Page 32 - Food & Drink Business Nov-Dec 2019

AUSTRALIA’S TOP 100 FOOD & DRINK COMPANIES 2019
SPONSORED BY DATA SOURCED FROM
ABBREVIATIONS O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative
TREASURY WINE ESTATES
TWE explores new horizons
▼ Revenue down ▲ Revenue up
5
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
P
2965
06/19
2532
Michael Clarke
TREASURY Wine Estates (TWE) has regained fifth spot this year after moving to sixth in 2018. The company saw a 17.11 per cent increase in revenue, backing up from a 34 per cent increase the year before.
TWE is a public company operating in Australia,
New Zealand, Asia, the Americas and Europe. It grows and sources grapes and produces and distributes several high- profile wine brands including Penfolds, Wolf Blass and Lindemans. Growth was due to an increase in sales to Australia,
TEYS
Teys invests in growth
TEYS Australia, a Cargill Joint Venture, is 50 per cent owned by the Australian-based grain exporter Cargill Australia and
50 per cent owned by Teys Investments. Teys stepped back to sixth place this year.
It is Australia’s second largest beef processor and its core business is the production and distribution of meat products
for the domestic and export markets. Consumer brands are Certified Premium Black Angus, Grasslands Premium Beef, Riverine Beef, Woolworths, the Urban Menu for Woolworths, The
Asia and the Americas, especially with its Masstige and Luxury wines.
In a surprise announcement
on 21 October, CEO Michael
Clarke said he would retire at
the beginning of 2020 for family reasons. Clarke offloaded more than 600,000 shares in two transactions in 2019, worth around $10.6 million. In early May, Clarke sold 400,000 shares worth almost $7 million. In August, he let go of another 212,537 shares for $3.6 million. Clarke said he sold the August parcel to meet tax obligations. The share sale was approved by the board and took
place during a set trading window in which executives are allowed to sell shares.
Over the next two years, the company will spend up to $180 million expanding the Bilyara winery in the Barossa Valley, SA. In Shanghai, it plans to relocate to a larger warehouse, to allow for extra stock production to keep up with increasing demand in China.
TWE delivered more than $100 million cumulative run-rate cost of goods sold savings from its supply chain network, as part of the company’s supply chain optimisation initiative.
6
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
Pty
2703
05/19
2601
Brad Teys
32 | Food&Drink business | November-December 2019 | www.foodanddrinkbusiness.com.au
Cedric Walter range, The Four Brothers, Smokehouse Republic and 36° South.
In March, Teys announced plans to develop a $42 million low emissions energy hub at its Wagga facility using electrical and thermal energy. Chief supply chain officer Tom Maguire said: “The hub will include baseload bio-generation, solid waste digestion, solar PV, energy storage and biomass boilers to produce steam. Together these technologies will provide stable baseload power that integrates with the grid, improving energy
security, and reducing emissions”. The hub will contribute $512 million to the regional economy.
Maguire said: “Local farms will stand to increase their income by supplying farming waste to Teys to be used for energy generation.”
Teys Australia has won numerous awards for its eco- efficiency, environmental and sustainability practices. In the last two years, Teys has invested in a number of energy and water efficiency projects including the installation of a 300kW solar farm and a biogas powered cogeneration facility.