Treasury Wine Estates, Australia’s largest wine producer, plans to increase its workforce in China by two-thirds this year following re-entry into its biggest export market.
Tim Ford, CEO of Treasury Wine Estates, earlier announced at the Macquarie Australia Conference that the company intends to expand its Chinese team from around 120 employees to approximately 200 by July or August. He added that the company will strengthen its marketing efforts in China, aiming to establish significant brand presence over the next 12 months.
Ford also mentioned that Treasury Wine Estates began pausing wine exports to other markets six months ago in anticipation of China’s reopening. This move underscores the company’s focus on the Chinese market.
Vino Joy reached out to Treasury Wine Estates’ China office, which confirmed the hiring expansion but declined to disclose further details.
According to job listings on Zhaopin, a Chinese recruitment website, Treasury Wine Estates’ Chinese subsidiary, TWE (Shanghai) Trading Co., Ltd., currently has 34 open positions. These include sales managers in nearly 20 major cities, as well as roles for data analysts, IT engineers, HR managers, financial analysts, brand ambassadors, key account managers for Champagne and winemakers in Diqing, Yunnan. The openings span various regions, channels, and functions in China.
Before anti-dumping tariffs on Australian wine, Treasury Wine Estates had a strong presence in China. Besides Penfolds, they promoted American wines and introduced the French brand Maison de Grand Esprit. Rawson’s Retreat was also a popular choice for wines under 50 RMB.
The importance of the Chinese market to Treasury Wine Estates is evident. According to their financial report, in 2019, China led all divisions with a net sales revenue growth of 35.6% and an EBIT growth of 48.7%, generating a profit of AUD 293.5 million.
However, this came to a halt at the end of 2020 when China imposed hefty tariffs on Australian wines on the grounds of anti-dumping and anti-subsidy. By February 2021, Australian media reported that Treasury Wine Estates had laid off up to 60 employees from its Chinese operations. During this internal restructuring, 50 to 60 employees, mainly in sales and marketing, were dismissed, and the company underwent significant downsizing.
Regarding the current workforce expansion, a Penfolds distributor in East China, who wished to remain anonymous, told Vino Joy, “The number of Treasury Wine Estates employees now and in the future will certainly exceed the number in 2020. The company has adopted more refined management, with 2-3 people in my province alone dedicated to serving us.”
“Given the current Chinese wine market, it is challenging to find a unicorn brand like Penfolds. Therefore, Treasury Wine Estates is uniquely positioned to thrive. Its expansion is beneficial for both distributors and the industry,” the distributor added.
