Treasury Wine Estates Ltd
TWE: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$92.00 | Tsmd | Ygmzjjtmk |
Treasury Wines Facing Challenging Near-Term Conditions From China Tariffs; No-Moat Rating Remains
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Business Strategy and Outlook
Treasury Wine Estates has increasingly focused on building high-end brands in its portfolio, particularly in luxury (bottles priced above $20) and “masstige” (bottles priced from $10 to $20) wine. With this focus, the company’s revenue from higher-end wines has risen to about 71% in fiscal 2020 from 43% in early 2014, both from growth in its high-end products and purposeful reduction of low-end, or commercial, wine sales.