Shares of Treasury Wine Estates rose sharply after the company reported strong sales momentum in key markets, led by China, and unveiled a major organisational overhaul.
The Penfolds owner said Wednesday that product depletions, a key measure of sales to retailers, improved across its core markets in the third quarter of fiscal 2026.
In China, depletions of Penfolds grew 40% during the Chinese New Year period on a seasonally adjusted basis, driven by continued demand for flagship labels such as Bin 389 and Bin 407. Growth was also supported by a shift away from parallel imports toward the company’s authorised distribution channels.
In the US, overall depletions rose 9.1% compared with a year earlier, with sales returning to growth in California. Depletions increased 11% in Australia and New Zealand and 14% in Asia excluding China, both on a seasonally adjusted basis.
The update boosted investor confidence. Treasury Wine shares jumped nearly 18% to AU$4.77 on Wednesday, partially recovering from a sharp sell-off over the past year that had halved the company’s market value. The stock however still remains well below its 2018 peak of close to AU$16.
The company also announced a sweeping restructuring, set to take effect October 1, that will divide its operations into four regional units: the Americas; Australia, New Zealand and Europe; Greater China; and Emerging Markets, covering the rest of Asia, the Middle East and Africa.
The move marks a significant overhaul following its previous structural changes in 2021.
Each division will manage core commercial functions including sales, marketing, direct-to-consumer and strategy, supported by central group operations.
Treasury Wine said the new structure is designed to improve accountability, accelerate decision-making, strengthen market execution and customer focus, and reduce costs.
Tom King, currently managing director of Penfolds, will take on the newly created role of chief commercial officer, overseeing commercial activities across all regions as well as group marketing strategy and innovation. He will be based in Melbourne.
Angus Lilley, currently head of Treasury Collective, will lead the Australia, New Zealand and Europe division, while Jack Wu, general manager for mainland China at Penfolds, will head the Greater China business. Both will report to King.
The restructuring marks one of the most significant changes to the company’s operating model in recent years as it seeks to stabilise performance and rebuild growth following a prolonged downturn.
Separately, the company said it has secured new debt commitments totalling AU$300 million from lenders within its global banking group as part of its ongoing funding programme.
“We are reshaping TWE to drive clearer accountability for performance and to enable faster, more market-connected decision-making as a foundation for consistent depletions growth,” says group CEO Sam Fischer, who took the role last October.
“I am pleased with the progress we are making on elevating our focus on depletions performance across our key markets, and we remain focused on continuing the improved momentum,” concluded Fischer.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
