News: Treasury wine sees red in China

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Treasury Wine Estates Limited (ASX:TWE) is leaving the cheap plonk at home and is taking Australia’s best wines to China’s newly developed palate for expensive red.



Last week it launched the 2008 Special Bin 620 Coonawarra Cabernet Shiraz to the Chinese market, at $1000 a bottle.



It’s part of chief executive David Dearie’s three-pronged strategy for giving the Chinese the perception Australian wines are of premium quality.



He told Fairfax Media the company’s brand spending, at less than 10 per cent, is small in terms of total spend, and he wants to significantly increase the figure.



Treasury demerged from Foster’s Group Limited (ASX:FGL) on May 20 this year.



Treasury Wine Estates Limited (ASX:TWE) reported a net profit of $64.4 million this year.