Treasury Announces Impairment Charge And Change In Release Date For PenfoldsJune 25, 2014
Treasury Wine Estates said it will recognize a non-cash brand and related-asset impairment of up to A$260 million (after tax, unaudited), or US$244 million, for fiscal 2014. The impairment charge reflects a combination of historical prices paid for acquisitions prior to the demerger from Foster’s, the decline in global growth rates for the company’s commercial wines, and also relates to IT, plant and equipment assets.
Treasury also announced that it will change the release date of its flagship Penfolds Bin Series and Icon & Luxury Collection wines to a unified release date of October, replacing the current dates of March and May. That move is aimed at improving allocation and distribution management, and will also make Penfolds wines available over a longer trading period before the run-up to key selling periods of Thanksgiving, Christmas, Chinese New Year and Easter.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.