Treasury Wine Posts Yearly Sales Of $1.7 Billion Amid Premiumization Push
August 18, 2022Treasury Wine Estates saw sales slip 1% on an organic basis to A$2.5 billion ($1.7b) in the year through June, as the company battled exorbitant tariffs in China and reshaped its portfolio toward the premium end of the market. EBITS increased 4.4% to $524 million ($363m), as net sales revenue per-case advanced 8%. Treasury’s premium and luxury portfolios now contribute 83% of net sales, up from 77% a year ago.
The group’s Treasury Americas unit posted organic growth of 12% to A$963 million ($667m) despite a volume decline of 3% to 8 million cases. Growth was led by Beringer, Stags’ Leap, Matua, and 19 Crimes. Matua and recent acquisition Frank Family Vineyards were among the brands seeing price increases over the course of the year. That helped Treasury Americas’ net sales revenue per-case rise 16%, with premium and above brands now accounting for more than 90% of sales.
On the new product front, Treasury Americas is extending Impact “Hot Brand” 19 Crimes with a Cali Gold sparkling wine this year, and added that recent rollout Martha’s Chard has fared well in the early going. Meanwhile, Penfolds this month marked the inaugural release of its Bordeaux-sourced, French portfolio. In the coming year Penfolds will add China-sourced wines as well.
“We have returned to delivering margin accretive earnings growth in a year where we managed through the effective closure of the Mainland China market, materially reshaped our Treasury Americas division, and navigated a global macroeconomic backdrop that included the global pandemic, significant supply chain disruptions and inflationary cost pressures,” said Treasury CEO Tim Ford.
The company added that it “implemented further price increases within all divisions in F23, specifically on growing premium and supply constrained luxury brands,” and expects to deliver strong growth in the current fiscal year.—Daniel Marsteller
| Treasury Wine Estates—Leading Brands in the U.S. (thousands of 9-liter cases) |
|||||
| Brand | Origin | 2020 | 2021 | Percent Change1 |
|
|---|---|---|---|---|---|
| 19 Crimes2 | Australia | 2,178 | 2,387 | 9.6% | |
| Lindemans | Australia | 973 | 764 | -21.5% | |
| Matua | New Zealand | 729 | 763 | 4.7% | |
| Sterling Vintners Collection | California | 663 | 550 | -16.9% | |
| Gabbiano Cavaliere d’Oro | Italy | 187 | 210 | 12.2% | |
| Stags’ Leap | California | 145 | 196 | 34.6% | |
| Frank Family | California | 129 | 145 | 12.4% | |
| Beringer Brothers | California | 159 | 129 | -19.1% | |
| Uppercut | California | 67 | 85 | 27.6% | |
| Beringer Knights Valley | California | 69 | 76 | 10.9% | |
| Penfolds2 | Australia | 60 | 74 | 23.9% | |
| Beaulieu Vineyard | California | 70 | 68 | -3.3% | |
| St. Huberts The Stag | California | 48 | 64 | 31.9% | |
| Total Leading Brands3 | 5,477 | 5,511 | 0.6% | ||
| 1 Based on unrounded data. 2 Includes some California wine. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2022 |
|||||
Tagged : 19 Crimes, Beringer, Matua, Stags' Leap, Treasury Wine Estates
