The Penfolds division is the flagship of Treasury Wine Estates, which also runs a mid-market unit known as Treasury Premium Brands, and a third unit known as Treasury Americas.
A review is underway to prune costs and mainly centres on Treasury Premium Brands, with wines including Wolf Blass, Squealing Pig, Lindemans, Pepperjack and Wynns.
CEO Tim Ford says changing consumer preferences and economic uncertainty mean work is stepping up in that review.
Analysts say a potential unwinding of China’s punishing wine tariffs would be a catalyst for a rise in the share price.
Treasury Wine Estates is stepping up a cost-cutting and restructuring push centred mainly on its division selling commercial wines under $10 per bottle as it braces for tougher economic times and repositions further towards the luxury segment.
The company, which has a workforce of about 2500 people, last week foreshadowed the looming restructure in internal communications and a series of meetings.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
