Australian wine major Treasury Wine Estates says it expects a A$50m ($32.76m) hit to net sales revenue of its Treasury Americas business in its fiscal 2026 from changing distributors in California.
In its full-year 2025 results today (13 August), the business said while the net financial hit from these changes was still “uncertain”, at this point, the group anticipated “an adverse impact to Treasury Americas F26 operating plan NSR [net sales revenue] of approximately $50m”.
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It said this reflected “the difference in business plans under the new and previous distribution arrangements, including adjusted shipment and depletion targets”.
The group appointed Breakthru Beverage Group as its new distributor for the US state in July.
Last month the group also warned of a “short-term disruption” from the distributor swap over following RNDC’s departure from the Golden State, which was revealed in June.
Overall impact on net sales revenue and EBITS from the distributor shift “will remain uncertain until TWE finalises its transition planning and exit negotiations with RNDC in California,” the Penfolds maker said today.
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By GlobalData“The outlook for modest EBITS growth in Treasury Americas in F26 is contingent on mitigating the impact of reduced shipments through the RNDC negotiations”, the business said but added that it expected the EBITS impact would be “modest”.
In its full-year 2025 results, TWE saw group net sales revenue drop 1.1% on an organic basis but grow 7.2% in reported terms to A$2.9m. It attributed the performance to “strong” growth in its Luxury portfolio with Penfolds and the Daou wine brand in Treasury Americas market, which was “partly offset” by “lower” shipments of its Premium and Commercial brands.
EBITS grew 175% in the full-year period to A$770.3m, while net profit after tax was up 341.8%, at A$436.9m.
Total volumes were down 2.7% compared to the year prior at 21.3 million nine-litre cases.
For its 2026 fiscal year, the group said it anticipated “low to mid double-digit EBITS growth” for Penfolds. “EBITS delivery is expected to be weighted to the second half, approximately 55%”, it added. The 19 Crimes winemaker is also working towards achieving 15% EBITS growth in its fiscal 2027.
In 2026, TWE said it also anticipates top-line decline for its ‘Treasury Collective’ (the new name for the group’s “premium” wine division) “to moderate, on the path to stabilisation”, as ongoing growth from its “priority brand portfolio” is expected to “partially mitigate continued declines in the Commercial portfolio”.
The Treasury Collective division includes the brands 19 Crimes, Cali by Snoop, and Squealing Pig, as well as “a portfolio of regional and Commercial brands”, according to TWE.
