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The Australian wine group Treasury Wine Estates (TWE) has announced its intention to sell its highest-volume wine brands at prices of less than six euros. These include wines known in Europe such as Wolf Blass, Lindeman's, Blossom Hill and Yellowglen. According to a statement to investors, they now only account for less than five per cent of the Australian group's gross margin. The reason for this is "difficult market conditions for commercial wines in all markets", writes TWE.
According to the investor statement, the group brands in the price category between six and 18 euros and "luxury brands" with a price of over 18 euros are achieving "good results with annual growth of ten per cent". This confirms the strategy of premiumisation. TWE therefore wants to divest itself of wine brands "that need to be competitive in order to survive in an increasingly competitive market, but which experiences little appreciation ". TWE includes
The announcement to sell brands for bulk wines is already the second: Pernod Ricard announced a few weeks ago that it would sell off retail brands with low returns such as Jacob's Creek, Campo Viejo and Brancott Estate to the Australian wine group Accolade Wines. 20 wineries and wine brands currently belong to TWE. These include Penfold's (Australia) as well as Stag's Leap and Beaulieu (California).
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