Treasury Wine Estates is going to bury as many as one million bottles of cheap wine somewhere in the United States, after not enough people wanted them.
According to Fairfax Media, TWE is dumping the wine to clear a bottleneck of cheap wine sitting on the shelves to it can give the stores it supplies fresh bottles.
TWE owns well-know Australian brans such as Penfolds, Wolf Blass and Rosemount. According to Fairfax, not much Australian wine will be buried, just cheap brands sold in the US for around $5 a bottle.
The US is TWE’s biggest market by sales. Its shares slumped on the news.
Read more here.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.