Treasury Wine Estates divests 12 US wine brands

Treasury Wine Estates has sold 12 non-core commercial US brands which account for one million cases of wine.

The company said in a statement that the move fits with its strategy of the past two years and that the divestments were made at approximately book value.

“The divestment will have nil impact on TWE’s earnings in F16 and beyond as the contribution from the divested brands is covered by Cost of Goods Sold savings from the Company’s Supply Chain Optimisation initiative and continued strong earnings growth from TWE’s Luxury and Masstige portfolios, globally,” the statement said.

In addition, Treasury reiterated its 2015/16 earnings guidance to be between $330 million and $340 million, a figure which the company says reflects improved performance across all regions.