A JP Morgan report showed that Treasury's US wine volumes grew 2.1%, outperforming a 1.2% growth in the broader market. It was the first volume growth had notched up since February 2010. But the lift in wine sales comes at the expense of revenue as Treausry stepped up discounting, reversing a decision to reduce promotional activity last year, which hurt its sales by significantly more than the company had anticipated. Revenue fell .7% against a 4.6% gain by the market and its average price per litre fell 2.8%, compared to 3.4% gain by the market. JP Morgan analyst Stuart Jackson said 'we remain concerned with Treasury's US sales, given the lack of underlying momentum and the rising input cost base' he said. Treasury's Australian portfolio lifted volumes by 2.7%, compared to an 11.3% drop a month earlier.
The Weekend Australian Financial Review, April 14-15, p20
TWE Price at posting:
$4.24 Sentiment: Sell Disclosure: Not Held
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