Treasury Wine Fails to Find Buyers for Its Budget Brands

Australia’s Treasury Wine Estates admitted defeat in its effort to divest brands including Wolf Blass and Blossom Hill, moderating its annual earnings guidance amid weaker sales of its cheaper products.

Last year, Treasury outlined plans to offload its so-called commercial portfolio in a pivot toward costlier, higher-margin brands. As part of the move, it bought California’s Frank Family Vineyards in 2021 and Daou Vineyards in 2023 in deals worth US$1.31 billion combined.

On Thursday, Treasury told investors that it had failed to find a buyer for its budget brands.

“TWE has concluded that the offers received for these brands did not represent compelling value and therefore their retention is the best course of action,” Treasury said.

The company, which is best known for its prestigious Penfolds brand, said that demand for brands typically retailing for less than US$19 a bottle had fallen by 4.9% in the December-half. That includes the commercial portfolio, which comprises the company’s cheapest offerings.

As a result, Treasury expects so-called Ebits—earnings before interest, tax and other impacts including one-off items—for the full fiscal year of 780 million Australian dollars, or about US$489.8 million. That’s at the bottom end of its previously issued A$780 million-A$810 million guidance range.

Even so, Treasury on Thursday reported a A$220.9 million net profit for its fiscal first half, up 33% on year as the company continued to re-establish its Penfolds brand in China following that country’s removal of tariffs on Australian wine.

Revenue rose by 20% to A$1.57 billion, while profit increased 33% to A$239.6 million once material items and currency moves were stripped out.

The average analyst forecast had been for a net profit of A$242.1 million from revenue of A$1.57 billion, according to data compiled by Visible Alpha. Treasury reported first-half Ebits of A$391.4 million.

The board declared a dividend of 20 Australian cents a share, up from 17 cents a year earlier.

When Lamborghini takes to the water, subtlety isn’t on the agenda. Unveiled at the Monaco Yacht Show, the Tecnomar for Lamborghini 101FT is a 30-metre superyacht that fuses Italian automotive theatre with cutting-edge naval engineering.

The model builds on the collaboration that began in 2020 with the Tecnomar for Lamborghini 63, a sell-out success that celebrated the marque’s founding year.

This new flagship pushes the partnership between Automobili Lamborghini and The Italian Sea Group to a grander scale, designed to deliver the same adrenaline rush at sea that drivers expect behind the wheel.

“The Tecnomar for Lamborghini 101FT redefines the concept of nautical luxury,” said Stephan Winkelmann, Chairman and CEO of Automobili Lamborghini.

“It is not only a yacht, but an affirmation of Italian excellence. The Italian Sea Group and Automobili Lamborghini share an exclusive clientele who are passionate about beauty, technology, and extreme performance.”

Design cues are unmistakably Lamborghini. The yacht’s sharp exterior lines echo the Fenomeno supercar revealed at Monterey Car Week, complete with Giallo Crius launch livery and signature Y-shaped lighting.

Inside, the cockpit and lounges mirror the DNA of Sant’Agata supercars through hexagonal motifs, sculptural seating and dramatic contrasts. With accommodation for up to nine guests and three crew cabins, indulgence meets practicality on every deck.

Performance is equally uncompromising. Three MTU 16V 2000 M96L engines and triple surface propellers generate a combined 7,600 horsepower, driving the yacht to 45 knots at full throttle, with a cruising speed of 35 knots. Two 35 kW generators provide additional efficiency and reliability, ensuring the yacht’s power matches its presence.

Mitja Borkert, Lamborghini’s Design Director, said: “With the Tecnomar for Lamborghini 101FT, we aimed to create a product that embodies the main design characteristics of our super sports cars. All the details, from the exterior to the colour, to the interior areas, recall and are inspired by Lamborghini’s DNA.”

Presented in scale at Monaco, the definitive Tecnomar for Lamborghini 101FT is scheduled to hit the water at the end of 2027. For those who demand their indulgence measured not only in metres but in knots, this is Lamborghini’s most extravagant expression yet.

Treasury Wine Fails to Find Buyers for Its Budget Brands

The company is best known for its prestigious Penfolds brand

A 30-metre masterpiece unveiled in Monaco brings Lamborghini’s supercar drama to the high seas, powered by 7,600 horsepower and unmistakable Italian design.