Treasury Wine Estates said inflation is squeezing demand for commercial-grade wine and driving up packaging costs.  TWE's stock immediately fell 8%. Conditions for commercial wine are particularly tought in Australia and the UK, the company said, adding it was beginning a review of its domestic supply chain.

"Wine is probably more of a luxury item rather than an essential. So, I think when consumers are feeling the cost of living crisis, they are going to be pulling back on certain items like wine," said Josh Gilbert, a market analyst at eToro, told Reuters. Reuters noted that winemakers peddling luxury wines were reporting higher profits.

The company said Snoop Dog-endorsed 19 Crimes "continues to perform below expectations. It also said it is prepared to dispose of some assets.