The partner of French luxury group LVMH in its Chinese vineyard joint venture has proposed to exit the business arrangement.

In a statement to Just Drinks, LVMH’s wine-and-spirits unit Moët Hennessy confirmed that Ningxia State Farm Group has proposed to divest its 40% stake in Chandon (Ningxia) Vineyard Co.

The grape-growing joint venture was set up in 2011 to supply grapes to Chandon's winemaking operations in China. Moët Hennessy holds the remaining 60% interest in the entity.

Moët Hennessy stressed that the sale will not affect ownership of the Chandon brand nor production of its sparkling wines in China.

“The proposed sale concerns only Ningxia State Farm Group's 40% stake in this specific vineyard operation and is entirely separate from the entity responsible for producing Chandon sparkling wines,” the statement said.

Just Drinks has asked LVMH's Moët Hennessy unit to confirm the name of the separate production entity and whether LVMH owns that business.

The vineyard was created to support the start of its sparkling production in Ningxia.

“Over time, as our business has flourished, the original scale and structure of the vineyard no longer fully reflect our current needs," the statement added.

According to its website, the French group began scouting vineyard sites across China in 2009 before selecting Ningxia at the base of the Helan Mountains.

The company formally established the Chandon China in 2013, a winery facility designed to produce traditional-method sparkling wines.

The estate grows mainly Chardonnay and Pinot Noir.

“Since establishing roots in Ningxia, Chandon has loved working alongside our local community to cultivate viticultural expertise and world-class sparkling wine,” the statement added. “Our relentless pursuit of quality shines through in every bottle and will continue to do so.”

This week, LVMH reported its third consecutive quarter of sales growth for its wine-and-spirits division.

In the third quarter of 2026, the business saw organic revenues from its Moët Hennessy unit increase 6%.

The Hennessy brand owner’s alcohol division posted a 5% growth in organic revenue to €4bn in the first nine months of 2026.

Champagne and wine brought in €2.2bn over the period, up 6% organically and 3% on a reported basis.