Australian Trade Minister Vists TWE in Shanghai To Boost Wine Trade

Australia’s Minister for Trade and Tourism, Don Farrell, visited Treasury Wine Estates’ office in Shanghai, in a strong show of force to boost wine cooperation between China and Australia following tariff removal in late March.

“China is our largest trading partner and will remain so for the foreseeable future,” Farrell stated in his media release following his visit on November 4. The crucial role of China in Australian international trade aligns with the positive market reaction to the removal of wine tariffs. In June, three months since the tariff removal, Australia reclaimed its position as China’s largest wine supplier. 

By September 2024, the resumption of export to mainland China had driven annual Australian wine exports to their highest level in the past three years, with a 34% increase in export value to AU$2.39 billion (US$1.59 billion) year-on-year. Mainland China, as the top destination by value, accounted for 25.6% of the total export value.

The export data from September marks the stabilization of Australian wine exports to China following a sharp decline in August, with decreases of  60% in value and 42% in volume on a month-on-month basis.

Several Australian government officials, including Scott Dewar, the Australian Ambassador to China, accompanied Farrell during his visit to TWE. The delegation met with representatives from TWE and the China Alcoholic Drinks Association (CADA), China’s official drinks trade body. 

In September, CADA and Australian Grape & Wine (AGW), Australia’s wine industry association, organized by TWE, signed a Memorandum of Understanding to commit to knowledge exchange and development of winemaking talent between the two countries. 

Tim Ford, the CEO of TWE, highly commented, “We’re proud to play a leading role in this program, demonstrating our ongoing commitment to China as part of TWE’s long-term growth strategy, and our excitement about the future of Chinese winemaking.”

As the largest wine exporter to China and with its flagship product, Penfolds, being one of the most well-known imported wine brands in the country, TWE has been a primary beneficiary of the resumption of wine trade with China. In fiscal year 2024, Penfolds reported a 34.7% increase in sales revenue, with the resumption of sales in mainland China making a significant contribution.

At the invitation of Wang Wentao, China’s Minister of Commerce, during his Shanghai visit, Farrell will lead Australia’s delegation to the China International Import Expo (CIIE), the world’s largest import expo. “The expo is an important platform for Australian businesses to showcase their world-class goods and services to our largest export market,” Farrell wrote in his media release.

TWE will be represented by brands, including Penfolds, at the CIIE scheduled for November 5-10 to engage with local governmental and industrial representatives, as well as to communicate with suppliers, partners, and clients.