TWE treasury wine estates limited

Brand over-stretch

  1. 6,062 Posts.
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    I am not now a holder, having sold at ~$17 on gross over-valuation.

    I cannot believe TWE are willing to risk a global top three wine brand merely to sell French wine into China.  

    https://www.copyright link/business/agriculture/penfolds-owner-treasury-wine-lifts-dividend-by-20pc-on-robust-china-20190213-h1b838


    It can lever its good standing and shelf space there without co-branding the French stuff as Penfolds.  This is lazy, opportunistic marketing certain to rebound against TWE.

    Just create a quality French label! It crows about creating 19 Crimes from scratch (capital-lite), it can do the same with a French appellation.   The risk exceeds the reward.

    Ash


 
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Last
$7.64
Change
-0.010(0.13%)
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1 68 $7.63
 

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