Treasury to cull 5% of workforce

22nd May, 2014 by Lucy Shaw

Struggling wine group Treasury Wine Estates is to cut around 5% of its global workforce in order to invest more heavily in marketing and promoting its brands.

The Sydney Morning Herald reports that the revenue the 175 job losses will generate, around AU$35m, will allow the company to up its marketing spend by 50%.

Treasury Wine Estates, which owns the likes of Penfolds and Wolf Blass, employs around 3,500 people worldwide.

Chief executive officer Michael Clarke told analysts this week that the extra marketing funds will be allocated to the company’s international brands.

The announcement comes on the back of TWE rejecting a takeover bid by investment firm Kholberg Kravis Roberts on Tuesday, which offered to pay $4.70 a share, valuing the company at $3.05 billion.

TWE refused the bid saying it did “not properly value the company”.

The company’s share price shot up over 18% on Tuesday morning to $4.83 in the wake of the news.

Last week TWE publically denied that Pernod Ricard was a potential buyer.

The beleaguered group has already been propped up by a US fund manager buying AU$25m worth of shares, while Clarke has admitted that the US brands including Beringer may have to go to put the group back into profit.

3 Responses to “Treasury to cull 5% of workforce”

  1. Chris says:

    Pretty drastic measure to kill off 5% of your workforce. One way to save on the redundancy payments, I suppose!

  2. Mary says:

    Maybe it would be better for Beringer to fall into someone else’s hands who can actually bring the BER Brand back to it’s rightful place on the pedestal where it fell from.

  3. Anonymous says:

    Way to keep the good people that have worked hard for you motivated? The people that are going to get cut aren’t the root cause of the problem, they are the only reason the place has survived this long.

Leave a Reply

Your email address will not be published.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

Subscribe to our newsletters

Job vacancies

Sales Manager – Midlands and South West

Pol Roger Portfolio
Midlands and South West

UK Brand Ambassador - That Boutique-y Gin Company

That Boutique-y Gin Company
Tunbridge Wells, Kent, UK

Senior National Account Manager – Grocery (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Senior National Account Manager – Wholesale RTM (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Digital Marketing Manager

Master of Malt
Tunbridge Wells, Kent, UK

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

Purchasing and Sales (Wine Trader)

JF Tobias
London, UK

The Global Merlot Masters 2017

Deadline : 17th April 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more