Treasury Wine Estates (TWE) has announced it has entered into an agreement to acquire a 75 per cent equity interest in Ningxia Stone & Moon Winery Co. Ltd (Stone & Moon) for a price of RMB130m (approximately $27.5m).
Located in the city of QingTongXia, the acquisition further strengthens TWE’s commitment to the Chinese wine market. TWE’s efforts aim to enhance its presence in China and drive further connection and engagement with local consumers.
Tim Ford, CEO of TWE said the company was committed its progress in the Chinese wine industry.
“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,” he said.
“We are very thankful for the support of the national and local governments, our local partners, industry organisations, and the wine community.
“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. 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.”
After Penfolds released its first China-sourced luxury wine in 2023 and Stone & Moon will play an important role in Penfolds’ multi-country strategy, with China now added to the portfolio of Australian, French and American wines. Penfolds will be supporting the production of Penfolds luxury Chinese Winemaking Trial (CWT) 521, which will combine features of the Ningxia region and its grape varieties while maintaining Penfolds identifiable ‘House Style’.
XuanHao Kang, Founder of Stone & Moon Winery shared his excitement on the partnership.
“We are proud to join Treasury Wine Estates, a company renowned for its dedication to producing world-class luxury wines. This partnership represents an exciting new chapter for Stone & Moon Winery, enabling us to showcase the exceptional quality of Ningxia wines to a global audience. 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,” he said.
Ford has previously outlined his plans to establish TWE among international markets back in the beginning of the 2025 financial year. After the removal of tariffs on Australian wine imports to China and the re-opening of the Chinese market, Ford revealed his plans to re-build distribution.
The latest investments continue to build on existing Chinese partnerships, including its involvement with CADA, China’s primary alcohol industry body.
The Stone & Moon transaction is expected to be completed in the first half of 2025.