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Treasury Wine Estates

#2558

Rank

$5.47B

Marketcap

AU Australia

Country

Treasury Wine Estates
Leadership team

Mr. Stuart Ronald Boxer B.E., BEng (Hons) (Chief Strategy & Corp. Devel. Officer)

Mr. Timothy Ford M.B.A. (CEO, MD & Director)

Mr. Matthew John Young (Chief Financial Officer)

Products/ Services
Food and Beverage, Supply Chain Management, Wine And Spirits, Winery
Number of Employees
1,000 - 20,000
Headquarters
Southbank, Victoria, Australia
Established
1843
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
TWE.AX
Social Media
Overview
Location
Summary
Treasury Wine Estates Limited operates as a wine company primarily in Australia, New Zealand, Asia, Europe, the Middle East, Africa, and the Americas. The company engages in the viticulture and winemaking; and marketing, sale, and distribution of wine. Its wine portfolio includes luxury, premium and commercial wine brands, such as 19 Crimes, Acacia Vineyard, Annie's Lane, Beaulieu Vineyard, Belcreme de Lys, Beringer Vineyards, Blossom Hill, Cavaliere d'Oro, Coldstream Hills, Devil's Lair, EMBRAZEN, Etude, Fifth Leg, Heemskerk, Hewitt Vineyard, Ingoldby, Jamieson's Run, Killawarra, Leo Buring, Lindeman's, Maison de Grand Esprit, Matua, Penfolds, Pepperjack, Rawson's Retreat, Rosemount Estate, Run Riot, Saltram, Samuel Wynn & Co, Secret Stone, Seppelt, Shingle Peak, Sledgehammer, Squealing pig, St Huberts, Stags' Leap Winery, Stellina di Notte, Sterling Vineyards, T'Gallant, The Walking Dead Wine, Wolf Blass, Wynns Coonawarra Estate, and Yellowglen. The company also provides contract bottling services to third parties; and sells grape and bulk wine. It owns and leases 8,362 planted hectares of vineyards in Australia and New Zealand; 2,702 planted hectares in California, including the Napa Valley, Sonoma County, Lake County, and Central Coast; 90 planted hectares in France's Bordeaux region; and 154 planted hectares in Tuscany, Italy. The company markets and sells its products to distributors, wholesalers, retails chains, independent retailers, and on-premise outlets, as well as directly to consumers. Treasury Wine Estates Limited was founded in 1843 and is headquartered in Melbourne, Australia.
History

Background

Treasury Wine Estates traces its roots back to the establishment of several New World wineries in the 19th century. These include Lindeman's and Penfolds in Australia, and Beringer Vineyards in the United States.

Foster's began to build its wine division from 1995 onwards. Through acquisition, it built the division into one of the world's largest winemakers. By 2005, Beringer Blass was the seventh largest producer of wine in the United States. The same year, Fosters acquired the Australian wine-making group Southcorp, adding famous brands including Lindeman's, Penfolds and Rosemount, and around A$1 billion to revenues.However, the wine division performed poorly, often draining cash from the highly profitable brewing business. In 2008, Foster's chief executive officer Trevor O'Hoy resigned. By 2011, the company had written down the value of the wines division by half since it acquired it at the peak of the market, leaving it worth about A$3.1 billion.

Fosters Group brewing and wine split

After further difficulties in the division resulted in an additional A$1.3 billion write-down, 99 per cent of Fosters Group shareholders agreed at a meeting in Melbourne in April 2011 to split Fosters Group business into separate brewing and wine companies. Treasury Wine Estates officially became a separately listed company the following month, with David Dearie as its CEO.Further write-down of stock worth around A$160 million took place in 2013, followed by the redundancy of David Dearie and appointment of interim chief executive Warwick Every-Burns. This left the business in a more fragile state as shares dropped almost A$2 to just above A$4. Steamrollers crushed millions of bottles of cheap wine to dispose of excess stock in the United States. This eventually led to a class-action by disgruntled shareholders which was settled in 2017.Treasury has since worked with Accolade Wines to promote bottling efficiency, strengthening its performance in Asia, Australia, New Zealand and Europe.

Appointment of Michael Clarke as CEO

In 2014, the board of directors appointed Michael Clarke, a former food executive with Kraft Foods and Premier Foods, as CEO.In 2015, Treasury reportedly began reducing its presence in the British market to concentrate on Asia, where margins were much higher. However, later that year Treasury bought the majority of the wine business of London-based multinational Diageo.In July 2016, Treasury Wine Estates slimmed down its wine portfolio, announcing the sale of 12 cheap wine brands in the United States. The sale of the US brands represented around one million cases of wine.By 2017, Treasury had begun stockpiling luxury wines and rationing their release in China and the United States. More money was spent marketing the most profitable brands.In January 2019, Treasury's share price fell dramatically on a slew of news reports and was targeted by short sellers in the markets who accused the company of engaging in illegal practices including "channel stuffing" in attempts to inflate its profits.

Appointment of Tim Ford as CEO

In July 2020, Michael Clarke stood down as CEO and replaced by long-term executive, Tim Ford.

Mission
To be the world’s most distinguished and profitable wine company, delivering the highest quality products to our customers and consumers.
Vision
To be the benchmark for excellence in the wine industry, advancing the wine and spirits categories with innovation and providing our customers and suppliers with superior service and quality.
Key Team

Ms. Kirsten Gray B.A., BA/LLB (Hons), L.L.B., PDM (Chief Sustainability, External Affairs Officer & Legal Officer)

Mr. Tom King (Managing Director of Penfolds)

Mr. Peter Neilson (Managing Director of Treasury Premium Brands)

Ms. Katie Hodgson (Chief People Officer)

Mr. Ben Dollard (Pres of Treasury Americas)

Ms. Michelle Brampton (Managing Director of EMEA)

Ms. Kristy Keyte (Global Marketing Director of Penfolds)

Recognition and Awards
Treasury Wine Estates has received numerous awards and accolades in recognition of its quality, innovation, commitment and excellence. These awards include ‘Best Wine of Show’ at the International Wine Challenge, ‘Champion Australian Wine of the Year’ from the Royal Melbourne Wine Show, and 5 stars and ‘Top 10 Wines’ at the 2016 James Halliday Wine Companion Awards.
References
Treasury Wine Estates
Leadership team

Mr. Stuart Ronald Boxer B.E., BEng (Hons) (Chief Strategy & Corp. Devel. Officer)

Mr. Timothy Ford M.B.A. (CEO, MD & Director)

Mr. Matthew John Young (Chief Financial Officer)

Products/ Services
Food and Beverage, Supply Chain Management, Wine And Spirits, Winery
Number of Employees
1,000 - 20,000
Headquarters
Southbank, Victoria, Australia
Established
1843
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
TWE.AX
Social Media