Penfolds Brand Value Drops 32% to $776 Million as Still Wine Slumps
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Penfolds suffered a 32 per cent drop in brand value to US$776 million this year. It posted the sharpest decline among top global wine labels in Brand Finance’s Alcoholic Drinks 2026 report.
The Australian label led a broad retreat across still wine assets for parent company Treasury Wine Estates. Chinese producer Changyu shed 22 per cent of its brand valuation to finish at US$641 million. Beringer dropped 16 per cent, and Yellow Tail declined 14 per cent. Four of the six still wine labels tracked in the top ten lost value over the period.
Champagne Widens Gap Over Still Wine
Sparkling wine houses took the opposite trajectory and captured premium trade. Moët & Chandon defended its position as the world’s most valuable wine and Champagne brand. Its value rose 12 per cent to US$2.3 billion, backed by an AAA- brand strength rating and a score of 80.3 out of 100.
Veuve Clicquot climbed to second place overall after expanding its brand value 39 per cent to US$1.4 billion. Dom Pérignon advanced 21 per cent to reach US$300 million, taking ninth place in the ranking. Prestige sparkling houses maintained pricing power despite softer total shipment volumes across key consumer markets.
Mass Market Labels Hold Ground
Everyday table wines held up better than mid-tier and prestige still brands. Barefoot ranked as the strongest overall label in the index with an AAA rating and a score of 85.1 out of 100. Wide retail distribution helped lift its valuation 2 per cent to US$1.3 billion.
Carlo Rossi gained 8 per cent to reach US$313 million. Value brands retained steady household penetration. Higher-priced still wines felt the pullback in discretionary spending.
“Meanwhile, declines for brands such as Penfolds and Changyu reflect the broader pressures facing still wine, where changing consumption patterns are making growth harder to achieve.”
“Meanwhile, declines for brands such as Penfolds and Changyu reflect the broader pressures facing still wine, where changing consumption patterns are making growth harder to achieve.”
Henry Farr, global sector head of alcoholic drinks at Brand Finance, noted that premium perceptions and emotional ties allowed sparkling labels to decouple from broader category stagnation.
Asian Demand Reshuffles Portfolio Strategy
For distributors and retail buyers across Asia, the valuation drop reflects shifting consumer habits in key commercial hubs. Mainland China’s retail wine trade has contracted. Younger urban consumers are diversifying into ready-to-drink beverages, craft beer and spirits, eroding baseline volumes for domestic giants like Changyu.
Treasury Wine Estates faces a split market reality. High-end allocations still find private collectors, but commercial lines struggle to clear inventory through traditional dining and corporate entertainment channels in Australia and East Asia. Retail shelf space is migrating toward lower-cost daily pours and celebration-linked Champagne labels.
Consumption Contraction Sets Baseline
Falling valuations follow consecutive years of cooling volume. Data from the International Organisation of Vine and Wine showed global wine consumption contracted nearly 3 per cent in 2025 to 208 million hectolitres. Demographic shifts in mature markets and tighter household budgets drove the decline.
Treasury Wine Estates and regional competitors now face their next test in upcoming year-end inventory audits and festive wholesale reorders, which will reveal whether recent price adjustments can stabilise commercial still wine margins.
Questions & Answers
Q.Which sparkling wine brands saw their value increase this year?
Which sparkling wine brands saw their value increase this year?
Moët & Chandon's value rose 12 per cent to US$2.3 billion. Veuve Clicquot climbed 39 per cent to US$1.4 billion, and Dom Pérignon advanced 21 per cent to reach US$300 million.
Q.What is causing the decline in still wine brand values?
What is causing the decline in still wine brand values?
Changing consumption patterns are making growth harder to achieve for still wine. Younger urban consumers are diversifying into other beverages, and discretionary spending has pulled back from higher-priced still wines.
Q.How did mass-market still wine brands perform compared to premium and mid-tier still wines?
How did mass-market still wine brands perform compared to premium and mid-tier still wines?
Mass market labels held up better, with Barefoot's valuation rising 2 per cent and Carlo Rossi gaining 8 per cent. Value brands retained steady household penetration, unlike higher-priced still wines.
Q.What is the overall trend for global wine consumption?
What is the overall trend for global wine consumption?
Global wine consumption contracted nearly 3 per cent in 2025 to 208 million hectolitres. Demographic shifts in mature markets and tighter household budgets are driving this decline.
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