Treasury Wine Estates unveils French wine portfolio
TWE aims to disrupt the traditional ‘old world’ mould of the French category and drive growth for the company globally.
The French portfolio will include three tiers of wines showcasing the best of France, including Bordeaux, Burgundy and Châteauneuf du Pape reds, Rosé from Provence and Champagne.
North Asia is the initial destination for the portfolio, with plans to market and sell the portfolio across other regions of the world in F18 and beyond.
During TWE’s inaugural Investor Day in Napa, California, the new French proposition, to be launched in the first half of F18, will build on the wine company’s existing portfolios from Australia, New Zealand, California and Italy.
According to TWE chief executive officer Michael Clarke, central to the company’s approach is embedding greater sustainability, discipline and balance across all four regional business models as well as strengthening its brand portfolio, with diversified sourcing to meet global demand.
“We have been investing behind the brands that can deliver growth on a global scale for our business with stronger marketing activity to drive consumer demand across all of our regions. We’ve also spent time refreshing and ‘fixing’ many of our brands, with a number of our Californian wine brands recently undergoing packaging refreshes including Beaulieu Vineyard, Sterling Vineyards and Beringer,” Clarke said.
“French wine is now an exciting new addition to our portfolio offering, and will be one of our important launches in F18. While the French category is very established globally and regarded as a quality trustmark, particularly in North Asia, we will bring a ‘new world’ mentality to marketing and selling this wine.”
During the Investor Day, TWE’s Executive Leadership Team also shared progress against the wine company’s strategy to deliver previously stated financial targets of achieving high teens EBITS margin by F18.
Outlining the transition from an agricultural, order-taking company to a brand-led high performance organisation, the team highlighted the three-phase journey of fixing, growing and accelerating the brand portfolios and business models to position all four regions for sustainable success.
“We have taken a very disciplined approach to fixing and growing our business models and brand portfolios, but our journey is far from over. We’ve set the business up for long-term, sustainable success, while continuing to preserve the scarcity and value of our wines globally. The new French portfolio plays an important role in our strategy, as we look forward to continuing to deliver value for our shareholders,” Clarke said.