Treasury Wine Estates (TWE) has a renewed focus on accelerating its Americas business, with plans to restructure its US supply chain.

TWE plans to execute a strategic and operational review of its Americas business, which is focused on improving shareholder returns.

According to the business, the challenges in the US were due to a softened demand outlook and there was excess supply chain capacity.

Moving forward, TWE plans to reduce North Coast vintage make sizes, including closure of vineyards to reduce annual grape intake, along with associated asset impairments.

The company expects the overhaul to cost an additional £292m post-tax charge in its full-year results.

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TWE plans to sell some of the bulk wine at lower-market prices alongside the vineyard footprint reduction and transformation of winery and packaging facilities to improve the Americas region profitability over the medium term.

TWE’s CEO Sam Fischer said: “As we announced in June, we are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market.

“Both our Ascent transformation programme and strategic review of potential options for the future of our US business are progressing well.

“The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds, DAOU and Frank Family Vineyards, and we expect to report F26 EBITS ahead of the guidance we shared in June.”

The review is currently ongoing, and the business has appointed advisors to support the review of all available options across the Americas brand portfolio.