Penfolds Maker Warns of China Sales Slowdown as Demand Weakens

One year after strong recovery in the China market, the country’s slowing economy and falling retail demand are hitting even premium brands like Penfolds.

Bottles of Penfolds Grange and a 1962 vintage Cabernet Shiraz at a re-corking clinic in Sydney on July 12, 2006. Greg Wood/AFP via Getty Images

While 2025 proved to be a strong year for wine exports to China, one of Australia’s largest winemakers is predicting figures for 2026 will be significantly below expectations due to weakening consumer demand.

Treasury Wine Estates (TWE) owns some of the industry’s leading brands, including Penfolds and Rawsons Retreat. It recently acquired a 75 percent equity in Stone & Moon Winery in Ningxia,  planning to establish a scalable base to sell locally sourced luxury wines to Chinese consumers.