Investor Presentaiton
12
Treasury Premium Brands
Setting TPB up for future success by enhancing operational efficiency and strategic flexibility
Key organisation and Commercial wine supply chain initiatives
1
Initiative
Adjust
operating
model and
organisation
structure
Actions
• Implement re-designed sales,
marketing and support model
•
Better align resources to
increase focus on priority
brands
Timing
•
⚫ Completed
4Q23
-
2 Implement
changes to the
Commercial
wine supply
chain
3 Divest and/or
rationalise
selected assets
•
Transition Commercial wine
production to third-party
model
• Reduce Commercial intake
from grower and bulk wine
sourcing arrangements
• Closure of the Karadoc
Commercial winery
• Divestment of Commercial
vineyards, including associated
water rights
•
•
• Arrangements
confirmed,
commencing
with the 2024
Australian
vintage
• To be
implemented
throughout
F24
Initiatives designed to deliver the following benefits:
Mitigate the impact to rising cost of goods as a
result of reduced Commercial portfolio volumes
- Deliver variability in the cost base
-
- Reduce Treasury Premium Brands exposure to the
Commercial wine segment
- Further long-term strategic flexibility and
optionality
• Total net program cost of up to $90m, inclusive of
$30m of cash costs, expected to be incurred through
to the end of F24 with program benefits expected to
exceed the cash cost
Continuing to assess additional asset and brand
portfolio optimisation initiatives
TWEView entire presentation