Treasury Wine Estates, the Australian wine group behind Penfolds, has cut about 170 jobs worldwide and is selling several brands as it restructures its business following a sharp decline in U.S. earnings.
The overhaul will shrink its portfolio from 76 brands to fewer than 30 and replace brand-led divisions with regional businesses. TWE aims to save A$100 million annually by fiscal 2029, concentrating investment on priority brands including Penfolds, DAOU and Matua.
Job cuts accompany regional overhaul
TWE confirmed earlier this month that it had eliminated approximately 170 positions, equivalent to about 6% of the roughly 2,700 people it employed at the end of June 2026.
The cuts primarily affected marketing, information technology, finance and other support functions, with its Melbourne headquarters particularly affected.
The reductions are part of TWE Ascent, a restructuring program that moved the company to a regional operating model on October 1. Its four businesses now comprise the Americas; Greater China; Australia, New Zealand and Europe; and Emerging Markets, covering the rest of Asia, the Middle East and Africa.
Regional teams will take greater responsibility for sales, marketing and commercial strategy, supported by global functions. CEO Sam Fischer has said the changes are intended to reduce duplication, clarify accountability and speed up decision-making.
Rosemount returns to the Oatley family
Alongside the job cuts, TWE is selling brands as it narrows its investment priorities.
On Oct. 12, the company announced the sale of Rosemount, Ingoldby and Secret Stone, together with associated inventory, to Australian family-owned producer A.G. Oatley Wines. Financial terms were not disclosed. The transaction is expected to close on Oct. 23, with TWE retaining royalty-free rights to sell Rosemount wines in Europe for up to three years.
The deal brings Rosemount back to the family that founded it in 1969. Bob Oatley sold the business to Southcorp in 2001. Southcorp was later acquired by Foster’s Group, whose wine operations were spun off to form TWE in 2011.
The other brands in the transaction are Ingoldby, from South Australia’s McLaren Vale, and New Zealand’s Secret Stone.
The sale follows several other disposals. TWE has returned Rouge Homme to its founding family, the Redmans, and sold Tollana to Sword Distribution. In September, it announced the sale of Seppelt to a group led by Aaron Drummond, CEO and co-owner of Victorian boutique wine producer Stonier.
Under the portfolio overhaul announced in June, TWE also plans to cut its product lines from 1,690 to approximately 738. Investment will focus on three global priority brands – Penfolds, DAOU and Matua – and seven regional priority brands, including Wynns and Pepperjack.
Americas earnings fall 61%
The restructuring follows a difficult fiscal year, with weak U.S. demand and distribution problems weighing heavily on earnings.
For the year ended June 30, 2026, TWE’s Americas business reported net sales revenue of A575million(US$401 million), down 21.2%. Earnings before interest, tax and material items, or EBITS, fell 61.4% to A90.2million(US$62.9 million).
TWE attributed the decline to a weak U.S. wine market, disruption from changes to its California distribution network in the first half, and a tough comparison with the previous year, when shipments had outpaced sales through distribution channels. Excess inventory in the U.S. market remains a challenge.
Treasury Premium Brands, whose portfolio centers on Australian and New Zealand wines sold across multiple markets, also struggled. Net sales revenue fell 12.9% to A987.7million(US$689 million), while EBITS dropped 47.8% to A68million (US$47.4 million).
Penfolds grows in China
Penfolds provided a brighter spot in Asia. Its global depletions, sales through distribution channels, increased in fiscal 2026, with growth of 34.7% in China and 18.1% elsewhere in Asia.
That performance supports TWE’s efforts to concentrate resources on its priority brands and markets, even as it works through inventory pressures in the United States.
The company expects fiscal 2027 EBITS to be at least in line with fiscal 2026. Its next results will offer an early test of whether cost savings and a smaller portfolio can improve earnings while the U.S. business continues to adjust.
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