The Treasury has steadily expanded its export business to other Asian countries, including Vietnam, Thailand, Malaysia and Japan, but this has not been enough to offset China’s tariffs.

Mr Ford said that outside of mainland China, Penfolds’ revenue increased by 49.1%. Mr. Ford wants to seek new customers for the Penfolds brand and further expand global distribution and availability.

The Treasury Americas business increased EBITS 19% to $85.2 million, with margins up 4.2 percentage points to 18.3%.

Treasury Wines has been steadily withdrawing from the low price wine business in the United States and its strategy is to move more into the premium segment of the market. On November 18, the company announced that it had acquired luxury chardonnay maker Frank Family Vineyards in California’s Napa Valley for $315 million ($434 million).

Shares of Treasury Wine were trading at $12.50 on January 5, but had fallen below $11 in recent weeks. The stock was at $13.20 at the end of August.

Overall, Treasury Wines’ revenue for the six months ended Dec. 31 fell 8.8% to $1.3 billion. The company maintained its interim dividend at 15¢ per share.

Frank Family Vineyards was established in 1992 by Rich Frank and sells wines in price ranges from US$38 to US$225 per bottle across varietals including Chardonnay, Cabernet Sauvignon, Pinot Noir and Sparkling Wine. . It is the number 2 luxury chardonnay market in the United States. Frank Family Vineyards is a high-margin business with profit margins of 37.9%.

One of the fastest growing Treasury Wines brands in the United States is 19 Crimes, which is selling at a significantly lower price than the Frank Family Vineyards portfolio.

The 19 Crimes brand, led by a major marketing and advertising campaign featuring American rapper Snoop Dogg, has become a business with 5 million cases a year worldwide, but generates most of its sales in the United States .