Treasury Wine Estates has bought 75 percent of Ningxia Stone & Moon Winery Co for $27.5 million.
Located in the highly-regarded wine region of Ningxia in north-western China, Stone & Moon’s assets include 43 hectares of planted luxury vineyards, a modern winery with capacity for future expansion and a cellar door.
The acquisition is consistent with TWE’s strategy of investing in luxury vineyard and production assets to support the growth of its luxury wine portfolio.
It will complement its existing third-party sourcing arrangements to “deliver an efficient and scalable
production model” for the Penfolds’ China country of origin portfolio.
TWE intends to evolve the site to create a local brand home for Penfolds, building on its strength as one of the leading luxury wine brands in China.
TWE CEO Tim Ford says, “Today’s 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.
“We look forward to continuing that momentum through this important long-term investment.”
The acquisition is expected to complete in the second half of 2025.
It is subject to the satisfaction of customary closing conditions.
The transaction terms include an option for TWE to acquire the remaining 25 percent ownership after five years.
Photo credit: The Australian.
Recent Comments