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Wednesday 26 June 2024

Treasury Wine Estates (ASX:TWE): Welcomes end to Chinese tariffs

Treasury Wine Estates (ASX:TWE) has welcomed news by the Chinese Ministry of Commerce which confirms that tariffs on Australian wine imports into China will be reduced to nil, effective from 29 March 2024.

TWE will commence partnering with its customers in China to implement
the detailed plan outlined as part of its F24 interim results announcement in February, which includes:
• Re-establishing distribution for Penfolds entry-level Australian COO portfolio, including Penfold’s Max’s, Koonunga Hill and One by Penfolds;
• Re-allocating a portion of Penfolds Bin and Icon tiers from other global markets in order to progressively re-build distribution to China, while maintaining the strong momentum in those other markets where Penfolds has successfully grown in recent years
• Re-establishing distribution for the Treasury Premium Brands Australian sourced priority portfolio in China, including Rawson’s Retreat

• Expanding sales and marketing resources, and brand investment, in China

TWE’s Chief Executive Officer, Tim Ford, commented:
“Today’s announcement is a significant positive not only for Treasury Wine Estates, but also for the Australian wine industry and wine consumers in China. Since the tariffs were introduced three and a half years ago, our commitment to China has been resolute, and we now look forward to partnering with our local customers to re-establish our Australian COO portfolio in the market while continuing to be a meaningful contributor to the development and growth of the Chinese wine industry. This is a medium-term growth opportunity that we will pursue in a deliberate and sustainable manner, focused on growing our portfolio in China while continuing the strong momentum that we have delivered in several global markets over recent years.” 

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