Treasury Wine will use partnerships with customers in China to distribute its Penfolds entry-level Australian origin portfolio as well as its Premium Brands Australian-sourced priority portfolio, it said.
In addition to resuming distribution, it plans to expand sales and increase its marketing resources and brand investment in China. It said, however, the incremental earnings from the Chinese sales of its wines would be minimal through the remainder of fiscal 2024.
Sales diminished after tariffs of up to 218.4% were first imposed in March 2021 for a period of five years along with other trade barriers on Australian commodities when ties soured after Canberra called for an investigation into the origins of COVID-19.
