Core Viewpoint - Treasury Wine Estates (TWE) is undergoing a transformation program under new CEO Sam Fischer, which includes product reviews and cost-cutting measures, amid declining share prices and challenges in key markets like the US and China [1][2]. Group 1: Company Performance and Challenges - TWE's shares have fallen to their lowest level in a decade, closing at A$4.98, down nearly 56% in 2025 [1][7]. - The company has experienced category weakness in the US and China, impacting business performance [2]. - An impairment on US assets is forecasted at A$687.4 million (approximately $450 million) [3]. - TWE withdrew its fiscal 2026 earnings guidance due to an uncertain outlook for its Penfolds brand in China and Treasury Americas businesses [3]. Group 2: Transformation Program - The new program, named TWE Ascent, will focus on evolving the product portfolio, changing the operating model, and optimizing costs [4]. - TWE aims to achieve cost savings of A$100 million annually over the next three financial years [4]. - The company is reducing inventories held by customers in the US and China to align with moderated depletion growth expectations [5]. Group 3: Market Trends - The luxury wine market in the US, defined as wine priced at least $20 per bottle, has declined by over 2% in the last 26 weeks [6]. - Depletions from Treasury Americas are down 4.6% year-to-date [6]. - TWE is restricting shipments contributing to parallel import activity in China to protect the strength of the Penfolds brand [6].