Treasury Wine Estates has announced it anticipates a substantial non-cash impairment against its US operations. The company estimates it will write off the entirety of its Americas goodwill, amounting to $687.4 million. This decision follows a reassessment of long-term growth expectations within the US wine market. Treasury Wine Estates is a global wine company that owns a portfolio of international brands. It is involved in viticulture, winemaking, and distribution.
The company stated that its 2025 annual report had already flagged a potential impairment, noting that an 11 per cent annual reduction in future cash flows would eliminate the existing buffer. Despite strong performances from brands such as Daou, Frank Family Vineyards, and Matua, Treasury Wine Estates is adopting a more cautious approach due to the broader market conditions. This revised outlook is set to lower long-term earnings forecasts for its Treasury Americas and Treasury Collective Americas units, prompting the write-down.
The impairment’s final amount and allocation across various assets will be determined and confirmed with the release of the group’s 2026 interim results. Treasury Wine Estates has indicated that the write-down may not be limited to goodwill alone and could potentially extend to other assets within its US portfolio. The company is actively working to finalise these figures, ensuring accuracy and transparency in its financial reporting.
This adjustment reflects the current challenges and revised expectations within the US wine market, demonstrating Treasury Wine Estates’ commitment to prudent financial management and realistic valuation of its assets. The company will provide further details alongside its interim results in 2026.
