Treasury Wine Estates to sell Australian and US wineries
Treasury Wine Estates is merging a number of US operations, putting several Australian wineries up for sales and closing a warehouse in Australia in a cost-cutting drive designed to save £26 million a year.
Victoria wineries T’Gallant, Bailey’s and Ryecroft have been put on the sales block, along with Californian winery Asti.
The Karadoc warehouse will close, with operations transferred to the Wolf Blass facility in South Australia’s Barossa region.
Chief executive Michael Clarke said: “I am very pleased that we are now embedding a cost conscious culture.
“Not only are the cost reductions funding the 50% uplift in consumer marketing in fiscal 2015, the savings are also supporting actions to improve the quality of TWE’s base earnings, while delivering profit growth for shareholders.”