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].

Treasury Wine Estates today (15 December) requested a pause in the trading of its shares on the Australian Securities Exchange, ahead of a planned update to its outlook. In a statement, the Penfolds winemaker said it had asked for the trading halt to be "effective immediately". TWE said it was preparing for an investor and analyst call in two days' time, "which will include information regarding the company's outlook". The group has requested the pause to run "until the earlier of the commencement of n ...