FBIN, Global Markets, Market Insights, News

Aussie wine producer re-enters China

Australian wine producer Penfolds has re-entered China almost three months since the removal of tariffs on Australian wine imports into China.

Treasury Wine Estates (TWE) provided the market update on its Penfolds business and China strategy.

TWE CEO, Tim Ford, said it was fantastic to see local Chinese consumers reignite their passion for Penfolds’ great Australian luxury wines.

“We are delighted to be bringing more of our Australian luxury wines back to China, at a time when the luxury wine market presents significant long-term growth opportunities for Penfolds and the wine category overall,” said Ford.

“By leveraging our unique Penfolds brand status to drive ongoing demand, we remain steadfast in our clear ambition to be the number one luxury wine brand in the market.”

TWE recently announced the delivery of a record 2024 Australian vintage, which will support a significant step-up in the availability of Penfolds Bin and Icon wines from 2H26.

“The 2024 Australian vintage has delivered record intakes for key Bin and Icon portfolio wines as a result of a combination of factors, including our extensive grower network and TWE’s decisive measures taken to create the best opportunities to provide luxury-grade fruit, which are clearly paying off,” said Ford.

Penfolds MD, Tom King, added that Penfolds’ portfolio of globally sourced luxury wines continued to provide consumers from across China with access to wines from the world’s most revered wine regions such as Australia.

“The power of Penfolds to engage with consumers across four countries of origin is truly unique. Our most recent Penfolds China wine releases have received excellent praise from wine critics and present an incredible opportunity to drive further connection and engagement with our consumers in China, and to become a global ambassador for Chinese luxury wine,” said King.

“Similar to the roadmap we have followed in France, we continue to explore further winemaking opportunities in China, including investing in local sourcing and production opportunities to support future portfolio growth opportunities.”

Ford said in closing that now is an exciting time for TWE and Penfolds.

“… We enter a post-tariff era as a stronger and more diversified global business, with all the necessary elements at our disposal to maximise the incredible long-term growth opportunities in China.”

Send this to a friend