Australia’s Treasury Wine Rises as Billionaire Goudet Buys Stake

(Bloomberg) — Shares of Treasury Wine Estates Ltd. rose nearly 7% in Sydney, their biggest gain since September 2024, after European billionaire Olivier Goudet emerged as a shareholder and offered rare support for the troubled winemaker.

Goudet acquired a 5% stake in the owner of Penfolds through his investment vehicle Platin SARL, according to a stock exchange filing on Wednesday. The market value of the Australian company is approximately 4.3 billion Australian dollars (2.8 billion US dollars). Treasury shares were up 6% at A$5.33 as of 1.40pm Sydney time.

The investment comes after Treasury stocks fell to their lowest level in more than a decade earlier this month; as the company struggles with weakening demand in key markets, including the United States and China. The wine merchant canceled a A$200 million share buyback and said it was reviewing planned capital investments.

The company announced asset sales last week and announced cost cuts of AU$100 million annually over the next two to three years under new Chief Executive Sam Fischer.

Treasury warned of weakness in the US and China, compounded by a distributor shift in California and Beijing’s crackdown on drunken government banquets. It also announced a write-down of around A$690 million in value for its US business, underlining the challenges the winemaker faces even when a high-profile investor steps in.

Goudet is the co-founder of private investment firm JAB Holdings BV, which controls or holds shares in global consumer brands such as Dr Pepper, Krispy Kreme and Panera Brands. He stepped down as CEO of JAB after 12 years and became the firm’s senior investment advisor early last year.

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