Wine Giant Accolade Wines Won’t Support WTO Action Against China
South Australia-based Accolade Wines has refused to join fellow wine producers to take China to the World Trade Organization (WTO) over its damaging tariffs in alleged fear of retaliatory actions that might affect its business.
A confidential note first reported by The Herald Sun revealed Accolade executives telling the Australian Grape and Wine that they won’t back a WTO action “due to concerns about retaliatory action from China which may be carried out on individual companies or the industry as a whole.”
This is despite the industry group’s view that “the likelihood of retaliatory action against Australia if WTO action Is launched … is unlikely,” the report said.
The report noted that industry observers see Accolade’s decision as probably related to its own efforts to sell bulk wine into China through other countries.
Presently, China’s crippling tariffs of over 200% only cover bottled wines of two liters or less. But it might later cover bulk wines should Australia proceed with the WTO case, Accolade representatives said at the trade group’s board meeting in April.
Unlike other industry players, Accolade looks to sidestep the Chinese tariffs by selling their products from Chile and other countries to China, the Financial Times reported.
In March, the Australian Grape and Wine, Australia’s national association of winegrape and wine producers, said it will pivot to other markets such as Asia, Europe, the US, and the UK to meet growing demands there.
Earlier this month, Treasury Wine Estates announced its entry to more states in the US in a bid to stay afloat after getting hit by China’s punitive tariffs.
Accolade Wines, owned by US-based private equity investor The Carlyle Group, is behind one of the world’s largest wine brands such as Hardy’s and Grant Burge. It delivers its products in over 140 countries across four major markets, including Asia, Europe, the Americas, and the United Kingdom.
