BREAKINGVIEWS-Treasury Wine may age better in private cellar

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Antony Currie

MELBOURNE, June 9 (Reuters Breakingviews) - The $2.8 bln vintner's value soared 13% after CEO Sam Fischer pinned its future on premium brands like Daou and Penfolds. But shares are down 64% since 2024 due to US and China troubles. Private equity isn't yet sniffing around but a buyout would give an overhaul room to breathe.

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CONTEXT NEWS

Treasury Wine Estates CEO Sam Fischer on June 4 said the company would more than halve its brands to less than 30 from 76 over the next five years and focus on premium and top-selling products. Some brands will be wound down, while others may be sold.

The news, unveiled at its investor day in Sydney, is part of a broader plan to turn around the company's fortunes.

The company is also conducting a strategic review of its U.S. business, which could result in the sale of some assets, and overhauling its supply chain. It's also planning to cut annual expenses by A$100 million ($71.29 million) over the next three years and reduce its leverage to 2 times EBITDA from the current 2.9 times.

Shares closed up more than 13% on June 4.


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