Page 32 - Food&Drink Nov-Dec 2020

AUSTRALIA’S TOP 100 FOOD & DRINK COMPANIES 2020
SPONSORED BY DATA SOURCED FROM
ABBREVIATIONS
O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative ▼ Revenue down ▲ Revenue up
TREASURY WINE ESTATES
TWE sets new five-year plan
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P
2775
06/20
2965
Michael Clarke
6
TREASURY Wine Estates Limited is a locally owned public company, generating revenue from the growing and sourcing of grapes and the manufacture, distribution and sale of wine. The company employs approximately 3000 people, operates in Australia, New Zealand, Asia, the Americas and Europe, and is administered by its head office in Melbourne, Victoria.
Treasury Wine Estates is listed on the ASX under the code TWE.
The year got off to a rough start for the business when over-supply and staffing issues in its America business caused an unexpected profit downgrade. That triggered
a company-wide strategic review, which proposed splitting out the Penfolds business.
In March, the Bank of America valued the Penfolds business between $10-13 billion. While Penfolds only accounts for 10 per cent of the company’s volume, it does account for well over half its earnings.
Tim Ford took over from Michael Clarke as CEO in July and set out a revised five-year plan. He also slowed the Penfolds split due to COVID-19. Ford said an internal split may be the first step in a separation plan.
The company is looking to shrink its US business by half
through divestments and other cost savings, to ultimately focus on a small number of premium brands.
Growing trade tensions between Australia and China have also had an impact. In August, its shares were down 13 per cent when China’s Ministry
of Commerce announced investigations into Australian wine dumping, threatening the $1.2 billion annual export market. This was compounded with news in November the China Alcoholic Drinks Association was looking to impose retrospective tariffs
on Australian wine imports in containers two litres or less.
TEYS
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Pty
2702
05/19
2601
Brad Teys
Teys weathers pandemic and stock shortages
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. 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 Four Brothers, Smokehouse Republic and 36° South.
The company employs approximately 3890 full-time equivalent staff, operates in Australia, and is administered from its head office in Eight Mile Plains, Queensland.
32 | Food&Drink business | November-December 2020 | www.foodanddrinkbusiness.com.au