utilisation across both owned and leased sites.
It will also write down inventory, predominantly bulk wine, which it expects to move through bulk wine markets and internal reclassification.
Those actions sit on top of the supply chain measures already announced under TWE Ascent in June, when the company said it would cut its portfolio from 76 brands to about 30, reduce its vineyard footprint and transform winery and packaging facilities.
The Americas review remains open, with advisors appointed to work through all available options across the region’s brand portfolio, operating model and asset base.
Material items summary
|
Material item (post tax) |
2H26 ($m) |
|
Ascent transformation program (US strategic review) |
(458.6) |
|
PP&E and right of use assets |
(229.9) |
|
Assets to be divested |
(137.0) |
|
Inventory |
(72.8) |
|
Capitalised vintage costs (V26) |
(18.9) |
|
Impairment of brands |
(99.8) |
|
Total material items |
(558.4) |
New segments show the Americas gap
Meanwhile, TWE also published historical financials for the four regional divisions it moves to on 1 October: Greater China, the Americas, Australia and New Zealand (ANZ) and Europe, and Emerging Markets.
The restated numbers put the scale of the US problem in context. Americas EBITS fell to $50.1 million in 1H26 from $155.7 million in 1H25, with the margin dropping to 10.5 per cent from 23.7 per cent. Volume fell to 2.9 million nine-litre equivalent cases from 3.7 million, and net sales revenue per case slipped to $166.80 from $177.70. The half was affected by the Californian distribution transition that followed the exit of Republic National Distributing Company, settled with TWE in February.
Greater China remains the earnings engine, delivering $106.2 million in EBITS at a 42.6 per cent margin in 1H26, down from 47.1 per cent a year earlier. Emerging Markets held a 44.6 per cent margin on $144.5 million in net sales revenue. ANZ and Europe, the largest division by volume at 5.7 million cases, returned $52.4 million in EBITS at a 12.3 per cent margin.
The restructure is the second major operating model change under Fischer, who took over from Tim Ford in October 2025 and used a December 2025 market reset to launch Ascent and its $100 million a year cost target.
F26 results, which include the material items and remain subject to audit, will be released on 13 August.
