Treasury Wine Estates Limited (ASX: TWE) has announced the impending release of 6.6 million shares from voluntary escrow. The Company confirmed on 08 December 2025 that the shares will become tradeable on 15 December 2025.
Figure 1: Treasury Wine Estates’ luxury wine portfolio
The shares were originally issued to DAOU Vineyards owners in December 2023. They formed part of the acquisition consideration for the premium Californian winery. This marks the second and final tranche of shares to exit escrow under the acquisition terms.
DAOU Acquisition Escrow Concludes with Final Share Release
Treasury Wine Estates ASX announcement showed that the Company issued these 6,575,020 shares to DAOU Vineyards, LLC and its associated entities. The release represents completion of the escrow arrangements established during the USD 1.0 billion acquisition. The transaction closed on 13 December 2023, making DAOU part of TWE’s expanding Luxury wine portfolio.
The escrow structure was designed to retain key stakeholders within the business. It provided alignment between DAOU’s founders and Treasury Wine Estates’ strategic objectives. The shares have remained locked since the acquisition completion date.
Treasury Wine Estates Delivers Strong F25 Performance Across Luxury Portfolio
Treasury Wine Estates recently reported its FY25 annual results on 13 August 2025. The Company delivered net sales revenue of AUD 2.9 billion, up 7.2% from the prior year. Earnings before interest, tax, material items and SGARA reached AUD 770.3 million, representing 17.0% growth.
The Penfolds division achieved earnings of AUD 477.0 million with a 44.4% margin. Treasury Americas recorded earnings of AUD 308.6 million, up 31.9% on a constant currency basis. DAOU contributed AUD 359.8 million in net sales revenue during F25.
Figure 2: Treasury Wine Estates FY25 financial performance summary
Luxury wines now represent 55% of Treasury Wine Estates’ global revenue. This marks a 6.3 percentage point increase from F24. The Company’s strategy focuses on premium and luxury positioning across key markets.
DAOU Strengthens Position as Leading US Luxury Wine Brand
DAOU has established itself as the number one Luxury wine brand in the United States. The brand achieved 8.2% net sales revenue growth in F25. Distribution expanded significantly across key states, including New York, Massachusetts and New Jersey.
Treasury Wine Estates realised USD 12 million in production and overhead synergies during F25. The Company expects synergies to reach USD 30 million in F26. Total synergies from the DAOU acquisition now total approximately USD 35 million.
Figure 3: DAOU distribution expansion across the United States
Category weighted distribution for DAOU reached 76.6, up 4.1 percentage points since acquisition. This represents the highest increase among the top 20 US Luxury wine brands. DAOU Discovery became the number one Luxury Cabernet in America.
The brand’s value growth exceeded the US Luxury wine market by three times. Performance remained strong despite softer category trends in the second half of F25. Management maintains confidence in DAOU’s medium-term growth trajectory.
Market Context and Industry Outlook
The global wine industry experienced varied conditions throughout F25. U.S. luxury wine consumption showed resilience despite broader category challenges. Treasury Wine Estates benefited from premiumisation trends across multiple markets.
China’s Luxury wine segment grew 5.4% in offline retail and 47.5% through e-commerce channels. Penfolds restored its leadership position with 7.3% market share in offline retail. The brand achieveda 13.3% share on Chinese e-commerce platforms.
Australian wine exports to China recovered following tariff removals in March 2024. Treasury Wine Estates successfully re-established distribution for its Australian country-of-origin portfolio. The Company now operates through approximately 12,000 outlets across liquor, retail and on-premise channels in China.
Industry forecasts suggest continued growth in premium wine segments globally. Consumer preferences continue shifting toward higher-quality, established brands. Treasury Wine Estates remains well-positioned to capitalise on these structural trends.
Share Price Performance
Treasury Wine Estates shares currently trade around AUD 5.705 per share. The Company’s market capitalisation stands at approximately AUD 4.59 billion. The stock’s 52-week range spans AUD 5.450 to AUD 12.020 per share.
Shares reached their 52-week high in late 2024 following strong operational updates. The stock has faced pressure alongside broader market volatility in 2025. Treasury Wine Estates announced an on-market share buyback of up to AUD 200 million in August 2025.
Figure 4: One-year share price performance of Treasury Wine Estates (ASX: TWE)
Management Commentary on Share Release
The Company Secretary authorised the escrow release announcement under ASX Listing Rule 15.5. Treasury Wine Estates confirmed all regulatory requirements have been satisfied. The share release proceeds according to the original acquisition agreement terms.
DAOU’s founders remain committed to the brand’s growth within Treasury Wine Estates. Integration has progressed successfully since the December 2023 acquisition. The business continues operating as a key part of the Treasury Americas division.
Synergy realisation exceeded initial expectations during F25. Management increased the total synergy target to USD 35 million in February 2025. Distribution of synergy benefits will split approximately 60% to Treasury Americas and 40% to Treasury Collective from F26.
FAQs
Q1: When will the Treasury Wine Estates shares be released from escrow?
A: The 6,575,020 shares will be released from voluntary escrow on Monday, 15 December 2025. This represents the second and final tranche under the DAOU acquisition terms.
Q2: How many shares were issued for the DAOU acquisition?
A: Treasury Wine Estates issued shares to DAOU Vineyards owners as part of the US$1.0 billion acquisition consideration. The Company structured the payment with two escrow tranches released over two years.
Q3: What is Treasury Wine Estates’ current market capitalisation?
A: Treasury Wine Estates has a market capitalisation of approximately AUD 4.59 billion. The Company’s shares currently trade around AUD 5.705 per share.
Q4: How has DAOU performed since the acquisition?
A: DAOU achieved 8.2% net sales revenue growth in F25 and became the number one Luxury wine brand in the United States. The brand contributed AUD 359.8 million in revenue during the financial year.
