Wine Meets Baijiu: Penfolds Strikes Alliance With Langjiu

When Australia’s most famous wine label meets one of China’s biggest baijiu distillers, the result is not just a limited-edition bottle but a glimpse into the uneasy realities of doing business amid declining sales.

Penfolds and Langjiu, a century-old Sichuan baijiu house, announced a new alliance this week with a co-branded gift box priced at RMB 8,999 (about USD 1,240). The tie-up, launched at Langjiu’s lavish annual members’ festival, promises cross-marketing, joint member experiences and deeper operational cooperation. But behind the fanfare lies a pragmatic calculation: in a shrinking Chinese wine market, even industry leaders are seeking survival through unlikely bedfellows.

On September 8, Penfolds and Langjiu, one of China’s top baijiu brands, unveiled their new alliance at Langjiu’s sprawling estate in Luzhou, the heartland of China’s national spirit. The partners launched a co-branded “Hongyun Lang × Penfolds Bin 707” gift box, priced at RMB 8,999 (about USD 1,240) and limited to 1,000 sets available exclusively to Langjiu members.

Langjiu, based in Sichuan with a century-long winemaking heritage, was named a “National Famous Liquor” in 1984. At the 2025 World Brand Lab conference, it was ranked 56th among China’s 500 Most Valuable Brands, with a brand value of RMB 162.07 billion — holding its place among the industry’s top three and second among sauce-aroma baijiu producers for 17 consecutive years.

It is not Langjiu’s first foray into global partnerships. At last year’s members’ festival, the distiller launched the “World Winery Alliance” with Pernod Ricard, and Penfolds now joins as its latest international member.

Langjiu General Manager Wang Bowei described the partnership as rooted in the shared vision of “serving a better life” and values of long-termism, quality, and consumer focus. “In the future, both sides will continue to deepen cooperation in products and markets to create more value for global consumers,” Wang said.

Beyond co-creating products, the two companies will collaborate on membership experiences and channel synergy. Penfolds will offer Langjiu members access to its estates in Adelaide, Australia, and Qinglongxia, Ningxia, while Langjiu will welcome Penfolds members to its baijiu headquarters to experience distilling culture and lifestyle. Langjiu said the first group of members already visited Penfolds’ Australian estate in August, with more exchanges planned. Its membership program now exceeds 20,000 people.

On the distribution side, the companies plan joint promotions with dealers who sell both Langjiu baijiu and Penfolds wine, sharing resources to push cross-category sales in business banquets, family gatherings and other consumption settings.

Wu Mingfeng, Penfolds’ China managing director, was blunt about the brand’s motivation. “Wine in China faces the challenge of how to be easily accepted by consumers,” said Wu Mingfeng, Managing Director of Penfolds China. He emphasized that Penfolds has adopted a strategy of “innovation, diversity, and breaking boundaries,” using cross-regional portfolios and cross-category partnerships to align more closely with local demand.

Penfolds’ Localization Drive

In recent years, Penfolds has sought to localize its brand in China. While maintaining its luxury image, it has moved away from the traditional wine narrative of terroir, varietals, vintages, and heritage, instead using celebrity endorsements, co-branded releases, and lifestyle marketing to connect directly with Chinese consumers.

The brand has also experimented with baijiu infusions before. In 2018, it launched Lot.518, blending Australian Shiraz with 6–7% Chinese baijiu for a distinctive profile.

That same year, Penfolds’ parent Treasury Wine Estates (TWE) signed a strategic partnership with Luzhou Laojiao, another baijiu giant from Sichuan, which created Saltram Wines as a wine sales platform. Saltram became the exclusive distributor of Saltram and Penfolds BIN 138 in China and the key strategic partner for Penfolds Grange. In 2025, Saltram also became the exclusive distributor in China for Grange La Chapelle.

Sales Are the Driving Force

Behind the high-profile partnerships lies a more pragmatic motive: distribution networks. By linking Langjiu’s membership system with Penfolds’ estates, Penfolds hopes to open new sales channels.

A Penfolds distributor in East China admitted that channel access was the real prize in previous partnerships. “When we worked with Luzhou Laojiao, the real focus was on its distribution resources and the chance to reach its baijiu customers,” he said.

He added that news of the Penfolds–Langjiu alliance prompted him to immediately visit Langjiu distributors. “For us, this is momentum we have to capture.”

Penfolds remains the most recognized and best-selling imported wine brand in China. According to TWE’s 2025 financial report, Asia is Penfolds’ largest regional market, with net revenue of AUD 749 million, up 19.1% year-on-year and accounting for 69.8% of total sales. Shipments of its Australian portfolio have rebounded quickly since China lifted anti-dumping tariffs.

Yet the broader Chinese wine market remains weak. Customs data show China’s wine imports in 2024 were just 65.39% of 2019 levels. For Penfolds specifically, the pre-pandemic days when BIN 389 and BIN 407 frequently sold out — and when distributors were required to buy additional products to access flagship wines — are gone.

On a recent earnings call, TWE CEO Tim Ford acknowledged shifting consumption patterns. He said the company had observed a shift away from large banquets toward smaller business and lifestyle occasions, prompting softer depletions during June and July — typically already low months for sell-through. He said the company would monitor key occasions like Mid-Autumn Festival and adjust market activations and allocations as needed — comments that underscore the pressure Penfolds faces in China.

Ultimately, boosting sales remains the inescapable core goal of Penfolds’ China strategy, even as it leans on high-profile alliances to sustain its presence.