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Treasury Wine Announces $395 Million Charge Tied to US Supply Chain Revamp
The company said lower demand and excess inventory drove the non-cash writedowns as it reduces North Coast vintage production from 2026.
- On Monday, Treasury Wine Estates announced a $394.4 million post-tax charge to overhaul its U.S. business by fallowing vineyards and writing down inventory across its operations.
- The overhaul follows a strategic review of the Americas business launched in June to address softer wine demand and excess supply-chain capacity that left the division with elevated inventory.
- Impairments primarily affect brands including DAOU, Frank Family Vineyards, and Beaulieu Vineyard, yet unaudited FY26 Group EBITS are expected at $492.3 million, exceeding prior guidance of $480–$490 million.
- Shares rose 7.9% to A$5.86 as investors backed the restructuring; RBC Capital Markets described the update as 'positive overall,' noting non-cash writedowns reflected necessary supply-chain rebalancing.
- Treasury Wine plans to implement vineyard and inventory footprint changes over the next 12 months to boost profitability, while reiterating FY27 EBITS expectations to remain at least equivalent to FY26 levels.
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18 Articles
Sydney Morning Herald+3 Reposted by 3 other sources
Penfolds maker cracks down on Chinese grey market amid $1.1b loss
The wine giant is getting out of cheap wine, doubling down on Penfolds’ status as a luxury brand, while trying to figure out what to do with its struggling US business.
·North Sydney, Australia
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Treasury Wine Shares Soar After Moves to Tackle Excess US Supply
·New York, United States
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Total News Sources18
Leaning Left3Leaning Right2Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 27%
C 55%
R 18%
Factuality
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