Ann: AVG AGM Addresses and Presentation, page-8

Traditionally AVG's wine brands have been at the cheaper end, hence the low margin. TWE's ROE has likely been boosted by high margin premium sales into China. Recent developments re trade issues with China I believe may be quite positive for AVG - this is because AVG sells only a very small amount into China, so our sales will not be significantly impacted. However, the fallout from the trade issue is that global wine consumers are very positive Australian wine at the moment. They want to support us against what they view as unfair and unwarranted pressure from China. This should benefit Aussie wine exporters in other markets. For example, a read something the other day where in Hong Kong, Taiwan, Singapore etc they are calling Australian wines 'Freedom wine' and drinking it in favour of other brands.