Locally Treasury owns Beringer, Stags Leap, Souverain, and Chateau St. Jean. Also Penfolds and Rosemount plus some others. It's quite a line-up.
They have a headquarters in Napa. Why do I ask what the hell is going on? Because they are hiring for every corporate-type position imaginable. Looking at one of the wine job sites I see 17 current openings. Here's a few examples:
- They are being run by people with a manufacturing background who don't know a f**king thing about wine.
- They are building up to sell out. Maybe the more employees the more the business is worth? That seems counter-intuitive to me.
This is a lot of overhead and is probably only the tip of the iceberg. I guess their margins can support this. It seems pretty wacky to me. Maybe I'm missing something.
So what are the plans for Treasury Estates now? Foster's has said a 2011 spin-off will happen though they've had at least one offer to sell, but was rejected because it wasn't enough money.
Foster's said they are starting to see cost savings with the new division--must be because they're hiring all these middle-managers and analysts. Also they want to increase profits by, um, raising prices at Beringer--probably to be able to pay all the new middle-managers and analysts.