Treasury Wine Estates uncertain on outlook

Treasury Wine Estates uncertain on outlook

Treasury Wine Estates is looking to export more wine brands to support growth in key markets, but the group's shares have slipped on an uncertain outlook.

Speaking to shareholders at the company's first annual general meeting today (25 October), Treasury Wine Estates' chairman, Max Ould, said that the Wolf Blass winemaker's business is robust, amid global economic uncertainty. At the same time, he said that the group plans to expand the reach of several wine brands.

"We intend to pursue international expansion opportunities for our portfolio," he said, "be it through the increased exporting of our US brands, or through exploring new countries of origin". He reiterated the company's plan to focus on premium and luxury wines, which has shown particularly strong growth in Asia. 

Despite the growth plans, Treasury Wine Estates' (TWE) shares fell by almost 3% on the Australian Stock Exchange following today's meeting, albeit having outperformed the country's S&P200 index since demerging from Foster's Group in May.

TWE's CEO, David Dearie, said: "In the US and our key markets in Europe, the consumer environment remains subdued yet, within these markets, the wine category has remained relatively resilient." He added: "However, the economic and consumer outlook in these markets is uncertain and the impact of any further deterioration is unclear."

In contrast to the tough conditions in the US and Europe, Dearie said that Australia, New Zealand and Asia continue to perform well for the group.