Treasury shares surge amid ex-China growth announcement
Shares of Treasury Wine Estates leapt by as much as 11.8% in the wake of the company’s announcement regarding its operating earnings outside of mainland China.
Chinese tariffs on Australian exports wiped nearly $1 billion off the value of Australia’s exports to mainland China, figures from Wine Australia showed earlier this month, but Treasury Wine Estates appears to be adjusting to the duties that all-but closed the Chinese market to Australian wine.
Treasury has re-directed its exports to other Asian countries; the United States and Europe, as well as domestically, since a row between China and Australia lead to deposit tariffs being imposed on bottled Australian wine.
“Penfolds growth was particularly strong in Asian markets outside of Mainland China … increasing distribution in Asia, domestic markets, Europe and the United States was a key execution highlight,” a statement from Treasury reads.
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According to Reuters, Treasury shares rose by as much as 11.8% in early trading in the wake of the announcement.
Treasury expects to increase its prices across some brands in its portfolio in the wake of rising supply chain costs that are being witnessed across many markets around the world at present.
The company’s 19 Crimes brand recently announced a partnership with lifestyle mogul Martha Stewart in the United States. 19 Crimes Martha’s Chard sees the celebrity team up with 19 Crimes on a California Chardonnay that is now on sale nationwide with a suggested retail price of US$12.
H/T: Reuters
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