Treasury Wine Estates (TWE) has provided and update on its Penfolds business and China strategy, saying it is enthusiastic about long-term growth opportunities as Chinese consumers reignite their passion for Penfolds.
It is nearly three months since tariffs on Australian wine imports into China were removed and TWE CEO Tim Ford said the delivery of a record 2024 Australian vintage which will support a significant step-up in the availability of Penfolds Bin and Icon wines from the second-half of FY26.
“We are delighted to be bringing more of our Australian luxury wines back to China, at a time when the luxury wine market presents significant long-term growth opportunities for Penfolds and the wine category overall. By leveraging our unique Penfolds brand status to drive ongoing demand, we remain steadfast on our clear ambition to be the number one luxury wine brand in the market,” Ford said.
“The 2024 Australian vintage has delivered record intakes for key Bin and Icon portfolio wines as a result of a combination of factors, including our extensive grower network and TWE’s decisive measures taken to create the best opportunities to provide luxury grade fruit, which are clearly paying off.
“Since 2018, TWE has invested $100m in vineyard replanting and acquisitions to enhance long term production capacity, focusing on soil revitalization and vine redevelopment. Additionally, from 2018-2022 we invested $180m in TWE’s Barossa winemaking and packaging facilities to ensure world-class supply chain capabilities to cater for increased luxury wine production and availability.”
Penfolds MD, Tom King added that Penfolds portfolio of globally sourced luxury wines provides consumers from across China with access to luxury wines from Australia, America, France and more recently China.
“The power of Penfolds to engage with consumers across four countries of origin is truly unique,” King said. “Our most recent Penfolds China wine releases have provided excellent praise from wine critics and present an incredible opportunity to drive further connection and engagement with our consumers in China, and to become a global ambassador for Chinese luxury wine.
“Similar to the roadmap we have followed in France, we continue to explore further winemaking opportunities in China, including investing in local sourcing and production opportunities to support future portfolio growth opportunities,” he said.
TWE confirmed that with ongoing strong demand for Penfolds Bin and Icon portfolio, price increases would be introduced across Penfold’s global customer base, effective 1 July 2024.
Ford said: “This is an exciting time for TWE and the Penfolds business as we enter a post-tariff era as a stronger and more diversified global business, with all the necessary elements at our disposal to maximise the incredible long-term growth opportunities in China.”