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Treasury Wine Estates (TWE) is planning to establish a winery with its own vineyards in China for their Penfolds brand. The company confirmed the plans following a report by the Chinese trade publication Vino Joy News. This development comes shortly after China lifted its tariffs on Australian wines, as TWE aims to regain its previously dominant market share there.

Tommy Tse, Director of Public Relations and Corporate Communications at TWE, stated: "We have been exploring this opportunity for over a year and are actively working to build our own winemaking resources in China. However, due to the complexity of the project, we cannot provide a specific timeline yet." According to Penfolds’ website, the company has already conducted initial multiregional "Chinese Winemaking Trials" (CWT), producing Cabernet Sauvignon blends under the label "CWT 521."

The exact location of the planned winery has not yet been confirmed. Jack Wu, General Manager of Penfolds China, Ningxia, and Yunnan, stated to Vino Joy News that this move will not only revitalize the company’s brand but also contribute to the economic growth of wine regions like Ningxia and Yunnan."

China has become a key focus of Penfolds' "multi-origin strategy," which involves expanding the brand's portfolio to include wines from various regions. produces wines from regions such as Napa Valley in the USA. With the "One by Penfolds" series, which includes wines from France, the USA, and Australia in the mid-price segment, the company continues to shape this diversification strategy.