TWE chose not to abuse announcements and turn them into advertising. The deal was only $27.5 M, so much less than 10% of the annual profit. It is meaningless in terms of changing the profit trajectory of the company.
My view is that it is a strategic move. When the Chinese banned Australian wine, TWE replaced it with the SA wine under the same brand (Rawson's Retreat, etc). The Australian wine went to Europe (where the SA wine went). It seems to me that this was a strategic move - they can now fill their bottles in China with locally produced wine if they run into trouble.
Actually, the company marks the announcement as sensitive or not, but the ASX has the right to over rule - which it almost never does. Hence the inconsistencies.
I dumped all of my holdings on this news today (@$11.95). This was a ridiculous response by the market to an announcement that is clearly not material. I'm banking on the market coming to its senses on the importance of this and normal service resuming.
TWE Price at posting:
$11.95 Sentiment: Hold Disclosure: Not Held
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