Profits at Australian wine giant Treasury hold up after China’s punitive tariffs on Australia
Profits at Treasury Wine Estates, owners of Penfolds, Wolf Blass, 19-Crimes and Lindemans, held up in the face up Covid-19 and punitive tariffs by the Chinese government to record only a small drop in profits of 0.4%.
Treasury made a net profit for the year to June 30 of $A250m (£131m), a 1.8% increase on the previous performance, which itself was heavily depressed by the effects of coronavirus.
Tariffs of 116% to 218% on Australian wines have seen its sales to China collapse. The dramatic drop has been caused by China targeting Australia with punitive tariffs after the Australian government spoke out about human rights abuse by the Chinese government against Uyghur Muslims in Xinjiang and demanding a thorough investigation into the source of Covid-19. Both of which the Chinese government oppose.
The company has focused on Asian markets outside of China and sold a number of US brands, whilst its mid-market 19-Crimes brand has built momentum by using celebrity endorsement from Snoop Dog.