Penfolds at 180: Redefining luxury wine for China’s new generation

What happened? On August 8, an auspicious date in China, global winemaker Penfolds celebrated its 180th anniversary with a cultural event in Beijing. The 600-year-old former Dongjingyuan temple provided an atmospheric setting for a gala dinner, art exhibition and bespoke wine experiences with Penfolds Chief Winemaker Peter Gago. “We have a lot of fun selecting unexpected venues for our events in China,” says Penfolds Chief Marketing Officer, Kristy Keyte. “We see our brand activations as an opportunity to not only promote Penfolds, but also engage with the local communities and promote the culture of wine appreciation.” The Beijing event also marked the China launch of the 2024 Penfolds Collection, plus a rare commemorative release honoring Penfolds’ 180-year anniversary – the Bin 180 Coonawarra Cabernet Shiraz 2021. The 2024 collection showcases the fruits of Penfolds’ multi-regional winemaking philosophy: 20 flagship wines sourced and made under the Penfolds House Style from Australia, the US, France and China, including the Grange, Bin 389, Bin 704, FWT 585 and CWT 521. The latter is especially significant for Chinese connoisseurs. CWT 521 became the first China wine to be featured in the Penfolds Collection in 2023. It returns this year with the 2022 vintage sourced from Shangri-La and Ningxia. “Critics agree that the 2022 CWT 521 is a strong follow-up to the inaugural release,” says Keyte. The Jing Take: Penfolds has a long relationship with China. The Australian winemaker has been exporting wines to China since the late 1800s. In the last decade, as part of its multi-country-of-origin approach, it has expanded winemaking operations into China, combining expertise with local growers and producers in the terroir of Shangri-La, Yunnan and Ningxia. China is the ninth-largest consumer of wine globally and while consumption and imports have been on the decline since 2018, this year has brought signs of stabilization. The first quarter of 2024 saw a 3.6% YoY increase in wine imports, coupled with a renewed interest in wine among young consumers, particularly high-end wines from China’s wine-producing regions. As well as pushing boundaries with its philosophy of winemaking, Penfolds has utilized its “Venture Beyond” motto to go beyond traditional approaches to wine marketing that rely on formal tastings and technical jargon and reach China’s younger drinking demographics by integrating creatively into their lifestyles. A beach pop-up at a music festival in Aranya, northern China, curated by Penfolds and creative partner, Kenzo artistic director and founder of Human Made, Nigo, is about as far removed from a traditional wine-tasting as you can imagine, but it’s at the nexus of art, creativity and wine that Penfolds is finding its Gen Z market in China. The One by Penfolds range, conceptualized for China’s Gen Z, features unconventional animal labels by Nigo. An accompanying range of apparel, including T-shirts and varsity jackets, sold out globally less than 90 minutes after launching. In February, Nigo also gave Penfolds luxury icon wine Grange a cool-kid makeover with the limited-edition release of The Grange by Nigo gift boxes and silk rugs that sold-out as collectors’ items. The winemaker previously teamed up with Chinese luxury label Shang Xia for its Bin 389’s 60th anniversary release. The limited-edition monogrammed gift box and wine bag reflected each brand's blend of modern innovation and traditional craftsmanship. These fashionable partnerships, along with immersive brand experiences like the Guangzhou edition of Venture Beyond by Penfolds, an immersive showcase, elevates Penfolds’ positioning in a new cultural sphere, bringing together art, music, technology and fine wine in disruptive ways and earning favor with young high-end Chinese consumers seeking innovation and cultural resonance. Presented by Penfolds The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Penfolds at 180: Redefining luxury wine for China’s new generation

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Published August 14, 2024

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Penfolds at 180: Redefining luxury wine for China’s new generation