NEWS
TWE CEO: WE WILL MAKE PENFOLDS WINE USING CHINESE GRAPES
By Susan Lewis
20-12-2021
Source: TWE
Australian wine giant Treasury Wines Estates (TWE) will eventually make Penfolds wine using Chinese grapes, said TWE’s CEO Tim Ford.
The company is already making Penfolds wine made from grapes from the Bordeaux region of France and California’s Napa Valley. These wines, when shipped into China, are not subject to the punitive Australian tariffs.
“Over time, I’m convinced that we’ll make a Penfolds in China,” Ford told Australian local media.
“We’ve spent a fair bit of time working out what’s possible quality-wise over the last six months in China. We think we can do that,” he said.
Despite having been slapped a total of 175.6 percent tariffs by Chinese authorities, Treasury has kept its Asian headquarters in Shanghai and left its Chinese distribution network in place.
Ford said the Penfolds brand recognition remained exceptionally strong in China, and he was not about to abandon the market.
“The brand is still incredibly strong in China and there’s no consumer impact from the political issues at all,” Ford said.
“We’ve got a great model in China. We know we have great relationships. We know how to build brands.”
China formally announced a 218 percent anti-dumping tariff on Australian wines in March, effective for five years, and TWE as the biggest Australian wine exporter to China is subject to a total of 175.6 percent tariffs.
Before the tariffs, TWE was the top wine exporter to China, with Asia responsible for 45 per cent of earnings.
(the writer can be contacted at: info@thewinechronicle.com)
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