Treasury Wine Estates has unveiled a sweeping overhaul of its business that will cut its brand portfolio by more than half and sharpen its focus on luxury wine. Investors welcomed the plan, sending shares in Australia’s largest wine company up by 10%.
Under the initiative, known as Ascent, TWE will reduce its portfolio from 76 brands to fewer than 30, concentrating investment behind labels it believes offer the strongest growth prospects.
The company will focus on what it describes as its “Power Brands” of Penfolds, Daou and Matua, supported by a group of “Regional Heroes” including Frank Family Vineyards, Beaulieu Vineyard, Stag’s Leap, Wynns, Squealing Pig, Pepperjack and Coldstream Hills.
TWE expects these 10 brands to account for around 90% of group revenue within five years.
“This sharper focus allows us to invest more behind the brands, innovation and consumer experiences that will be the engine of TWE’s future growth,” Fischer said.
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