TWE says wine sector still 'challenging'

Wine maker Treasury Wine Estates (TWE) says trading conditions remain challenging but that the company is well placed for growth.

TWE's brands include Penfolds, Wynns, Seppelt, Saltram, Coldstream Hills, Matua Valley, Beringer and Chateau St Jean.

"The fundamental, long-term trends underpinning demand in our industry are robust," TWE chairman Max Ould told shareholders at the company's annual general meeting in Sydney on Tuesday.

Advertisement: Story continues below "While trading conditions remain challenging, the board is confident that Treasury Wine Estates is very well positioned for growth."

Chief executive David Dearie said demand for wine was growing in the United States and TWE's key markets in Europe, particularly at higher price points.

"However, the economic and consumer outlook in these markets is uncertain and the impact of any further deterioration is unclear," he said.

In the Australia-New Zealand region, the wine category was performing well.

In Asia, category growth was strong.

Mr Dearie said Asia represented a significant long-term growth opportunity for TWE.

"We fully intend to allocate more resources - people, brand building investment and the allocation of premium wines - to this growing and profitable region," Mr Dearie said.

In August, TWE reported a $64.1 million full year profit in its first annual result since separating from brewer Foster's Group in May 2011.

Shares in TWE were eight cents lower at $3.82 at 1531 AEDT on Tuesday.