Major Asian Investment Analysts High On “Mismanaged” Treasury Wine US

Beringer and related U.S. assets represent huge value and potential despite having been terribly mismanaged by Treasury Wine Estates according to a major Asian brokerage and investment group.

The report did not directly address the issue of spinning off the U.S. properties. However, its detailed data — including charts individually inventorying and valuing all of the U.S. vineyards — make a strong case that the U.S. assets may be more valuable as a separate and properly managed operation than they have been under current management.

According to the report:

“The US wine market has dominated concerns over Treasury Wine since its July restructuring.

“We toured the US west coast to answer three critical questions about its business there: What are the assets worth? What is the opportunity? And what needs to change?

“Our array of industry-expert meetings has firmed up our view that there is genuine value. The assets are high quality, but mismanagement has hurt performance. We maintain our BUY rating, and upgrade our target 20 cents to A$6.50.”

Significantly, the report issued no Chicken Little, OMG! wine shortage Jeremiads.

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Also In This Article:

The full text of the following sections is available to premium subscribers of Wine Executive News.

• Most of 36-Page Report Devoted To US/Beringer Operations

• US Source Of Frustration & Value Destruction, Still 45% of TWE Book Value

• Report Remarkable For Depth Of Original Research

• US: Asset Heavy, Small Earnings

• Branding Catastrophes

• Charting The Vineyards: One By One

• Adding Up Total US Vineyard Value

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Previous Original Wine Industry Insight Coverage of Treasury Wine Estates

• BofA/Merrill Lynch’s Love Affair With Treasury Wine Australia
• BofA Throws Beringer Under Bus, Urges Treasury To Divest ASAP
• Wine “Shortage” Is Bull: Here’s Why
• The Coup d’Etat At Treasury Wine
• Treasury Wine Is Shopping Beringer & Everybody Wants It
• No Winegrape Shortage: Citi Report Based On Bad, Incomplete Data