Localization
In December, Australian wine giant Treasury Wine Estates (TWE) announced its acquisition of a 75% equity stake in Stone & Moon Winery Co. Ltd. for RMB 130 million (US$17.9 million), located in Ningxia, China. This acquisition confirmed rumors about Penfolds establishing a winery in China.
Penfolds was not the first wine giant to own a winery in China. Before Penfolds, Château Lafite Rothschild, LVMH, and Pernod Ricard had already established their own wineries in the country. Prior to acquiring Stone & Moon Winery, Penfolds had collaborated with domestic vineyards and introduced wines from Ningxia and Yunnan.
For these giants, localization is a key contingency plan to mitigate geopolitical risks and demonstrate commitment to the Chinese market. Despite a few years of contraction in the Chinese wine market, the country remains the largest wine market in Asia, thanks to its vast population and a per capita GDP of US$12,000.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
