Treasury Wine Estates (TWE) has welcomed Chinese premier Li Qiang to Penfolds Magill Estate following Australian wine exports hitting $86 million in value just one month after trade sanctions lifted.

Li Qiang attended a lunch hosted by CEO Tim Ford and Penfolds MD Tom King.

“As the home of some of Australia’s most iconic luxury wines, Penfolds provided the perfect setting for Premier Li’s delegation to meet Australian winemakers and senior government officials, including Foreign Affairs Minister Penny Wong, Minister for Trade and Tourism Senator Don Farrell, Senator Murray Watt and South Australian Premier Peter Malinauskas,” Treasury Wine Estates said.

Premier Li and his delegation also enjoyed a tour of Magill Estate led by Penfolds Chief Winemaker, Peter Gago.

Treasury Wine Estates said it remains committed to its partners and customers in China, with the trip continuing to strengthen relations between the two countries.

TWE announces premium brands restructure

Taylors Wines Managing Director Mitchell Taylor congratulated TWE on the success of the event.

“Well done Penfolds and Treasury Wine Estates. Thanks for hosting and building a positive atmosphere with the Australian wine industry and the Chinese Premier Li Qiang and the Minister of Commerce Wang Wentao,” he said. “[This is] building respect and trust for the future of the important Chinese wine market.”

The South Australian Wine Industry Association (SAWIA) said it was pleased to have attend the luncheon on behalf of the South Australian wine industry.

“Our President Kirsty Balnaves was part of the delegation to meet Premier Li,” SAWIA said.

“This trip continues efforts to strengthen Australia’s relationship with China, our most important trading partner.”

Australian wine sales reboot in China

The visit followed China’s Ministry of Commerce (MOFCOM) announcing in March that it was officially ending punitive tariffs it placed on Australian wine imported into China.

In the month since duties were removed on bottled wine, Australia has exported more than $86 million of wine to China.

The majority of Australian wine exports to China have been from South Australia, with South Australian wine producers exporting almost $80 million of wine to China in the first month since duties were removed (92.1% of Australia’s total wine exports to China).

Trade Minister Don Farrell told Sky News: “In the last month, since the bans on wine were removed, we’ve sold $86 million worth of new wine into China. 350, predominantly South Australian wine makers, have now got their wonderful products back into the Chinese market.

“If that continues, then our wine trade with China will be back to where it was, which was over $1 billion.

“We’ve managed to get all these things without kowtowing to the Chinese government.”

$3.5 million Grape and Wine Sector Long-term Viability Support Package announced

The Australian Government has announced a $3.5 million Grape and Wine Sector Long-term Viability Support Package to support the long-term viability of the grape and wine industry to respond to the oversupply of red wine.

The package will fund a range of activities that aim to build demand and new markets for wine both domestically and internationally, provide better data for growers to make decisions and diversify into alternative products, and investigate competition and regulatory issues.

The Australian Government has also announced that it will extend support for wine producers to grow domestic sales and promote agritourism by supporting the Wine Tourism and Cellar Door Grant Program for another year.

This allows wine and cider businesses to share $10 million in funding to help attract visitors to Australian wine regions and promote agri-tourism.

Under the program, wine producers can apply for grants of up to $100,000 on eligible cellar door sales made during the previous financial year.

Farrell said the announcements come on top of $2 million surge support for affected Australian agricultural exporters to re-establish commercial connections in China and continue to diversify into other markets.

“The Albanese Government is working with industry to support the re-entry of our world-class Australian wine to the Chinese market, and to continue to diversify their markets,” he said.

Pictured main (left to right): Mitchell Taylor, Tim Ford, Li Qiang, Don Farrell and Murray Watt.