Penfolds Playbook: What It Got Right About China? 

In the lead-up to Chinese New Year 2025, the country’s alcohol sales hit a seasonal peak—and in the wine sector, industry insiders drew a stark line: there’s Penfolds, and then there’s everyone else.

According to Vino Joy News interviews with importers and distributors across China, Penfolds stood out as the only brand showing strong consumer sell-through during this critical sales window.

Official data backs up the sentiment. In January 2024, Australia’s wine exports to China returned to near-peak levels—matching the surge seen in mid-2023 when Beijing first lifted its punitive tariffs on Australian wine. And industry experts say that growth came almost entirely from one brand: Penfolds.

Why Penfolds Is Outperforming in a Down Market

To understand how Penfolds has managed to defy gravity in a declining market, one must look beyond its legacy or reputation. The secret lies in how its parent company, Treasury Wine Estates (TWE), has chosen to operate in China.

While most traditional wine brands focus on heritage, terroir, and winemaking philosophy, Penfolds in China has flipped the script. TWE has crafted a strategy that more closely resembles the playbook of international spirits and luxury brands—one designed to speak to a broader, lifestyle-oriented audience rather than just seasoned wine drinkers.

TWE has crafted a strategy that more closely resembles the playbook of international spirits and luxury brands—one designed to speak to a broader, lifestyle-oriented audience rather than just seasoned wine drinkers.

This approach, combining marketing sophistication with sharp channel execution, has positioned Penfolds as a premium aspirational product for China’s new generation of wine consumers—many of whom are younger, less informed about traditional wine knowledge, and deeply influenced by celebrity endorsements and social media.

The Penfolds Experience at CFDF

A prime example of Penfolds’ branding brilliance was on display at the 2024 China Food and Drinks Fair (CFDF), China’s largest and most influential wine and spirits trade fair. Held every spring in Chengdu, the CFDF is often described as the barometer of what’s trending in China’s wine and spirits market.

Unlike conventional booths, which typically feature a simple tasting table and business discussion area, Penfolds designed its space to feel more like a bar. Professional sommeliers worked behind a sleek counter pouring wines, while sales staff engaged with guests outside the bar and guided them in. Responsibilities were clearly divided, traffic flow was smooth, and the visual language was unmistakably Penfolds—dominated by its signature red, paired with upbeat music to enhance the atmosphere. 

Another section of the booth, dubbed the “Floral World,” resembled an art installation. Set against a white backdrop with hand-painted red grape motifs, the area spotlighted “One by Penfolds,” its entry-level wine range promoted in collaboration with Gen-Z pop star Hua Chenyu. As a brand ambassador, Hua was enlisted to help Penfolds tap into the younger demographic.

Visitors could take selfies with Hua’s image at a dedicated photo area, drawing scores of fans and influencers from lifestyle app Xiaohongshu (Little Red Book) on the fair’s opening day. Their posts amplified the brand’s reach through social media, giving the brand viral traction. Penfolds even released a limited-edition bottle of One by Penfolds with a label designed by Hua himself—cementing its embrace of fan culture, which has become a powerful sales engine in China.

Why Three Brand Ambassadors?

Every year at the spring CFDF, Penfolds launches similarly immersive experiences, engaging attendees through sight, sound, smell, and taste. In contrast to many wine brands that emphasise traditional storytelling—such as region, varietal, winemaking technique, and vintage—Penfolds intentionally streamlines these narratives in favour of brand tone and lifestyle appeal.

Its ambassador strategy also reinforces this positioning. In addition to singer and pop star Hua Chenyu (born in the 1990s), Penfolds has enlisted Chinese actors Luo Jin (born in the 1980s) and Duan Yihong (born in the 1970s), each representing a different tier of the portfolio. Hua promotes the youthful, entry-level One by Penfolds; Luo fronts mid-range labels like Bin 389; and Duan is the face of high-end offerings such as Bin 707 and Grange.

This tiered ambassador model mirrors that of international spirits brands, such as Martell, which uses different celebrities for its VSOP, Blue Swift, and XO lines. “Penfolds’ strategy is very similar to how spirits brands operate,” said Luo Zhaoxing, Sales Manager at Sichuan Xiao Yi International Trade Co., Ltd.

An insider close to TWE noted that Penfolds is run more like a luxury brand, which explains the crossover with spirits marketing. “The aim is to connect with mass-market consumers using different products for different segments, while building brand image and leveraging fan culture to drive sales,” the source said. “That said, Penfolds still hosts small, private tastings for wine aficionados that highlight scores, regions, and history—those just aren’t publicised as much.”

An eastern China-based Penfolds distributor observed that Penfolds’ approach reflects TWE’s status as a publicly listed company—its operations are inherently results-driven.

“Many other wineries are still family-owned, often conservative, and not overly focused on short-term profits. They prefer to tell stories about their heritage and terroir. But in China, where wine is still considered an imported curiosity, the average consumer is less interested in such technical or historical details,” the distributor said. “Penfolds’ China-specific strategy has clearly proven more effective in today’s market.” 

Precision in Distribution and Financial Leverage

Behind the scenes, Penfolds also excels in distribution and trade execution—a crucial but often overlooked area in China’s fragmented and competitive market. 

Its distributor network is segmented by region, product line, and sales channel. There are about four first-tier distributors with exclusive brands, plus roughly seven provincial-level distributors handling series like Bin 389. For other retail channels like supermarkets, Penfolds works with entirely separate agents. These groups operate independently of one another.

In terms of channel management, Penfolds demonstrates impressive professionalism. According to Wang Chen, Deputy General Manager of Southern Airlines Cross Border E-commerce Co., Ltd., the brand runs a centralised management system with quarterly payment targets assigned to distributors.

An eastern China distributor added, “Penfolds handles brand building, while distributors focus on warehousing and sales. The company also provides rebates to incentivise sales performance and control market pricing, essentially creating a financial leverage model.” 

“Penfolds handles brand building, while distributors focus on warehousing and sales. The company also provides rebates to incentivise sales performance and control market pricing, essentially creating a financial leverage model.” 

A Penfolds distributor in Eastern China

“The Penfolds team acts like middle management,” the distributor explained. “It empowers distributors but also retains control over the broader market.”

In contrast, many wine producers still apply traditional trading models in China. With limited promotional support and weak channel management, their presence in the Chinese market remains minimal. However, Luo Zhaoxing emphasised, “Penfolds wouldn’t have been able to pull this off without years of brand equity and deep-rooted consumer awareness.”