Treasury Wine CEO confident in growth despite global recession risk

Penfolds maker Treasury Wine Estates is confident its brand strength will help the company hit performance targets for the 2023 financial year despite rising costs and a darkening global economic outlook.

Treasury Wine chief Tim Ford said demand for both premium and luxury wine had been consistent across all the company’s key markets, with trading conditions, earnings as well as inflation in line with expectations for the first quarter of the fiscal year.

This is despite warnings of a rising risk that the US heading towards recession and a sharp economic slowdown in China, with Treasury Jim Chalmers warning of a “stark deterioration” in the global growth outlook.

“We will continue to closely monitor the consumer and trading environment, confident that the strengths of our brand portfolios, the historic resilience of the category through past economic downturns and the flexibility of our business model leaves us well-placed to react to any changes that may arise,” Ford said in a speech he will give at the company’s annual general meeting in Melbourne on Tuesday.

In the 2023 financial year, the global wine company will be working towards long-term growth goals, with strategic priorities to “remain largely unchanged”.

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Ford outlined a continued focus on technology and innovation investment as well as any merger or acquisition opportunity that would build the company’s stable of brands.

With first quarter earnings in line with expectations, Treasury Wine expects to deliver “strong growth” for the full year.

“After two years of significant change, we enter financial year 2023 confident that we are absolutely on the right path towards the delivery of the 2025 strategy and our ambition to be the world’s most admired premium wine company.”