Australia’s Treasury Wine Estates (TWE) has merged a new team focussed on revenue growth into its premium-brands division as it looks to “unlock” growth for focus brands.
The Melbourne-headquartered group said the move would help “strengthen innovation” and deepen its engagement with customer partners and end consumers.
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Its ‘global revenue growth’ team (GRG) established by the group’s global chief revenue growth officer Angus Liley in 2023. It was tasked with “driving” revenue opportunities by setting out growth plans for current and future global brands, as well as working on innovation and consumer intelligence.
Liley will now take over the TPB division as managing director from Peter Neilson. After 12 years at TWE, Neilson is leaving TWE to “pursue new career opportunities”.
The corporate structural and leadership changes at TWE will come into effect 1 July.
“When you consider our premium portfolio, this is a unique offering with an unrivalled global footprint and brands that resonate strongly with consumers,” TWE CEO Tim Ford said.
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By GlobalData“Integrating our GRG capabilities within TPB, will enhance our ability to strengthen these brands, foster cutting-edge innovation and deepen our engagement with consumers and customer partners.”
TWE has been reshaping its portfolio over the last year, as the company puts more emphasis on its “premium” and “luxury” ranges.
Last year, Treasury Wine Estates announced plans to close its “commercial” wine operation in Victoria amid pressure on sales of more mainstream wine in the country. At the time, the company said the decision to close its Karadoc winery had been made in light of rising costs and a decline in consumption of wine sold at below A$10 (then $6.70) a bottle.
The group has also made several plays for higher-priced wine brands.
In October, TWE acquired California’s Daou Vineyards for $900m. The deal, which could rise to $1bn, will see the company take 100% of Daou Vineyards, including three wineries and 389 acres of vineyards across Paso Robles, and a winery and 22 acres of vines in San Luis Obispo.
A month later, the group outlined plans to expand its footprint in New Zealand with its purchase of a vineyard in Marlborough.
For the opening six months of its fiscal 2024, TWE reported sales of A$1.313bn compared to A$1.308bn a year ago. Net income was A$166.7m, down 11.4%.
The group’s earnings before interest, tax, SGARA and material items (EBITS) dropped 5.8% to A$289.8m, driven by Treasury Americas and Treasury Premium Brands, which featured a 17.5% and 3.2% decline in EBITS respectively.
Treasury Wine Estates slightly lowered its full-year guidance for its fiscal 2024, now estimating mid-to-high single-digit growth from a previous estimate of high single-digit growth.
