Coronavirus starts to impact the wine industry as key players warn of profits drop

Coronavirus starts to impact the wine industry as key players warn of profits drop.

Treasury Wine Estates (TWE) and Diageo have both warned that profits will be below target from a drop off in sales in China.

Australian giant Treasury Wine Estates said it no longer believed it would achieve its growth target of 5-10% for 2020. They say that consumption across discretionary categories in China has been significantly impacted through February, and this impact on consumption is expected to be sustained to at least through March.

UK drinks giant Diageo said its growth would now be at the lower end of its target range of 4-6%.