Penfolds owner faces criticism for doubling down on US market

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 42 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 41%
  • Publisher: 90%

Business Nouvelles

Penfolds,US Market,Expansion

Despite facing criticism from analysts, the Penfolds owner is moving forward with its plans to expand in the US market. The deal will be funded through a capital raising and debt, and CEO Tim Ford defended the decision, stating that Penfolds is a valuable business that deserves investment.

has the backing of shareholders despite drawing heat from analysts worried the Penfolds owner is “doubling down” on the US market.

“When you get a brand that fits within your own portfolio, you have to press ahead even if the timing might not be exactly what you’re after.” “I just don’t get why you need to keep doubling down on the US,” said Bank of America analyst David Errington. “Why wouldn’t you just buy back your own stock and leverage up Penfolds?”Ron Sargeant of Touchstone Asset Management: “So much of the problems in the US are caused by Australian-sourced, low-value product. This is the polar opposite of that.”“There’s no reason why we can’t do both. Penfolds clearly is a beautiful business, and we give it what it needs to continue to grow,” he said.

Mr Sargeant added the premium Daou brands separated it from Treasury Wine’s cheaper offerings, such as the 19 Crimes Brand, which have struggled to perform in the past year.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 2. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Car hire company refuses to refund excess despite third party paymentA customer rented a car and had to pay for repairs due to a third party's fault. The car hire company has been slow to refund the excess amount, even though the third party has already paid for damages. The customer seeks advice on the next steps to take.
La source: GuardianAus - 🏆 1. / 98 Lire la suite »