Treasury Mulls Selling Vineyards, Eyes Global Expansion For EtudeNovember 19, 2014
Treasury Wine Estates (TWE) CEO Michael Clarke says the wine giant may look to sell some vineyard and infrastructure assets looking ahead, as it transitions to a more brand- and marketing-focused company. In an interview with Bloomberg, Clarke said he was examining TWE’s 31,600 acres of vineyards and A$659 million ($570m) in winery assets—including wineries, cellars and bottling plants—for properties that could be sold and leased back. Such moves could translate into increased resources to pour into TWE’s marketing plans. “We can achieve our growth agenda without owning some of this infrastructure,” Clarke asserted.
Clarke also elaborated on TWE’s exploration of a new model for its Etude brand with an eye toward expanding the Napa-based label globally. Under the plan, which SND reported in March, Etude would be transformed into a globally-produced Pinot Noir brand. It would source grapes from Australia to make wines to sell Down Under, and New Zealand grapes to produce wines for that market. Etude’s sales are currently based mostly in the U.S.
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