• Wolf Blass,recognised as Red Winemaker of the Year at the 2021 International Wine Competition, is one of Treasury Wine Estates' wines being divested (Source: Treasury Wine Estates)
    Wolf Blass,recognised as Red Winemaker of the Year at the 2021 International Wine Competition, is one of Treasury Wine Estates' wines being divested (Source: Treasury Wine Estates)
Close×

Treasury Wine Estates says it will divest its Commercial brands portfolio and register a $290 million non-cash impairment after tax against its Treasury Premium Brands (TPB) division, including Wolf Blass, Yellowglen, and Lindeman’s brands.

TWE also announced its unaudited EBITS before material items are expected to be $568.1 million, up 12.8 per cent on prior corresponding period. Its FY24 full year results will be released on 15 August. 

TWE said a review of its operating model drove the decision to divest the Commercial portfolio. It will provide a full update on the future of TPB in its FY24 full year results.

The company’s annual impairment testing process review of the carrying value of the group’s assets spurred the divestment decision. The non-cash impairment charge of $354 million ($290 million post tax) will be recorded in its FY24 results.

The impairment will be treated as a material item and broken down into a write down of goodwill ($115 million) and brands ($229 million). The brands affected will be 1996 acquisitions Wolf Blass and Yellowglen, and Lindeman’s (acquired in 2005) and Blossom Hill (2015).

TWE said the brands contributed less than five per cent of the group’s gross profit.

The difficult operating environment for commercial grade wines has been well documented across the industry, as the market has changed tack to a premiumisation strategy.

TWE said its Premium brand portfolio - including Wynn’s, Pepperjack, Squealing Pig, and 19 Crimes - has delivered a three-year NSR compound annual growth rate of 10 per cent.

 

(Explainer: Luxury segment: wines $30+, Premium: $10-30, Commercial: below $10)

Packaging News

Pact Group will delist from the ASX on Wednesday 16 July, the move being the culmination of executive chair and owner Raphael Geminder’s near two-year bid to take full control of the company.

Packaging is at the heart of Suntory’s bold new chapter in Australia, marked by the opening of its $400 million beverage production facility in Swanbank, Queensland – a site purpose-built to deliver high-speed, high-efficiency bottling, canning and kegging through world-class packaging technology and sustainable design.

Ego Pharmaceuticals has unveiled a bold new chapter in its commitment to local manufacturing, announcing a $156 million, decade-long investment to expand its Victorian operations.