Treasury Wine to resume distribution in China after import tariffs end
4:24 am Thursday, March 28th, 2024
(Reuters) – Treasury Wine Estates will resume the distribution of some of its products in China, it said on Thursday, after the Chinese Ministry of Commerce said it would remove tariffs on Australian wine imports from March 29.
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.
Ties between Canberra and Beijing have improved significantly since last year, leading to China steadily lifting trade barriers on Australian goods including barley and coal.
(Reporting by Ayushman Ojha in Bengaluru; Editing by Shounak Dasgupta and Barbara Lewis)
