Citi analyst Sam Teeger has warned that Treasury Wine Estates faces significant challenges in revitalising its business. According to Teeger, the company needs to address structural and cyclical headwinds while simultaneously cutting costs to reignite demand. Treasury Wine Estates is an Australian global winemaking and distribution business with a portfolio of brands sold worldwide. The company produces and markets a variety of wines.
Teeger noted that Treasury Wine Estates’ portfolio is currently underweight in faster-growing segments like luxury white wines. This limits their exposure to areas demonstrating category strength in the market. While cost-saving measures are underway, Citi anticipates that some of these savings will need to be reinvested to foster growth initiatives within the company.
According to Teeger, Treasury Wine Estates plans to bolster its position in luxury white wine and elevate modern refreshments through scaling existing products and launching new products within existing brands. He noted this approach, rather than acquisitions, is ‘pleasing and necessary’ given the company’s current gearing.
Despite these challenges, there were some positive indicators. Penfolds recorded a 17.2 per cent increase in distributor depletions in China between August and December 2025. Treasury Wine also reported improved sentiment surrounding the Chinese New Year and indications of outperforming broader weak wine and spirits trends. Teeger expressed surprise that the stock traded lower during the conference call given these positive snippets regarding Penfolds in China and the Americas. Treasury Wine was last down 4.6 per cent.
