Treasury Wine Estates Ltd in Wine

Introduction

Scope

Executive summary

State of Play

Top companies at a glance

Treasury Wine Estates: global footprint in wine

Company overview

Acquisition of Diageo’s wine division boosts Treasury Wine’s growth

Strategic review to drive profitability growth in the US…

…while striving to offset the impact of Chinese tariffs on Penfolds

Exposure to Future Growth

Impact of COVID-19 on wine (1)

Impact of COVID-19 on wine (2)

Impact of COVID-19: FY20 results (1)

Impact of COVID-19: FY20 results (2)

Friction between Australia and China threatens sales growth

Decline in wine imports set to drive down volume sales in China

E-commerce gains importance to build the premium and luxury wine offer

Treasury Wine Estates committed to remain in the Chinese market

Australia and Canada offer good prospects for Treasury Wine Estates

Company overview

Competitive Positioning

Challenging environment set to drive volume decline for some players

Accolade remains the biggest competitor for Treasury Wine Estates

Key categories and markets: Australia remains the biggest market by volume

Key brands: diverse portfolio of brands in key markets

Wine in Detail

Volume sales declines forecast in Asia Pacific and Western Europe

Strong volume sales growth in Australasia

Australasia remains a stronghold for Treasury Wine Estates

Still light grape wine: Australasia remains the key region for TWE

Sparkling wine: leading position in Australasia thanks to prosecco

Australia accounts for most sales of sparkling and fortified wine

Category and Geographic Opportunities

COVID-19 set to slow down the premiumisation trend in Australia

Other sparkling wine and still rosé wine set to outperform other categories

Non-alcoholic and organic varieties on the rise

Premiumisation loses steam in the US

Treasury slashes lower-margin portfolio to improve profitability

TWE commits to leveraging its premium portfolio to drive value growth

The moderation trend drives down volume sales in the UK

Divestment of low-margin offer leads to sales decline in the UK

Non-alcoholic and organic varieties in the spotlight in the UK

Europe and Latin America set to offer opportunities for wine producers

US portfolio set to benefit from new trade agreement in Canada

Treasury Wine set to divert Penfold volume sales to Asia Pacific (1)

Treasury Wine set to divert Penfold volume sales to Asia Pacific (2)

Europe provides growth opportunities for Treasury Wine Estates

The “new normal”: At home and online

On-trade sales of wine set to recover gradually over time (1)

On-trade sales of wine set to recover gradually over time (2)

Treasury Wine Estates introduces a luxury e-commerce platform

Augmented reality technology to achieve consumer engagement with wine

Treasury Wine Estates establishes ambitious sustainability goals

Key Findings

Recommendations

Key findings

Appendix

Projected company s ales: FAQs (1)

Projected company s ales: FAQs (2)

Overview

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