The owner of Penfolds is disappointed by Chinese sales after its highly anticipated return to the market following Beijing dropping punishing tariffs on Australian imports.

Treasury Wine Estate this week dropped its guidance, saying its sales in China had been affected by “evolving consumption dynamics within the alcohol sector”, in particular large-scale banqueting occasions.

Treasury Wine saw some signs of improvement in August and a return to grow in September, and had been pinning its hopes on China’s Mid-Autumn Festival period, a harvest festival that in 2025 fell in early October.

“Unfortunately, the early signs of improvement were not sustained,” chairman John Mullen told shareholders at the company’s annual meeting on Thursday.

“While we do not yet have definitive numbers from

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