SYDNEY, AUSTRALIA: Treasury Wine Estates Limited (TWE), a leading Australian wine company, has welcomed the announcement by the Australian government that a review of tariffs on Australian wine into China will commence and is expected to take up to five months.
The tariffs, which were imposed in November 2020, have severely affected TWE’s business in China, one of its largest and most profitable markets.
TWE has maintained its commitment to the Chinese market despite the tariffs, by retaining its sales and marketing leadership, continuing to build its customer relationships, and expanding its multi-country of origin portfolio, including the first Chinese sourced and produced luxury Penfolds wine.
TWE CEO Tim Ford said that he was pleased with the agreement for an expedited pathway forward and looked forward to a new era of positive engagement that would benefit both countries and the wine industry.
Should the tariffs be removed, TWE has plans to rebuild its business in China progressively and sustainably, without compromising its growth opportunity in other key markets. The plans include re-building distribution for its Australian brands, reallocating a portion of its luxury and icon wines from other markets, investing in further sales and marketing resources, and applying a globally standardised margin structure to ensure long-term brand health and price integrity.