The Treasury Wine Estates Ltd (ASX: TWE) share price has still not recovered to its pre-pandemic levels.
Over the course of 2020, the Treasury Wine share price fell from a high of $17.80 in January to a low of $7.87 in November.
As of Monday's close, the Treasury Wine share price is $11.76. That's 33% lower than its highest point of 2020.
So, what's the winemaker and distributor's plan to push towards recovery? Let's take a look.
A quick refresher
The Treasury Wine share price survived a disastrous 2020.
It tumbled as the pandemic set in, as did many ASX shares. However, the company's stock's slip was made worse when it lowered its guidance for financial year 2020.
Then, just as the market began to grapple with its 'COVID normal', the Chinese Ministry of Commerce implemented tariffs on Australian wine.
As The Motley Fool Australia reported at the time, exports to China represented 30% of the group's financial year 2020 earnings.
While the Treasury Wine share price has managed to scrabble back 23% so far this year, it's still well below its now-historic levels.
Treasury Wines share price's recovery mission
The market was recently treated to insight from the company's bosses who explained their plan to grow the business in the post-pandemic world.
At Treasury Wines' annual general meeting, the company's CEO Tim Ford outlined its objectives for financial year 2022.
Treasury Wine's Penfolds business will be looking to attract more customers and expand its distribution. Ford stated the company was working towards buying a new winery and vineyards in Bordeaux to help it do so.
Meanwhile, Ford stated Treasury Americas will focus on increasing its "premiumisation" and expanding its portfolio. Part of that plan will include searching for bolt-on acquisitions.
In the United States, the company's continuing to divest its non-priority brands.
As a whole, the company will be working to "elevate [its] culture and talent", improve its sustainability practices, invest in technology, and prioritise innovation.
However, Ford commented:
Globally, our underlying business is performing in line with expectations, however the pandemic related factors will continue to have a bearing on our performance in the short term, both with respect to the timing and pace with which key sales channels re-open and recover across key markets.
Such "pandemic related factors" include a slower than predicted return to luxury spending in the United States and disruptions to luxury spending in Asia.
Additionally, Australia's extended lockdowns closed the company's on-premise channel and delayed execution plans.
Finally, Treasury Wines is battling against shipping and supply chain disruptions. It expects such battles will continue.
