Treasury Wine’s Penfolds brand hit by China discounting

In a pop-up shop on the outskirts of Shanghai, the problems facing Penfolds across China are written in black marker pen and glued to the window. “Buy 1 get 1 free” says the sign promoting the offerings inside. For a wine brand that aims to sit alongside the likes of Louis Vuitton at the luxury end of the market, it’s hardly the ideal image. But the sign, written on an A4 sheet of paper, tells us much about the bumpy ride for Penfolds and its parent, Treasury Wine Estates, in China over the last three years.