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17h ago

Treasury Wine Chair John Mullen Wins Re-Election After Shareholder Challenge

The vote followed the winemaker's withdrawal of guidance after a sharp demand slowdown in China plus disruption to U.S. distribution.

Bottles of Penfolds wines, one of the brands from the Treasury Wines group, are shown at a Sydney boutique wine store, February 15, 2016. REUTERS/Jason Reed
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Overview

  • Shareholders re-elected John Mullen as chair with 14.55% of votes against, defying proxy advisories from ISS and the Australian Shareholders' Association that cited his multiple chair roles at Qantas and Brambles.
  • Mullen rejected calls to step down, saying his commitment was absolute and arguing the challenge was ill-timed given the leadership gap before the new chief executive starts.
  • Treasury Wine this week withdrew its 2026 earnings guidance and suspended a planned share buyback, and the stock is down more than 40% year to date.
  • Penfolds sales have weakened in China following tighter rules curbing official banquet alcohol spending, and the company is redirecting some supply to other markets.
  • The group also faces a U.S. distributor exiting California that it expects will reduce Americas revenue in fiscal 2026, adding to near-term operational pressure.