Moët Hennessy China partner proposes grape-growing JV exit - report

Ningxia State Farm Group has reportedly proposed the divestment of its 40% stake in a grape-production joint venture with Moët Hennessy in China.

The agricultural specialist has put its share of Chandon (Ningxia) Vineyard Co up for sale with a starting price of CNY1 (US$0.15), according to local news outlet Vino Joy News. Moët Hennessy owns the remaining 60% of the company.

The JV was formed in the Ningxia region in 2011 to supply grapes to Chandon’s sparkling wine operations in China.

Vino Joy news said that the business’s liabilities exceed its assets “by more than RMB17m”. The stake will reportedly be sold through an online auction, following a 20-working-day notice period which is due to end on Thursday (22 October).

Global Drinks Intel has contacted Moët Hennessy parent LVMH for confirmation of the proposed sale.

Earlier this month, Moët Hennessy reported its third consecutive lift in quarterly sales. A 6% increase in top-line performance in the three months to the end of September contributed to a nine-month sales lift of 5%.