(Bloomberg) — Treasury Wine Estates Ltd. unveiled an emergency plan to find new markets for its best-known labels after China imposed a crippling anti-dumping duties of 169 percent on its wine this weekend. Australia is China`s most dependent industrial economy and signed a free trade agreement with Beijing in 2015. But since 2018, when Canberra banned Huawei Technologies Co. from creating its 5G network, relations have been strained. They plummeted earlier this year when Morrison`s government called for an investigation into the origins of the coronavirus outbreak, a move that shook China`s pride and sparked a flood of criticism that Australia was a puppet of the United States. «We are extremely disappointed that our business, our partners` businesses and the Australian wine industry are in this position,» said Mr Ford. China is Australia`s largest buyer of wine and imports AUD 1.2 billion a year through September, according to the national marketing agency Wine Australia. In 2013, a further impairment of shares worth approximately AUD 160 million took place, followed by the dismissal of David Dearie and the appointment of Acting Chief Warwick Every-Burns. This left the activity in a more fragile state, as shares fell by almost AUD 2 to just over AUD 4. Steamroller crushed millions of cheap wine bottles to eliminate excess inventory in the United States.

[6] This ultimately resulted in a class action by angry shareholders, which was settled in 2017. [7] [8] After further difficulties in the division, which resulted in a further impairment of AUD 1.3 billion, 99% of Fosters Group shareholders agreed at a meeting in Melbourne in April 2011 to split Fosters Group`s business into separate brewing and wine companies. Treasury Wine Estates was officially listed separately the following month with David Dearie as CEO. [5] Treasury Wine Estates dates back to the founding of several New World vineyards in the 19th century. These include Lindeman`s and penfolds in Australia and Beringer Vineyards in the United States. Us Finance Department shares fell 12% in Sydney as investors digested the scale of the restructuring of the wine producer, the latest victim of an escalation in the Australia-China political dispute. Tariffs follow a series of other measures targeting Australian raw materials, coal and barley copper this year. In July 2016, Treasury Wine Estates deciphered its wine portfolio and announced the sale of 12 cheap wines in the United States. The sale of U.S. brands accounted for about one million cases of wine.

[10] «The uncertainty has been quantified,» said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney. «The bad news is really reflected in the share price.» It said the diversion of Chinese wines on the order of the Treasury was «very feasible,» not least because the company had been selling wine in other markets for years, while it now has to hire more sellers to work. In 2013, Treasury Wine had to destroy six million bottles of wine in the United States because of a massive oversupply. [13] [14] The company has suffered from a number of costly depreciations since the Forsters split. [14] The company was accused of «channeling» revenue by pushing wholesalers more than they wanted. [13] [15] In 2015, the Ministry of Finance reportedly began to reduce its presence in the UK market in order to focus on Asia, where margins were much higher. [9] Later that year, Treasury purchased most of the wine business of the London-based multinational diage. [6] Activities are divided into four regions: (1) Australia and New Zealand, (2) North and South America (i.e.: