Treasury Wine Estates, the largest wine producer in Australia, is set to bolster its workforce in China by a staggering 67% as part of its aggressive strategy to re-enter the market. The move follows the company’s recent re-engagement with its primary export destination.
Tim Ford, CEO of Treasury Wine Estates, revealed plans during the Macquarie Australia Conference to expand the Chinese team from approximately 120 employees to around 200 by July or August. Emphasizing a renewed focus on China, Ford outlined intentions to ramp up marketing endeavors, aiming to solidify the company’s brand presence within the next year.
The decision to beef up its Chinese operations comes amid a strategic shift initiated six months ago, where Treasury Wine Estates halted wine exports to other markets in anticipation of China’s reopening, underlining the market’s significance to the company.
While Treasury Wine Estates’ China office confirmed the recruitment drive, specific details remain undisclosed.
Job postings on Zhaopin, a prominent Chinese recruitment platform, reveal that Treasury Wine Estates’ Chinese subsidiary, TWE (Shanghai) Trading Co., Ltd., is actively seeking to fill 34 positions. These include sales managers across nearly 20 major cities, along with roles in data analysis, IT, HR, finance, brand representation, and key account management for champagne, as well as winemakers in Diqing, Yunnan, indicating a broad expansion across regions and functions in China.
Before facing anti-dumping tariffs on Australian wine, Treasury Wine Estates enjoyed a robust presence in China, prominently featuring brands like Penfolds, American wines, and the French label Maison de Grand Esprit. The budget-friendly Rawson’s Retreat was also popular among consumers.
Highlighting the significance of the Chinese market, Treasury Wine Estates’ financial report for 2019 showcased impressive growth figures, with China leading all divisions with a net sales revenue increase of 35.6% and an EBIT growth of 48.7%, amounting to a profit of AUD 293.5 million.
However, the momentum came to a halt in late 2020 when China imposed substantial tariffs on Australian wines, citing anti-dumping and anti-subsidy concerns. By February 2021, reports emerged that Treasury Wine Estates had downsized its Chinese operations, leading to the dismissal of approximately 60 employees, primarily in sales and marketing.
Commenting on the current workforce expansion, an anonymous Penfolds distributor in East China expressed optimism, stating, “The number of Treasury Wine Estates employees now and in the future will certainly surpass the figures of 2020. The company’s refined management approach, with dedicated personnel in each province, is noteworthy.”
“Given the dynamics of the Chinese wine market, finding a standout brand like Penfolds is challenging. Therefore, Treasury Wine Estates’ expansion is not only beneficial for distributors but also for the industry,” the distributor added.
