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Former Treasury Wine Estates executive Robert Foye has accused the company of pursuing a “volume chasing, order-taking mentality” across major markets as pressure mounts ahead of its investor day on 4 June. The shareholder and former chief operating officer believes the Penfolds owner could double in value if management tackles execution failures in the US and Asia and reshapes its operating structure.
Treasury Wine Estates is facing renewed scrutiny from shareholder Robert Foye, who has laid out a detailed critique of the Australian wine company’s recent performance ahead of its investor day in June. According to documents prepared for investors and analysts, Foye believes the company has drifted away from customer and consumer-focused brand building in favour of shipment-driven growth.
Foye, who previously served as chief operating officer at Treasury Wine Estates and later led Accolade Wines, said the business has become too reliant on Penfolds shipments to support results rather than strengthening customer engagement and consumer demand across the wider portfolio.
Speaking to the drinks business, Foye said: “Driving a volume chasing, order-taking mentality rather than a business and customer building mentality. This happened globally in all major markets.”
He also argued that Treasury Wine Estates had reacted too slowly to changes in US distribution, particularly the decline of Republic National Distributing Company, while allowing inventories to swell in both the US and China.
Concerns over inventory and structure
As per Foye’s investor materials, Treasury Wine Estates is carrying roughly 400,000 excess cases in China, equivalent to approximately AU$215 million in net sales revenue, alongside around 300,000 excess cases in the US outside California.
Foye also criticised the company’s dual division operating structure, which separated Penfolds from the wider Treasury Collective portfolio. According to his analysis, the model created duplication, confusion among distributors and weaker accountability.
“Customers and distributors do not like having two call points with two support groups from the same company,” Foye told the drinks business. “It creates redundancies, lack of efficiencies, lack of clarity and more costs.”
US business remains under pressure
Foye reserved particular criticism for Treasury Wine Estates’ US operations, arguing that the Daou acquisition was overpriced and completed at the wrong point in the cycle.
He told the drinks business that Treasury Wine Estates “overpaid for Daou by approximately US$600 million” after purchasing the business for US$1 billion.
His broader proposal for the US market includes restructuring distribution partnerships state by state, moving to a direct distribution model in California and focusing innovation on wines priced between US$20 and US$40.
According to his investor briefing, Foye believes the company should aim to double US EBIT within five years or explore strategic alternatives for the business.
“What is holding it back is the mistakes made in the past,” Foye said, citing excess inventory, the Daou acquisition and what he described as a lack of capability within the current regional leadership team.
Penfolds and China in focus
Foye also argued that Penfolds has lost traction in China due to inconsistent execution of the route to market, weak pricing discipline, and ongoing parallel import activity.
He said the company needs stronger distributor relationships, tighter control over inventory and a more disciplined product and pricing strategy by channel and customer.
According to his investor presentation, Penfolds’ multi-country-of-origin strategy has reduced China’s share of total Penfolds revenue from around 65% in 2019 to an estimated 40% to 45% today.
Foye said this diversification had reduced the concentration risk that became apparent during Chinese tariffs on Australian wine.
Board criticism intensifies
The shareholder campaign also extends to Treasury Wine Estates’ board composition. Foye argued that the board lacks sufficient expertise in US alcohol distribution and Asian luxury brand building.
“Most of the board appears to be focused on governance and reading financial statements, not winning in the marketplace,” he told the drinks business.
According to his March 2026 shareholder letter, Foye has increased his personal investment in Treasury Wine Estates to approximately AU$1 million and believes the company’s equity value could rise by 50% to 100% over time if operational performance improves.
Tensions ahead of investor day
The comments come weeks after French billionaire Olivier Goudet increased his stake in Treasury Wine Estates to more than 9%, as previously reported by the drinks business. Investors are now watching closely for chief executive Sam Fischer’s long-term strategy presentation on 4 June.
Foye said he expects the board to continue resisting his proposals, but added that investor frustration is building.
“If the stock remains at AU$4 per share for another year or so, then there may be a proxy fight with the board or renewed interest by private equity,” he said.
In Foye’s view, Treasury Wine Estates shares could reasonably trade between AU$8 and AU$10 if the company addresses past mistakes and improves execution across its key markets.
the drinks business has reached out to Treasury Wine Estates for additional comment.
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