BEIJING, March 27 (Xinhua) — Treasury Wine Estates (TWE), one of the world’s leading wine companies, has taken a significant step in expanding its presence in China with the acquisition of a majority stake in a local winery, according to CEO Tim Ford.
In an interview with Xinhua, Ford revealed that TWE finalized the purchase of a 75 percent equity interest in Stone and Moon Winery Co. Ltd., located in the Ningxia Hui Autonomous Region in northwest China, earlier this month.
“This acquisition represents a major milestone in our commitment to investing in China’s wine industry,” Ford said while attending the China Food and Drinks Fair in Chengdu, Sichuan Province. “Stone and Moon will play a key role in shaping our China country-of-origin strategy, supporting the production of Penfolds wines, including the Chinese Winemaking Trial 521, which already utilizes grapes from both Stone and Moon and Yunnan.”
Ford emphasized TWE’s intention to deepen collaboration with the Ningxia wine industry as it develops its winemaking operations in the region.
Kang Xuanhao, founder of Stone and Moon Winery, expressed optimism about the partnership, stating that it would accelerate the winery’s internationalization, enhance production capacity, and showcase Ningxia wines’ quality and uniqueness to the world.
China’s Wine Industry Gaining Global Recognition
The acquisition highlights the growing importance of Chinese wines in the international market. Ningxia, known for its ideal grape-growing conditions, has emerged as China’s largest wine-producing region and is gaining global recognition.
In 2024, Ningxia Devo Winery exported its sparkling wine to Japan, while Castaly Winery shipped over 18,000 bottles of red wine to Thailand, marking its fourth batch to Southeast Asia. Castaly first entered the Southeast Asian market in 2023, exporting wines to Laos via the China-Laos Railway. To date, approximately 37,500 bottles have been shipped to Laos, generating nearly 2 million yuan (about 275,300 U.S. dollars) in sales.
“There is strong demand in Southeast Asia, where many locals have a wine-drinking culture,” said Ning Xiaokai, general manager of Castaly. “Additionally, it is a major travel destination for European and American tourists, making it a significant market for wine.”
China’s wine exports are on the rise, with Ningxia exporting 166,000 bottles in 2024, amounting to 13.76 million yuan—an annual increase of 42.14 percent in value and 37.81 percent in volume. Nationwide, China’s wine exports reached approximately 33 million U.S. dollars last year.
Shandong Province is another key player in China’s wine industry. Yantai City, recognized as an “International City of Vine and Wine” by the International Organization of Vine and Wine in 1987, continues to attract global attention. Last September, Guía Peñín, a Spanish wine culture organization, conducted ratings and exchanges with Chinese wineries in Yantai. During the 24th Best Wine of Spain salon in Madrid, eight Chinese wines from Yantai, rated above 90 points by Guía Peñín, were well received by experts and consumers alike.
China’s Growing Domestic Demand for High-Quality Wines
Alongside expanding exports, China’s domestic market is also witnessing a surge in demand for premium wines, driven by increasing consumer preference for high-quality and luxury products.
“Chinese consumers are showing a growing interest in higher-quality wines, and younger demographics are becoming more open to wine consumption,” Ford noted. He highlighted that Penfolds, TWE’s flagship brand, has been present in China since 1893 and continues to experience strong growth in Asia, reinforcing China’s role in the company’s long-term strategy.
Strengthening Sino-Australian Winemaking Collaboration
The increasing demand for wine in China has also spurred interest in advanced winemaking technologies and industry exchanges. Ford underscored the importance of knowledge sharing between Australian and Chinese winemakers.
Recently, TWE hosted the inaugural Australia-China Winemaker Immersion Program, which brought three Chinese winemakers and a Master’s student to South Australia, one of the world’s premier winemaking regions. Participants engaged in hands-on experience with viticultural practices, winemaking operations, sustainability initiatives, and industry-related academic activities.
As China’s wine industry continues to expand its international footprint, collaborations such as these are set to enhance global recognition of Chinese wines while fostering deeper ties between the world’s leading wine-producing nations.
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