SYDNEY: Treasury Wine Estates Limited (ASX:TWE) has announced a strategic move to expand its presence in China by acquiring a 75% stake in Ningxia Stone & Moon Winery Co. Ltd (“Stone and Moon”) for RMB 130 million (approximately A$27.5 million).
Stone & Moon is located in the renowned wine-producing region of Ningxia in north-western China and boasts 43 hectares of planted luxury vineyards, a state-of-the-art winery with expansion potential, and a cellar door.
This acquisition aligns with TWE’s ongoing strategy to invest in luxury vineyards and production assets to bolster its premium wine portfolio. Stone & Moon will complement TWE’s existing third-party sourcing arrangements, providing a more efficient and scalable production model for the Penfolds’ China country of origin portfolio. Moreover, TWE plans to develop the site into a local brand home for Penfolds, further enhancing its status as a leading luxury wine brand in China.
The transaction, expected to conclude in the second half of 2025, is subject to customary closing conditions. The terms include an option for TWE to acquire the remaining 25% ownership after five years.
Tim Ford, TWE’s Chief Executive Officer, commented: “Today’s announcement is a significant step forward for TWE and Penfolds in China. This acquisition reinforces our commitment and investment in the Chinese wine industry, where Penfolds remains a highly admired and sought-after brand. The successful evolution of Penfolds into a multi-country of origin brand has resonated strongly with Chinese consumers, and we look forward to sustaining that momentum through this significant long-term investment.”
This move underscores TWE’s dedication to strengthening its luxury wine offerings and solidifying its presence in the thriving Chinese wine market.
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