Penfolds Grange maker Treasury Wine Estates is currently enjoying an impactful increase in sales and profits as demand for fine wine in China continued to drive growth.
Penfolds has a strong following in Asia, especially in China. Last year, Asia was the second largest region for Treasury Wine Estates net sales posting a significant 37% increase. As a result, a launch of its luxury Penfolds Collection is set for 2019.
It has also been reported that Treasury announced a capital investment project to expand production at its Bilyara winery, home of Wolf Bass wines, to help meet global demand for luxury and premium wines.
Asia generated more profits than the Americas. It was evident in the previous market analysis that demand for premium wines was rising but the lower value ‘commercial’ category was suffering.
Treasury also mentioned that the UK appeared to be still challenging as of the moment, but a fine wine trend is particularly blooming too.
Net sales was up by 16.6% for the year to the end of June while Net profits after tax rose by 16.4%.