Treasury Wine Estates (TWE) has announced the integration of its Global Revenue Growth (GRG) function into the organisation’s Premium Brands (TPB) Division, which will see Peter Neilson leave the business.

TWE said the move aimed to unlock growth opportunities for its priority premium brands, strengthen innovation, deepen engagement with consumers and customer partners and increase operating efficiencies within the Premium business.

As a result of combining the two groups, Neilson (above), who is currently Managing Director TPB will leave TWE after 12 years with the business to pursue new career opportunities.

TWE CEO Tim Ford said: “We thank Peter for his significant contributions made to TWE during his time. His focused leadership has resulted in a robust portfolio of brands and strong market positions for TWE, and the TPB team to build on.”

GRG was established in 2023 under the leadership of Global Chief Revenue Growth Officer Angus Lilley, and is responsible for driving enterprise-wide revenue opportunities, including growth plans for current and future global brands, enterprise-wide innovation development and enhancing consumer understanding across TWE.

Ford said that bringing the GRG team together with TPB would unlock future opportunities for the strong consumer brands within the Premium business.

“When you consider our Premium portfolio, this is a unique offering with an unrivalled global footprint and brands that resonate strongly with consumers,” he said.

“Integrating our GRG capabilities within TPB, will enhance our ability to strengthen these brands, foster cutting-edge innovation and deepen our engagement with consumers and customer partners.”

Lilley will assume the position of Managing Director TPB.

“I am delighted to have the opportunity to leverage the breadth and depth of experience from my prior roles in TWE to lead the amazing portfolio of TPB brands, working closely with the incredibly strong TPB team based around the world,” he said.

The changes will come into effect on 1 July 2024.

First step in demerger?

The Australian has speculated that the restructure of TWE’s premium brands division could be the first step in an eventual spin off, demerger or sale of assets as the company turns its focus into its luxury wines such as Penfolds.

TWE hosted an investor and analyst presentation at DAOU Vineyards in the United States on 4 June 2024, where Ford confirmed that the company was continuing to assess its future operating model for its global portfolio of premium brands, with an update to be provided in August.

During the presentation the company also shared that it was expecting Treasury America’s earnings in FY24 would be between $223 million and $228 million, based on luxury portfolio growth, supported by increased availability, with revenue from the premium portfolio broadly in line with the same period last year.

TWE said that following the acquisition of DAOU it had the leading luxury wine portfolio in the country, with the US being the world’s largest luxury wine market.

It said DAOU filled a significant Treasury Americas portfolio gap at US$20-40 and complemented its existing Luxury portfolio
above US$40.

“Internationally, our vision is to be the no.1 US brand, known for wines of extraordinary quality from an extraordinary region,” TWE said.

“Leveraging Penfolds leading global distribution platform, international expansion will provide DAOU with another platform for long-term growth.”

The Treasury Americas and DAOU integration will be finalised on 1 July 2024.

Treasury Americas President Ben Dollard said the company’s focus as it approached FY25 was clear and centred on four priorities:

• Completing integration and continuing the strong growth momentum for DAOU
• Delivering growth across other Luxury Estates portfolio brands, supported by double digit increase in portfolio availability.
• Maintaining stability for TWE’s portfolio of Premium brands
• Delivering margin improvement towards its long-term target in the high 20% range.

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