Treasury Wine Estates FY fiscal-2017 results – Preview

Ahead of the release later this week of Treasury Wine Estates’ results for fiscal-2017, here’s a look at the events that shaped the three months to the end of June for the company.

• The quarter started with news of a planned divestment. In early-April, the group put its Dartmoor and Matheson vineyards in the Hawkes Bay region of New Zealand up for sale. Combined, the two sites, which produce grapes for use in Treasury’s Matua, Shingle Peak and Squealing Pig brands, are valued at around NZD6.6m (US$4.6m)
• This was followed days later by another offload, this time in the US. Delicato Family Vineyards bought Treasury’s Central Coast California Blossom Hill Winery for an undisclosed sum. No brands were included in the transaction
• On the HR front, May saw Treasury confirm that North America head Bob Spooner had been persuaded to postpone his retirement for at least a year, “possibly more”. Spooner will continue with the company past the date of his planned retirement at the end of this year, moving to become GM for the group’s global strategic initiatives, systems and processes. Replacing him in North America will be Treasury’s Americas president, Robert Foye
• At the same time, the company said it planned to split its Asia unit into two divisions, North and South. Tim Ford, the current director for global supply chain & industry affairs, will add Europe, South East Asia, Middle East & Africa to his responsibilities, while Peter Dixon will continue in the role of MD for North Asia & Global Travel Retail.
• Jumping to mid-June, and the group unveiled Maison de Grande Esprit, a new brand targeted at French wine fans in Asia. The brand, which will initially be available in North Asia, uses a New World-style sourcing model to produce high-quality wine from each of the main French regions. “We are making the French category easier to understand and more accessible to Asian consumers,” the company said at the time
• Closing both the fourth quarter and the fiscal year was news at the end of June of the addition of France’s Baron Philippe de Rothschild to Treasury’s distribution footprint in China. The move sees Rothschild’s portfolio, led by Mouton Cadet and Chile’s Escudo Rojo, come under Treasury’s aegis in the country from the start of next year

The year so far for Treasury Wine Estates

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