Treasury Wine Estates plans to make changes to its wine supply and production network in the US as it integrates its wine operations with the recently acquired wine business from Diageo.

The firm announced strategic plans at the time of the Diageo Wine acquisition in October 2015.

As part of optimisation plan of the supply chain, the company will consolidate winemaking production in California in the central and north coast regions.

"Luxury winemaking will be consolidated at Sterling Vineyards. Beaulieu Vineyard will focus only on luxury wine production."

This will see luxury wine production focused at the Beringer winery and Masstige wine at the Paso Robles winery.

Luxury winemaking will be consolidated at Sterling Vineyards. Beaulieu Vineyard will focus only on luxury wine production.

Winemaking at the Chateau St Jean winery in Sonoma County will be discontinued and the production will be shifted to Beringe. However, all hospitality and direct-to-consumer functions will continue at Chateau St Jean winery. The company intends to divest a small number of vineyards and land holdings.

The firm plans to make additional investment in its US wineries between 2016 and 2018 to support the growth of premium American wines in the Asia region.

The changes in supply and production footprint will impact several roles within the company.

The US supply chain optimisation plan is expected to complete by the end of fiscal 2018.