In a trading update this morning, Treasury Wine Estates warned that “economic uncertainty and weaker consumer demand” has impacted key sales channels in the Americas region in the second half of its fiscal year ending this month, “with softening more pronounced at the below US$15 (sub-Luxury) price points.”

Still, the company noted that its luxury-level Daou brand from Paso Robles—accounting for 725,000 cases, according to Impact Databank—is expected to deliver low-single-digit net sales growth for the year, in line with expectations. On the other hand, 19 Crimes has seen lower shipments in recent months, amid underperformance across TWE Americas’ premium portfolio.

Looking into the next fiscal year, TWE expects “modest EBITS growth” for its luxury stable in the Americas, with conditions expected to remain challenging. Additionally, Treasury said it’s in negotiations with prospective distribution partners in California to replace RNDC, which is exiting the market. Treasury Wine Estates recently announced that Diageo veteran Sam Fischer will become its global CEO, succeeding Tim Ford, effective October 27.—Daniel Marsteller