Australian Wine Company Forced To Destroy $145 million in US Product
Maybe wine is not always a thing that can get better with age.
Australian winemaker Treasury Wine Estates dumped gallons of aged US inventory to the tune of a $145 million hit. Treasury Wine Estates said it had overestimated U.S. demand in the past year, and it discounted or destroyed older wines that had passed their use-by date, according the Wall Street Journal.
"TWE's leadership team in the Americas believes old and obsolete product is limiting the country's growth ambitions," Chief Executive David Dearie in a statement, according to Reuters.
Trades in the company were down eight percent directly after the news and then fell 12 percent, according to The Wall Street Journal. The news also means that the company is set to export less product to the US in the coming months.
But, Dearie said that he is confident that the decision was best for the company and will make them stronger.
"As such, decisive action must be taken to address these barriers to growth, and I am confident that the steps we are taking support our long term growth agenda," he told Reuters.