ACB News (ACB News), Dec. 1 -- Australian premium wine brand Penfolds will be forced to pull out of the Chinese market as China imposes punitive tariffs on Australian wine exports to China. At the same time, the brand will face challenges in seeking other markets.
Image from: Snowball
Tim Ford, CEO of Penfolds" parent company, Cognac Wine Group (TWE), said the Penfolds premium brand will make a big push to develop markets such as the U.S., Korea, Japan and China and Taiwan, but that will take two to three years.
It is reported that the Chinese market accounts for nearly 40% of the Penfolds brand's profits and the US is seen as a potential market for Penfolds, but the potential premium customer base in the US is limited due to the fact that Australian low and mid-range wine brands are more popular in the US. Therefore, Penfolds has a long way to go in the United States.