Treasury Wine Estates’ shares have dropped after the winemaker said earnings would be lower by 21 per cent, and a significant drop in its Americas operations.

Shares in Treasury were down 2.84 per cent to $10.96 at 1151 AEST, after it said full-year earnings before interest, tax and the agricultural accounting standard SGARA would be between $530 million and $540 million.

The winemaker sells brands such as Penfolds, Rosemount Estate and Wolf Blass.

Management expect earnings from the Americas to be down 37 per cent. Declines of 14 per cent for Asia, 16 per cent for Australia and New Zealand and 18 per cent for Europe, the Middle East and Africa are expected too.

The Americas downturn comes not only from bottle shops being closed due to COVID-19 restrictions.

In the US, a crowd of competitors and new products have entered the $US8 to $US15 a bottle market in the last year.

This has hampered sales in the second half.

Treasury reported better results for luxury brands such as Stags Leap and the 19 Crimes wine brand.

New Treasury Wine Estates boss Tim Ford wants to further develop luxury brands in the US and has started exploring selling some lower end ones to help prepare the push.

Mr Ford, who started in the role on July 1 and replaced Michael Clarke, said a restructure of the US business had been completed and would save at least $35 million in the 2021 financial year.

The savings will help efforts to sell luxury brands.

While the US has recently notched record daily infection figures from the coronavirus and its economy remains subdued, Mr Ford said he was optimistic about Treasury’s return to profit growth.

There were positive signs of recovery in China, according to Treasury, but the frequency of social gatherings were still to return to earlier levels.

In Australia, retail sales had been strong compared to the prior year. Customers were favouring mass market rather than luxury brands.

Mr Ford and his team also continue to explore the potential demerger of Penfolds.

This could happen by the end of the 2021 calendar year.

The company is due to post full-year results on August 13.

Treasury shares have fallen 30.54 per cent since January 1 amid a wider market downturn from the coronavirus pandemic.