Changyu Becomes One of The Top 10 Global Wineries
The top 10 global wineries are traditionally from Europe, America and Oceania. Canadean, a beverage research company in Britain, released its annual “Beverage Market Report 2007” recently. According to this report, Changyu Group, with its sales revenue of USD 695 million in 2007, has been ranked as the 10th largest winery in the world. This is the first time that an Asian winery has entered the top 10 global wineries.
The New Top 10 Changed the Structure of Global Wine Industry
Before, the top 10 global wineries are companies from the U.S. France, Germany, Australia, Britain or Spain and Pernod Ricard and Diageo are on the list.
With this new top 10, the insiders of global wine industry even agree that America, Europe, Australia and Asia have become the 4 wine powers of productivity in the world. Is It Possible That Asia Becomes The 4th Wine Power ?
Not all the people recognize the global wine structure of “4 Powers”. Compare to the traditional “3 Powers”, some experts believe, the Asian wine industry is still at its preliminary development stage.
The editor in chief of “Wine Appreciation”, Mr. Chen, has his own idea. We do not need to come to the conclusion that Asia is the 4th power in global wine industry now. However, we have to notice that the rising of Asian wine industry now has the similar background of Europe, America and Oceania. That is the tremendous market demand for wine products. The fast development of European wine industry attributes to people’s passion of wine collection. Wine market need in America after World War 2 stimulated the growing of American wine industry. The rising of Oceania wine industry is because the wine companies’ reasonable pricing market and the ambition to popularize wine consuming.
According to IWSR, China has 13% of annual growth for wine consumption between the year of 2006 and 2011. It is expected that the wine consumption in China will reach 1.1 billion bottles to the year of 2011 and it will be 40% of the whole Asia market.
Apart from the element of market, Mr. Kevin, a wine critic, also takes the vineyard advantage, premium product quality and good industry policies in China as the reasons for the fast growth of Chinese wine industry.
Because of global warming, the wine production areas in the world are moving northward. Dr. Richard Smart, an Australian enologist says that global warming greatly affected wine industry in Australia and Europe and China is becoming an ideal place for wine growing. Chinese wine companies are enlarging their vineyard. It is said that some European wine companies had come to China to look for cooperation.
With unique grape material and upgrade of wine making technology, the quality of Chinese wine come close to international standard. Mr. Jonathan Ray, a British royal sommelier wrote an article titled “Is China the new Chile when it comes to wine?” on “Daily Telegraph” to express his expectation to Chinese wine industry. Since AFIP Cabernet Sauvignon dry red wine exported to Western Europe, they are selling very well. Chinese wine are getting recognized by international wine collector.
Changyu’s Next Goal
Mr. Kevin says that Changyu achieved top 10 in global wine company ranking resulted not only from Changyu’s
effort but also China’s good wine industry trend. According to Forbes, Changyu is at the 79th place on the list of top
Chinese companies, the only wine company on the list.
However, Mr. Zhou Hongjiang, the General Manager of Changyu is clear-headed. He said:：“The sales revenue of the first wine company is about RMB 27 billion Yuan. This perhaps is not a big number for other business field. But for Changyu, we have a long way to go. According to Canadean, a wine company need to achieve USD 1.5 billion in sales revenue to enter the first group of global wine companies. This is a challenge for Changyu, we should think how we can grow faster.”
In fact, Changyu has set its next goal. Changyu will achieve USD 1.7 billion in sales revenue by the year of 2013 so that it can enter the first group of global wine companies and become famous brand in the world.
To achieve this goal, Changyu will focus on its high end products from its 4 chateaus and its strong brand of “Jiebaina”. Changyu will push its cooperation with Cognac Frapin France to release Koyac brandy and the second phase
of Chateau Changyu AFIP will be completed this year.
Changyu will also pay attention to overseas market. At present, Changyu “Jiebaina” has been exported to 14 European countries and this unique Chinese wine is being well known by overseas customers.
People generally hold optimistic view to the future of Changyu. An analysis from Guojin Security believes that other wine company can not surpass Changyu if people think about the strong advantage of Changyu. Our comment for Changyu share is positive. Mr. Rogers, a world famous investor bought Changyu B share in 1999. When he was interviewed by media, he said he would give these Changyu shares to his 5-year-old daughter.