Treasury Wine Estates (TWE) 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 approximately $27.5m.
Located in QingTongXia, in the Ningxia Hui Autonomous Region in China, the acquisition further strengthens TWE’s commitment to the Chinese wine industry and is a significant milestone in TWE’s efforts to enhance its presence in China and drive further connection and engagement with local consumers.
The Stone & Moon brand is well established, producing several grape varieties including cabernet sauvignon and marselan, with some grapes already being sourced by Penfolds for existing China country of origin wine production. Stone & Moon’s asset base includes 43-hectares of planted luxury vineyards, a modern winery with capacity for future expansion, and a cellar door.
“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 Tim Ford, CEO of Treasury Wine Estates.
“We are very thankful for the support of the national and local governments, our local partners, industry organisations, and the wine community.”
The Stone & Moon Winery will play an important role in Penfolds multi-country of origin strategy which includes an unrivalled portfolio of globally sourced luxury wines from some of the world’s best winemaking regions including Australia, the US, France and most recently China.
This will include supporting the production of Penfolds luxury Chinese Winemaking Trial (CWT) 521, featuring the unique characteristics of the Ningxia region, coupled with grapes sourced from Yunnan, while maintaining Penfolds famous ‘House Style’.
“After releasing our first China-sourced luxury wine in 2023, we’re delighted to be investing in such an exciting wine region in China which is gaining global recognition for its quality wines,” said Tom King, Penfolds managing director.
“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.”
This investment builds on existing partnerships TWE and Penfolds have in China, including a long-term, multifaceted strategic co-operation with CADA, China’s primary alcohol industry body, working together to build China’s fast-growing wine industry capability.
The transaction is expected to complete in the first half of 2025.