ONE of the world’s largest wine companies, Treasury Wine Estates, has dropped a further 12 American brands from its portfolio.
The private sale of the ‘non-core commercial brands’ were sold at ‘book value’ and included one million cases of wine.
The company did not provide any other details on the sale value.
During the past two years, the company has been downsizing its commercial brands, and introducing premium brands since the appointment of chief executive Michael Clarke in 2014.
TWE owns several SA brands, including Penfolds, Wynns Coonawarra, Saltram, Pepperjack and Wolf Blass.
Last year, TWE paid $754 million for beverage giant Diageo’s wine distribution in the United States and United Kingdom with hopes of increasing sales of luxury wine brands.
Diageo’s is one of the world’s largest alcohol companies, and owns Smirnoff vodka, Johnny Walker, Guinness, Bundaberg, Captain Morgan and Baileys.
The company said in a statement that it did not expect any ‘material change’ to its earning expectations from Brexit and the depreciation of the British pound.
TWE will remain in a media blackout until August 18, when its detailed financial accounts are released.
