Brandy—to be New Source of Economic Growth for Changyu

According to data, sales of Changyu brandy reached 526,000,000 yuan in China in 2008 and it enjoys over 90% of market share. With its dominant position in the market, brandy will be the new source of economic growth for Changyu. A report by a research organization shows that brandy of Changyu has been in the leading position in Asia. Its overall competitiveness and market share tops the list of wine producers.

In addition, Changyu also captures 80% of market share in the whole wine industry of China. A report shows that Changyu has advanced to the 7th place with 890,000,000 yuan of sales in 2008 after it became one of the world top 10 wine enterprises for the first time in 2007.

Sales of world top 10 wine enterprises have increased by -4.6% last year, with 8 enterprises registering negative growth. However, business income of Changyu reached 3.453 billions yuan in 2008, a year-on-year increase of 26.49%. Net profit was 895,000,000 yuan and income growth speed was 29.02%.

Now Changyu enjoys around 60% of market share in domestic middle and high-end wine market. Its annual report also shows that gross profit rate of Changyu wine is more than 70%, which is mainly attributed to Cabernet and Chateau wine. Gross profit rate of brandy which accounted for 15.39% of wine income has rose by 1.37% to 64.48% in 2008. 

It is learnt that Changyu brandy has begun to take shape through years of development. Although its income is not a big proportion in the whole wine business now, it will become a new source of economic growth in Changyu with its leading position.

   Now Changyu also plans to make brandy which accounts for 15% of its total income and occupy 80% of market share its future focus direction in the coming 3-5 years by further readjusting products structure and optimizing consumption market.