(Bloomberg) -- Treasury Wine Estates Ltd. is planning for years of negligible demand in China and will divert its marquee brand Penfolds to other countries, after anti-dumping duties came into force over the weekend.

The Melbourne-based company said Monday it’s reallocating the Penfolds Bin and Icon range from China to other luxury markets including Australia, the U.S. and Europe. All told, Treasury needs to find another home for one quarter of its annual global Penfolds volume.

China’s anti-dumping measures, which took effect Nov. 28., can potentially stay in place until Aug. 28, 2021. Until they’re lifted, Treasury said “demand for its portfolio in China will be extremely limited.”

China represented approximately 30% of Treasury’s total earnings last fiscal year. In its statement, Treasury said it’s also accelerating a drive to produce more wine in other countries such as France and potentially China to avoid the duties.

“We are extremely disappointed to find our business, our partners’ businesses and the Australian wine industry in this position,” Chief Executive Officer Tim Ford said.

The duties come just three months after China started an investigation into Australian wine, and follows a raft of other measures targeting coal to copper to barley this year. China is the biggest buyer of Australian wine, importing A$1.2 billion ($890 million) in the year through September, according to government marketing body Wine Australia.

China Targets Australian Wine, Says Ties Have Taken ‘Nosedive’

Treasury said the plan to diversify from China will bear fruit over a two- to three-year period, though the gains are likely to be limited in the year ending June 2021.

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