Treasury Wine Says Recovery of Luxury Brands Slower Than Expected

By Stuart Condie

SYDNEY--Treasury Wine Estates Ltd. said sales of its luxury brands have been slightly lower than expected so far in its 2022 fiscal year amid Covid-19 lockdowns in Australia and the gradual reopening of the U.S. economy.

The Australian wine producer and marketer on Friday said the recovery of key luxury sales channels from the Covid-hit prior fiscal year was slower than anticipated. The slower pace was particularly evident in the U.S.

Execution plans in Australia outside of major retailers had been disrupted by lockdowns in Sydney and Melbourne, which shuttered pubs, bars and restaurants for months, according to Treasury Wine.

"While the momentum in these channels is slightly behind, we remain confident that as vaccination programs gain momentum and restrictions ease across these key premium and luxury wine sales channels that we are well-placed to execute our plans to deliver growth," Chief Executive Tim Ford said in a speech to be delivered at the company's annual general meeting.

Treasury Wine was experiencing reduced vessel availability and shipping delays due to global logistics issues, he said, and the problems are expected to continue.

Write to Stuart Condie at [email protected]