Australia's largest wine company, Treasury Wine Estates, says its imports into China will be slugged with a massive 169.3 per cent tariff, and it will implement emergency measures to minimise the damage.Beijing imposed crippling import taxesThe move followed the preliminary findings of a Chinese anti-dumping investigation, which claimed Australia was unfairly subsidising wine exports, and causing China's winemakers "substantial harm".
On Friday Treasury had placed its shares in a trading halt after a panic sell-off led to its value dropping 11.3 per cent.The winemaker, known for its brands Penfolds, Wolf Blass, Lindeman's and many others, said the Chinese market accounted for two-thirds of its sales to Asia, and 30 per cent of its earnings.
"We will continue to engage with MOFCOM [the Chinese Ministry of Commerce] as the investigation proceeds to ensure our position is understood.Under Treasury's contingency measures, it will "reallocate" its Penfolds Bin and Icons ranges from China to other luxury growth markets with "unsatisfied demand".
The winemaker will also spend more on sales and marketing to drive demand in those regions, and expand its distribution footprint there.
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