:Treasury Wine Estates

Treasury Wine Estates traces its roots back to the establishment of several New World wineries in the 19th century. These include Lindeman's and Penfolds in Australia, and Beringer Vineyards in the United States.

Foster's began to build its wine division from 1995 onwards. Through acquisition, it built the division into one of the world's largest winemakers. By 2005, Beringer Blass was the seventh largest producer of wine in the United States.T. Stevenson The Sotheby's Wine Encyclopedia Fourth Edition p. 468 Dorling Kindersly 2005 {{ISBN|0-7566-1324-8}}. The same year, Fosters acquired the Australian wine-making group Southcorp, adding famous brands including Lindeman's, Penfolds and Rosemount, and around A$1 billion to revenues.{{citation needed|date=December 2016}}

However, the wine division performed poorly, often draining cash from the highly profitable brewing business. In 2008, Foster's chief executive officer Trevor O'Hoy resigned.[https://archive.today/20120707063711/http://business.smh.com.au/fosters-hangover-not-over-20080610-2oej.html Takeovers rarely work for shareholders], Michael West (10 June 2008) smh.com.au. By 2011, the company had written down the value of the wines division by half since it acquired it at the peak of the market, leaving it worth about A$3.1 billion.{{cite web |url=http://www.abc.net.au/news/stories/2011/04/29/3203574.htm?section=business |archive-url=https://archive.today/20120718171408/http://www.abc.net.au/news/stories/2011/04/29/3203574.htm?section=business |url-status=dead |archive-date=18 July 2012 |title=Foster's shareholders decide wine and beer don't mix |publisher=ABC News |date=29 April 2011 |access-date=29 April 2011}}

In 2022 it was ranked the largest Australian wine company by production,{{cite web|title=Australia's largest wine companies by total wine production |url=https://winetitles.com.au/statistics-2/wine-companies/australias-largest-wine-companies-by-total-wine-production/|website=winetitles.com | publisher=winetitles media |date=2023 |access-date=23 June 2024}} and also the largest in terms of total revenue.{{cite web|title=Australia's largest wine companies by total revenue |url=https://winetitles.com.au/statistics-2/wine-companies/australias-largest-wine-companies-by-total-revenue/|website=winetitles.com | publisher=winetitles media |date=2023 |access-date=23 June 2024}}

After further difficulties in the division resulted in an additional A$1.3 billion write-down, 99 per cent of Fosters Group shareholders agreed at a meeting in Melbourne in April 2011 to split Fosters Group business into separate brewing and wine companies. Treasury Wine Estates officially became a separately listed company the following month, with David Dearie as its CEO.{{cite web|url=http://www.just-drinks.com/news/fosters-group-implements-treasury-wine-estates-demerger_id103957.aspx|title=Foster's Group Implements Treasury Wine Estates Demerger|publisher=Just Drinks |date=23 May 2011|access-date=11 March 2016}}

Further write-down of stock worth around A$160 million took place in 2013, followed by the redundancy of David Dearie and the appointment of interim chief executive Warwick Every-Burns. This left the business in a more fragile state as shares dropped almost A$2 to just above A$4. Steamrollers crushed millions of bottles of cheap wine to dispose of excess stock in the United States. This eventually led to a class-action by disgruntled shareholders which was settled in 2017.{{cite web |url=http://www.smh.com.au/business/treasury-wine-estates-settles-shareholder-class-action-for-49-million-20170828-gy5f2k.html |title=Treasury Wine Estates settles shareholder class action for $49 million |last=Gray |first=Darren |date=28 August 2017 |website=The Sydney Morning Herald |publisher=Fairfax Media |access-date=9 December 2017}}{{cite web |url=http://www.asx.com.au/asxpdf/20171110/pdf/43p41j01swx0xc.pdf |title=Court Approval of Conditional Settlement Treasury Wine Estates Limited |last=Sambrook |first=Jeremy |date=10 November 2017 |website=Australian Securities Exchange |publisher=IMF Bentham |access-date=9 December 2017}}

Treasury has since worked with Accolade Wines to promote bottling efficiency, strengthening its performance in Asia, Australia, New Zealand and Europe.{{citation needed|date=December 2016}}

In 2014, the board of directors appointed Michael Clarke, a former food executive with Kraft Foods and Premier Foods, as CEO.{{cite web|last=Evans|first=Simon|date=26 February 2011|title=History lessons for Treasury Wine Estate's California dream|url=http://www.afr.com/business/agriculture/history-lessons-for-treasury-wine-estates-california-dream-20170223-gujrzq|url-access=subscription|access-date=11 April 2021|website=The Australian Financial Review|publisher=Fairfax Media}}

In 2015, Treasury reportedly began reducing its presence in the British market to concentrate on Asia, where margins were much higher.{{cite web |url=http://www.smh.com.au/business/paul-schaafsma-the-new-boss-in-accolade-wines-reshuffle-20150928-gjwi39.html |title=Paul Schaafsma the new boss in Accolade Wines reshuffle |last=Evans |first=Simon |date=28 September 2015 |website=The Sydney Morning Herald |publisher=Fairfax Media |access-date=8 December 2016}}

However, later that year Treasury bought the majority of the wine business of London-based multinational Diageo.

In July 2016, Treasury Wine Estates slimmed down its wine portfolio, announcing the sale of 12 cheap wine brands in the United States. The sale of the US brands represented around one million cases of wine.{{cite web |url=http://www.abc.net.au/news/2016-07-04/treasury-wine-estates-dumps-cheaper-us-brands/7566328 |title=Treasury Wine Estates dumps cheaper US brands|publisher=ABC Rural |date=3 July 2016 |access-date=2 Nov 2016}}

By 2017, Treasury had begun stockpiling luxury wines and rationing their release in China and the United States. More money was spent marketing the most profitable brands.

In January 2019, Treasury's share price fell dramatically on a slew of news reports and was targeted by short sellers in the markets who accused the company of engaging in illegal practices including "channel stuffing" in attempts to inflate its profits.{{cite web |url=https://www.smh.com.au/business/companies/treasury-wine-estates-shareholders-back-company-s-us-presence-20200130-p53w6p.html |title=Treasury Wine Estates shareholders back company's US presence |last=Gray |first=Darren |date=1 February 2020 |website=The Sydney Morning Herald |publisher=Fairfax Media |access-date=23 February 2020}}

In July 2020, Michael Clarke stood down as CEO and was replaced by the long-term executive, Tim Ford.{{Cite web |last=Gray |first=Darren |date=2020-02-12 |title=Treasury Wine boss Clarke to retire in July |url=https://www.smh.com.au/business/companies/treasury-wine-boss-clarke-to-retire-on-july-1-20200212-p5408z.html |access-date=2024-02-16 |website=The Sydney Morning Herald |language=en}}

In November 2021, Treasury acquired Napa Valley luxury winemaker Frank Family Vineyards for A$434 million.{{Cite web |last=Evans |first=Simon |date=2021-11-17 |title=Treasury Wines buys Californian winery in $434m deal |url=https://www.afr.com/companies/agriculture/treasury-wines-buys-californian-winery-in-434m-deal-20211118-p599y4 |access-date=2024-02-16 |website=Australian Financial Review |language=en}}

In October 2023, the Treasury announced it would acquire US rival Daou Vineyards for at least A$1.4 billion.{{Cite web |last=Koehn |first=Emma |date=2023-10-30 |title=Penfolds maker buys Californian luxury winemaker for $1.6 billion |url=https://www.smh.com.au/business/companies/penfolds-maker-buys-californian-luxury-winemaker-for-1-6-billion-20231031-p5eg9y.html |access-date=2024-02-16 |website=The Sydney Morning Herald |language=en}}

The business is divided into four regions: (1) Australia and New Zealand, (2) the Americas (i.e. United States and Canada only), (3) Europe (including Latin America), and (4) Asia (including the Middle East and Africa). Globally the company says it has access to more than 13,000 hectares of owned or leased vineyards, with more than 3400 employees, and 36 million cases of wine sold in the 2017 financial year.{{cite web |url=https://www.tweglobal.com/about |title=About |publisher=Treasury Wine Estates |access-date=9 December 2017}}

In 2013, Treasury Wine had to destroy six million bottle of wines in U.S. due to massive oversupply.{{cite news |last1=Butler |first1=Ben |title=There could be more to this wine war than just another trade stoush with China |url=https://www.theguardian.com/australia-news/2020/aug/18/there-could-be-more-to-this-wine-war-than-just-another-trade-stoush-with-china |access-date=4 November 2020 |work=The Guardian |date=18 August 2020}}{{cite news |title=Treasury Wines considers acquisitions, despite $101m loss |url=https://www.abc.net.au/news/2014-08-21/treasury-plunges-to-loss-on-us-wine-destruction/5686522 |access-date=4 November 2020 |work=www.abc.net.au |date=21 August 2014 |language=en-AU}} The company suffered from a series costly write-downs since its split-off from Fosters. The company was accused of "channel stuffing"- inflating sales by pushing more to wholesalers than they wish.{{cite news |last1=Danckert |first1=Sarah |title=Departures and detractors: ASX darling Treasury Wines is under fire |url=https://www.smh.com.au/business/companies/departures-and-detractors-asx-darling-treasury-wines-is-under-fire-20190905-p52og7.html |access-date=4 November 2020 |work=The Sydney Morning Herald |date=6 September 2019 |language=en}}

Treasury Wine tried to capitalize on strong demand of Penfold in China by bundling it with Wolf Blass and Rawson's Retreat. China accounts for half of Treasury's sales in Asia and 80 per cent of its growth in the region, according to a report in 2018. There was a massive supply glut with some distributors in China were said to be sitting on up to three years' worth of stock and deep discounting among wholesalers and retailers. Despite higher taxes and cost of transportation, Rawson's Retreat was selling for less in China than in Australia, some distributors were even giving it away for free when bundled with premium wine.{{cite news |title=Treasury Wine Estates facing China glut |url=https://www.afr.com/companies/retail/treasury-wine-estates-facing-china-glut-20180516-h104xz |access-date=4 November 2020 |work=Australian Financial Review |date=16 May 2018 |language=en}}

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Category:Food and drink companies established in 2011

Category:Australian companies established in 2011

Category:Manufacturing companies based in Melbourne

Category:Wineries of Australia

Category:Multinational companies headquartered in Australia

Category:Foster's Group

Category:Corporate spin-offs

Category:Companies listed on the Australian Securities Exchange