Treasury Wines Estates Strengthens Position in China by Expanding French Portfolio Propositions and Plans for New Warehouse Facilities
June 30, 2017
In recent years, Treasury Wine Estates (TWE) has invested in a highly efficient route-to-market in China. This, together with an outstanding portfolio of wine brands – which span multiple countries-of-origin – has underpinned TWE’s expanding market share position; moving from number nine to number one imported wine supplier by value in China in just three years1.
Earlier this month, TWE unveiled its own premium French brand, Maison de Grand Esprit. Created to disrupt the traditional French category through a new-world, multi-region sourcing approach, Maison de Grand Esprit brings the best of France’s wine regions together under one brand.
To complement TWE’s own premium French brand, the Company today announced it will exclusively import and distribute in China, Baron Philippe de Rothschild’s portfolio of wines, led by Mouton Cadet and Escudo Rojo from Chile, effective January 2018.
Furthermore, to accommodate increasing demand for its brand portfolios (Australian, American and French), the Company plans to introduce warehouse facilities in Shanghai in late 2017, which will stock TWE’s recently introduced French brands, along with other major TWE brands including Penfolds, Wolf Blass, Beringer and Beaulieu Vineyard.
It is expected that this route-to-market improvement will reduce lead times for customer orders and improve opportunities for customers to stock a broader range of TWE brands, allowing the Company to become even more nimble in responding to market needs.
On today’s announcement, TWE’s Chief Executive Officer, Michael Clarke commented: “We are continuing to execute on our strategy to be the imported wine category leader in China by both volume and value. We are doing this by investing in closer, more efficient and strategic partnerships with existing and new customers and by positioning TWE as the wine supplier of choice across multiple brand portfolios and countries-of-origin.”
TWE is in blackout. Further details about TWE’s strategic partnership with Baron Philippe de Rothschild and the new warehouse facilities will be shared at the Company’s annual results announcement on 17 August 2017.
1 IWSR Global Database 2016; value share of total imported wine category in China