China Focus: The Big Business of Booze LWSP, TSGTY, 600132

Legacy Wines

China has become one of the larget wine, spirit and beer markets in the world, in 2012 China will be the 7th consumer of wine in the world (Vinexpo) and may become the No.1 export market with 100s of millions of bottles sold since 2009

China is increasingly opening up to wine. The knowledge of the Chinese is still in its infancy and their choice is driven by the origin, brand and price of the wine.

The reputation of French wines is very strong among Chinese consumers. It has established their social standing. The portfolio of branded wines and Châteaux Castel wines meets this goal and underpins these values.

The wine imports into China in 2007 were more than double those in 2006 with 56 million bottles.
2008 has experienced a growth of 36%!

With 20.7 million bottles imported 
in 2007, France has the lead with a 37% market share in front of Australia (22%).
This leadership was confirmed in 2008 with 40% and 30.6 million bottles!

AOCs: 45% (of which Bordeaux: 71% in volume, and Languedoc-Roussillon: 11% in volume)
Vins de Pays: 36%.
Source: Chinese import customs/French export customs

So who is set to win big from this business?

Legacy Wine and Spirits International Ltd. (Legacy) is a publicly listed company trading in the United States (OTCBB: LWSP). The Company is in the business of importing bottled wines from around the world for the purpose of wholesale and retail distribution throughout China, in particular through the Company’s corporately owned stylish outlet showroom and wine tasting facility.

Legacy offers select wines and spirits from choice regions around the world, initially North America, Italy and France and at a later date, South Africa and South America. Each wine maker Legacy chooses to represent has a unique history, identity and style of their own, yet all are united in the pursuit of superior quality. The Company’s selection of wines will help to build a diverse and balanced portfolio that is constantly being refined to offer the best possible products to our customers whether they’re retail, wholesale or corporate clients.

Tsingtao Brewery Company Limited (OTC:TSGTY) is engaged in brewing and sales of beer, and other related businesses. The Company owns 53 breweries and a malting plant in 18 provinces, cities and regions all over China. Its product Tsingtao Beer is distributed to more than 60 countries and regions around the world. The Company’s subsidiaries are engaged in the production, sales and domestic trade of beer. The Company’s geographic segments include Qingdao region, other Shandong regions, Huabei region, Huanan region and overseas.
Chongqing Brewery Co. Ltd (SHA:600132) is a China-based company principally engaged in brewery and sale of beers. The Company provides Mc.EWAN’S series beer products, CHONG QING Beer series products and Shancheng Beer series products, among others. The Company distributes its products primarily in Southwestern China, Central China and Eastern China. The Company also involves in businesses of drinks and biological drugs.