Why it matters: Treasury Wine Estates is Australia’s largest wine company.
CEO Tim Ford says the luxury end of the wine market is still strong, with the Penfolds business making strong headway.
The company lifted its final dividend payout to 17¢, compared with 16¢ a year ago.
Treasury Wine Estates will delay decisions about allocations to different countries of its annual vintage of high-end Penfolds wine for a few months to keep its options open as the prospect of China removing punishing tariffs on Australian wines improves.
But chief executive Tim Ford promised not to annoy Australian drinkers by cutting back on stock of the luxury Penfolds bottles to local outlets. Australia has proved to be one of the growth engines for the brand after the $1.3 billion wine export market to China was trashed in late 2020, along with Singapore, Malaysia and Thailand where distribution of Penfolds was aggressively stepped up.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
