Treasury Wine Estates is to cull over half the brands from its portfolio as it looks to accelerate growth around a trio of ‘power brands’ and seven ‘regional heroes’.
The Australian wine supplier plans to put “increased investment and support” behind its Penfolds, DAOU and Matua labels, with regional brands such as Frank Family Vineyards, Squealing Pig and Pepperjack also continuing to play “an important role in key local markets”.
A total of 10 brands would make up 90% of group net sales revenue within five years, TWE said, with rationalisation enabling the supplier to become “a simpler and more focused luxury wine business”.
TWE said it expected the transformation to result in the size of its total portfolio falling from 76 to less than 30 brands.
Some assurances were given over the future of brands such as Blossom Hill, which TWE abandoned plans to divest last year. The label, alongside 19 Crimes, would “continue to play an important role in supporting customer needs, particularly in the UK and Europe, during the multi-year transition period”, TWE said.
“Wine continues to play an important role in consumers’ lives, but consumer preferences and market dynamics are changing,” said TWE boss Sam Fischer. “Premiumisation remains a powerful long-term trend, with consumers increasingly choosing to drink less but better. At the same time, we’re also seeing strong growth in lighter styles, more relaxed social occasions and moderation trends, particularly among younger consumers.
“We’re reshaping Treasury Wine Estates to where we see the strongest long-term demand and growth opportunities in luxury red, luxury white, and more contemporary wine experiences.
“The future belongs to wine businesses that are more focused, agile and closely aligned to where consumers and customers are heading.”
Vineyard divestments
Meanwhile, the winemaker said it was also exploring the “potential divestment, retirement, or optimisation” of certain assets in California and Australia “to improve operational efficiency, and ensure the business is better aligned to future consumer demand”.
“We’re responding proactively and responsibly by aligning our footprint and asset utilisation to future demand expectations while continuing to protect the quality, flexibility and reliability our customers expect,” said TWE chief supply and sustainability officer Kerrin Petty. “The transformation of our supply chain directly supports our investment in the brands and opportunities where we see the strongest long-term growth potential, while supporting a healthy balance between supply and demand in the industry over time.”
The shake-up comes after TWE reported a huge loss in its fiscal first half and suspended dividend payments following a A$770.5m writedown to assets in the US.
The group attributed the non-cash hit in the Americas region to a continued moderation of US wine category trends and the application of more conservative long-term growth assumptions. It led to a net loss of A$649.4m in the six months to 31 December 2025, down 400% on last year.
The Penfolds owner has also struggled with slowing demand in the Chinese market, announcing reduction of customer inventory in the country in December.
Perceived underperformance at TWE has led to significant investor discontent, with activist shareholder and former COO Robert Foye among those publicly calling for “stronger strategic focus and operational execution” to arrest share price decline.
Shares in TWE climbed by more than 10% after details of the turnaround plan were published overnight.
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