I think it is more about the availability than the price of Penfolds in China, that is the issue. Chinese blocking the wine imports is greater problem than the import tariffs.
You have to understand how Chinese high end consumers think. If something is expensive, then it becomes a status symbol. They can pay double price, it does not matter.
But if there is a general negative sentiment against Australia, then it may be that it completely disappear from the wine list, and that is the problem. It may happen that party members get scolded if ordering Australian wine at the banquet, or when giving it as a present. Same goes for sending a kid to the university here, or going for a holiday on the Great Ocean Road. I would dare to say that tourism and real-estate will suffer even more than the exports.
TWE Price at posting:
$8.59 Sentiment: Hold Disclosure: Held
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