Penfolds and Wolf Blass owner Treasury Wine Estates has posted its first annual loss, amid a slump in sales in China.
Figures from its latest financial statement released this week show that in the year through to June, the company made a net loss of A$100.9m. This compares to a profit of A$47.2m for the same period the year before.
Michael Clarke, the company’s chief executive, described 2014 as ‘a challenging year’, blaming a significant slowdown in sales China, as well as an oversupply in the US.
The loss comes as the company is considering two rival offers to take over its business.
The company is also fighting a trademark battle in China for the Penfolds brand, in addition to reporting earlier this year that wine sales in China had been curtailed by government austerity measures.
According to the TWE website, the company has 11,000 hectares of vineyards, and sales of 32 million cases of wine annually.
It employs more than 3,500 winemakers, viticulturists, sales, distribution and support staff across 16 countries.
Written by Decanter staff