Treasury Wine Estates (TWE) has announced a landmark agreement to acquire a 75% equity interest in Ningxia Stone & Moon Winery Co. Ltd for RMB 130 million (approximately EUR 17 million).
Situated in QingTongXia, Ningxia Hui Autonomous Region, this strategic investment underscores TWE’s growing commitment to China’s wine industry and its long-term vision of enhancing connections with Chinese consumers.
Expanding TWE’s Global Luxury Wine Portfolio
The acquisition marks a significant step in TWE’s efforts to grow its luxury wine presence in key international markets. The assets of Stone & Moon Winery include:
- 43 hectares of premium vineyards, featuring grape varieties such as Cabernet Sauvignon and Marselan, which are already being used in Penfolds' China-origin wines.
- A modern winery with capacity for future expansion.
- A cellar door that positions the winery as a prime destination for wine tourism in Ningxia.
Tim Ford, CEO of TWE, highlighted the importance of this acquisition:
"This 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. We are thankful for the support of local governments, partners, and the wine community in this endeavor."
A New Chapter for Stone & Moon Winery
XuanHao Kang, founder of Stone & Moon Winery, sees the partnership as a pivotal moment:
"Joining TWE allows us to showcase the exceptional quality of Ningxia wines to a global audience. Together, we can celebrate the unique terroirs of the Ningxia Hui Autonomous Region and contribute to the future of Chinese winemaking."
Integrating into Penfolds’ Multi-Country Strategy
The acquisition strengthens Penfolds’ multi-country sourcing strategy, which emphasizes crafting luxury wines from world-renowned winemaking regions, including Australia, the United States, France, and now China.
This strategy is exemplified by the Penfolds CWT 521 luxury wine, a blend that highlights the unique terroirs of Ningxia and Yunnan while maintaining the iconic Penfolds “House Style”.
Tom King, Managing Director of Penfolds, expressed his enthusiasm:
"Partnering with Stone & Moon Winery will accelerate the development of our Chinese winemaking capability. The Ningxia region is gaining global recognition for its quality wines, and we’re excited to play a part in its growth while building on our strong connections with Chinese consumers."
Strengthening Partnerships in China
TWE’s investment builds on its existing collaborations in China, including a strategic partnership with CADA, the nation’s leading alcohol industry body. Through this partnership, TWE and Penfolds aim to support the rapid development of China’s wine production capabilities and enhance its position in the global wine market.
Source: TWE