In a notable cross-category partnership, Australia’s renowned winery Penfolds has joined forces with Langjiu, a leading Chinese baijiu producer, unveiling a co-branded luxury gift set priced at RMB 8,999 (approx. USD 1,240). The limited-edition offering, “Hongyun Lang × Penfolds Bin 707,” is restricted to 1,000 units and available exclusively to Langjiu’s membership base.

The collaboration was announced at Langjiu’s annual members' festival, held at its expansive estate in Luzhou—a key region for baijiu production. Both companies plan to engage in cross-marketing initiatives, shared membership benefits, and deeper operational integration.

Langjiu, with over a century of distilling heritage, is a major player in China’s baijiu industry. It was recognized as a “National Famous Liquor” in 1984 and currently ranks among the top three most valuable baijiu brands nationwide. This is not Langjiu’s first international partnership; last year, it established a “World Winery Alliance” with Pernod Ricard.

According to Langjiu General Manager Wang Bowei, the alliance is built on a mutual commitment to quality, long-term growth, and enhancing consumer experiences. Moving forward, the companies intend to collaborate on product development, membership perks, and channel synergies. For instance, Langjiu members will gain access to Penfolds’ vineyards in Australia and Ningxia, while Penfolds’ clients will be invited to explore Langjiu’s cultural and production facilities in Sichuan.

Wu Mingfeng, Managing Director of Penfolds China, acknowledged that the partnership is partly a strategic response to challenges within the Chinese wine market. “The wine category in China faces acceptance barriers,” he noted. “We are adopting innovative, cross-boundary approaches to better align with local consumption trends.”

Penfolds has actively pursued localization in recent years, shifting away from traditional wine storytelling toward celebrity collaborations, limited releases, and lifestyle branding. Previous efforts include Lot.518, a wine infused with a small percentage of baijiu, launched in 2018.

Industry observers note that beyond branding, the alliance offers practical benefits—particularly in distribution. A Penfolds distributor in East China highlighted that previous partnerships, including one with Luzhou Laojiao, were largely driven by access to established baijiu sales networks and high-value customers.

Although Penfolds remains the top-selling imported wine brand in China, the overall wine market has yet to recover to pre-pandemic levels. Treasury Wine Estates (TWE), Penfolds’ parent company, reported strong growth in Asia, which accounted for nearly 70% of Penfolds’ net revenue in FY2025. However, broader consumption patterns have shifted, with large banquets declining in favor of smaller gatherings.

TWE CEO Tim Ford recently pointed out softer sales during typical low seasons, indicating that the company is closely monitoring seasonal trends and adjusting strategies accordingly.

Ultimately, the Penfolds-Langjiu alliance reflects a strategic effort to sustain relevance and drive sales in a complex and evolving market—where creativity and collaboration may be key to enduring success.