Sab Miller and Treasury Wine Estates

Executive summary:

This report examines outlines the Australian and New Zealand division of Treasury Wine Estates and the wine industry as a whole. The research draws attention to the macro environment in which Treasury Wine Estates operates in including the legal age of drinking, the 29% tax that is applied to all wine sales and the effect of the recent drought and floods in the country. Further investigations reveal that customers have learnt to respect and become loyal customers to many of the Treasury Wine Estates brands, giving the company an advantage over their competitors. The report analyses the companies current strategic positioning, and that post the economic down turn, it is advisable that they re-examine their positioning and look into becoming more aggressive and acquiring new wineries once again.

Background information:

Johnson, G., Whittington, R., & Scholes, K. (2011) suggest that a companies “strategic position is concerned with the impact on strategy of the external environment, the organization’s strategic capability (resources and competences), the organization’s goals…” In this assignment I intend to look at the strategic position of Treasury Wine Estates through a number of different analysis models and draw conclusions about the firms current strategy and where I believe it should go in the future.

Treasury Wine Estates is the current name of the wine production branch of an alcoholic beverage producer first established with the opening of the Lindermans Vineyard in 1843 in the Hunter Valley, New South Wales. They have now grown to 4000 employees including winemakers and sales people around the world, and have acquired 54 brands from Australia, New Zealand, California, Italy, Argentina, Chile and South Africa. Treasury Wine Estates annual revenue of over AU$2 billion combined with total sales of 35 million cases of wine is divided into 4 regional areas including Australia and New Zealand, the Americas, Europe and the Middle East.

This company has had an interesting history, from its fledging years in mid 19th century where it started out; it has been through many business strategies. The establishment of the various vineyards that now fall under the brand of Treasury Wine Estates started in 1843, and its primary