China : Treasury Wine Estates tumbled as much as 13 per cent on Thursday after the winemaker said it was experiencing delays at Chinese customs for some of its Australian products.
The owner of brands Penfolds and Wolf Blass said it was seeking a “greater understanding of new and additional verification requirements which have been applied since April 2018, and seemingly appear to only apply to Australian Country of Origin wines” after some shipments were delayed.
Treasury Wine is not alone in experiencing delays at Chinese ports. US exporters of agricultural products, luxury cars and pet food last week reported delays at Chinese ports over more stringent environmental checks and quarantine procedures. Industry executives said Chinese officials had not cited bilateral trade friction for the delays.
The company reported in January that volume exported to North Asia grew by 60 per cent year on year in the six months to the end of December.
The Australian Financial Review reported on Wednesday that the winemaker was facing a “supply glut” in China. in response, the company said it “actively monitors shipments, depletions and stock levels of its retail and distributor partners”.
Treasury Wine shares recovered slightly to be 6.1 per cent lower in afternoon trading in Sydney. The benchmark S&P/ASX 200 was off 0.3 per cent.
