A$687 Million Impairment Triggers Selloff as TWE Shares Hit 10-Year Low

Treasury Wine Estates’ shares fell to their lowest level in a decade last week after the company announced a A$687 million write-down on its U.S. operations, wiping hundreds of millions of dollars from its market value and underscoring growing pressure in its two most important markets, China and the United States.

The Penfolds owner said on Dec. 1 that it expects to recognize a non-cash impairment of up to A$687 million (US$450 million) against the goodwill of its Americas business as of June 30, citing a deteriorating outlook for the U.S. wine market. The company warned the impairment could extend to other assets as well.

Shares began falling immediately after the announcement. On Monday, the stock dropped as much as 6.4% at the open of Sydney trading, hitting A$5.45 — its lowest level since August 2015. The selloff continued over the following week, with Treasury Wine Estates trading around A$5.70 between Dec. 2 and Dec. 9, according to pricing reviewed by Vino Joy News. A year earlier, the company’s shares traded as high as A$11.95 before entering a prolonged decline that accelerated through 2025.

Treasury Wine Estates said the impairment reflects weakening demand, shifting consumption patterns and sustained operating pressure across the U.S. wine sector. The company acknowledged its expectations for growth in the United States have turned more conservative, reducing the recoverable value of the assets tied to that market.

The write-down marks another setback for the Australian wine group. In October, the company withdrew its earnings guidance and suspended its share buyback program, citing uncertainty in both China and the United States. Shares plunged more than 15% following that announcement.

China and the United States remain the company’s largest and most strategically important markets. According to its fiscal 2025 annual report, Penfolds — driven primarily by demand in China – generated A$1.0739 billion in net revenue. Treasury Americas, dominated by the U.S. portfolio, recorded A$1.1707 billion. Combined, the two divisions accounted for 77% of total group revenue, underscoring Treasury Wine Estates’ reliance on the two markets.

Simultaneous weakness in China and the United States poses a significant challenge for the company as it navigates a softening global wine market and shifting consumption behavior across key regions.