Treasury’s Clarke Details Company-Wide OverhaulApril 8, 2014
In a call to investors earlier today, Treasury Wine Estates (TWE) CEO Michael Clarke outlined several strategies aimed at reigniting growth for the ailing Australian wine group. Clarke, who officially took on the chief executive role at the end of March, unveiled plans to shift Treasury’s focus to its luxury and “masstige” tiers, as well as reevaluate the company’s mainstream stable.
“We have fabulous brands in the luxury and masstige tiers to invest in, and there’s actually a perfect fit between inventory and what we’re trying to achieve with our masstige brands. However, we need to fix the commercial portfolio,” said Clarke, adding that the company plans to be very “practical” in its approach.
Meanwhile, Clarke assured investors that Treasury would explore all possible options to improve shareholder value, including a potential sale of assets. “TWE must take action to reduce overhead expenditure, reinvesting these savings back into consumer and brand marketing,” he explained.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.