(Bloomberg) — Treasury Wine Estates Ltd. flagged robust demand for luxury wine across Asia and the US, with the maker of the Penfolds brand signaling a further restructuring of its business after a strategic review. The Australian vintner will focus on becoming a luxury wine company, Chief Executive Officer Tim Ford said during an investor call after the release of its full-year results.
More than 75% of earnings are already derived from its luxury brands, he added. Treasury’s luxury segment includes wines that retail for A$30 ($20) or higher, such as Penfolds Bin and Icon, Wynns, and DAOU in California. Premium is A$10-A$30 and commercial brands are below A$10.
The wine maker signaled more restructuring on Thursday, and will combine its Treasury Premium Brands business with Treasury Americas Premium by July 1, 2025. That followed an announcement last week of a plan to sell its commercial brand portfolio, which includes Wolf Blass and Yellowglen. An economic downturn, changing drinking habits, and punitive Chinese tariffs has exacerbated a glut of wine, but demand for luxury alcohol has remained resilient.
Treasury said consumption has been strong in Hong Kong, Thailand, Taiwan, the US and China, according to its earnings statement. “I was in China last week and saw first hand the energy and buzz around the return of Penfolds’ Australian portfolio into the market,” Tom King, managing director of the brand, said on the call Thursday. Treasury shares rose as much as 2.