Treasury Wine Sees Higher Debt Amid Weak U.S., China Demand

SYDNEY—Shares in Australia’s Treasury Wine TWE -9.29%decrease; red down pointing triangle Estates tumbled to their lowest level in almost 11 years after the Penfolds owner warned that lower demand in the U.S. and China would lead to elevated debt and likely changes to its production network.

The stock shed as much as 17% early Wednesday after Treasury Wine, which also owns luxury California producers Daou and Frank Family Vineyards, said it would cut costs and shipments in response to weaker appetite for luxury tipples in its key markets.