Treasury Wine Estates (ASX: TWE) is moving to a regional operating model from 1 October, collapsing its existing divisional structure into four geographic units: the Americas; Australia, New Zealand and Europe; Greater China; and Emerging Markets (Rest of Asia, Middle East and Africa).
The shift is the most significant structural change at the wine company since it rebadged its premium brands division as Treasury Collective less than a year ago.
The announcement came alongside improved third-quarter depletions data and the completion of a $300 million debt refinancing that is expected to lift the company’s liquidity position above $1 billion by the end of FY26.
The new structure
Under the revamped executive leadership team, Tom King moves from Penfolds MD into the newly created role of chief commercial officer, with responsibility for Sales, Marketing, Direct to Consumer and Commercial Strategy across the ANZ, Europe, Greater China, and Emerging Markets regions, as well as group marketing strategy and innovation. He will report to CEO Sam Fischer.
Reporting to King, Angus Lilley – who took the helm of Treasury Collective when the division was formed mid-2025 – will lead the ANZ and Europe region.
Jack Wu, currently GM Mainland China for Penfolds, will lead Greater China from Shanghai.
Kristy Keyte, currently CMO for Penfolds, steps into the new role of Chief Marketing and Innovation officer, also reporting to King.
Ben Dollard remains head of the Americas but will report directly to Fischer rather than through the CCO, a structural signal of the heightened attention on TWE’s most troubled market. A dotted line to King is intended to ensure consistency of execution across all regions.
Kerrin Petty stays on as chief Supply and Sustainability officer but his remit has been expanded to include Americas Supply.
The model is designed to push decision-making closer to market, reduce duplication, and sharpen accountability for depletions performance. TWE says it is targeting $100 million per annum in cost savings, with initial benefits expected from FY27 and full realisation over two to three years.
Depletions momentum
TWE also put out a trading update, showing 40 per cent growth in China over the Chinese New Year period on a seasonally adjusted basis, driven by demand for Bin 389 and Bin 407 and the transitioning of parallel import volumes into authorised distribution channels. In ANZ, Penfolds depletions grew 11 per cent in 3Q26; Asia ex-China was up 14 per cent.
In the US, total market depletions for Treasury Americas rose 9.1 per cent in 3Q26 against the prior corresponding period, a marked reversal from the 2.6 per cent decline in 1H26.
California, which had been a drag following a distributor transition, returned to growth. DAOU led the quarter at plus 10.3 per cent, with Stags’ Leap up 10.1 per cent and Frank Family Vineyards up 5.9 per cent.
TWE reconfirmed that 2H26 EBITS will be higher than 1H26, and that it does not expect the Middle East conflict to have a material cost impact in FY26, though it flagged monitoring the situation into FY27.
The regionalisation is the latest chapter in a long run of structural evolution at TWE. The company considered a full Penfolds demerger as far back as 2020, shelved a sale of its commercial brands after failing to attract acceptable offers, and has repeatedly reconfigured how it groups and runs its non-Penfolds labels. The decision to hold central control of Penfolds brand strategy regardless of the new regional model is consistent with that long-standing prioritisation of the luxury tier.
Fuller details on brand portfolio strategy and transformation targets will be presented at TWE’s Investor Day on 4 June.
