Wine 2013: the year so far

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Treasury changes course

Treasury Wine Estates, the world's second largest public wine company announced this summer that they would be taking a $145 Million write down to remove old stock from their inventory. Some of the stock is to be destroyed as Treasury made clear a few days ago announcing that they would be destroying or distilling some $33 million worth of white wines that are old and not worth selling. To Treasury's credit, this effort, as painful as it may be in the short term does offer a significant benefit in protecting the brand's reputation with consumers.

The silver lining here is that some of this write down reflects discounting efforts that Treasury will devote to older stocks of Australian wines. While Australia's wine reputation has not recovered from the damage done to it by various forces in the middle of the last decade, the wine themselves have recovered from the excesses that were at least partly to blame for their loss of market share. There should be some very attractive buys coming down the Treasury pike and in a way this might reintroduce consumers to Australia's wines, helping to rehabilitate Australian wine's image and set the stage for a come back over the coming years.
 

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