Treasury Wine Estates (TWE) has announced it will sell iconic labels such as Wolf Blass (acquired 1996), Yellowglen (acquired 1996) and Lindeman’s (acquired 2005).

The labels are part of the company’s Treasury Premium Brands division. Other labels within the portfolio, including 19 Crimes, Pepperjack, Seppelt and Squealing Pig will be retained.

The company said in an ASX statement: “As announced at its F24 half year results in February, TWE has been assessing the future operating model for its global portfolio of premium brands. As part of this review, TWE has determined that it will seek to divest its commercial brand portfolio and will provide investors with a full update on its ongoing review of the future operating model for its global portfolio of premium brands as part of the FY24 full-year results announcement.

TWE said that in FY24, the contribution of the commercial brands it is offloading represented less than 5% of the company’s gross profit.

E&P analyst Phil Kimber estimated TWE might only make about $100 million from the sale of its commercial wine brands, “given limited demand” from the small pool of potential buyers.

Pernod Ricard announced last month that it was selling its wine division after an extended sale period. The portfolio., which include Jacob’s Creek, Orlando and St Hugo from Australia, Stoneleigh, Brancott Estate and Church Road from New Zealand and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain, was bought by Accolade Wines.

TWE suggested there may be more announcements to come from its structural review, with an outline of its future operating model to be made when its FY24 full year results are released on 15 August 2024. The company said its unaudited EBITS before material items for FY24 are expected to be $658.1million, an increase of 12.8% on the previous corresponding period.