Treasury Wine Estates has launched a range of wines in the US designed to match drinkers' "moods".
The Australian wine major has created the Frame of Mind portfolio amid what the company says is the increasing consumer interest in "mood-based selections and experience".
The Frame of Mind range features three products – Pessimist, Optimist and Realist. The Optimist Sauvignon Blanc and the Realist Cabernet Sauvignon are new and join the red blend Pessmist, which was already on sale.
"Pessimist's first vintage release was 2014 and has developed strong brand fans since its introduction. Optimist and Realist were added to complete the arc of Frame of Mind's emotion- and mood-driven platform," Alexis Kirkland, VP for luxury marketing within Treasury's Americas division, said.
The wines, made in Paso Robles, are available at retailers include Publix, Harris Teeter and Wegmans. They have a suggested retail price of $19.99 per bottle.
Kirkland added: "As consumer wine habits shift, we're seeing more and more consumers – especially younger generations – prioritise mood-based selections and experience. Our research into consumers of Pessimist red blend revealed that the emotional aspect this wine taps into was a main driving factor for brand affinity."
Last month, Treasury Wine Estates booked a jump in half-year losses as the company recorded an impairment on its business in the US.
The Daou Vineyards brand owner, which also suspended a planned dividend, warned in December an impairment on its US operations was on the horizon due to its “more conservative long-term market growth assumptions” for the country.
Treasury Wine Estates logged a non-cash impairment charge worth A$987.6m (US$699.5m) pre tax. The company said the charge was primarily linked to a A$676.1m write-down to goodwill, a further A$257.3m related “predominantly” to its Sterling and Beringer brands and A$54.2m linked to inventory.
In the six months to the end of December, Treasury made a net loss after tax of A$649.4m, compared to one of A$394.4m in the corresponding period a year earlier.
Treasury presents an EBIT figure called “EBITS” or earnings before interest, tax, self-generating and regenerating assets, plus “material items”. The group’s first-half EBITS stood at A$236.4m, down 40.3% on a year earlier. Treasury said it had provided guidance its EBITS result would be between A$225m and A$235m.
Although higher than forecast, the company pointed to “adverse category trends” in the US and China for the decline in earnings.
It also cited the impact of parallel imports in China and the fact it was lapping its moves to build inventories last year after the country removed tariffs on Australian wine.
Net sales revenue slid 16% to just under A$1.3bn and by 16.6% on a constant-currency basis.
Last month also saw Treasury Wine Estates settle a “dispute” with Republic National Distributing Company over the US distributor’s exit from California last year.
Speaking after Treasury Wine Estates published its half-year results, CEO Sam Fischer said he was optimistic the changes to the company's distribution the US would help improve its performance in the second half.
The Penfolds maker now works with Breakthru Beverage Group in the US and Fischer told analysts: “I’m increasingly confident that they’re really getting their arms around our California challenges, so that H2 will be much more positive than we saw in H1.”
