ADELAIDE wine business Skye Cellars eyes China expansion

ADELAIDE wine business Skye Cellars has opened wholesale and retail outlets in Hong Kong and plans to launch several more stores in China, including Beijing and Shanghai.

Managing director John Mazzocato worked on the expansion into Asia with Hong Kong national Daniel Leung. ``We are focusing on Australian wine and Australian products, mainly boutique labels,'' Mr Mazzocato said.

"We have got good business partners who see the opportunity and obviously are familiar with the (Asian) culture.''

In Asia, the company's wholesale and retail outlets would trade under the name Triton Skye Cellars.

Mr Leung said some Chinese stores would retain their own business name, while Skye Cellars would supply their entire stock of wine.

"We first opened a wholesale outlet in Hong Kong and then a shopfront,'' he said.

"Our brand name is now building up well among the food and beverage sector. It's quite a mature market and they are happy to try new things.''

Mr Leung, who worked in Hong Kong's hotel industry for 25 years, said the purpose of moving into Asia was to push Australian wines.

"The others are selling French, Chilean, Argentinian and American wine,'' he said.

"It's also value for money because it might cost double the price, or more, to buy a French wine.''

Auldana-based Skye Cellars this year celebrated its 30th year of business. Mr Mazzocato said the expansion into Asia would be ``very reserved''. ``Daniel and I think the same. That is why it's going to be a successful partnership,'' he said. ``It's growth by partnership, rather than growth by a dollar figure.''