Treasury Wine Estates has acquired a 75% equity stake in Chinese winery Stone & Moon for a price of RMB130m, approximately $27.5 million.
Once incorporated into its portfolio, the Stone & Moon Winery will play a pivotal role in growing Penfolds’ country-of-origin program in China.
“Through this acquisition, we will further strengthen our commitment to, and investment in, the China wine industry, where Penfolds continues to be a highly admired and sought after brand,” said Tim Ford, CEO.
“The successful evolution of Penfolds to becoming a multi-country of origin brand has been a significant execution highlight in recent years, with the China sourced portfolio having resonated particularly strongly with Chinese consumers, and we look forward to continuing that momentum through this important long-term investment."
XuanHao Kang, founder of Stone & Moon Winery, says the partnership offers an opportunity to “showcase the exceptional quality of Ningxia wines to a global audience.
“We are proud to join Treasury Wine Estates, a company renowned for its dedication to producing world-class luxury wines,” he continued.
“We look forward to collaborating with the TWE team to celebrate the unique character of the Ningxia Hui Autonomous Region and contribute to the future of Chinese winemaking.”
Located in the QingTongXia city in north-central Ningxia, Stone & Moon’s assets include a modern winery with capacity for future expansion, a functioning cellar door, and 43-hectares of luxury vineyards planted to Cabernet Sauvignon and Marselan, some of which is already being sourced by Penfolds for existing county of origin wine production.
“Partnering with the Stone & Moon Winery will expedite the development of our Chinese winemaking capability, drawing on the expertise of the local Stone & Moon team,” said Penfolds’ Managing Director Tom King.
“We look forward to working together to build on the deep connections Penfolds has in China, and to become a global ambassador for Chinese luxury wine.”
One of the existing wines in Penfolds’ China country of origin portfolio is the Chinese Winemaking Trial (CWT) 521, which features Marselan sourced from Stone & Moon and Cabernet Sauvignon sourced from the Shangri-la region.
Spanning China, France, and the US, Penfolds global country of origin portfolio is currently overseen by Group Winemaker Stephanie Dutton.
In a recent Drinks Trade exclusive, Dutton said: “I actually think we, [Penfolds], are on the edge of our third era right now, but we don't know it because we're in it. It's this global winemaking era of premiumization, going where fruit grows best, being curious about other regions, regardless of borders or boundaries. I think in 15 years time, we will be reflecting on this as our third winemaking era, but we kind of don't know it right now because we're in it.
“It would be really easy for us to go into these northern hemisphere countries, California, Bordeaux, China, Yunnan and Ningxia, and it would be really easy for us to do everything exactly the same as we always have; but if we did everything exactly the same, we may as well stay at home and just keep doing more of what we're doing at home."
The acquisition represents a significant milestone in TWE’s efforts to enhance its presence in China, and marks a continuation of its important role in facilitating Australia-China trade relations.
"This acquisition aligns with our vision to grow our luxury wine presence in key international markets, while strengthening our commitment and investment in China’s wine industry,” said Ford.
“We are very thankful for the support of the national and local governments, our local partners, industry organisations, and the wine community.”
The transaction is expected to be finalised in the first half of 2025.
//
Interview: In conversation with Michael Parks, TWE’s Global Director of Sustainability
Share the content
