Penfolds-owner Treasury Wine Estates (TWE) has announced its first annual loss as sales slowed in a “challenging” year.

The group, which also owns the Wolf Blass, Rosemount and Lindeman's brands, posted a net loss of Au$101 million in a year that saw oversupply in the US market, leading it to destroy thousands of bottles of excess wine. chief executive Michael Clarke said: “I am pleased to report EBITS of $184.6 million for fiscal 2014; $193 million after adjusting for foreign exchange rates that underpinned our guidance range announced on 30 January 2014.

TWE has delivered this result despite a number of operational and trading headwinds during the year.

Having taken the necessary steps in the final quarter of fiscal 2014 to drive improved performance, including increasing consumer marketing, reducing TWE’s cost base and addressing structural challenges within the business, I am confident the company is now positioned for future success.”