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Wine Industry Insight
Treasury Wine Estates (TWE) today announced the introduction of a French wine portfolio to disrupt the traditional âold worldâ mould of the French category and drive growth for the Company globally, with an initial focus on North Asia.
Shared at the Companyâs inaugural Investor Day in Napa, California, the new French proposition, to be launched in the first half of F18, will build on TWEâs existing portfolios from Australia, New Zealand, California and Italy.
According to TWE Chief Executive Officer Michael Clarke, central to the Companyâs approach is embedding greater sustainability, discipline and balance across all four regional business models as well as strengthening its brand portfolio, with diversified sourcing to meet global demand.
âWe have been investing behind the brands that can deliver growth on a global scale for our business with stronger marketing activity to drive consumer demand across all of our regions. Weâve also spent time refreshing and âfixingâ many of our brands, with a number of our Californian wine brands recently undergoing packaging refreshes including Beaulieu Vineyard, Sterling Vineyards and Beringer,â Mr Clarke said.
âFrench wine is now an exciting new addition to our portfolio offering, and will be one of our important launches in F18. While the French category is very established globally and regarded as a quality trustmark, particularly in North Asia, we will bring a ânew worldâ mentality to marketing and selling this wine.â
The French portfolio will include three tiers of wines showcasing the best of France, including Bordeaux, Burgundy and ChaĚteauneuf du Pape reds, RoseĚ from Provence and Champagne. North Asia is the initial destination for the portfolio, with plans to market and sell the portfolio across other regions of the world in F18 and beyond.
During the Investor Day, the Companyâs Executive Leadership Team also shared progress against the Companyâs strategy to deliver previously stated financial targets of achieving high teens EBITS margin by F18.
Outlining the transition from an agricultural, order-taking company to a brand-led high performance organisation, the team highlighted the three-phase journey of fixing, growing and accelerating the brand portfolios and business models to position all four regions for sustainable success.
Highlights from the briefings include: