Taylors Wines has revealed it is considering buying Treasury Wine Estates’ (TWE) commercial wine division.

TWE announced in August that it was selling 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.”

Taylors Wines Managing Director Mitchell Taylor said: “We’ve got to do some due diligence on these things. We’re certainly having a good look at them.”

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.