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UPDATE 1-Australia's Treasury Wine signs licensing deal for U.S. brands

Published 10/03/2021, 09:29 am
Updated 10/03/2021, 09:30 am

(Adds agreement details, background)

March 10 (Reuters) - Treasury Wine Estates Ltd TWE.AX said on Wednesday U.S.-based Wine Group will sell several of the Australian company's brands that are made in the United States.

The agreement comes as Treasury Wine, the world's largest listed winemaker, plans to overhaul its business as it reels from the impact of steep Chinese tariffs on Australian wine. last year imposed anti-dumping tariffs on Australian wine, citing grievances about foreign investment, national security and human rights policy, after Australia led calls for an international inquiry into the coronavirus. Group, owner of the Franzia and Cupcake Vineyards brands, will source and sell Treasury Wine's Beringer Main & Vine, Beringer Founders' Estate, Coastal Estates and Meridian brands in the Americas. the six months to Dec. 31, the brands contributed A$92 million ($71 million) of Treasury Wine's net sales revenue and A$13.5 million of gross profit.

The company said the agreement will generate proceeds of about A$100 million.

Treasury Wine said Beringer remains a core brand within its portfolio and it would not dispose the brand as part of this deal or any future transaction.

The company's shares jumped earlier this week after a report that it had been approached for a takeover by French spirits maker Pernod Ricard PERP.PA or a U.S. private equity firm. = 1.2955 Australian dollars)

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