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Treasury Wines warns performance is still lagging in key markets

Treasury Wines has warned investors its performance in markets where Covid-19 restrictions remain in place are lagging behind expectations, and that this disruption will likely continue into next year.

Chairman Paul Rayner told investors at the business’ AGM the pandemic has continued to leave an indelible mark on the company, impacting and disrupting its customers, partners and business.

“In many markets that disruption will continue into next year despite vaccination programs gaining momentum around the world,” Rayner said.

“Our team is to be commended on how they continue to demonstrate care for each other, as well as our consumers, customers and partners, and the way they are embracing the key consumer challenges and opportunities emerging from the pandemic.”

According to the business, it’s operations across ANZ, EMEA, Asia and the Americas is being hampered by continued restrictions: with some areas open for on-premise selling and others not, Asia’s wholesale market, as well as ANZ and the America’s cellar door sales, being disrupted, and travel retail being closed across all of its markets.

The business’ supply chain has also been significant disrupted, according to SMH. Chief executive Tim Ford said delays and container availability are becoming more pronounced, and would likely continue to be an issue.

And, according to Rayner, this all occurred alongside the “effective closure” of the Chinese wine market to Australian wine.

“While this has presented challenges, we remain committed to the China market for the long term and continue to invest in our team, our brands, and our relationships with customers and consumers,” Rayner said.

“We recognise that, regardless of which market you operate in, businesses and brands are judged on how they act and behave, as well as the quality of their products … I think this will be particularly important in the Post-Covid world.”

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