Treasury Wine Estates (TWE) has finalised its acquisition of a 75 per cent stake in Stone & Moon Winery during a visit to China this week.
The agreement was announced late last year with the equity deal reportedly worth around $27.5m at the time.
The company’s board and CEO Tim Ford travelled to Ningxia, in north-central China, to take a tour of the facilities and participate in an official ceremony with local management and staff.
“This partnership represents an exciting next step in our ongoing strategy and commitment to the Chinese wine industry,” Ford said.
“Ningxia’s excellent terroir and the efforts of its local winemakers have long impressed us.
“We are excited about the opportunities ahead as we work together to enhance the recognition of the wine from this region, on a global scale.”
During its time in Ningxia, an autonomous region of China, the delegation also met with officials from the Ningxia government to discuss the business’ strategy and the future of the wine industry in the region.
With Penfolds as part of the TWE group, the move will also form part of the brand’s Chinese Winemaking Trial 521.
The luxury wine trial combines the essence of cabernet sauvignon from the Shangri-La region in Yunnan province and the Marselan grape from Ningxia.
TWE Chairman, John Mullen, said discussions with industry and government partners have been productive.
“We’ve been so warmly welcomed during our visit, which is testament to the strength of the relationship between Australia and China, and our shared ambition for the success of both wine industries,” he said.
“Our commitment to Ningxia is much more than just investment, it’s about building a foundation for long-term success, nurturing local talent, and driving sustainable growth in the region.”
TWE is also promising to foster the next generation of Chinese wine professionals with the establishment of a Winemaker Immersion Program with the support of Chinese organisations, Australian Grape and Wine and the South Australian government.