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Treasury Wine Estates to distribute Baron Philippe de Rothschild portfolio in China by Dermot Davitt03/07/2017  

Treasury Wine Estates (TWE) has struck a deal to become the exclusive importer and distributor of Baron Philippe de Rothschild’s portfolio of wines in China. It will distribute brands such as Mouton Cadet and Escudo Rojo in the market effective from January 2018.

The move follows shortly after the launch of TWE’s own French brand, Maison de Grand Esprit, which is targeted at Asian consumers. As reported, the company aims to “disrupt” the traditional French wine category through a multi-regional, multi-sourcing approach under one brand name.

Disrupting the category: Maison de Grand Esprit targets Asian and Chinese consumers in particular; the move to distribute the Baron Philippe de Rothschild portfolio aims to deepen its influence in the Chinese market

TWE said that its “efficient” route to market in China had helped it move from the number nine to number one imported wine supplier by value in China in the past three years.

To bolster its position, the company plans to introduce warehouse facilities in Shanghai in late 2017, which will stock TWE’s recently introduced French brands, along with other major TWE brands including Penfolds, Wolf Blass, Beringer and Beaulieu Vineyard.

It claimed that this route-to-market improvement would reduce lead times for customer orders and allow customers to stock a broader range of TWE brands. The move should also open up opportunity for wider travel retail distribution of the brands.

TWE Chief Executive Officer Michael Clarke said: “We are continuing to execute on our strategy to be the imported wine category leader in China by both volume and value. We are doing this by investing in closer, more efficient and strategic partnerships with existing and new customers and by positioning TWE as the wine supplier of choice across multiple brand portfolios and countries-of-origin.”