Treasury Wine Estates is set to add several new brands such as Blossom Hill to its stable after acquiring Diageo's wine assets in the US and UK.
In a deal worth US$600 million, ASX-listed company, Treasury Estate Wines, will acquire several brands including Beaulieu Vineyards, Sterling Vineyards, Acacia, Provenance and Hewitt.
The acquisition is subject to regulatory approvals and is expected to be completed by the close of the year.
Treasury, which was part of the Foster's Group until 2011, owns dozens of wine brands including Penfolds, Lindemans and Wolf Blass.
It is unknown yet how Treasury Wine Estates will bring the former Diageo-owned brands to market or if there will be an increased marketing push, but the company has already bumped up its investment in advertising as part of its recent strategy.
“A central part of Treasury Wine Estates' strategy is increased investment and focus on consumer marketing,” a spokesperson told AdNews.
“We're looking forward to more great brands becoming part of our portfolio as part of this acquisition, and the focus on consumer marketing will continue.”
Treasury Wine Estates appointed J. Walter Thompson as its creative agency globally in February, with the agency releasing a brand campaign for Wolf Blass in August.
It also appointed Starcom Melbourne as its media agency in September last year.
In terms of the impact on its agency partners, it's too early to say. The status quo is expected to remain initially, while strategies are devised as to what this means for both brands.
According to Nielsen estimates last year, Treasury Wine Estates spent $4.2 million in main media in the 12 months to August 2014, although that figure is likely to be higher including digital spend.
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