Treasury Wine Estates Ltd.'s shares experienced a significant jump of approximately 7% in Sydney, marking their largest surge since September 2024. This notable increase was triggered by the emergence of European billionaire Olivier Goudet as a new shareholder in the company. Through his investment vehicle, Platin SARL, Goudet has acquired a 5% stake in the Penfolds owner, as disclosed in an exchange filing on Wednesday. The Australian firm, which holds a market capitalization of about A$4.3 billion ($2.8 billion), saw its shares trading up 6% at A$5.33 by early afternoon in Sydney.

This investment provides a crucial boost to the troubled winemaker, whose shares had previously plummeted to their lowest level in over a decade earlier this month. Treasury Wine Estates has been contending with flagging demand across key markets, including the United States and China, which has significantly impacted its performance. In response to these challenges, the company had canceled a A$200 million stock buyback program and initiated a review of its planned capital investments.

Under the leadership of new Chief Executive Officer Sam Fischer, Treasury Wine Estates recently announced asset sales and outlined plans to pursue A$100 million in annual cost reductions over the next two to three years. The firm has specifically highlighted weakness in both the US and Chinese markets, attributing some of these difficulties to a distributor transition in California and Beijing's ongoing crackdown on boozy government banquets. Furthermore, the winemaker revealed a substantial near A$690 million write-down of its US business, underscoring the severe challenges it continues to face despite the confidence expressed by a high-profile investor like Goudet.

Olivier Goudet is a well-known figure in the investment world, having co-founded the private investment firm JAB Holdings BV. JAB Holdings controls or holds significant stakes in a portfolio of global consumer brands, which include prominent names such as Dr Pepper, Krispy Kreme, and Panera Brands. Goudet stepped down as CEO of JAB after 12 years and transitioned into a role as senior investment advisor to the firm early last year, bringing a wealth of experience in managing consumer enterprises to his new stake in Treasury Wine Estates.