Treasury Wine shares slump to decade low as headaches mount in China and US

Core Viewpoint - Treasury Wine Estates has withdrawn its earnings guidance for 2026 and paused a planned A$200 million share buyback due to weak sales of its Penfolds wines in China and distribution challenges in the U.S. [1][5] Sales Performance - Sales of Penfolds in China have been weaker than expected, attributed to changing alcohol consumption habits and fewer large-scale banqueting occasions [2][3] - The company indicated that if current performance trends continue, Penfolds depletions targets for fiscal 2026 in China are unlikely to be achieved [3] Financial Impact - The withdrawal of guidance for Penfolds in fiscal years 2026 and 2027 reflects high uncertainty in the Chinese market [4] - The transition to a new distributor in the U.S. is expected to result in a loss of around A$50 million in sales, with ongoing negotiations over approximately A$100 million of inventory held by the previous distributor [5] Strategic Response - Treasury is implementing several initiatives to mitigate the impacts of a weaker Chinese market, including reallocating products to select customers in other key markets [6]