China-Australia relations: Treasury Wine readies to ship Penfolds, Icon bottles once Beijing lifts import tariffs

Beijing is conducting a review into the tariffs on Australian wine, and expectations are rife that the levies could be removed next month

Australia’s wine trade with China was worth more than A$1 billion in 2018-19 and 2019-20 before the tariffs were implemented in March 2021

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The Chinese market accounted for about 30 per cent of Treasury Wine Estates’ earnings prior to the implementation of levies in March 2021. Photo: Reuters

Published: 1:21pm, 15 Feb 2024

Treasury Wine Estates is planning to reallocate a portion of its Penfolds Bin and Icon wines from other global markets to China once Beijing lifts crippling tariffs on Australian exports.

China remains the single greatest opportunity for the company should the country reopen its doors to Australia, CEO Tim Ford said during an investor call on Thursday for the company’s first-half report.

The Chinese market accounted for about 30 per cent of Treasury’s earnings before the implementation of levies in March 2021.

Beijing is conducting a review into the tariffs on Australian wine, and it is widely expected that the levies will be removed next month.

If we get back in and re-establish Australian wine, that’s a re-establishment for the next decade and beyond

Tim Ford

Treasury said last year that the company could quickly ramp up exports of bottles priced in the A$30 (US$19) to A$40 range, including Penfolds Max’s, should the duties end.

Penfolds Bin and Icon wines are priced at between A$60 to A$1,000.