StateWays Fall 2025 | Page 31

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GROWTH BRANDS- WINE SUPPLIER OF THE YEAR Wine Fast Wine Fast Wine Fast

Track Track Brands Brands
Wine Fast Track Brands
Wine Fast Track Track Brands Brands
are more resilient to the economic headwinds impacting the rest of the market.
Treasury Wine Estates’ luxury portfolio, which includes flagship brand Penfolds, has been the supplier’ s primary engine of growth. The luxury segment has helped so much that the company reported a strong performance in the first half of 2025, according to TipRanks data.
“ Key financial metrics showed significant growth, with earnings before interest and taxes( EBITS) increasing by 35.1 % to $ 391.4 million, and net sales revenue( NSR) for its luxury portfolio rising by 52 %,” the data states.“ This luxury segment now constitutes approximately 56 % of the total group NSR.”
Treasury Wine Estates also highlighted an 11 % growth in DAOU Vineyards’ NSR within Treasury Americas, and announced an upgrade in cost synergies from the acquisition to a total run rate of $ 35 million, up from the previous guidance of $ 20 million-plus.
ACQUISITIONS, EXPANSION AND INSIGHTS
Another part of Treasury Wine Estates’ growth strategy is divesting its lower-margin, commercial wine brands, according to Meininger’ s International. The company announced plans to sell off brands like Wolf Blass and Blossom Hill, which were once staples of its portfolio but are struggling with declining consumer demand. This move allows the supplier to concentrate its resources on more-profitable, high-end wines.
In 2023, Treasury Wine Estates made a significant move by acquiring the fast-growing luxury wine brand DAOU Vineyards in California. This acquisition
was a clear statement of intent, cementing the supplier ' s focus on the U. S. luxury market and providing a strong, new-world presence alongside its existing brands like Beringer Vineyards and Frank Family Vineyards.
Treasury Wine Estates has also made strategic investments in China, according to Vino Joy News. Following the lifting of punitive tariffs on Australian wines, the supplier has re-established its presence and has even acquired a controlling stake in a Chinese winery, Stone & Moon, to support the local production of its Penfolds brands.
Expanding the No- and Low-Alcohol SegmentCapitalizing on the lower ABV Matua Lighter, in June of this year, Treasury Wine Estates announced the opening of a new $ 15−million, in-house facility that ' s dedicated to " low and no " alcohol wine production in the Barossa Valley.
More than two years in the making, the new facility features state-ofthe-art dealcoholization technology, complemented by a world-first patent pending processes for treating the aromatic component of wine that locks in flavor, according to the supplier.
The facility produces low- and no-alcohol wines for iconic brands in Treasury Wine Estates’ global portfolio, including Squealing Pig and Pepperjack, which will complement other low- and no-alcohol offerings in the Matua, 19 Crimes, Lindeman’ s and Wolf Blass brands.
Joining these established global brands is the new-to-market Sorbet, which blends traditional varietals like prosecco, rosé, sauvignon blanc and shiraz with fruit and berry flavors such as passionfruit, mango and lemon, and a lower ABV of 8 %. Sorbet will be available in October 2025 in partnership with Endeavour Group, according to the supplier.
While Treasury Wine Estates’ luxury and low-alcohol-led strategy has yielded positive financial results, there are also some mixed signals. The company has openly acknowledged the“ softness in consumer demand at lower www. stateways. com Fall 2025 • StateWays 31