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Australia's Treasury Wine sells Californian assets, books loss

Published 21/07/2015, 09:13 am
Australia's Treasury Wine sells Californian assets, books loss

SYDNEY, July 21 (Reuters) - Australia's Treasury Wine Estates Ltd TWE.AX , the world's biggest listed standalone wine firm, said on Tuesday it will sell its Asti Winery, Souverain brand and vineyard assets in California to E.& J. Gallo Winery.

The sale price was not disclosed, but Treasury said it would book a pre-tax loss on the disposal of about $7.5 million.

Under the agreement, Treasury will enter into a long-term leaseback of part of the vineyard that has traditionally provided the Melbourne-based company with high-quality fruit.

The maker of the Penfolds, Beringer and Wolf Blass brands is trying to expand its high-end offerings in the United States where an unsuccessful expansion plan resulted in the destruction of thousands of cases of cheap wine. ID:nL4N0W100S

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