Treasury Wine Estates (TWE) has announced the integration of its Global Revenue Growth function into its Treasury Premium Brands Division in a move that hopes to unlock growth opportunities for TWE’s priority premium brands. The announcement falls shortly behind revealing to the ASX that it is on track to to meet its profit predictions for the year, having met key objectives across the breadth of its portfolio including Treasury Americas. 

The Global Revenue Growth function, established last year, has already been cited as driving growth and revenue opportunities across a broad range of TWE’s portfolio. 

TWE’s CEO Tim Ford is hopeful that integrating the function into Treasury Premium Brands will help unlock significant growth. 

“When you consider our Premium portfolio, this is a unique offering with an unrivalled global footprint and brands that resonate strongly with consumers,” he said. 

“Integrating our Global Revenue Growth capabilities within Treasury Premium Brands, will enhance our ability to strengthen these brands, foster cutting-edge innovation and deepen our engagement with consumers and customer partners.”

The changes will come into effect from the beginning of July. Following this, Angus Lilley, Global Chief Revenue Growth Officer at TWE and the main figure responsible for establishing the Global Revenue Growth function, will replace Peter Nielson as the Managing Director of Treasury Premium Brands.

“We thank Peter for his significant contributions made to TWE during his time. His focused leadership has resulted in a robust portfolio of brands and strong market positions for TWE, and the TPB team to build on,” said Ford. 

Prior to his role as Global Chief Revenue Growth Officer, Angus Lilley held positions within TWE’s ranks such as Global Chief Marketing Officer and TPB’s General Manager of Sales for Australia and New Zealand. 

Reflecting on his new appointment, Lilley said, “I am delighted to have the opportunity to leverage the breadth and depth of experience from my prior roles in TWE to lead the amazing portfolio of TPB brands, working closely with the incredibly strong Treasury Premium Brands team based around the world.”

The changes could also indicate another step towards TWE’s stated intentions to have a significantly higher business focus on its premium wines priced above $30 per bottle.

“It could be anywhere between 90% to 100%,” said Ford to the AFR in April. 

Currently, about 75% of company profits are attributed to Penfolds and Treasury Americas. The move currently under consideration would further increase this focus, and is reportedly being motivated by trends in the global wine market moving away from sub $15 price points. 

“That’s where the consumer is going, that’s where the market is going,” said Ford. 

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More information about the ongoing discussions about TWE either selling or de-merging its less expensive wine brands can be read in this Drinks Trade article. 

To read a recent interview Drinks Trade conducted with Penfolds’ Group Winemaker Stephanie Dutton, click here.

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