Australia-listed Treasury Wine Estates (TWE) is entering more American states as it claws its way back from the impact of China’s punishing tariffs, leading to the company’s restructuring and divestment of some assets.
On Monday, the wine giant announced its extended partnership with Republic National Distributing Company (RNDC), one of the leading distributors in the United States.
The partnership aims to market TWE’s brands as early as July in more states, including California, Texas, Louisiana, Oklahoma, Kentucky, Mississippi, Utah, Wyoming, and Nebraska. Presently, RNDC is selling TWE wines in Michigan, Georgia and New Mexico.
The partnership aims to market TWE’s brands as early as July in more states, including California, Texas, Louisiana, Oklahoma, Kentucky, Mississippi, Utah, Wyoming, and Nebraska. Presently, RNDC is selling TWE wines in Michigan, Georgia and New Mexico.
“Our decision to partner with RNDC presents us a terrific opportunity to cultivate our trade partnership, to fast track growth, execute our plans, and build long-term value,” TWE Americas President Ben Dollard said in a statement.
The upgraded distribution deal comes as the company revealed in February its plan to sell some low priority brands in a bid to gain AU$300 million ($230 million) to preserve itself from China’s biting tariffs of 175.6%. The Chinese market accounted for about a third of its profits previously. Additionally, the company reorganized itself into three divisions, namely Penfolds, Treasury Premium Brands and Treasury Americas.
“With our divestiture of commercial wine brands, we decided to reevaluate our business needs to position our company for future growth,” Dollard said.
Moreover, the official says TWE is in a “position of growth” with its premium and luxury wines dominating the market. Recently, its 19 Crimes brand collaborated with American rapper Snoop Dogg for a new line.
TWE holds a portfolio of more than 70 wine brands produced from over 12,600 hectares of owned and leased vineyards across the world. Its products are sold in four major continents and over 70 countries.
