China Beer & liquor companies turn to wine business

In the first nine months of 2009, imported wines below 2L amounts to 643.74 million tons, an increase of 12% compared with whole year wine imports of 2008 (575.04 million tons). The data highlights the optimistic "imported wine fever" whipping up, making liquor companies, beer companies switching to imported wine business.

Japan's Suntory Group has agreed to buy a 70 percent share in Shanghai-based ASC Fine Wines Holding Ltd., a major importer and distributor of foreign wines in China last December. In the same month, Silver Base Group, distributor of the famous Chinese liquor brand Wuliangye, just announced it will enter the international wine market by importing wines from 11 countries. Silver Base Group will make use of 70% if its existing network to promote imported wines, with a target within two years, the wine business accounts for 50% of the total dealings.

According to report of IWSR, Chinese wine sales will be further increased to 75.5%, reaching 2.71 billion U.S. dollars by 2011. China's total wine sales will account for 40% of Asia market. Xia Zhong Bang, Manager of Constellation China expected China’s bottled wine imports in 2009 may increase over 50%.