Treasury Wine buys Chinese winery for $30 million

The maker of Penfolds, Treasury Wine Estates has entered the Chinese winemaking business, acquiring 75 percent of Ningxia Stone & Moon Winery Co. Ltd for RMB 130m (approximately A$27.5m).

Located in the highly-regarded wine production region of Ningxia in north-western China, Stone & Moon’s asset base includes 43-hectares of planted luxury vineyards, a modern winery with capacity for future expansion and a cellar door.

Set in the eastern foot of Helan Mountain, regarded as a ‘golden zone’ for grape growing and high-end wine production, the region has a dry climate and abundant sunshine.

Founded in 2017 with input from French winemaker Nicolas Billot-Grima, Stone & Moon specialises in Organic wines, Marselan, Cabernet Sauvignon, Syrah, Merlot, Malbec, Viognier and Chardonnay.

The acquisition of Stone & Moon is consistent with TWE’s strategy of investing in luxury vineyard and production assets to support the growth of its luxury-wine portfolio, and will deliver an efficient and scalable production model for the Penfolds’ China country of origin portfolio, according to the company.

Additionally, TWE intends to evolve the site in the future to create a local brand home for Penfolds, building on its strength as one of the leading Luxury wine brands in China.

TWE’s Chief Executive Officer Tim Ford said: “(The) announcement is a significant step forward for TWE, and Penfolds, in China.

“Through this acquisition, we will further strengthen our commitment to, and investment in, the China wine industry, where Penfolds continues to be a highly admired and sought after brand.

“The successful evolution of Penfolds to becoming a multi-country of origin brand has been a significant execution highlight in recent years, with the China sourced portfolio having resonated particularly strongly with Chinese consumers, and we look forward to continuing that momentum through this important long-term investment.”

The acquisition is expected to complete in 2H25, and TWE has the option to acquire the remaining 25 percent ownership after five years.

Picture: Stone & Moon winery