By Mike Cherney
SYDNEY–Australian vintner Treasury Wine Estates welcomed the announcement that China would conduct an expedited review of its tariffs on Australian wine, and outlined plans to rebuild its China business if they are removed.
The ASX-listed company on Monday said plans include rebuilding distribution for the Penfolds Australian entry-level luxury and the premium brands Australian priority portfolios. Treasury said it would reallocate a portion of its Penfolds luxury and icon tiers from other global markets, and invest in further sales and marketing resources within China.
The company said it’s well-placed to rebuild its business in China, which was a crucial market before the 2020 imposition of hefty antidumping duties amid a diplomatic spat with Australia. China agreed to review the wine restrictions ahead of a visit by Australian Prime Minister Anthony Albanese next month as relations between the two countries improve.
“It’s great to see an agreement for an expedited pathway forward to allow our Australian brands and wine to be sold in the Chinese market,” said Treasury Chief Executive Tim Ford.
“There are only positives to come out of a favorable review for the Chinese consumer, customers and the wine category, for the Australian wine industry and for TWE.”
The company said its plans for China would be implemented sustainably and not at the expense of the long-term growth opportunity in other key markets.
Write to Mike Cherney at [email protected]
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