( ) shares took a double hit during the pandemic-addled year of 2020. First, shares in the (ASX: XJO) global wine company got walloped along with the rest of the market as panicked investors sold off everything but the kitchen sink amid a near-constant stream of alarming COVID-19 news. Second, the company lost a valuable revenue stream after China slapped punitive tariffs on Aussie wine imports later in 2020 in retribution for the Aussie government's support of an inquest into the origins of the virus.
But time heals most wounds. And with the pandemic (and its still unproven origins) fading into history, China rescinded its Aussie wine tariffs in March this year. While it will take some time to rebuild sales to pre-pandemic levels in China, Treasury Wine shares could enjoy some ongoing tailwinds as the company works to grow its presence in the Middle Kingdom.
Speaking at Treasury Wine's on Thursday, chairman John Mullen said: We welcomed the news earlier this year that trade impediments were being removed on Australian wine in China. We acted quickly to establish Penfolds' re-entry and reignite the local luxury wine market. Our rapid response was possible because of our long-standing commitment to China, which continued during the tariff period, where we maintained investment in the Penfolds brand, and a local team of more than 120 people.
Maintaining a strong brand presence in recent years has given us a solid platform for growth over the long term. Looking back on FY 2024, .
