Treasury Wine Estates (TWE) has shared an optimistic update on its Penfolds business and strategy for China, highlighting promising long-term growth prospects as Chinese consumers rekindle their love for Penfolds wines.
With nearly three months since the removal of tariffs on Australian wine imports into China, TWE CEO Tim Ford expressed confidence in the company’s future, particularly with a record 2024 Australian vintage set to enhance the availability of Penfolds Bin and Icon wines by the second half of FY26.
“We are thrilled to reintroduce more of our Australian luxury wines to China during a period where the luxury wine market is brimming with long-term growth opportunities for Penfolds and the overall wine category. Leveraging the unique status of our Penfolds brand to sustain demand, we are firmly committed to our ambition of becoming the top luxury wine brand in the market,” Ford stated.
Ford further noted that the 2024 Australian vintage has resulted in record yields for key Bin and Icon wines, attributing this success to TWE’s extensive grower network and strategic measures to secure luxury-grade fruit.
Since 2018, TWE has invested $100 million in vineyard replanting and acquisitions to boost long-term production capacity, focusing on soil revitalization and vine redevelopment. Additionally, from 2018 to 2022, the company invested $180 million in its Barossa winemaking and packaging facilities to ensure world-class supply chain capabilities, supporting increased luxury wine production and availability.
Penfolds Managing Director Tom King highlighted the brand’s diverse portfolio of globally sourced luxury wines, offering Chinese consumers access to premium selections from Australia, America, France, and recently, China.
“The unique ability of Penfolds to engage consumers with wines from four countries is unparalleled,” King remarked. “Our latest Penfolds China wine releases have received high praise from critics, providing an excellent opportunity to deepen our connection with Chinese consumers and position Penfolds as a global ambassador for Chinese luxury wine.”
King added that TWE continues to explore further winemaking opportunities in China, including local sourcing and production, to support future portfolio growth.
In response to the sustained strong demand for Penfolds Bin and Icon wines, TWE announced price increases across its global customer base, effective July 1, 2024.
“This is a thrilling time for TWE and the Penfolds business as we emerge from the post-tariff era as a stronger, more diversified global enterprise, equipped to capitalize on the substantial long-term growth opportunities in China,” Ford concluded.
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