TWE Completes Acquisition of Stone & Moon Winery in China

Australia’s Treasury Wine Estates has completed its acquisition of a 75% stake in Stone & Moon Winery, marking the important milestone in the company’s commitment and investment in Ningxia, and the broader Chinese wine industry, the company said.

The acquisition was celebrated this week during a visit to Ningxia by TWE’s board of directors, CEO Tim Ford, and local management. The delegation toured the winery’s facilities and surrounding vineyards in the Helan Mountain East Foothills, one of China’s most prominent wine-producing regions. The visit culminated in a ceremonial raising roots, symbolizing the company’s commitment to cultivating a lasting presence in the region.

“We are honoured to officially welcome Stone & Moon to the TWE family,” Ford said at the event. “This partnership represents an exciting next step in our ongoing strategy and commitment to the Chinese wine industry. Ningxia’s excellent terroir and the efforts of its local winemakers have long impressed us.”

TWE Chairman John Mullen echoed the sentiment, noting the strong reception from local officials and industry partners. “Our commitment to Ningxia is much more than just investment,” Mullen said. “It’s about building a foundation for long-term success, nurturing local talent, and driving sustainable growth in the region.”

During the trip, TWE’s board met with Ningxia government officials to discuss the company’s development plans and the broader future of wine in the region. The delegation also held meetings with key industry partners and customers, emphasizing the company’s collaborative approach and support for the global recognition of Ningxia wines.

The RMB 130 million (US$18 million) acquisition of the Ningxia winery is set to play a pivotal role in Penfolds’ global winemaking strategy, which now spans Australia, the United States, France, and China. The Stone & Moon Winery will support the production of Penfolds’ Chinese Winemaking Trial (CWT) 521, a luxury blend that features grapes from both Ningxia and Yunnan while maintaining the brand’s signature “House Style.”

The move also coincides with a renewed push into the Chinese market following the removal of punitive tariffs on Australian wines earlier this year. Since then, TWE has begun ramping up its marketing efforts and reengaging with Chinese consumers.

China remains the biggest growth engine for Penfolds in Asia, driving the brand’s strongest performance globally. In the first half of FY2025, Asia was the only region where Penfolds recorded revenue growth, with net sales revenue surging 50.4% to AUD 386.1 million (US$ 243.9 million), accounting for 69.3% of the brand’s total global sales.

TWE is also launching several initiatives to foster winemaking talent in China, including a Winemaker Immersion Program in collaboration with the China Alcoholic Drinks Association (CADA), COFCO, Australian Grape and Wine, and the South Australian government. Additional youth education projects are underway to help cultivate the next generation of Chinese wine professionals.