Right, what are we/you drinking now .. tonight

[Sean]

Hahndorf Hill Gru Gruner Veltliner 23 - Adelaide Hills. First place you go to for Gruner in this country. You can see they know what they are doing. Green straw colour and very aromatic. Nashi pear, grapefruit, herbs and spice. Lots of interesting stuff in this. Not just the florals and fruit, also the texture and minerality. Neat line of acidity through the palate and a slightly savoury finish. - 28/9/25

Quealy Mornington Peninsula Pinot Noir 24 - Sourced from 4 different vineyards. Wild fermented and 15 months in French oak. Ruby colour and fragrant. Cherry, strawberry, rhubarb and spice. Gentle medium-bodied feel to it with fresh acidity flowing through the palate and ripe, supple tannins. - 29/9/25

Turkey Flat Rose 25 - 100% Grenache. Tank fermented. A pale, dry style with Barossa intensity. Salmon pink colour and musky. A deep core of red fruits, but not lollyish. Cherry, raspberry, Turkish delight and dried herbs. Mouthfilling fresh acidity, just keep pouring another glass. Really notice the length on the palate. Need a second bottle of this. - 30/9/25

Quealy Campbell & Christine Pinot Noir 24 - Sourced from a warm site vineyard in Balnarring. Wild yeast and 10 months in French oak. Ruby red colour and a lighter style, but nice florals and fruit intensity. Surprised me a bit, because I was expecting a bigger Pinot. Cherry, red fruits, earth and spice with a velvety texture and soft tannins. - 1/10/25

[JamieAdelaide]

Yeah, luv a retro-Barossa Shiraz on occasion. Off to work for a month abroad, so a nice ways to leave little old Adelaide.

Heritage Rossco’s Shiraz 2017- ripe, brandied plum, coconut and a svelte carry and generous finish. Lovely after a home cooked meal of fish and chips.

[Sean]

Phaedrus Reserve Pinot Noir 23 - This comes off a one acre block. Foot treading, wild ferment and matured for 18 months in tight grained French hogsheads. Ruby colour with a darker hue. Cherry, forest fruits, earth and spice. Medium-bodied and still very fresh and primary. Oak and tannin giving it structure for ageing. Drunk enough back vintages to know this will go 10+ years easy. - 2/10/25

Stonier Reserve Chardonnay 24 - Based on their oldest Chardonnay blocks and just 220 dozen made. Wild ferment, only 19% new French oak and some of it malo. It has a light straw colour and florals. This is early days if you have this wine. A deep core of stonefruit with flourishes of citrus, salty brine and oak spice. Feels a little tannic (the phenolics) and both driving acidity and leesy influences adding nice complexity. - 4/10/25

Penfolds Bin 389 Cabernet Shiraz 23 - A 51/49 blend and 12 months in American oak hogsheads, one third new oak. Deeply coloured with dense fruit and tannin structure. Blackberry, cassis, plums and spice. Vanilla and mocha oak, this feels elemental rather than harmonious. I have been drinking this over two nights. Gets a bit smoother or maybe your palate just adjusts to it. The strong, robust tannins will definitely need time to soften up anyway. - 4/10/25

Penfolds Bin 389 Cabernet Shiraz 20 - Really should get 10 yrs on this, but I wanted to free up some space in the wine fridge. Deep purple colour. This is jumping out of the glass with fruit and flowery aromatics. Just keep pouring another glass. Dark berries, plums, cherry, fennel and herbs on a ridiculously smooth and fresh palate. Oak not intrusive at all. The tannin is still there, and feels perfectly primed for the long haul if you are cellaring this. - 5/10/25

Pizzini Sangiovese Shiraz 23 - A 60/40 blend. Tank fermented and no oak. Budget priced for that reason I guess. But it is also about the style and drinking appeal this has. Lots of bright fruit and fresh acidity. Cherry, plums and herbs. Gets a little savoury (in a nice way) with food and moderate tannin. - 8/10/25

Stonier KBS Vineyard Chardonnay 24 - This comes off the vineyard at the front of the winery planted in 1988. Wild ferment, some malo and 22% new oak. Light straw colour. Initially linear and steely, need to let it warm up in the glass. Citrus, peach, hay, salty air and spice. You really can’t miss that deep intensity of fruit. Feels a little tight with subtle phenolics and clean acidity. Guessing it will unwind slowly and evolve over time. - 10/10/25

[Chuck]

Wynns 2021 Black Label Coonawarra Cabernet Sauvignon (13.4%). First of a 6-pack and the first BL bought since the 2012 vintage. Thought it would be way too young to open but was interested in what could be done from a great vintage. Let breath in decanter for 2 hours. Fruit was perfectly ripe, not a hair out of place. Nose slightly muted but not unexpected for such a young wine. Blackberry and other black and blue fruits plus cassis, cedar and tobacco leaf. So much going on. Oak just in support. Quite approachable with fine tannins and acid. Somewhere between medium and full bodied but closer to medium. What was impressive was the balance. Everything melded together well for such a young cab. A pleasure to drink and should go a couple of decades. Will buy more.

[phillisc]

Wynns 2021 Black Label Coonawarra Cabernet Sauvignon (13.4%). First of a 6-pack and the first BL bought since the 2012 vintage. Thought it would be way too young to open but was interested in what could be done from a great vintage. Let breath in decanter for 2 hours. Fruit was perfectly ripe, not a hair out of place. Nose slightly muted but not unexpected for such a young wine. Blackberry and other black and blue fruits plus cassis, cedar and tobacco leaf. So much going on. Oak just in support. Quite approachable with fine tannins and acid. Somewhere between medium and full bodied but closer to medium. What was impressive was the balance. Everything melded together well for such a young cab. A pleasure to drink and should go a couple of decades. Will buy more.

Spot on 100%.
I went long on this, but could always get more
Cheers Craig

[VinoEd]

Wynns 2021 Black Label Coonawarra Cabernet Sauvignon (13.4%). First of a 6-pack and the first BL bought since the 2012 vintage. Thought it would be way too young to open but was interested in what could be done from a great vintage. Let breath in decanter for 2 hours. Fruit was perfectly ripe, not a hair out of place. Nose slightly muted but not unexpected for such a young wine. Blackberry and other black and blue fruits plus cassis, cedar and tobacco leaf. So much going on. Oak just in support. Quite approachable with fine tannins and acid. Somewhere between medium and full bodied but closer to medium. What was impressive was the balance. Everything melded together well for such a young cab. A pleasure to drink and should go a couple of decades. Will buy more.

Spot on 100%.
I went long on this, but could always get more
Cheers Craig

Just used a voucher to grab another 6. Hard to say now for sub $100 6er. Is 30 bottles too many?

Cheers Ed

[Chuck]

Wynns 2021 Black Label Coonawarra Cabernet Sauvignon (13.4%). First of a 6-pack and the first BL bought since the 2012 vintage. Thought it would be way too young to open but was interested in what could be done from a great vintage. Let breath in decanter for 2 hours. Fruit was perfectly ripe, not a hair out of place. Nose slightly muted but not unexpected for such a young wine. Blackberry and other black and blue fruits plus cassis, cedar and tobacco leaf. So much going on. Oak just in support. Quite approachable with fine tannins and acid. Somewhere between medium and full bodied but closer to medium. What was impressive was the balance. Everything melded together well for such a young cab. A pleasure to drink and should go a couple of decades. Will buy more.

Spot on 100%.
I went long on this, but could always get more
Cheers Craig

Just used a voucher to grab another 6. Hard to say now for sub $100 6er. Is 30 bottles too many?

Cheers Ed

There's no such thing as too much wine. Alway the mantra when last bottle has gone - Should have bought more.

Chuck

[phillisc]

Spot on 100%.
I went long on this, but could always get more
Cheers Craig

Just used a voucher to grab another 6. Hard to say now for sub $100 6er. Is 30 bottles too many?

Cheers Ed

There's no such thing as too much wine. Alway the mantra when last bottle has gone - Should have bought more.

Chuck

True, think there's 6-7 six packs.
A chain was clearing it last year at $20/bottle, then a further 10% on a six bottle buy, must have had the luck of the Irish, every time I passed another store in my travels and dropped in there was another 6 or more lonely bottles waiting for a good home
I'd like another 6 2021 JR, but price needs to fall, simply way too expensive at $175 RRP. Many other top marques are a 1/2-1/3 cheaper.
Cheers Craig

[Chuck]

Interesting articles and announcements yesterday that the shine on Treasury Wine Estates (Penfolds, Wynns etc) is no longer bright in China. Government crack down on excesses of business entertainment and younger drinkers moving to beer and spirits. Share price at 10 year low. Hopefully there will be an ocean of TWE wines available locally at cheaper prices. About time. This trend seems to be worldwide although wine drinkers are moving upmarket but drinking less. Growers probably wearing more pain too unfortunately. The wine glut in OZ is getting worse by the day. Very sad indeed. Time for a vine pull ala 1980s?

[phillisc]

Well they did do an amazing job at totally alienating the domestic market...dickheads!!

Cheers Craig

[phillisc]

Agree with all points Sean....even though it seems your post has dissappeared!

If the SP gets to $2-3 I might buy a few, as on paper its a very easy fix to turn things around, firstly by shifting the spotlight away from anything exclusively Penfolds.
I suspect there is enormous wastage and excess at multiple levels.
Secondly, a company run by stale, pale, old, white, males...what could possibly go wrong??!!
Don't know if anyone here can confirm, but do shareholders get good wine deals.

All of this parallels with a national emblem...another shambles of a business.

cheers Craig

[Sean]

Sorry about that Craig.
TWE shareholders get an invite to join cellardoor.co

OK I watched the AGM webcast today rather than attending it. I made a cup of tea and took notes.

Chairman John Mullen opening the AGM and speaking.
Two of the directors didn’t attend. No address from the CEO, because of the interim change from old to new CEO.
Luxury portfolio is 85% of earnings. EBITS margin up 2% to 26%.
Penfolds performance is a “highlight” with EBITS margin up 2% to 44%. (Hey now I know I am getting ripped off.) China was the priority allocation, also building growth in other markets.
Treasury Americas EBITS margin up 3% to 26%.
Treasury Premium Brands EBITS margin up 2% to 8%. Impacted by volume declines in Europe and AU.
This year there are 3 new directors. New CEO Sam Fischer starts this month.
Trading update and F26 outlook - Penfolds Q1 shipments in line with expectations. But depletion trends in China are currently weak. No longer believe it is “appropriate” to maintain guidance for low to mid double-digit EBITS growth in F26 and F27!
Americas is performing well outside California. Impacted by distributor transition issues. Ongoing negotiations with the distributor. Also no guidance now for F26.
Treasury Collective performance is in line with expectations.
Finished by saying the long-term business and brands should be strong however.
Followed by 3 directors speaking to introduce themselves for election to the board.
Nigel Garrard - KMPG accountant and involved in food based businesses.
Judy Liu (pre-recorded) - experience in digital and luxury goods businesses in Asia.
Mark Weldon - worked in capital markets (NY) previously and ran the NZ stock exchange. Also goods businesses and has a pinot vineyard in NZ.
Renumeration report?
There is a $4m sign-on award to the incoming CEO. Also share rights and F26 performance rights. (That should be easy if the SP is starting at a 10 year low.)
Item 6 - Increasing the number of directors from 9 to 10. Also increasing the directors fee pool by $500,000 to $3m. (They also have a wine allowance of $4,000.)
Renewing the Proportional takeover provision, which has to be done after 3 years since last approved. Relates to off-market takeover offers to buy shares. (Gee wonder why this comes up?)
Then questions from the floor to the Chairman.
Q1 from ASA - China, California, dropping the share buyback? A. Those events don’t weaken TWE as a company. Confident it will grow. Only early discussions with the distributor so far. Wine consumption has dropped 20% in China, but Penfolds is still ahead of that. There are 200,000 shipments over depletion and will work through them. Sit on hands before restarting the share buyback.
Q2 to the Chairman directly - He is also Chairman of QAN and TLS. Is this too much workload and commitment? A. No, it is a difficult time for the company. Need to see it through, especially with new management coming in. (He was irritated by the question.)
Q3 - Shares have dropped and issues globally with wine sales. Can’t just rely on China. Is that transitional? Can the buyback happen sooner rather than later? A. No greater priority than to get the shares back up. Penfolds sales going well in AU, UK and Europe. China will continue to grow.
Q4 - Union rep about packaging. Plastics burning with enviro and health concerns? A. TWE dealing with climate change and enviro issues. “Living and breathing it every day.” Packaging always a challenge, esp glass bottling. Not so much the use, but the production. Also screwcaps versus corks.
Q5 - Commercial brands, in particular Wolf Blass? Why isn’t it in the Premium portfolio? A. They are broad categories. Commercial wine in decline and it is structural. Top end and luxury still growing, low end is declining. Wolf Blass was a luxury brand, but today it is in the commercial category. Increasingly a lower return and makes sense to sell those brands, incl Wolf Blass.
Q6 - ASA doesn’t support sign-on awards, but the new CEO is receiving one. Why not performance based? A. It is recompense for losing income to take up the new role as CEO. It is a reimbursement for lost income to take the new job.
Following questions were written or online.
Q7 - Renumerations? A. Need to be competitive to attract or keep directors.
Q8 - No alcohol strategy? (That gave me a laugh, a wine company that doesn’t make wine.) A. TWE is leading the way in “great tasting” no or low alcohol wines. Refers to new facility in the Barossa. Next gen wines for key brands like Squealing Pig.
Q9 - Climate change? A. Already covered that. Looking at diversifying places to source grapes and assessing sites. Using AI for data and mapping vineyards.
Q10 - Scrapping net zero? (Was that Barnaby Joyce?) A. No.
Q11 - Why has the share price fallen 40%? A. Global trends declining. Young people not consuming wine. Also current issues already mentioned.
Q12 - Renumeration? A. F25 was actually very good.
Q13 - Continual staff parties? A. The Chairman joked he hadn’t been to any. Refers to social media strategy to celebrate their people and showcasing culture.
Q14 - Sign-on awards? A. Already answered that.
Q15 - What is forecast for the next 3 years? A. Right now not in a position to do a forecast.
Q16 - Is this just cyclical or transitional? A. Greater confidence in China. People drinking less, but better. But Commercial wine category is transitional.
Q17 - How many staff? A. 2,000 members. (Annual Report says 2,500 from memory. A slip of the tongue?) AI will change this and offer huge potential.
Q18 - Why CEO changeover extended to new CEO start? A. Not a large gap, only a month.
Q19 from Stephen Mayne - Two best board decisions addressed to the outgoing director? A. Not answered.
Q20 from Stephen Mayne to the Chairman directly - Proxy advisors? Which of the 3 big ASX companies you are on are taking up most time? A. In shareholders interest, he should stay and for as long as needed to see it through.
Q21 - Why no CFO report and why no execs speaking? A. Not their role.
Q22 - Less than 2,000 shareholders will actually vote. Will you disclose how the retail shareholders vote? A. Some companies like TLS do. Not TWE. Lot of debate about this, but allowing online voting helps.
The AGM webcast started at 10am and finished at 11.20am (with elevator music playing).

In conclusion, what I already thought was pretty much confirmed by what I heard at the AGM.
There are pressing questions that were not asked of course.
This was a wishy washy grilling of the Board, when they should be under a lot of scrutiny right now. But often an AGM goes like that.
I have owned shares in Southcorp (a long time ago) and currently hold shares in TWE.
Someone asked me earlier this year if he should buy shares in them.
He still doesn’t own any.

[SipAndANibble]

Interesting read , 40% ebitda is ridiculous, especially at the scale of TWE, they can definitely lower prices if that’s the case