SHERIDAN, WYOMING – July 10, 2024 – Treasury Wine Estates (TWE), the global wine company and owner of the prestigious Penfolds brand, today announced a significant milestone in its China strategy. Following the lifting of tariffs on Australian wine imports, Penfolds has experienced a resurgence in demand from Chinese consumers,signaling a promising future for the luxury wine market in China.
In a recent market update, TWE CEO Tim Ford expressed his enthusiasm for the renewed interest in Penfolds' iconic Australian wines. "We are thrilled to witness the rekindled passion for Penfolds among Chinese consumers," Ford said."The reopening of the Chinese market presents immense long-term growth opportunities for Penfolds and the broader luxury wine category."
To capitalize on this momentum, TWE has reported a record-breaking 2024 vintage, which will significantly increase the availability of Penfolds' highly sought-after Bin and Icon wines in the latter half of 2026. This exceptional vintage is attributed to a combination of factors, including TWE's extensive network of grape growers and strategic investments in vineyard revitalization and winery upgrades.
TWE has invested $280 million since 2018 to enhance its production capabilities and ensure a world-class supply chain, positioning the company to meet the growing demand for luxury wines in China. "This is a pivotal moment for TWE and the Penfolds brand," Ford stated. "As we navigate this post-tariff era, we are a stronger and more diversified global business, well-equipped to capitalize on the extraordinary growth potential in the Chinese market."
Penfolds Managing Director, Tom King, emphasized the brand's unique ability to resonate with consumers through its diverse portfolio of luxury wines sourced from prestigious wine regions around the world, including Australia,America, France, and China. Recent Penfolds releases from China have garnered critical acclaim and present a unique opportunity to further engage with Chinese consumers and elevate the profile of Chinese luxury wine on the global stage.
"Our multi-country sourcing strategy, led by our exceptional wines from France, the US, and China, allows us to connect with consumers on a deeper level," King explained. "We are committed to exploring additional winemaking opportunities in China, investing in local resources and production to fuel our future portfolio growth."
As Penfolds continues to solidify its position as a global leader in luxury wine, its successful re-entry into China underscores the enduring appeal of its brand and the significant growth potential within the Chinese market. With a focus on quality, innovation, and consumer engagement, Penfolds is poised to lead the way in shaping the future of luxury wine consumption in China.