TWE slashes value of US wine business by $687 million

TWE disclosed in its 2025 Annual Report that a reduction in future cash flows in the Americas business of 11 percent per annum over the forecast period would reduce impairment headroom to nil.

“While a number of TWE’s larger brands continue to grow ahead of market – including DAOU, Frank Family Vineyards and Matua – in response to further moderation in US wine category trends, TWE has applied more conservative long-term market growth assumptions, resulting in reduced long-term earnings growth rates, which will impact carrying values within the Treasury Americas and Treasury Collective – Americas cash generating units,” TWE said in an ASX announcement.

“The final impairment amount and allocation to assets will be concluded as part of the 2026 interim results, however it is expected that the impairment will result in at least all goodwill ($687.4 million at 30 June 2025) currently carried in the Americas being written off, with potential to impact other assets.

“Additionally, following Sam Fischer’s commencement as CEO, TWE will host an investor and analyst conference call in mid-December.

“The call will include a progress update on performance in TWE’s key markets, including in China and the US, and Mr Fischer’s initial observations.”

TWE acquired the luxury wine brand DAOU Vineyards in California in October 2023 for $1 billion.

Mr Ford said at the time the acquisition was a continuation of the group’s focus on higher-priced wines in a market where drinkers around the world are shifting to more premium wines, and away from lower-priced wines.

“It’s right in the sweet spot,” Mr Ford said.

“We’re moving to where the consumer is going.”

Details of the investor and analyst call will be provided in advance of the event.