Treasury Wine Estates to go big on digital, data and AI

Treasury Wine Estates, best known for its Penfolds brand, is embarking on a large-scale transformation with digital, data and AI adoption set to be “key enablers”.

The company, which is calling the transformation Ascent, unveiled the project's five key pillars at its investor day on Thursday, with one devoted to digital, data and AI.

CEO Sam Fischer said the overall intent is “to create clear accountability, enable faster decision-making, shape our portfolio around customers and consumers, and unlock greater efficiencies by reducing duplication, streamlining processes, and leveraging automation and technology.”

“We expect $100m per annum in cost reduction to be fully realised by FY29 with benefits commencing from FY27,” he said.

Chief commercial officer Tom King said that technology investments would “support all Ascent priorities”.

The other priorities include moving to a regionally-focused operating model, standardising approaches to brand-building and “embedding commercial excellence more deeply across the organisation,” King said.

“This isn’t a series of disconnected initiatives.

“It’s an end-to-end shift in how we set direction, make decisions, execute in-market and measure success.”

Specifically on the technology front, there will be investments in data systems, sales automation and systems to track marketing and promotions.

“To embed commercial excellence across our global business, we need better visibility, better tools and better information,” King said.

“Our objective is to create a single source of truth for all data, reporting and scorecards, supported by globally consistent performance metrics and strict data governance. 

“We’ll also be investing in tools that enhance sales enablement and execution, including the automation of sales operations, better customer and distributor information, and much more advanced forecasting tools.”

King said that the “practical value” of the technology investments will be “really significant”.

“Better forecasting will improve decision-making around supply, allocation and customer planning,” he said.

“Better customer and distributor information will allow our teams to identify issues earlier and target opportunities more effectively. 

“[Additionally], greater automation in sales operations will reduce admin burden and give our teams more time to focus on customers and execution. 

“Over time, stronger data and tech capability will also improve how we assess promotional return, sharpen our understanding of consumer behaviour, and strengthen our digital and ecommerce effectiveness.”