en.Wedoany.com Reported - On August 10, Australia's Treasury Wine Estates announced an accelerated adjustment to its U.S. wine supply chain, reducing winemaking output in the North Coast region of the U.S. starting from the 2026 vintage, cutting annual grape purchases by fallowing some owned and leased vineyards, while addressing excess capacity and elevated inventory levels. The company expects to recognize significant item charges of A$558.4 million, approximately US$394.4 million after tax, in fiscal 2026, with the charges primarily comprising non-cash write-downs.
The charges include A$458.6 million in supply chain adjustment costs, comprising A$229.9 million in write-downs of fixed assets and right-of-use assets, A$137 million in write-downs of assets intended for disposal, A$72.8 million in inventory write-downs, and A$18.9 million in write-downs of capitalized costs for the 2026 vintage; an additional A$99.8 million relates to brand impairment, primarily involving Daos, Frank Family Vineyards, and Beaulieu Vineyard.
Regarding inventory disposal, Treasury Wine Estates plans to release a portion of inventory, primarily bulk wine, into the bulk wine market for sale, or reclassify it internally within the group. The adjustment stems from the company's strategic and operational review of its Americas business launched in June, when U.S. market demand weakened, resulting in idle capacity across vineyards, wineries, and packaging operations, as well as elevated wine inventory accumulated in recent years. The Americas business review is still ongoing, and the company has engaged advisors to evaluate its brand portfolio, operating model, and asset disposal options.
Treasury Wine Estates also expects EBIT before significant items of A$492.3 million for fiscal 2026, above its previous guidance range of A$480 million to A$490 million; for fiscal 2027, it expects this metric to be at least flat year-on-year. The above figures are unaudited, and the company is scheduled to release its official fiscal 2026 results on August 13.
