Exclusive news and research on the wine, spirits and beer business

Treasury Wine Posts Yearly Sales Of $1.7 Billion Amid Premiumization Push

August 18, 2022

Treasury 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
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , , , ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :