Penfold’s Grange parent company loses AUD$100 million

Treasury Wine Estates, the owner of Penfold’s Grange, Australia’s most iconic fine wine, has just announced large losses of just over AUD$100 million combined with profits falling by 33%. Despite both net sales and revenue falling new chief executive, Michael Clarke, is optimistic that he can turn the company around through increased marketing and continued cost-cutting and restructuring. Interestingly its investment in its premium wine division, which of course includes Grange, seems to have paid off with volumes growing by 40%. Also the highly anticipated release of 2010 Grange in the first half of 2015 should heighten consumer awareness. Vin-X are keeping a note of Grange’s progress because an increased marketing drive could lead to possible increased investment returns. Michael Clarke will need to keep making gains if he is to fend off the unwelcome bidding war between 2 giant private equity houses (see links to 4/11th August related articles) but remains confident of Treasury’s progress thus far. For more information please click below.