Treasury Wine Lifts 2008 Grange Price 15% as China Demand Rises

Treasury Wine Lifts 2008 Grange Price 15% as China Demand Rises

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(Bloomberg) - Treasury Wine Estates Ltd. (TWE), the world’s second-biggest listed winemaker by revenue, lifted the price of its premium 2008 Penfolds Grange vintage by 15 percent as growing Chinese demand for high-end wines outpaces supply.

The rise to a recommended retail price of A$785 ($821) a bottle will be the second for 2008 Grange in four months. It puts the 2008 vintage, on sale in May, 26 percent above the price of Grange’s 2007 output, Sandy Mayo, global brand business director for Penfolds, said in an interview.

Treasury Wine is hoping to boost sales to about 60 cities in China within five years from less than 16 at present as it tries to capitalize on Asia, its fastest-growing and highest- margin market. Treasury is allocating a larger share of its 7,000 case to 9,000 case production of the high-end wine to China, amid strong demand for a label produced in the year of the Beijing Olympics and ending in the auspicious number eight.



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