Treasury Wine Estates is to overhaul its US business by shutting vineyards, impairing brands and writing down inventory, resulting in a post-tax charge of A$558m (£292m).
Shrinking demand for wine in the US had left TWE with “excess supply chain capacity, particularly with respect to vineyards, wineries and packaging, and elevated levels of inventory from recent vintages”, the Australian wine group said.
Having undertaken a review of its North American business in June, TWE said it would reduce its north coast vintage make sizes from this year, including by fallowing vineyards to lower grape intake, writing down assets across the US as a result. It also plans to write down inventory, predominately of bulk wine.
The impairments are primarily in relation to DAOU, Frank Family Vineyards and Beaulieu Vineyard and are incremental to an impairment recognised in H126.
Shares in TWE rose to their highest level since December 2025 as investors welcomed the strategic reset, alongside an uprating to earnings forecasts for the 12 months to the end of June.
TWE now expects to report unaudited EBITS before material items of A$492.3m, ahead of its previous A$480-A$490m guidance range.
“We are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market,” said TWE chief executive Sam Fischer. “The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds, DAOU and Frank Family Vineyards, and we expect to report F26 EBITS ahead of the guidance we shared in June.”
TWE will report its FY26 results in full on Thursday (13 August).
No comments yet