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elements: “over-ambitious forecasting of new commercial product launches, improved distributor logistics, and old and out-of-date stock which both TWE and our distribution partners would prefer to destroy.”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Your email address will not be published.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 *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Fine Wine Logistics Coordinator

IG Wines
London, GB

Brand Ambassador East Coast USA - Ableforth’s

Maverick Drinks
New York - field-based, USA

Brand Ambassador West Coast USA - Ableforth’s

Maverick Drinks
San Francisco / Los Angeles - field-based, USA

Global Travel Retail Manager

Maverick Drinks
London, UK

Portfolio Ambassador - Europe

Maverick Drinks
North West Europe - field-based, UK

Senior Partner Manager - Grocery

Maverick Drinks
London/Field Based, UK

Sales Executive

Woolf Sung Ltd
London

Trade Marketing Manager - Maverick Drinks

Maverick Drinks
London / Kent

Business Development Executive Central London

William Grant & Sons UK
London

PR & Communications Officer - Atom Group

ATOM Supplies Limited
London, UK

Crus Bourgeois du Médoc 2015 Official Selection Tasting

London,United Kingdom
21st Sep 2017

The City Wine Show

London,United Kingdom
22nd Sep 2017

Almaviva 2015 Vintage and Vertical Tasting

London,United Kingdom
28th Sep 2017
Click to view more

Global Chardonnay Masters 2017

Deadline : 29th September 2017

The Global Riesling Masters 2017

Deadline : 29th September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

The drinks business is thrilled to announce the launch of The Global Organic Masters

Click to view more