Latest news with #TWE
Yahoo
3 days ago
- Business
- Yahoo
Treasury Wine Estates cuts profit guidance on lower US shipments
Penfolds and Daou owner Treasury Wine Estates today (3 June) lowered its forecast for a closely-watched profit metric amid pressure on US sales. The Australian wine group said it expects its EBITS to be around A$770m in the financial year ending 30 June. Treasury Wine Estates' previous forecast was for EBITS to be 'approximately $780m', itself reset in February. The company said the new guidance was 'driven by lower-than-expected premium portfolio shipments in the US'. The Wolf Blass owner said 'economic uncertainty and weaker consumer demand' in the US has hit the performance of the 'wine category … at price points below US$15'. In a brief stock-exchange filing, Treasury Wine Estates provided a short statement on the decision by its distributor in California, Republic National Distributing Company (RNDC), to quit the Golden State in September. In the first half of the company's financial year, its sales through RNDC in California accounted for around 25% of the net sales revenue from its Americas division and approximately 10% of group net sales revenue. The group said RNDC's move would not affect its financial results in its current financial year. However, Treasury Wine Estates added: 'TWE has begun evaluating alternative distribution arrangements for its portfolio in California to determine an appropriate path forward. 'TWE's relationship with RNDC spans 25 US states, including California. The closure of RNDC's California operations is not expected to impact the remainder of its business, and RNDC has reiterated its commitment to investing behind and driving TWE's portfolio in the remaining 24 states.' Shares in Treasury Wine Estates closed up 0.49% at A$8.14. In October, Sam Fischer, chief executive at Australia-based beer and spirits group Lion, will become Treasury Wine Estates' new CEO and managing director. Fischer will succeed outgoing CEO Tim Ford, who took up the role in 2020. "Treasury Wine Estates cuts profit guidance on lower US shipments" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
US distributor Republic National Distributing Company to leave California
Major beverage-alcohol distributor Republic National Distributing Company (RNDC) is to quit California in September. RNDC has seen the end of major contracts in the Golden State in recent months, including Brown-Forman shifting products to rival distributor Reyes Beverage Group. 'We've made the difficult business decision to withdraw from California which affects many of the roles in the state,' a spokesperson for RNDC. The distributor's departure will take effect on 2 September. The spokesperson refused to be drawn on the number of jobs set to be affected. 'We are complying with all regulatory obligations and are committed to handling every transition thoughtfully and smoothly and ensuring everyone is treated fairly and respectfully. We are grateful for the support of these employees and will do our best to support them during this time,' the spokesperson said, refusing to be drawn on the reasons for the decision. Earlier this year, Tito's Handmade Vodka also moved its California distribution from RNDC to Reyes Beverage Group. Among the companies RNDC works for in California is Treasury Wine Estates, the Australia-based wine group. In a stock-exchange filing in Australia today, the Penfolds owner provided a short statement on RNDC's decision. Treasury Wine Estates said RNDC's move would not affect its financial results in its current financial year, which ends in June. However, the group added: 'TWE has begun evaluating alternative distribution arrangements for its portfolio in California to determine an appropriate path forward. 'TWE's relationship with RNDC spans 25 US states, including California. The closure of RNDC's California operations is not expected to impact the remainder of its business, and RNDC has reiterated its commitment to investing behind and driving TWE's portfolio in the remaining 24 states.' Brown-Forman announced its new contract in California with Reyes Beverage Group in February. Last week, the Jack Daniel's maker set out a broader set of changes to its US distribution network that reportedly means RNDC will handle the spirits giant's products in 12 markets in the country, down from 23. "US distributor Republic National Distributing Company to leave California" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
West Australian
4 days ago
- Business
- West Australian
Penfolds owner Treasury Wine Estates loses California distributor, downgrades full-year earnings
Penfolds owner Treasury Wine Estates will be scrambling to find a new path into the Californian market after its local distributor announced it will cease operations later this year. The sudden decision by Republic National Distributing Company to cease operations in California from September will be a serious blow for the wine maker, with the shuttered distributor responsible for about 25 per cent of TWE's sales for its Americas division and 10 per cent of total group sales. In an update to the Australian Securities Exchange on Tuesday, TWE also blamed weaker consumer demand and economic uncertainty in the US for downgrading its full-year earnings forecast. The company said these factors were impacting the wine category performance at price points below $US15 ($23) a bottle. TWE is also behind brands Wynn's, Pepperjack, Squealing Pig and the Snoop Dogg-backed 19 Crimes. TWE now expects earnings for the 2025 financial year to hit at about $770 million, having previously guided around $780m. 'TWE has begun evaluating alternative distribution arrangements for its portfolio in California to determine an appropriate path forward,' the company said. 'As the leading luxury wine supplier in the US market, TWE is confident that its history working with an extensive network of US distributors, combined with its proven experience in effectively managing distributor changes . . . positions the company strongly to transition to a new route to market in California in the near-term.' The loss of the Californian distributor will pose as a major challenge for incoming TWE chief Sam Fischer, who last month was poached from alcohol giant Lion, behind popular beer brand XXXX. TWE shares closed up 0.5 per cent to $8.14 on Tuesday.
Yahoo
15-05-2025
- Business
- Yahoo
Treasury Wine Estates snaps up new CEO from Lion
Australian wine major Treasury Wine Estates (TWE) has named Sam Fischer, current chief executive at local beer and spirits group Lion, as its new CEO and managing director. Fischer will succeed outgoing CEO Tim Ford, who took up the role in 2020. In a stock exchange filing, the Penfolds brand owner said the appointment follows a "succession planning" process which included a 'comprehensive global search'. Fischer will take up the position on 27 October, subject to receipt of regulatory approvals. Meanwhile, Ford will remain in the role until 30 September to 'ensure a smooth transition', the company said. TWE chairman John Mullen said: 'Tim has led TWE during a period of significant change and will be known for his courage in setting bold ambitions, leading to the delivery of significantly strengthened financial performance. 'As CEO, Tim has stewarded the company through the pandemic, the application and removal of tariffs on Australian wine into China and the transformation of the business to its divisional operating model, led by Penfolds.' Fischer has over three decades of experience in the global alcoholic beverages, consumer goods, and luxury brand sectors. At Lion, which is owned by Japan's Kirin Group, Fischer has overseen beer, wine, spirits, and ready-to-drink operations across Australia, New Zealand, and the US, the statement said. Before joining Lion, Fischer worked for 15 years at UK-based spirits giant Diageo, in roles including president of Asia Pacific and global travel president and as a member of the Diageo global executive committee. Earlier in his career, he also held management positions at Colgate Palmolive in Southeast Asia and Eastern Europe. He has also served as a non-executive director at Burberry Group since 2019. Mullen added: 'Sam brings proven CEO credentials, exceptional strategic acumen, and deep expertise in alcohol beverages, consumer goods and luxury brand building, accompanied by a strong track record of driving business growth. 'Having assessed a highly competitive field of candidates, the Board and I firmly believe that Sam is the right person to lead TWE into its next era of growth and performance.' Fischer said TWE has 'enviable portfolio of brands, global footprint, strong luxury-led strategy and highly talented team'. He added that in the new role, he aims to 'build on the excellent foundations to lead the next phase of TWE's exciting evolution.' Fischer joins TWE following the company's announcement of a profit warning earlier this year. At the time, the group said it expected roughly A$780m ($498.1m) in EBITS for its fiscal 2025, which is the lower end of its former $780m to $810m guidance range. The move was 'driven primarily by reduced expectations for Treasury Premium Brands', the group said in the statement. In its first half, TWE's Treasury Premium Brands business saw its EBITS fall 29.9% to A$23m, while EBITS margin dropped 5.3ppts to 6.4%. The declines were driven by 'softness in consumer demand for wine at lower price points', the company said. It also pointed to an 'underperformance relative to the category and the cycling of a A$9.7m gain on sale of divested vineyard assets in the pcp [previous corresponding period]'. TWE reported net sales revenue of A$1.5bn ($963m) in the period, an increase of 20.2% compared to last year. The rise was driven by 'strong' growth in its 'luxury' portfolio, particularly Penfolds, and contributions from its acquisition of Daou Vineyards which closed in December 2023. Alongside the release of its first-half results, the group also announced it had decided not to offload its portfolio of 'commercial' wine brands after failing to bag a satisfactory offer. It said the offers it had received for the range, which includes Wolf Blass and Yellowglen wines, 'did not represent compelling value and therefore their retention is the best course of action'. The 19 Crimes producer revealed its intention to sell the wines in August, following a review of 'the future operating model for its global portfolio of premium brands'. In December, TWE struck a deal to buy a 75% stake in Ningxia Stone & Moon Winery for 130m yuan ($18m). The wine major said the deal, completed in March, fit its strategy of 'investing in luxury vineyard and production assets to support the growth of its luxury-wine portfolio'. In its results for full-year fiscal 2024, net sales revenue rose 13.1% to A$2.73bn, but net profit after tax fell 61.1% to A$98.9m. EBITS was up 12.8% to A$658.1m on the year prior, while total volumes on a reported and constant-currency basis declined 1% to 21.9 million nine-litre cases. "Treasury Wine Estates snaps up new CEO from Lion" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
West Australian
15-05-2025
- Business
- West Australian
Penfolds owner Treasury Wine Estates poaches new CEO from beer giant Lion
Penfolds owner Treasury Wine Estates has poached the boss of alcohol giant Lion, behind popular beer brand XXXX, to be its new chief executive. Sam Fischer will replace Tim Ford, who is leaving TWE after 14 years with the company, including five years in the top job. Mr Fischer has led Lion — owned by Japanese beverage giant Kirin — since 2022, overseeing a suite of beer brands that also include Little Creatures, James Squire and Emu Export across Australia, NZ and the US. He has also been a non-executive director at global luxury goods and fashion company Burberry. Announcing the appointment on Thursday, TWE said Mr Fischer had delivered decisive leadership to return Lion to a market leader with a high-performance culture. TWE investors did not welcome the news, sending shares down 47¢ lower to $8.65 just before lunchtime. Mr Ford will remain as CEO until September 30 to ensure a smooth transition, with Mr Fischer assuming the role in late October. Mr Fischer will be paid a starting salary of $1.725 million a year, with a $4m sign-on bonus. Mr Fischer said he had admired the business and was honoured to have been selected by the TWE board to lead its next phase of growth. TWE chair John Mullen said it was thrilled to welcome Mr Fischer to the company following an extensive global search for Mr Ford's successor. 'With over 30 years of global leadership experience, Sam brings proven CEO credentials, exceptional strategic acumen, and deep expertise in alcohol beverages, consumer goods and luxury brand building, accompanied by a strong track record of driving business growth,' Mr Mullen said. Mr Mullen also paid tribute to Mr Ford, who led TWE through a tumultuous time for the nation's wine industry after China in 2020 imposed onerous tariffs of as much as 200 per cent on Australian wine exports. It wasn't until last April that China's Ministry of Commerce finally ended its trade barriers on Australian wine. 'TWE is a significantly stronger and more focused business as a result of Tim's vision and leadership and the company will benefit from his legacy for many years to come,' Mr Mullen said. Mr Ford said leading TWE had been the highlight of his career and that he had full confidence in Mr Fischer's ability to take the company forward.
