Treasury Wine Estates, the producer of Penfolds, intends to avoid China’s high wine tariffs by releasing a vintage created entirely in China, with the first bottles going on sale in only a few months.
The ASX-listed beverages firm has been experimenting with wine grapes produced in Shangri-la, in the western province of Yunnan, and Ningxia, in the central-north, which have started to produce what the company calls “promising qualities” in terms of quality and flavor.
Treasury’s most recent initiatives to get around China’s punishing wine tariffs and satisfy ongoing demand in that market include planting grapes there. Treasury has already started making wine in Chile, the US, and Bordeaux, France.
Planting grapes there is one of Treasury’s most recent endeavors to get around China’s harsh wine tariffs and meet ongoing demand in that market. Treasury has already begun producing wine in Bordeaux, France, and Chile.
Treasury Wine was compelled to redistribute its wine to the US and Asia in addition to other markets because of Beijing’s outrageous wine tariffs of up to 200 percent that were implemented in November 2020. The Penfolds brand is still in high demand in China despite the taxes, and no other premium red wine brand has stepped in to fill the void.
