Treasury Wine Estates Sees Profits Rise In FY, But U.S. Volume SlidesAugust 22, 2011
Treasury Wine Estates returned to profit in the 12 months through June, its fiscal full year, turning in a net gain of A$64.1 million ($67m), but net sales on a pro forma basis (excluding effects from Treasury’s recent demerger from Foster’s Group) slid 7% to A$1.8 billion ($1.88b), and volume was down 6.6% to 33.2 million nine-liter cases. While Treasury enjoyed strong sales in its home market of Australia and New Zealand, it saw soft performances across much of the rest of its global business, including a 12.3% volume drop in the U.S., where the group’s progress slowed over the first half of 2011.
Treasury said the U.S. volume decline was mostly attributable to the lower-priced end of the portfolio, which saw a lower promotional spend during the period. Volume of Treasury’s “emerging premium” wines, all selling above $8 a bottle, rose 6.4%, driven by Cellar No. 8, Colores del Sol and the launches of two new brands, Sledgehammer and Santa Barbara Wine Collection. Beringer, which was relaunched this year, saw volume fall 3.1% in the Americas over the period, with its new Light & Refreshing and Luxury tiers making gains while its Founders’ Estate wines performed below expectations. At the higher end of its portfolio—where the group recently installed a dedicated luxury-tier sales team, the Heirloom Wine Group—Treasury said strong sales of Penfolds, Stags’ Leap and Etude led to a 7.7% volume increase for its luxury portfolio in the Americas.Tagged : Australia, New Zealand, Treasury Wine Estates, wine