You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Saturday 4 July 2015

Treasury to destroy $35m of ‘old’ US stock

16th July, 2013 by Gabriel Stone

Treasury Wine Estates is to destroy A$35 million (£21.4m) of “old and aged commercial stock” in the US as a reaction to declining sales in this market.

beringerThe Australian company, which owns brands including Penfolds, Beringer, Lindeman’s, Wolf Blass and Wynns Coonawarra Estate, expects shipments to the US to fall by up to 2m cases in its 2014 financial year. In 2012 the group shipped 15.7m cases to this market.

In addition to the destruction of old stock, TWE has earmarked a further AU$40m for discounts, designed to “further accelerate the sale of excess current vintage wines in the US distribution network.”

As a result of the reduction in US shipments, TWE expects to bear further costs of A$85m in 2013 from carrying excess bulk and finished wine, as well as “some onerous grape contracts.”

David Dearie, chief executive of TWE, attributed the excess stock to three elements: “over-ambitious forecasting of new commercial product launches, improved distributor logistics, and old and out-of-date stock which both TWE and our distribution partners would prefer to destroy.”

Arguing that “old and obsolete product is limiting the company’s growth ambitions,” Dearie concluded: “As such, decisive action must be taken to address these barriers to growth, and I am confident that the steps we are taking support our long term growth agenda”.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

Constellation to buy Meiomi for $315m

Constellation Brands is to buy Napa-based wine brand Meiomi for $315 million, more...

Delegat aims high with new Barossa brand

Oyster Bay owner Delegat has launched “a new global brand” from more...

Rise for Haut Bailly in Liv-ex 2015 classification

Liv-ex’s bi-annual “re-classification” of Bordeaux saw Haut Bailly leap more...

Business Development Executive

London, United Kingdom

£25-£30K + benefits, depending on experience

UK vineyards included in tax relief scheme

Winemakers in the UK will be able to benefit from income tax changes for the more...

Depp puts French estate on sale for £16.5m

Hollywood actor Johnny Depp has put his estate in the south of France, which more...

Bordeaux 2005: Biggest movers

Expectation surrounding the 2005s is building and pushing up prices for top more...

Californian wine struggling with supply

There is a "growing mismatch" between supply and demand that is badly hampering more...

US Senate passes bill to boost spirits exports

The US senate has been applauded by members of the spirits trade for passing a more...

UK market in growth as price increases slow

The latest figures from the Wine and Spirit Trade Association show that more...

PR Senior Account Manager/Director

London, United Kingdom

Depending on experience

Bordeaux wine thieves found guilty

A French court has sentenced 15 men over the audacious theft of $1.1 million of more...

AB InBev invests $1.5bn in US

Brewing colossus Anheuser-Busch InBev has announced plans to invest over US$1 more...

Flavoured styles lead drinks NPD

A new report from Nielsen shows that flavoured variants are dominating more...

Sales Executive - Wines & Spirits Competitions

London, United Kingdom

Competitive

US wine brand hopes to ape craft beer success

A wine brand from California is hoping to ape craft beer’s success in the UK more...

Sud de France launches Wine Hub

An "innovative" tool designed to support wine producers and importers operating more...

Top 10 wines in the US press

A Texan Albariño, NY Riesling and Californian Syrah are among the wine tips more...

PR Manager

Competitive

Castel feeds aperitif thirst

Europe’s largest wine producer, Castel, has unveiled a raft of new products more...

Diageo appoints North America president

Deirdre Mahlan, Diageo's chief financial officer, has been announced as the more...

Hart Davis Hart biggest in US

Chicago-based wine auctioneer Hart Davis Hart is the market leader in the US in more...

Wimbledon serves up English wine

Organisers of this year’s Wimbledon have decided to offer tennis fans English more...

Oregon producer takes international view

One of Oregon’s youngest wine estates has partnered with Jackson Family Wines more...