Aug 6 (Reuters) - Treasury Wine Estates ( TSRYF ),

Australia's biggest wine producer, said on Tuesday it plans to

divest its commercial brand portfolio and flagged a non-cash

impairment charge in relation to its premium brands business.

Last year, the company had highlighted tough market

conditions and a challenging consumption outlook for its

commercial-grade wine, especially in Australia and the UK, as

high inflation affected budget-conscious consumers.

The company has a presence in three price segments - luxury

(more than A$30 per bottle), premium (between A$10and A$30) and

commercial (below A$10).

Its commercial brands include Wolf Blass, Yellowglen,

Lindeman's and Blossom Hill, while the priority premium brands

house Wynn's, Pepperjack, Squealing Pig and 19 Crimes.

Treasury Wine declined to comment on a query seeking details

on the divestment.

The company said it has been assessing the future operating

model for its global portfolio of premium brands and decided to

sell its commercial division as a part of the review.

Its fiscal 2024 results would include an impairment charge

of A$290 million ($188.65 million) after tax, but expects to

post nearly a 13% rise in underlying earnings for the period.

($1 = 1.5373 Australian dollars)