The Treasury Wine Estates Ltd (ASX: TWE) share price has edged higher on Thursday as the Aussie wine distributor pushes ahead into the online sales space.
Why is the Treasury Wine share price climbing?
Shares in the winemaker and distributor have edged 0.50% higher at the time of writing. That’s despite no new ASX announcements from Treasury Wine since way back on 13 May 2021.
However, an article in the Australian Financial Review (AFR) has piqued interest in the Treasury Wine share price. Treasury Wine is reportedly increasing its push into British and European wine markets with a focus on online sales.
Penfolds chief winemaker Peter Gago said the winemaker was “going up a gear” in its European push. The overseas push to diversify comes after China slapped tariffs on key Treasury Wine products in 2020.
Treasury Wine is reportedly shifting its focus for higher-end Penfolds wines to other countries in Asia such as Thailand and Malaysia in response to the lost Chinese revenue. It comes after CEO Tim Ford flagged a 5-to-10-year strategy for the company’s push into other Asia ex. China markets back in May.
The article on the company’s continued diversification and offshore push has helped boost the Treasury Wine share price higher on Thursday.
How have the company’s shares been performing?
The Treasury Wine share price slumped last year following China’s tariff announcement. China previously represented a major importer of Treasury Wine products but demand has nosedived due to the increased pricing.
Despite the disruption, the ASX 200 company’s value has managed to recover in recent times. Shares in the Aussie company are up 26.9% in 2021 and 13.9% in the last 12 months.
Today’s gains mean the winemaker’s shares are outperforming the S&P/ASX 200 Index (ASX: XJO), which has gained 0.2% at the time of writing.