Australian wine producer Treasury Wine Estates is to sell off its low-end commercial wines division, which includes brands such as Blossom Hill and Wolf Blass.
The wine giant is aiming to focus on its premium brands, including 19 Crimes, Wynns, Penfolds and Squealing Pig, as consumers move to more upmarket tastes, the Financial Times reported.
Treasury will put four brands up for sale in total, with Linderman’s and Yellowglen joining Wolf Blass and Blossom Hill as they contribute less than 5% of the group’s profit.
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Over the past five years, Treasury has seen a switch in consumer behaviours, with shoppers willing to spend more per bottle despite drinking less wine.
It is one of many drinks producer opting to sell off brands in recent months.
Diageo agreed to sell Pampero rum to Italian spirits company Gruppo Montenegro last month and just weeks prior, the Guinness-owner also confirmed the sale of fruit-flavoured liqueur brand Safari to Portuguese beverage-alcohol company Casa Redondo.
Meanwhile, Pernod Ricard has confirmed it will sell the bulk of its wine units to Australia’s Accolade Wines, as the alcohol giant aims to focus on its spirit brands.
