Treasury Wine Estates slashes US business value by $341M amid budget wine decline
The global drinks industry is facing challenges as consumer habits shift away from cheaper alcohol. Treasury Wine Estates, the company behind Blossom Hill and Penfolds, has written down the value of its US business by A$687.4 million (£341.1 million). This move reflects broader trends, with demand for lower-cost wines and spirits falling in multiple markets.
Treasury Wine Estates blamed the write-down on poor sales of its budget wine brands in the US. While its premium labels, such as Penfolds, continue to perform strongly, the company has adjusted its long-term growth forecasts due to weaker demand for cheaper products.
The write-down by Treasury Wine Estates highlights the growing preference for premium drinks over budget options. With multiple companies reporting weaker sales, the consumer cellular industry is adjusting to changing consumer behaviour. The shift towards higher-quality products appears set to continue across key markets.
