Treasury Wine Estates, the winemaker is taking a real ice flow of demands of the luxury wines. Demands come from China as well as the other markets around Asia after suffering a drop of demands. The credit lines for business of wines look so fine and will be alright checking on the high demands recently received. The company stated that the measures of austerity implemented by the government of China had dented the demands of premium wines especially for wines as gifts. Wines are in high demands from the high business finance class and the strong demands continue across other parts of Asia.
Because of the high demands from high business finance class, Treasury Wine Estate or TWE will optimize the flexibility by distributing wines to the markets in Asia in order to provide the brands and taking optimization of profits. Warwick Every-Burns, the interim chief executive stated that Asia is something more than just about China. Widening the business basis and creating the larger business bank account must not be forgotten. The performance of the company in Hong Kong so far is outstanding and the wine becomes number one being sold by value and volumes. The market in Japan continued to show its potential.
Although those credit lines for business in Asia seem to be alright, TWE actually suffers from a drop in earning. Last year the first half of 2013, financial earning drop for about 63%. The volume of wine being sold fell for about 18% because the Chinese demands are decreased, natural disaster in Philippines and the change of alcohol tax in Thailand. The number of luxury wines those are used as gift may have decreased but the middle class and high class wines are still holding demands and hope for expanding the business bank account. TWE seeks for the way to raise the sales again.