Treasury Wine Estates outlines fresh cost cuts
Treasury Wine Estates says it plans to cut $30 million in annual costs from its supply chain by fiscal year 2020. The Penfolds maker will consolidate or divest supply chain infrastructure, consolidate underperforming vineyards, and simplify logistics, warehousing and freight arrangements, as part of the cost reduction. The company will provide write-downs for up to $44 million in fiscal 2016. These include cash cost writedowns of $14 million, and non-cash provision of between $20 to $30 million relating to production assets that are being closed or sold.