Our 2025 Wine Supplier of the Year: Treasury Wine Estates
The global wine industry currently faces a mix of significant challenges and opportunities, leading to a complex and somewhat difficult economic climate. While the industry is not in complete freefall, it is grappling with several headwinds that have led to a decline in overall wine consumption in many key markets.
SipSource data shares this concern, stating earlier in 2025 that the wine category continues to struggle, with persistent volume and revenue declines raising concerns about the category’s long-term trajectory.
Despite this dispiriting outlook, certain wine companies and vineyards have found ways to thrive, offering consumers unique experiences and flavors to keep them interested in wine.
Treasury Wine Estates, for example, has captured palates across the country through some of its wine brands. With the rising trend in low- or no-alcohol beverages, lower-ABV Matua Lighter has skyrocketed in popularity, winning a Rising Star award from the Beverage Information Group’s 2025 Growth Brands Awards.
Similarly, in 2023, Matua Lighter also won a Rising Star award, showcasing the brand’s choice of wine for consumers across the country.
All these awards have led to Treasury Wine Estates earning the title of Beverage Information Group’s 2025 Wine Supplier of the Year.
Available in over 70 countries, Treasury Wine Estates is one of the world’s largest wine companies, and has undergone a significant strategic transformation over the past few years, moving away from a broad portfolio to a more focused, luxury-led business model.
“Treasury Wine Estates’ focus on premiumization, luxury offerings and engaging the evolving consumer positioned us for success,” explains Neb Lukic, president, sales and marketing, Treasury Americas. “At Treasury Americas, we completed our transition to a luxury-focused, estate-led portfolio this year, reinforcing our position as the number-one luxury wine supplier in the U.S. Premium and ultra-premium tiers have remained resilient, supporting strong performance across our luxury brands. DAOU Discovery is the top cabernet sauvignon in the U.S. priced above $20, and Frank Family Vineyards is the number-two super-luxury chardonnay.”
The Premiumization Strategy
Treasury Wine Estates’ growth has been largely driven by a clear strategy of premiumization, focusing on higher-priced, luxury wines. TipRanks data explains that this has been a key factor in their financial performance, as these segments are more resilient to the economic headwinds impacting the rest of the market.
Treasury Wine Estates’ luxury portfolio, which includes flagship brand Penfolds, has been the supplier’s primary engine of growth. The luxury segment has helped so much that the company reported a strong performance in the first half of 2025, according to TipRanks data.
“Key financial metrics showed significant growth, with earnings before interest and taxes (EBITS) increasing by 35.1% to $391.4 million, and net sales revenue (NSR) for its luxury portfolio rising by 52%,” the data states. “This luxury segment now constitutes approximately 56% of the total group NSR.”
Treasury Wine Estates also highlighted an 11% growth in DAOU Vineyards’ NSR within Treasury Americas, and announced an upgrade in cost synergies from the acquisition to a total run rate of $35 million, up from the previous guidance of $20 million-plus.
Acquisitions, Expansion and Insights
Another part of Treasury Wine Estates’ growth strategy is divesting its lower-margin, commercial wine brands, according to Meininger’s International. The company announced plans to sell off brands like Wolf Blass and Blossom Hill, which were once staples of its portfolio but are struggling with declining consumer demand. This move allows the supplier to concentrate its resources on more-profitable, high-end wines.
In 2023, Treasury Wine Estates made a significant move by acquiring the fast-growing luxury wine brand DAOU Vineyards in California. This acquisition was a clear statement of intent, cementing the supplier’s focus on the U.S. luxury market and providing a strong, new-world presence alongside its existing brands like Beringer Vineyards and Frank Family Vineyards.
Treasury Wine Estates has also made strategic investments in China, according to Vino Joy News. Following the lifting of punitive tariffs on Australian wines, the supplier has re-established its presence and has even acquired a controlling stake in a Chinese winery, Stone & Moon, to support the local production of its Penfolds brands.
Expanding the No- and Low-Alcohol SegmentCapitalizing on the lower ABV Matua Lighter, in June of this year, Treasury Wine Estates announced the opening of a new $15-million, in-house facility that’s dedicated to “low and no” alcohol wine production in the Barossa Valley.
More than two years in the making, the new facility features state-of-the-art dealcoholization technology, complemented by a world-first patent pending processes for treating the aromatic component of wine that locks in flavor, according to the supplier.
The facility produces low- and no-alcohol wines for iconic brands in Treasury Wine Estates’ global portfolio, including Squealing Pig and Pepperjack, which will complement other low- and no-alcohol offerings in the Matua, 19 Crimes, Lindeman’s and Wolf Blass brands.
Joining these established global brands is the new-to-market Sorbet, which blends traditional varietals like prosecco, rosé, sauvignon blanc and shiraz with fruit and berry flavors such as passionfruit, mango and lemon, and a lower ABV of 8%. Sorbet will be available in October 2025 in partnership with Endeavour Group, according to the supplier.
While Treasury Wine Estates’ luxury and low-alcohol-led strategy has yielded positive financial results, there are also some mixed signals. The company has openly acknowledged the “softness in consumer demand at lower price points,” which has led to a decline in its premium and commercial portfolios. This decline underscores the necessity of its strategic shift towards luxury wines.
Treasury Wine Estates has not simply grown over the past few years; it has strategically transformed. By divesting from struggling commercial brands and aggressively investing in premium and luxury labels through acquisitions and market expansion, the supplier has successfully positioned itself to navigate the challenges of the modern wine industry and capitalize on the consumer trend of “drinking less but better.”
This is particuarly relevant with younger consumers.
“Our consumer insights team gathers and analyzes insights, which we use to develop effective strategies and tactics that resonate with each consumer group. For Gen Z and Millennials, we’ve observed two key themes: a desire for authenticity and premium quality — and we build to those needs,” says Lukic.
“We prioritize digital storytelling, DTC and e-commerce, and disciplined innovation that brings estate character to new formats and occasions,” he adds. “Beaulieu Vineyard’s ‘BV Was There’ campaign, for example, blended a century of heritage with contemporary culture — vinyl, music and classic bar moments — to meet Millennials where they are, while reinforcing BV’s luxury credentials.”
Meeting consumers where they are, and matching their passions and values, has never been more important.
“While all our estate-led brands engage distinct audiences, DAOU and Frank Family Vineyards led through culturally relevant, purpose-driven partnerships that translate storytelling into experiences,” Lukic says. “In April, we launched ‘DAOU on the Green’, an exclusive partnership with LIV Golf that takes the vineyard experience to the course — meeting consumers in an unexpected setting and deepening loyalty.”
Elsewhere, “Frank Family continues to turn passion into impact through Frank for a Cause,” he adds. “As a Certified Cleanup Partner with 4ocean, the winery is helping remove 50,000 pounds of plastic and trash from oceans, rivers, and coastlines — connecting consumers to a mission they value.”
What’s next?
Looking ahead, the company plans on doubling down on what differentiates Treasury in luxury: immersive experiences, culturally relevant partnerships and insights-led innovation, all underpinned by sustainability.
“At Beaulieu Vineyard, a comprehensive estate renovation is underway to honor 125 years of heritage and elevate hospitality,” Lukic says. “Set for completion in spring 2026, the project restores the original 1880s stone structures and adds an open-air tasting courtyard, a club lounge, and a wine library — built with repurposed and sustainable materials, solar power, EV parking and an all-electric kitchen.”
“We’ll continue to meet consumers where they are through best-in-class experiential programs,” he adds. “DAOU’s partnership with LIV Golf is building awareness and loyalty, and we’ll extend that playbook as DAOU serves as Official Wine and Global Supplier for the Laver Cup in San Francisco in September — activating at scale with our distributor partners to deliver flawless retail and on-premise execution.” “Etude anchors our sustainability agenda,” he continues, “preserving two-thirds of Grace Benoist Ranch as wetlands and woodlands, cultivating native, water-wise habitat with the Xerces Society and farming regeneratively with precision irrigation and recycled water. Across Treasury Americas, all wineries have run on 100% renewable electricity since 2023, and Treasury Americas received the 2023 California Green Medal Award — with Etude as a blueprint.”
Krystina Skibo is the Trade Managing Editor at Beverage Dynamics. Reach her at kskibo@epgacceleration.com. Read her recent piece, Liquor Stores Make Room for Cannabis and CBD Beverages.
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