CANBERA (dpa-AFX) - Treasury Wine Estates Limited (TWE.AX) said its U.S. subsidiary has reached a settlement with Republic National Distributing Company (RNDC) related to the distributor's closure of operations in California in September 2025.
Under the agreement, Treasury Wine will repurchase Treasury Americas and Treasury Collective portfolio inventory held by RNDC in California at the original sale value, adjusted for a confidential settlement amount compensating the company for the impact of RNDC's exit from the state.
After factoring in the planned resale of the inventory to other customers starting this half, Treasury Wine expects a net cash outflow of about $65 million in the second half of fiscal 2026 tied to the settlement.
The company said it will continue working with RNDC across several other U.S. markets and supports the distributor's initiatives to strengthen its business model and capital structure, including planned market divestments to Reyes Beverage Group and new financing arrangements. Treasury Americas depletions in states serviced by RNDC rose 2.7% in the first half of fiscal 2026.
Treasury Wine added that the settlement does not change its previously announced plan to reduce distributor inventory levels outside California over about two years. The company expects first-half fiscal 2026 EBITS of around $236 million, above its prior guidance range of $225 million to $235 million.
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