Treasury Wine Warns on China Drinking Shift as Profits Rise (1)

Treasury Wine Estates Ltd. is confident the Australian brand will keep growing in its key Chinese market, despite a shift in drinking habits sparked by a government directive banning alcohol from official banquets.

Treasury, the vintner behind iconic label Penfolds, posted a 17% gain in full-year profits on Wednesday. While it’s seen demand from China rebound following the removal of tariffs on Australian wine last year, it warned a directive from Beijing officials in May was already having an impact.

China issued new guidance to officials to ban alcohol and tobacco from government banquets, as part of a broad crackdown ...