Penfolds to introduce Baijiu infused Wine

Dubbing it as one of the 3 innovations planned and to be known as Penfolds Special Bottling, TWE appears to have decided to chart unknown territory that will nurture the legacy and further enhance the Penfolds global footprint (read increase in sales and earnings per share).

Known for its bin series-the international popular icon Penfolds Grange is Bin-95, it will introduce Lot 518 as a Spirited Wine – a premium fortified Barossa Shiraz (94%) infused with Baijiu (6%), the popular distilled spirit in China. The product is scheduled to be released in September 2018, according to a Press Release earlier this week in Business Wire.

‘Penfolds continues to preserve a formidable reputation for remaining uncompromising on crafting wine to consistent quality, not quantity benchmarks,’ according to the Press Release which naturally does not talk about millions of dollars worth of unsalable cheap wine drained off in the USA and written off, a few years ago and the reported problem in the Press of the huge stocks left unsold in there warehouses of its distributors in China over the last couple of years.

Penfolds also announced release of high quality wines from Napa Valley grapes to its wine styles from the California from 2018 harvest onward. Read our Report on the said announcement in the previous issue of delWine.

Another Special Bottling which the company claims will further build up on the brand’s credentials as a multi-country sourced brand, is a champagne, expected to be released in 2019, in time for the celebration of Penfolds 175th anniversary year.

It has already launched this week the first release of Penfolds Special Bottling as Lot 1990 which is a Pot Distilled 28 year old Single Batch Brandy, a popular drink in Australia.

Penfolds continues to be an exponent of multi-regional sourcing. As if to prove their point about the importance of sourcing rather than the terroir, the iconic Shiraz is also made from Shiraz grapes multi-sourced from different regions.  Penfolds Chief Winemaker, Peter Gago says “Our Penfolds House Style certainly allows and embraces the freedom to explore premium viticultural regions across the world.”

 Gago further added, “The Penfolds winemaking team is delighted to engage in a profound expansion of our core range, while preserving Penfolds DNA and at the same time, building upon the creativity, ingenuity and boldness of our winemaking ancestry. This will broaden our base and help future-proof Penfolds.” This implies the strategy to cover uncharted territory for increase in sales, especially in the fortified wine segment..

Michael Clarke, CEO of TWE lays bare the company philosophy of the corporation when he says, "Today’s news on Penfolds signifies another important step on Treasury Wine Estates’ journey to build true trust marks; expanding the Penfolds stable to include brandy, spirited wine and multi-country sourcing. Innovation of this nature plays a critical role in driving long term, sustainable growth for the Company as we broaden brand appeal and offerings to consumers around the world. Multi- region and multi-country sourcing brings excitement and energy into established brands and at the same time, strengthens TWE’s ability to deliver consistent quality wine regularly, regardless of vintage variation”

According to experts, the innovation relating to the Baijiu-infused Shiraz is likely an attempt to cement Penfolds’ reputation in China, Australia’s biggest wine-export market. Indeed, few outside of the country would have heard of the foul smelling, fiery grain spirit, let alone trying to taste it. This experimental addition to the range will be introduced in September 2018, with a reported hefty tag of $110 as the retail price and is expected to add substantially to the top and bottom lines of the company.

The Baijiu infested-oops infused Shiraz is against the normally expected norms adopted by the smaller producers making premium quality wines in the Old World which believes terroir is the basis and in fact, a pre-requisite of making fine wine.  

Time will tell if this and other gambles of Penfolds taken by the parent company Treasury Wine Estate pay off. Meanwhile, according to Press Reports, the company which had raked up the controversy about 3  months ago about the shipments to China not being cleared, possibly for political reasons has said that the customs clearance is taking place now though at a slower pace.

For the previous related Article, please visit:

Penfolds to make wine in the USA

Subhash Arora

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