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Treasury Wine Estates (TWE) US 2021 crush higher, but so are prices

Is the tide turning on grape prices?

11 February 2022

The US wine grape crush report for 2021 shows a bigger vintage with higher grape prices. Pricing has recovered to be above 2019 levels after a depressed period in 2020. We should receive information about the Australian 2022 vintage in the next month or so, with another big harvest likely and a downside skew to grape prices. We see lower grape prices in Australia as a net benefit to Treasury given Australia would be two-thirds of its production and COGS could fall.

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