Treasury Wine shares lift on China acquisition
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More news: Shares in Treasury Wine Estates are up nearly 4% to $11.92 after Australia's top winemaker said it had acquired a 75% stake in Chinese luxury winery Ningxia Stone & Moon Winery Co. to support its local production of the Penfolds luxury portfolio in the country.
Treasury Wine buys China vineyard for Penfolds
The news: Treasury Wine Estates has acquired a 75% stake in Ningxia Stone & Moon Winery Co. in northwestern China to support its local production of the Penfolds luxury portfolio in the country.
The numbers: The company paid 130 million yuan ($27.5 million) for the 75% stake in Stone & Moon, whose assets include 43 hectares of vineyards located in the highly-regarded wine production region of Ningxia, a modern winery with capacity for future expansion and a cellar door. The acquisition is expected to complete in the second half of 2025.
Treasury Wine has an option to acquire the remaining 25% ownership after five years.
The context: Australia’s top winemaker said it plans to evolve the site in the future to create a local brand home for Penfolds, building on its strength as one of the leading luxury wine brands in China.
The acquisition comes just months after the reopening of the Chinese market following the end of tariffs on Australian wine. The winemaker, which gets three-quarters of its earnings from high-end wines like Penfolds, has pushed deeper into the premium segment with the acquisition of DAOU late last year and earlier this year announced it will seek to divest its commercial brand portfolio.
What they said: “Through this acquisition, we will further strengthen our commitment to, and investment in, the China wine industry, where Penfolds continues to be a highly admired and sought after brand,” Treasury Wine chief executive Tim Ford said.
The source: ASX announcement
