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Complex History Behind Treasury's Turnaround
by Paul Franson | 03.18.2016
 

Treasury Wine Estates traces its roots back to the establishment of Penfolds in Adelaide, South Australia, in the mid-1840s, and the founding of Beringer Vineyards in the Napa Valley in 1876.

Penfolds was eventually acquired by Southcorp, and over time, Beringer acquired other wineries, too, including St. Clement, Stags’ Leap Winery and Etude in Napa Valley and Chateau St. Jean and Chateau Souverain in Sonoma County and Meridian in Paso Robles.

Foster's Brewing began to diversify starting in the mid 1990s by acquiring wineries, first in its home of Australia. It built the division into one of the world's largest wine makers and in 2005, it acquired the Australian wine-making group Southcorp, adding Penfolds, Lindemans and Rosemount. It also bought Beringer Blass, then the seventh largest producer of wine in the United States.

Treasury ended up with the Penfolds, Wolf Blass, Lindeman's and Rosemount Estate labels in Australia as well as many smaller brands, and Beringer Vineyards, Chateau St. Jean, Stags LeapWinery and Etude in the United States.

However, the wine division always was outshone by the vastly profitable beer business. By 2011, the company had written down the value of the wine division by half since it acquired it at the peak of the market, leaving it worth about $2.36 billion. After further difficulties in the division resulting in an additional nearly $1 billion in write downs in early 2011, Fosters split its business into separate brewing and wine companies and spun the wine division out as Treasury Wine Estates in May 2011.

The following is timeline of the major milestones of Treasury's history in Australia and the United States leading up to the acquisition of Diageo's wine business. 

1843: Establishment of the Lindeman's Vineyard in the Hunter Valley, Australia. 

1844: Penfolds Wine is established by Dr. Christopher Rawson Penfold and wife Mary on the outskirts of Adelaide. 

1862: St. Hubert's Vineyard planted in the Yarra Valley.

1876: Beringer Brothers Winery is established in Napa Valley. 

1966: A German immigrant names Wolf Blass establishes Wolf Blass winery in the Barossa Valley, Australia.

1971: Ian Home establishes Yellowglen vineyard.

1973: Matua Valley winery established by brothers Bill and Ross Spence, producing New Zealand's first Sauvignon Blanc.

1974: Chateau St Jean founded in Sonoma County.

1975: St Clement Vineyards established in Napa Valley.

1985: Penfold Wine Group purchases Allied Vinters Group that includes Wynns Coonawarra Estate, Seaview Wines, JY Tullock and Sons and Killawarra.

1991: Wolf Blass and Mildara Wines combine to create Mildara Blass.

1994: Penfolds Wine Group renamed Southcorp Limited.

1996: Foster's acquires Mildara Blass and Rothbury Estate. Southcorp acquires Coldstream Hills and Devils Lair.

2000: Foster's buys Beringer Vineyards for $1.2 billion. 

2001: Southcorp and Rosemount Estate merge to become Australia's largest wine company. Beringer and Mildara Blass to form Beringer Blass Wine Estates

2005: Foster's acquires Southcorp Limited and combines it with existing subsidiary Beringer Blass to form Foster's Wine Estates.

2010: Foster's wine business is named Treasury Wine Estates.

2011: Treasury Wine Estates becomes a stand-alone listed company following the Foster's demerger in May. 

2015: Treasury Wine Estates announces the acquisition of the majority of Diageo's wine business including Acacia, Beaulieu vineyards, Sterling and Blossom Hill.

(Editor's Note: The timeline was updated on March 21 to include Foster's acquistion of Beringer Vineyards in 2000.)
 

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Posted on 03.21.2016 - 14:54:31 PST
 
This piece cannot go unchallenged. While it is an interesting piece it seems to have been written by TWE marketing and public relations team. It glosses over the shambles that was created reverse takeover of Southcorp by Rosemount and the mess that the then new management perpetrated. It ignores the disaster Fosters acquisition and the constant erosion of shareholder value over a ten year period.
 
Warren Roberts
 
 
 
Posted on 03.21.2016 - 20:19:44 PST
 
You forgot to mention the Penfolds Wine Group acquisition of the Lindeman's Wine Group in 1990
 
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