Bright Food still looking for Aussie vintage

WHILE cold water has been splashed on the theory that Bright Food is circling Treasury Wine Estates, accepted market wisdom remains that the Chinese conglomerate is keen to buy an Australian-based wine group.

It's thought Bright Food sees an opening to buy wine producers outside China that would supply its growing domestic retail operations, The Australian Financial Review reports.

A potential play for TWE cannot be ruled out, according to Citigroup analyst Andy Bowley, but he points out that there are plenty of alternative and less expensive – read more financially stressed – wineries in Australia.

Bowley, who has reiterated his "sell" recommendation on TWE to clients, also believes China's largest agri-food player COFCO is an unlikely acquirer.