Treasury Wine Estates (TWE) has entered into an agreement to acquire a 75% equity interest in Chinese vineyard Ningxia Stone & Moon Winery Co. Ltd (Stone & Moon) for approximately $27.5million.

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 described it as a “significant milestone” in its 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.

TWE CEO Tim Ford said: “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.

“We are very thankful for the support of the national and local governments, our local partners, industry organisations, and the wine community.”

Founder of Stone & Moon Winery XuanHao Kang said: “We are proud to join Treasury Wine Estates, a company renowned for its dedication to producing world-class luxury wines. 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.

“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.”

The Stone & Moon Winery will play an important role in Penfolds multi-country of origin strategy, which includes a portfolio of globally sourced luxury wines from 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’.

Penfolds Managing Director Tom King said: “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.

“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.”

The 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.