Australia’s Treasury Wine Jumps on US Dispute Settlement, Earnings Forecast Hike

The Associated Press

13:01 JST, February 10, 2026

Feb 10 (Reuters) – Australia’s Treasury Wine Estates TWE.AX said on Tuesday that it had settled a dispute with U.S. distributor Republic National Distributing Company (RNDC) over the closure of its California operations, sending its shares more than 8% higher.

Shares of the winemaker rose as much as 8.12% to A$5.590 to post their biggest intraday percentage gain since September 27, 2024, also helped by an earnings forecast hike. The benchmark ASX200 .AXJO was trading up 0.4%.

Treasury Wine raised its forecast for first‑half earnings before interest and taxes to around A$236 million ($167.35 million) from A$225 million-A$235 million previously expected, but well below the A$391.4 million reported a year earlier.

The forecast hike comes even as the Melbourne-based company faces challenges in key market China, where shifting alcohol consumption habits are slowing the depletion of its flagship Penfolds brand stock.

Under the settlement with RNDC, Treasury Wine will repurchase Treasury Americas and Treasury Collective portfolio inventory held by the company in California for its original sale value, minus a confidential settlement amount that compensates the firm for the impact of the closure.

Treasury Wine CEO Sam Fischer said RNDC’s California exit had significantly affected its first-half performance.

In June last year, the company said RNDC planned to exit its California operations, while its distribution partnership across the remaining 24 U.S. states would remain unaffected.

Following RNDC’s planned divestment of several markets to Reyes Beverage Group, RNDC distribution is expected to make up less than 20% of Treasury Americas’ net sales revenue, Treasury Wine said on Tuesday.