The Penfolds brand is the flagship for Treasury, and its robust growth in the China market has been one of the main drivers of the strong profit growth generated by Treasury over the past four years, during which its share price has risen from $4 to above $18. But younger brands such as 19 Crimes in the US and Squealing Pig are filling niches as the group eyes younger drinkers.
Squealing Pig is a New Zealand South Island brand established in 2011. The brand also sells under different wine varieties including sauvignon blanc and pinot gris, but the rosè is the standout performer.
The rosè category has doubled in size in the past two years and is now estimated to be worth $82 million in Australia at a retail level, which doesn't include wines sold in restaurants and bars. Treasury Wines deputy chief marketing officer Angus Lilley said on Thursday the company was already in talks with big retailers and distributors offshore for a likely launch into the UK and United States initially in early calendar 2019.
TWE Price at posting:
$18.10 Sentiment: Buy Disclosure: Not Held
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