Tom King, managing director at Penfolds and XuanHao Kang, founder of Stone & Moon Founder. Image courtesy TWE
Treasury Wine Estates (TWE) announced today that it has entered into an agreement to acquire a 75% equity interest in Ningxia Stone & Moon Winery Co. Ltd (Stone & Moon) for a price of RMB130 million (approximately A$27.5 million). Located in QingTongXia, in the Ningxia Hui Autonomous Region in China, TWE said the acquisition “further strengthens” its commitment to the Chinese wine industry and represents a milestone in its efforts further connection and engagement with local consumers and enhance its presence in China.
The Stone & Moon brand produces several grape varieties including Cabernet Sauvignon and Marselan, with some grapes already sourced by Penfolds for existing China country of origin wine production. Stone & Moon’s asset base includes 43-hectares of planted vineyards, a winery with capacity for future expansion, and a cellar door.
“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, managing director at Penfolds.
“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.”
Tim Ford, CEO of Treasury Wine Estates, thanked the national and local governments for their support, as well as that of its local partners, industry organisations, and the wine community.”
“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.
XuanHao Kang, founder of Stone & Moon Winery added that his winery was proud to align with TWE.
“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,” said XuanHao Kang. “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.”
TWE said that Stone & Moon Winery will play an important role in Penfolds multi-country of origin strategy. This will include supporting the production of Penfolds Chinese Winemaking Trial (CWT) 521, featuring the characteristics of the Ningxia region, coupled with grapes sourced from Yunnan, while maintaining Penfolds ‘House Style’.
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.
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