Treasury Wines lowers on 'tough' US wine market conditions
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The news: Shares in Treasury Wines fell in morning trade on the ASX after US drinks group Constellation Brands flagged tough conditions in the US wine market.
The numbers: Treasury Wines shares were down 3.7% to $11.61 by 11:40am AEST, making it one of the worst 10 performers among ASX 200 stocks.
The context: E&P's retail analyst Phillip Kimber noted that Constellation's wine and spirits business "continues to face challenges and has struggled over recent years".
He said that this is consistent with recent commentary by Treasury Wines around the current market environment for commercial wines and wines towards the lower end of the premium category.
E&P continues to expect luxury wines to be the main driver of Treasury Wines Americas earnings growth in FY25. Kimber also noted that Treasury Wines is much more advanced than Constellation in the 'premiumisation' of its business, and much more skewed to luxury wine than Constellation.
The source: E&P Capital research
