Awa Wine Co., Ltd. and China's Wine Club Growth

By   2009-3-11 8:48:10
            Awa Wine: As part of the strategic focus on the rapidly growing
            Chinese wine import market, RGLC has acquired 26% of Awa Wine at a
            cost of approximately $500,000. RGLC also has an option to increase
            its ownership to 51%, subject to certain business milestones.
            Following are some of the key points RGLC reports regarding the
            operations of Awa Wine:
            The company commenced operations in 2005 and has now reached sales
            of over 100,000 bottles annually.
            There are 16 corporate owned and franchised Awa Wine retail
            locations, with immediate plans to open another 5 stores and an
            expansion strategy that calls for 100 locations by 2013.
            The company also operates a wholesale wine distribution business,
            with an emphasis on local government departments.
            A typical AWA Wine store consists of a street level storefront, a
            well appointed interior, and an upper level lounge area catering to
            the company's growing Membership Network.
            The Awa Wine Membership Network now numbers in excess of 50,000
            generally affluent Chinese citizens who become members through wine
            testing events held at Awa locations and through wine educational
            programs sponsored by corporations such as China Unicom, BMW, HSBC,
            Bank of China, and China Mobile Limited. RGLC's expansion plans
            calls for increasing the number of active Awa Wine Club members to 1
            million by 2013.
            China's Growing Interest in Wine Clubs and Wine Tasting Events: The
            importance and value of wine clubs, tasting events, and general
            product education is reflected in the related efforts of some of the
            leading companies operating in China. It's also clear that an
            important part of the marketing strategy of some of the leading
            distributors is to build interest and awareness through events and
            wine clubs, as evidenced by a review of the calendar posted for
            events Wine China Exhibition  and at the Grape Wall of China blog.
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