Penfolds’ China Boom Cushions TWE’s US$375 Million U.S. Writedown

Treasury Wine Estates, Australia's wine giant, is taking a hefty US$375 million writedown in America and cutting production, but strong results elsewhere are keeping the company afloat. Penfolds, TWE's crown jewel, surged 40% in China sales and helped push overall earnings above expectations, even as the company considers asset sales and idles vineyards in the struggling US market. It's a tale of two markets: deep trouble in America, booming prospects in Asia.