Treasury Wine Estates (TWE) investor relations material

Strategic direction and portfolio focus

• Transitioning to a focused portfolio of 10 priority brands, with Power Brands and Regional Heroes expected to represent 90% of net sales revenue within five years, up from 68% today.

• Portfolio will be reduced from over 70 brands (currently 76) to fewer than 30, with non-priority brands managed through transition, tactical roles, divestment, or retirement.

• Investment in advertising and promotion (A&P) will rise from 8.5% to 10% of net sales revenue by FY 2028, with a focus on luxury, white, and modern refreshment wine segments.

• Brand building will be standardized globally, leveraging proven frameworks, dual innovation systems, and AI-driven insights to accelerate product development and marketing effectiveness.

• Regional execution priorities focus on China, Americas, ANZ & Europe, and Emerging Markets, each with tailored strategies for distribution, brand building, and channel expansion.

Operating model and execution transformation

• Transitioning to a regionally-led operating model across Americas, ANZ & Europe, Greater China, and Emerging Markets to drive accountability, faster decision-making, and efficiency.

• Targeting AUD 100 million ($100m) per annum in cost reductions by FY 2029, with benefits starting from FY 2027, through simplification, automation, and reduced duplication.

• Embedding commercial excellence, data-driven management, and performance discipline, with real-time tracking of key metrics, clear ownership, and incentives for top performers.

• Digital, data, and AI adoption will create a single source of truth for reporting, enhance forecasting, and improve sales enablement and execution.

• Performance will be measured across category, execution, customer outcomes, and financial delivery, with executive oversight ensuring alignment between strategy and results.

Regional strategies and market outlook

• Greater China: Focused on disciplined execution, expanding online and offline distribution, targeting Baijiu consumers, and leveraging digital tools for authenticity and pricing control.

• Americas: Resetting with inventory rebalancing, supply chain transformation, and a strategic review to address structural misalignment and improve profitability.

• ANZ & Europe: Leveraging leading brands, expanding distribution in independent and on-premise channels, and unlocking luxury growth through direct-to-consumer and fine wine channels.

• Emerging Markets: Scaling luxury demand in Southeast Asia, investing ahead in new frontiers like India and UAE, and expanding with disciplined distributor management.