Half-a-billion-dollar hit to SA’s top shelf wine owner
The owner of arguably SA’s best-known wine brand is seeing its profits pruned – as one of its latest wine collections is revealed including a bottle worth $1000.
The owner of South Australian luxury wine brand Penfolds announced today it is taking a $558.4 million hit to its bottom line in its full-year results, expected to be released later this week.
In a statement to the ASX, Treasury Wine Estates said it would look to “rebalance” its US business as it recognises declining value in North America.
The company – also behind the 19 Crimes, Wolf Blass, Squealing Pig and Pepperjack brands – said it would reduce vintages in the US by fallowing vineyards to reduce annual grape intake.
It will also cut down its bulk wine inventory in the US by selling the wine into bulk wine markets.
“We are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market,” interstate-based TWE CEO Sam Fischer, who studied in Adelaide at the University of South Australia, said.
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As one of its most prized labels Penfolds releases its top wines for the season ahead, the company updated shareholders saying that it expected profits to be $492.3 million for the 2026 financial year.
“The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds,” said Fischer, who was previously the CEO of beverages giant Lion.
In June, the company announced plans to focus on its “power brands”, including Penfolds, which in November last year had its Magill winery named the second-best in the world by global publisher Forbes.
The company’s first-half results showed a bottom-line net loss of $649.4 million, announced in February, which was also impacted by an impairment related to its US assets.
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Penfolds 2026 collection released
The news comes as Penfolds last week unveiled its 2026 collection, including a $1000 bottle of Grange in the drop’s 75th year.
Chief winemaker Peter Gago said the 2022 Grange “assuredly authenticates its flagship role and 75th anniversary credentials”.
He said in relation to when the wine was bottled that it was “Both timely and lucky – to avail such a stellar vintage in such a symbolic year.”
Grange was first released in 1951, crafted by the winery’s maiden chief winemaker Max Schubert. It has gone on to become one of the world’s most collectible red wines; a bottle of the ’51 Grange is currently for sale for $189,000.
Other drops in the collection include the Bin 707 ($800) and its younger sibling Bin 407 ($130), as well as cool-climate chardonnays: Yattarna ($220) and Bin 311 ($55).
“All of these wines are unmistakably Penfolds, sourced from different hemispheres,” Gago said.
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