TWE spreading its wings
Wine Estates boss Tim Ford says the winemaker will continue to invest in new wine growing regions around the globe and expand its offering for its flagship luxury brand Penfolds, but will not compromise on quality.
Addressing the American Chamber of Commerce in Melbourne on Monday, Mr Ford said as the appeal of Australian wine had grown around the world, the winemaker ha d been expanding into new markets and winemaking regions.
“Penfolds is doing exactly this – growing its presence in some of the finest winemaking regions in the world while maintaining the distinctive Penfolds ‘thumb print’ characterised by a house style and a quality standard that is never compromised,” he said.
Penfolds has expanded recently into new wine styles including champagne and a spirit aimed at the Chinese market. With the Chinese government last year imposing crippling tariffs on Australian winemakers, the company has sought to own vineyards outside Australia and make more wine overseas.
“In 2019, it (Penfolds) launched a champagne in collaboration with French Champagne House Thiénot. In March this year the Penfolds California Collection was unveiled – more than 20 years in the making,” Mr Ford said.
“It received glowing reviews and has opened the door to grow the Penfolds Australia portfolio in the US also. More recently, we’ve purchased an additional winery and vineyards neighbouring our current site in Bordeaux.”
Mr Ford said the company’s French winemaking capacity would grow by about a third to produce merlot and cabernet sauvignon for the Penfolds Bin portfolio, with the majority planned for export.
And from August next year, Penfolds is combining its annual Australian, Californian and French releases into one global collection launch, allowTREASURY ing it to leverage the portfolios in different markets and capture key selling periods.
Treasury Wine last month unveiled its latest offshore expansion with the acquisition of Napa Valley’s Frank Family Vineyards for $US315m ($434m).