The company will pay a final dividend of 17 cents per share fully franked, taking its payout for the year to 35 cents per share, a 12.9 per cent increase on the year before. Investors welcomed the update, sending the share price 2.8 per cent higher.

Australian drinkers can expect local bottle prices to stay fairly steady this financial year, though Ford noted this was ultimately up to the retailers.

“You’ve got to ask Endeavour and Coles,” he said. “From our point of view, we don’t plan to take price increases in this market.”

Treasury Wine announced a multi-country of origin collection strategy last financial year to circumvent Beijing’s wine tariffs and meet demand from Chinese consumers. Wine from the ‘One by Penfolds’ collection is sourced from Ningxia, China; Bordeaux, France; and California, US.

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As part of the One by Penfolds launch, Treasury Wine appointed Japanese fashion designer, DJ and entrepreneur Nigo as a creative director in July to boost credibility with younger consumers. Nigo is the artistic director of streetwear brand Kenzo and founded clothing line A Bathing Ape.

The appointment of Nigo, who created four animal motifs representing the four countries Penfolds grapes are sourced from, has already driven “social media buzz younger consumers engage in”, Ford said.

The chief executive has made multiple trips to China this year to rebuild customer relationships as winemakers and wine exporters wait for wine tariffs to be dropped.

However, some industry insiders do not expect the Chinese wine market to be the same as it was in its heyday before COVID-19, when it was a $1.2 billion industry. Beijing’s wine tariffs pushed many wine growers out of the industry altogether and has driven an oversupply in red wine that may force some growers to mothball their vineyards this year.

The current oversupply in red wine is equivalent to 859 Olympic swimming pools, according to Rabobank’s latest wine report, which said that even early removal of Beijing’s tariffs would still see Australia facing two years of oversupply.

Treasury Wine announced on Tuesday its chairman Paul Rayner will retire at the next annual general meeting on October 16 and will be replaced by outgoing Telstra chairman John Mullen, who is currently a non-executive director on the board.

Rayner said Mullen had the appropriate skills to steer Treasury Wine for future growth. “He has my full support as chairman-elect and I look forward to handing over the role to him as part of the company’s broader succession strategy,” said Rayner.

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