Treasury Wine Estates (TWE) has announced it expects an additional $558.4 million in write-downs in its FY2026 results due to issues with its US supply chain. This follows $687 million of write-downs in December 2026.

The company today announced key initiatives to rebalance its US supply chain, focused on accelerating the improvement of future returns for its Americas business.

TWE also provided an update on its unaudited F26 Group EBITS, which it said are ahead of expectations and reiterated EBITS guidance for FY27 to be at least equivalent to FY26.

At its Investor Day on 4 June 2026, TWE announced that it would pursue a strategic and operational review of its Americas business, focused on improving shareholder returns. TWE noted that a focus of the review would relate to structural misalignment within its US supply chain where, as a result of the softened demand outlook communicated in December, there
was excess supply chain capacity, particularly with respect to vineyards, wineries and packaging, and elevated levels of inventory from recent vintages.

Having considered several alternatives, TWE said it has now finalised its intention to undertake the following actions:

• Reduce North Coast vintage make sizes, commencing 2026, including through the fallowing of vineyards to reduce annual grape intake, along with associated asset impairments to reflect lower intended future utilisation across the network (with respect to both owned and leased vineyards)
• Write down inventory, predominantly bulk wine, which TWE expects to manage through sale into bulk wine markets and internal reclassification.

The Australian said it is believed the Napa Valley vineyards to be destroyed are its Beringer and Frank Family Vineyards labels. 

TWE will also recognise a write-down to brands, predominantly DAOU, Frank Family Vineyards and Beaulieu Vineyard, as a result of a review of 30 June 2026 asset carrying values. This is in addition to the amount recognised at the interim results.

The operational and strategic review of the Americas remains ongoing, with TWE having appointed advisors to support the review of all available options across the Americas brand portfolio, operating model and asset base.

TWE’s unaudited EBITS before material items for FY26 are expected to be $492.3 million, ahead of the $480-490 million guidance range provided at its Investor Day, driven by Penfolds.

TWE Chief Executive Officer Sam Fischer said: “As we announced in June, we are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market.

“Both our Ascent transformation program and strategic review of potential options for the future of our US business are progressing well. The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds, DAOU and Frank Family Vineyards, and we expect to report FY26 EBITS ahead of the guidance we shared in June.”

Morgans analyst Belinda Moore said the actions to rebalance the US supply chain “will accelerate the future returns for its Americas business”.

“The turnaround at Treasury Wines is well under way and new management is working at pace to deliver improved returns to shareholders,” she said.

RBC Capital analyst Michael Toner said the “supply chain rebalancing efforts are a necessary action to re-establish market equilibrium against a challenging demand backdrop”.

TWE shares rose 3.7% to $5.63 in Monday trading. The company will release its FY26 results on 13 August 2026.