Overview
- Endeavour unveiled the strategy on Wednesday with a confirmed $300 million cost-out program that includes an already planned $100 million of savings and a shift to an asset-light Pinnacle Drinks model.
- The group will exit most winery and vineyard holdings and consolidate operations from seven sites to three while closing specific facilities such as Chapel Hill at the end of June.
- Endeavour will cut its owned grape production by more than 80% and move to roughly 99% flexible sourcing of bulk wine and grapes to reduce farming exposure and simplify supply.
- The company will prioritise ‘price leadership’ in retail to drive traffic at Dan Murphy’s and increase targeted investment in pubs through renewals and refurbishments aimed at lifting venue revenue.
- To preserve cash for the turnaround, management set a new dividend payout range of 50–75% of underlying net profit, the stock fell to record intraday lows on the news, and full-year results in August will be the next formal test of progress.