Treasury Wine Estates will also ramp up its investment in its remaining US wineries between 2016 and 2018, in support of the company’s growth agenda for premium American wines in the Asia region.

The changes in the company’s US supply and production operations are part of the integration of the Diageo Wine business, which it bought for $US600 million in October.

“These initiatives will enable brands recently acquired from Diageo to benefit from the positive transformation already undertaken with the company’s established portfolio, and are consistent with strategic plans announced at the time of the Diageo Wine acquisition,” Treasury Wine said.

“It is expected that this next stage of US supply chain optimisation will be complete by the end of fiscal 2018.”

The company’s Australian brands include Penfolds, Wolf Blass, Rosemount, Lindeman’s and Wynns, while in the US it owns Beringer, Chateau St Jean and Stags’ Leap.

Diageo Wine’s key US brands include Beaulieu Vineyards, Sterling Vineyards, Acacia, Provenance and Hewitt.

Treasury Wine will sell the Paicines winery on California’s central coast, with production to be consolidated at Paso Robles winery.

The Beringer winery, Sterling Vineyards and Beaulieu Vineyard will focus on producing luxury wine, while the Paso Robles winery will concentrate on mass prestige, or `masstige’, wine.

Winemaking will be discontinued at the Chateau St Jean winery in Sonoma County, with production moving to Beringer.

Shares in Treasury Wine were down 18 cents at $10.10 at 1230 AEST.

AAP