The world's second largest wine company Treasury Wine Estates sees the strong Aussie dollar as a headwind, but has hit a sweet spot in China, its CEO David Dearie told CNBC.
The Australia-headquartered company, a spinoff from Fosters Group, reported a net profit of A$52.3 million ($53.3 million) over July to December 2012, the first six months of its financial year, which is a 30.8 percent improvement on the previous year.
The company attributed the growth to continued global demand for premium wines, which he argued was recession proof.
Historically, wine has been popular in Western economies, but according to Dearie, Asia, and particularly China, is showing increased appetite for premium wines. He said Penfolds and Wolf Blass premium brands were proving especially popular in China.
"What we're seeing is the Asian consumer, particularly China, really enjoying their red wine. They are very brand conscious and are looking for a brand with heritage and quality. We are forecasting a lot of growth for China and Asia," he said.