Treasury Wine Estates Facing a Transitional Calendar 2022, but Long-Term Earnings Trajectory Solid

Treasury Wine Estates has increasingly focused on building high-end brands in its portfolio, particularly in luxury (bottles priced above AUD 20) and “masstige” (bottles priced from AUD 10 to AUD 20) wine. With this focus, the company’s revenue from higher-end wines has risen to about 71% in fiscal 2020 from 43% in early 2014, both from growth in its high-end products and purposeful reduction of low-end, or commercial, wine sales.