KKR’s Spurned Offer for Treasury Puts Focus on Penfolds

KKR & Co.’s spurned $2.9 billion offer for Treasury Wine Estates Ltd., owner of the acclaimed Penfolds label, raises an intriguing question: How does a publicly traded vintner juggle quarterly earnings targets with producing some of the world’s finest wines?

Treasury is in play four months after the Australian company, the world’s second-biggest listed winemaker, installed Mike Clarke as chief executive officer. The former Kraft Foods Group Inc. executive was brought in to start an efficiency drive after Treasury’s net income fell to A$42.3 million ($40 million) in the 12 months through June 2013 from A$89.9 million the previous year.