Treasury Wine Estates has decided against selling its portfolio of “commercial” wines, including well-known Australian brands such as Wolf Blass, Yellowglen, Lindeman’s, and Blossom Hill. The company determined that offers received for these lower-priced brands did not meet its financial expectations. As a result, Treasury Wine Estates has opted to retain the portfolio, citing that keeping it is “the best course of action.”
In August 2024, Treasury Wine Estates had announced plans to offload its commercial wine brands to concentrate on its premium offerings, noting that these brands represented less than five percent of its gross profits for fiscal year 2024.
The decision to keep the commercial portfolio follows the company’s announcement of its first-half 2025 results. Treasury Wine Estates reported a 32.5 percent increase in profits, reaching $220.9 million, with earnings rising by 35.1 percent to $391.4 million. The growth was largely driven by strong performance from its luxury brand, Penfolds.
Penfolds saw “outstanding” results, particularly in Asia, where shipments to China experienced significant growth. While net sales revenue across the company’s premium and commercial brands declined by 4.9 percent in the first half, Treasury Wine Estates attributed this decline to “continued softness in consumer demand for wine at lower price points.”
The company provided an update on Penfolds’ re-establishment in China, noting that the brand’s performance was progressing well. Treasury Wine Estates highlighted strong customer demand throughout the first half of 2025 and reported higher brand awareness and consumption metrics. Despite mixed conditions in the broader alcoholic beverage market in China, the wine category saw positive trends in the December quarter, fueling optimism for Penfolds’ long-term prospects in the region.
Looking ahead, Treasury Wine Estates revised its earnings guidance, expecting total earnings for the full year to fall at the lower end of its previously stated range, approximately $780 million.
CEO Tim Ford reflected on the company’s progress, emphasizing the success of its transformation into a luxury-focused business. “The calendar year 2024 has been a year of significant and successful change for TWE,” Ford said. “Penfolds and the Treasury Americas Luxury business are the clear drivers of our future growth, with our global premium business playing a critical role to power and support this growth agenda.”
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