Major changes to TWE’s supply chain

31st March, 2015 by Rupert Millar

Treasury Wine Estates has revealed that its US and Australian supply chains will be undergoing a series of radical changes.

The company said in a statement: “As foreshadowed at TWE’s interim 2015 result announcement, the Company is now executing plans to extract supply chain optimisation savings and accelerate its separate focus on the Luxury & Masstige versus Commercial portfolios globally, by making significant changes to its supply chain network and cost base in both the USA and Australia.”

In the US, TWE has said it will be consolidating its production facilities and that its Asti Winery in Sonoma will become “surplus to the company’s production needs”.

Production will be transferred to other wineries, with the majority of commercial and “masstige” wine production going to Paso Robles….

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One Response to “Major changes to TWE’s supply chain”

  1. Keith Grainger says:

    So Treasury’s way forward is huge savings on production costs, that will be used to spend 50% more on marketing and ‘to improve the quality of TWE’s base earnings, while delivering profit growth for shareholders.’

    Perhaps a 50% uplift in the quality of, inter alia, the Lindeman’s range might be an effective alternative strategy?

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