CEO Tim Ford says drinkers are still spending on more expensive wines in a tougher economy, and the group is eyeing a potential China export restart.
The company is holding back on allocations of Penfolds in readiness for China’s tariffs being dropped.
“First quarter trading conditions were consistent with our overall expectations and we expect continued strong demand for luxury wine, and resilient category dynamics for premium wine, globally,” the CEO said on Monday.Mr Ford said when combined with the benefits of cost-cutting programs and a deliberate shift in the group’s asset base to tap into the premiumisation shift across the sector, the company was on target to meet its ambitions of profit margins exceeding 25 per cent.
in annual wine exports to China. Treasury had the most lucrative China export business because of the Penfolds brand.to China and the lifting of barley tariffs has given the Australian wine sector hope that wine tariffs may end soon. “This is a specific strategy in light of the potential for a future review on tariffs on Australian wine in China,” he said.