You are here: Home » Reuters » News
Business Standard

Exclusive: Pernod Ricard wines held up at Chinese ports amid strained ties with Australia- sources

Reuters  |  SYDNEY 

By Colin Packham

SYDNEY (Reuters) - Wine shipments from Australian business have been held up at Chinese ports, two sources told Reuters, the first foreign company to be harmed by a deterioration in relations between and

Six Australian wine companies have faced delays at Chinese customs since complained of Chinese political interference late last year, straining ties, a said this month.

The listed French company owns the big-selling Australian wine brand Jacob's Creek.

"through its ownership of Jacob's Creek has been impacted by China's restrictions," said a government source briefed on the issue, who declined to be identified as he is not authorised to talk to the media.

Calls to French office were not immediately returned.

A for declined to answer specific questions, referring to the industry organisation Wine It declined to comment.

In recent months, and McWilliams Wines disclosed they were experiencing problems at Chinese customs.

They and Pernod Ricard joined several other companies for an emergency meeting with government officials last week, a government source said, to urge the government to break the impasse with over trade restrictions.

China's customs have not responded to faxes requesting comment on the Australian complaints of delays.

Pernod Ricard, which manufactures and sells various alcoholic drinks including and Martell cognac, does not publish sales records of Jacob's Creek Wines to

But this month, it said China accounted for about 9 percent of its global sales of 9 billion euros ($10.57 billion).

The Chinese delays have cast a shadow over an otherwise golden period for Australian wine exports, which are forecast to be worth more than A$1 billion in 2018, government figures show, compared with A$848 million ($641.43 million) last year.

has accused China of meddling in its domestic affairs and is introducing foreign interference laws that have strained relations between the two trading partners.

China has denied any such activity.

(Reporting by Colin Packham; Editing by Robert Birsel)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 13 2018. 16:15 IST