Treasury Licenses 4.2 Million Cases Of U.S. Commercial Brands To The Wine GroupMarch 9, 2021
Treasury Wine Estates has taken a step in premiumizing its U.S. portfolio, agreeing to license several lower-end brands to The Wine Group in a long-term deal.
Under the terms of the agreement, effective today, The Wine Group will source and sell the Beringer Main & Vine, Beringer Founders’ Estate, Coastal Estates and Meridian brands in the Americas. Treasury said The Wine Group “will acquire existing inventories associated with these brands on a progressive drawdown basis and will assume responsibility for related future bulk wine supply contracts.”
In the six-month period through December, the affected brands contributed 2.3 million cases of volume, $92 million of net sales revenue and $13.5 million of gross profit. Annual volume totaled 4.2 million cases in 2020. TWE noted that it’s only the Beringer wines listed above that are part of the agreement, not any of the California brand’s higher-end offerings, and that it considers Beringer to be a core part of its portfolio.
“This transaction is a significant milestone towards our plans to deliver the future state premium U.S. wine business and we can now focus solely on continuing the growth of our premium brand portfolio to drive future performance in the Americas,” said Treasury CEO Tim Ford.
“Adding these brands complements The Wine Group’s leadership in the value segment along side our growing portfolio of premium wines, introducing more consumers to our high quality wines at every price point,” said The Wine Group CEO Cate Hardy.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.