NEWS
AUSTRALIA'S MCGUIGAN WINES WILL SHIP CHILEAN WINES TO CHINA TO BEAT TARIFFS
By Siulan Law Mathews DipWSET
3-3-2022
Source: McGuigan Wines
Australia’s McGuigan Wines will be shipping wines made in Chile to China, in an attempt to avoid the punitive tariffs imposed by Chinese authorities on Australian wines, the Australian Financial Review (AFR) reported.
Quoting McGuigan’s Chief executive Craig Garvin, the AFR said the first such shipment will leave Chile in four weeks’ time.
“We will be shipping to China from Chile in about four weeks,” Garvin told AFR.
This is the first time McGuigan Wines expands production overseas, the company will create a new range called McGuigan Wines of the World to be shipped to China.
Garvin said the new label will also have the capacity to expand to being sourced from countries other than Chile as the group sought to make it a truly global brand.
Australian Vintage, which owns McGuigan, Tempus Two and Nepenthe as its main wine brands, previously had a small presence in China, which represented just about 5 percent of its total exports.
This is not the first time an Australian wine producer sourced wines from other countries to ship to China.
Treasury Wine Estates, Australia’s leading wine producers and owner of the Penfolds brand, started shipping wines to China from France and USA last year.
China announced anti-dumping and anti-subsidies investigations on imported Australian wines in August 2020. A preliminary tariff of up to 212 percent was announced in November that year.
A final verdict was decided in March last year which said a tariff of up to 218 percent will be levied for a period of five years.
Almost AUD1billion (USD729million) worth of wine exports to China was wiped off in 2021 representing a 97 percent drop to just AUD29m.
(the writer can be contacted at: info@thewinechronicle.com)
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