Beijing Cuts Off Australian Wine Industry From Its Market
With additional unjust punitive tariffs Beijing, without concealing its motives, removes Australian wine producers from its market.
The latest round of tariffs, which could push import duties to over 215 per cent in total, Bejing not only harms Australian economy as it intended but proves that it is unworthy to be trusted in any agreements.
The umbrella group, which owns Wolf Blass and Snoop Dogg-affiliated 19 Crimes, among others, announced an emergency plan would include reallocating its Penfolds Bin and Icon labels to other luxury markets and accelerate a drive to produce more wine in other countries to avoid made-in-Australia duties.
We are extremely disappointed to find our business, our partners' business and the Australian wine industry in this position, Treasury Wine Estates' chief executive Tim Ford stated.
Shares of Melbourne-based Treasury Wine Estates, best known for its Penfolds brand, fell as much as 12 per cent following the first tariff announcements.
A new market for Australian wine: India
We all have to look at how we're going to reposition ourselves and re-engage in other markets where we've perhaps shorted them," said Mr Alister Purbrick, chief executive officer of central Victoria's Tahbilk Wines. He is doubling down on the domestic market for now, but sees opportunity in another emerging market: India.
Tariffs there have so far kept most exporters at bay, but he sees longer-term potential in shifting consumer preferences and the rise of a younger, more global generation.