French wine delivers "phenomenal profit" for TWE

Treasury Wine Estates CEO Michael Clarke has revealed the new Maison de Grand Esprit range has been a colossal success for the company.

During a conference call for TWE's annual 2018 financial results - which saw reported net profit after tax rise 34% to $360.3million - Clarke used words including "fabulous", "phenomenal", "fantastic" and "amazing" to describe the range's success. 

The French brand portfolio's volume growth was up 296%.

"Maison de Grand Esprit has delivered phenomenal profit," he said. "The return on capital investment has been amazing because there's no infrastructure for the brand.

"The only problem is that we can't get our hands on enough wine."

Maison de Grand Esprit doesn't have a physical winery in France. Instead, winemaker Sebastien Long sources grapes from quality-minded growers in regions across the country, including Bordeaux, Burgundy, the Rhône, and Provence.

The range was initially launched in Asia, before debuting in Australia. It arrived in the United States in June. 

Maison de Grand Esprit features three separate tiers, each hitting a different price point. At the entry-level is L’Être Magique, which includes red wines from Bordeaux and Burgundy (both $US25), a Crémant de Bourgogne ($US25), and a rosé from Provence ($US17).

La Mystèriale (all $45) is more terroir-driven, and consists of a Lussac Saint-Émilion Bordeaux, Santenay Premier Cru Burgundy, and Châteauneuf-du-Pape Rhône.

Finally, the Saint-Estèphe-sourced Grand Esprit ($100) serves as the brand’s highest-end wine.

“With the first tier, we’re showing consumers what they can expect in a wine from an overall region,” Long said. “Then, as they progress through the brand, we illustrate how smaller lots, with smaller yields and more concentrated fruit, deliver even greater wines.”

The release of Maison de Grand Esprit coincides with a French wine boom in the US, with exports up 14% last year to 12.5 million cases, while value registered an 18.4% gain to €1.13 billion ($1.39billion) in 2017.

New Italian range on the way

Following the success of Maison de Grand Esprit, TWE announced today that it would release an Italian range of wines in January 2019.

Included within the range will be varietals ranging from chianti to prosecco.

Michelle Terry, Chief Marketing Officer at TWE, said the range - Cavaliere D'Oro - would have a "fun, adventurous" image.

Clarke added: "We are determined to grow both the French and Italian ranges at an accelerated rate over the next few years." 

READ MORE: Treasury Wine Estates has announced its annual 2018 financial result, with reported net profit after tax up 34% to $360.3million. Click here.