(Bloomberg) -- Treasury Wine Estates Ltd. will soon release a made-in-China version of its famous Penfolds brand, dodging punishing import tariffs that are crippling Australia’s wine exports.

The first bottles will go on sale in China for between A$30 ($21) and A$50 in the second half of 2022, Treasury said Wednesday. Experiments with grapes from Ningxia, in China’s central-north, and Shangri-la in the south-western province of Yunnan, have produced “promising characteristics,” it said.

Beijing in 2020 slapped tariffs of as much as 200% -- or more in some cases -- on Australian-made wine as trade and diplomatic relations soured. That effectively cut off from Australian winemakers an estimated 52 million regular drinkers.

China’s Tariffs Overwhelm Australian Winemakers as Exports Fall

“We’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style,” Chief Executive Officer Tim Ford in the statement.

Treasury in 2021 launched Penfolds Napa, sourced from California grapes, and a French version is due in 2023.

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