Treasury Wine Estates (TWE) earned about AU$2.57 billion in the 2021 financial year (ended 30 June 2021), three percent less than the previous year. The company reported that profit improved slightly, by 1.8 percent to AU$250 million. A total of 367.2 million bottles were sold, the average bottle price just under AU$7.
The tariff dispute with China had a particularly negative impact on the result, with earnings falling by AU$77.3 million dollars. The all-Asian market slumped by 8.4 percent to AU$565 million in sales. Despite lockdowns due to the pandemic, good sales, especially of the premium Penfolds brand, in the other Asian markets partly offset the losses in China.
In North and South America, turnover fell by 7.5 percent to AU$ 988.7 million, but profits rose by 23 percent (AU$168.3 million). In Australia and New Zealand, a slight increase in turnover of 1.6 percent to AU$602.1 million was recorded (profit: AU$142.7 million, +9.7 percent). In EMEA (Europe, Middle East, Africa), revenues were AU$413.5 million, but profits fell by six percent to AU$46.6 million. TWE cites additional costs due to the Brexit as the reason.
The company positively assesses the development of its premium portfolios, which now accounts for 77 percent of the turnovers, six percent more than before. The Penfolds Bins & Icons portfolio, i. e. the highest-quality wines, grew by seven percent, which was above all due to increased marketing activities.
In the price range of AU$10-30, the brands 19 Crimes, Pepperjack, Squealing Pig, Beringer Brothers and Matua in particular performed very well. The newly-launched Penfolds California Collection, as well as 19 Crimes Cali Red and Rosé in cooperation with the rapper Snoop Dogg, also recorded good successes, says TWE.
CEO Tim Ford commented, "This was a year of both significant change and achievement for our business, with the financial results we have announced today a testament to the commitment and strength of our global teams. Most pleasingly, despite a backdrop of significant external disruption, we have delivered on the priorities we set for ourselves at the start of the year, and therefore we remain very well placed to deliver on the long-term growth ambitions we set out in our TWE 2025 strategy.”
The announced split into three new brand divisions – Penfolds, Treasury Premium Brands and Treasury Americas (https://www.meininger.de/wein/erzeuger/treasury-auf-us-premium-kurs) – took place on 1 July. Through this, the company expects to achieve further targeted increases in sales of the respective portfolios and markets and thus continue its premiumisation strategy. aw
