Treasury Wine Estates CEO David Dearie has strongly denied Penfolds will set a minimum price for Grange, and that he had been quoted out of context.

In an interview with The Drinks Business, Dearie was quoted as saying ‘Next year we will set a minimum price [for Grange] and you must hit that minimum price or you won’t get an allocation.’

The comment prompted comment suggesting that that would amount to price fixing.

This afternoon a spokesman for Dearie told his comment was misinterpreted, saying he was referring to a price being set for internal business units not for independent wine merchants.

‘David Dearie’s comment related solely to the pricing of Penfolds Luxury and Icon wines to its internal business units globally, as part of the company wide allocation process.’

He added, ‘Penfolds of course complies with all global competition laws that prohibit resale price maintenance.

‘The comment was clearly not made in relation to Penfolds’ pricing to retail partners .’

Written by Adam Lechmere