Made-in-China Penfolds Wine Will Dodge Crippling Import Tariffs

The Penfolds brand will soon be made-in-China by Treasury Wine Estates.

The first bottles will cost between A$30 and A$50 in China in the second half of 2022, according to Treasury. Experiments with grapes from China's central- north and south have produced promising characteristics, it said.

As trade and diplomatic relations soured, Beijing slapped tariffs of as much as 200% on Australian-made wine. 52 million regular drinkers were cut off from Australian winemakers.

China's tariffs overwhelm Australian winemakers.

The Chief Executive Officer Tim Ford said that they are confident they can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style.

The Treasury launched Penfolds Napa, made from California grapes, in 2021.