In morning trade the Treasury Wine Estates Ltd (ASX: TWE) share price has failed to follow the market higher and dropped into the red following the release of an announcement.
At the time of writing the global wine company's shares are down 1% to $15.22.
What was announced this morning?
This morning Treasury Wine Estates announced that its Chief Operating Officer, Robert Foye, has left the global wine company with immediate effect.
According to the release, Mr Foye has left the company due to a breach of Treasury Wine Estates' internal policies unrelated to its trading performance. No further details of the breach were provided by the company.
The company's deputy Chief Operating Officer, Tim Ford, will now assume the role of Chief Operating Officer and take responsibility for the oversight of Treasury Wine Estates' operating regions across the global business.
What else was announced?
In addition to this surprising news, the company once again reiterated that it is "very happy with the trading performance across all operating regions".
It advised that its first half result will reflect a performance above consensus EBITS estimate of $332 million and within the range of $335 million to $340 million.
Management also confirmed that it expects to achieve its full year reported EBITS growth guidance of approximately 25% in FY 2019.
Should you invest?
While changes at the top can sometimes be a bit disruptive and a cause for concern, I remain confident that Treasury Wine Estates will continue to perform well in the second half and meet its EBITS growth guidance.
Overall, I think this level of growth and its solid long-term potential in the North American and Chinese markets makes it a great option for buy and hold investors along with A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL).
