SummaryCompanies China agrees to expedited review of wine import tariffsTreasury Wine gets set to rebuild China businessTreasury shares jump 5%Oct 23 (Reuters) - Australia's Treasury Wine Estates (TWE.AX) said on Monday it is well placed to rebuild its business in China, sending its shares up more than 5%, should Beijing's tariffs on Australian wine be removed as signalled by the two countries on the weekend.
"Should tariffs be removed, these measures will be implemented sustainably and with the aim of growing the business in China," Treasury Wine, the world's biggest standalone winemaker, said in a statement.
Treasury Wine used to make one-third of its profit in China but lost most of that business when Beijing imposed tariffs on Australian wine in 2021, after Canberra called for an inquiry into the origins of COVID-19.
"If the tariffs are removed, we see this as a significant positive for the Australian wine export industry and specifically Treasury Wine," Goldman Sachs analysts said in a research note.
Measures for reviving its China business would include shifting a portion of Penfolds Luxury from other markets back to China and rebuilding distribution for the Penfolds Australian entry-level luxury portfolios, the company said.
Persons:
Treasury Wine, Goldman Sachs, Archishma Iyer, Lisa Shumaker, Diane Craft, Sonali Paul
Organizations:
Treasury Wine, Treasury, Wine Estates, Sunday China, Thomson
Locations:
China, Beijing, Canberra, Bengaluru