However, they have fallen 13.7 per cent since the start of the year.SAO PAULO, July 4 (Reuters) - Chinese automaker BYD (002594.SZ) on Tuesday said it will invest 3 billion reais ($620.17 million) in a new industrial complex in northeastern Brazil, as it aims to boost local production to offer more competitive prices. Treasury Wine shares rose on Wednesday morning, and were trading at $11.30. “A number of factors contribute to our shifting vineyard footprint including changing consumer trends and wine preferences as well environmental changes such as higher temperatures and reduced access to water.” “We continually review our global vineyard assets to ensure they’re in the best possible places to grow our premium and luxury portfolio,” said Mr Petty, adding that the company had acquired the Beenak vineyard in the Yarra Valley and Château Lanessan in France last year. Treasury Wine will divest its vineyards in Lake Cullulleraine, in Victoria’s northwest, and Yankabilly, in southwest NSW. The brands produced at Karadoc will instead be made externally at Zilzie Wines and Qualia, as well as at Treasury Wine’s Barossa site. Treasury Wine chief executive Tim Ford has warned that sales will be down. At the time, Treasury Wine said cost-cutting at its lower-cost wines business, which includes Squealing Pig, Pepperjack, Wynns and Seppelt, would accelerate with overall sales across the group to be down between 2 and 3 per cent in the 12 months to June 30. In May, Treasury Wine chief executive Tim Ford said the 19 Crimes brand was underperforming as US consumers cut back on wine. It also produces the 19 Crimes label, which Treasury Wine sells in the United States in partnership with Snoop Dogg and Martha Stewart.
Karadoc – which opened in 1973 – will close next year with 60 staff to lose their jobs.
Treasury Wine chief supply officer Kerrin Petty said closing the Karadoc site was “a last resort after we’ve looked at all other possible options”. On Wednesday, the company said it would focus on growing its luxury and premium wine portfolios and reduce its exposure to cheaper wine. In 2015, Treasury Wine closed Karadoc’s packaging and warehousing operations, but kept the winery operating, focused entirely on lower-end commercial production for brands such as Wolf Blass and Yellowglen. It has felt the impact of cost-cutting previously. Wine production will be moved in part to Treasury Wine’s Barossa site.
Karadoc, about 25 kilometres south of Mildura, was one of four major production facilities operated by Southcorp, the producer of Penfolds, which was acquired by Foster’s Group in 2005 and later spun out as Treasury Wine. Treasury Wine Estates will shutter its Victorian commercial winegrowing operation, Karadoc, after five decades in operation, as a decline in consumption and rising costs weigh on the business.
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