Treasury Wine Shares Surge on Strong China Demand

Treasury Wine Estates shares jumped more than 16% on Wednesday after the Australian winemaker reported stronger demand in China and other key markets and said it would reorganize its business into four divisions.

The stock rose about 17% to A$4.72, its highest level since Feb. 20 and its biggest one-day gain since mid-February 2021. The move came even as Australia’s benchmark ASX200 index closed 1.2% lower.

Treasury Wine said sales from distributors to retailers, known as depletions, improved across major markets in the third quarter. The company said demand for Penfolds, its flagship brand, was especially strong in China, where distributor sales rose 40% in the quarter ended in February compared with the three-month period ended January 2025. Treasury said Chinese New Year demand helped lift sales of premium reds including Bin 389 and Bin 407.

Penfolds depletions also increased 11% in Australia and New Zealand and 14% in Asia excluding China on a seasonally adjusted basis. In the Americas, Treasury said overall U.S. market depletions rose 9.1% in the March quarter, with California returning to growth.

The company said it will split its operations into four divisions: the Americas; Australia and New Zealand and Europe; Greater China; and an emerging markets unit covering the rest of Asia, the Middle East and Africa. Chief Executive Sam Fischer, who took over last October, said the change was meant to create clearer accountability and faster decision-making tied more closely to local markets.

Analysts at Citi said the new structure could also help increase sales of Treasury’s non-Penfolds wines in China. Citi raised its rating on the stock to neutral from sell, saying the company’s new debt commitments may ease near-term concerns about its balance sheet.

Treasury also reaffirmed its forecast for higher second-half operating earnings than in the first half and said it does not expect higher costs linked to the Middle East conflict to have a material effect on fiscal 2026 results. Separately, it arranged a new A$300 million debt commitment to refinance maturities due in fiscal 2027.