Dynasty Fine Wines eyes overseas vineyards

Jun. 1, 2010 (China Knowledge) - Tianjin-based Dynasty Fine Wines Group Ltd, partly-owned by Remy Cointreau SA, the second-largest liquor company in France, is likely to invest approximately US$150 million to buy vineyards to raise output capacity by 43%, the China Daily reported.

Dynasty Fine Wines may buy vineyards in Australia, New Zealand, Chile or France, in a move to meet increasing demand in the Chinese market, said Chairman Bai Zhisheng in an interview in Hong Kong, adding that the group now has RMB 1 billion in cash.

The group hopes that its annual production will rise to 100,000 metric tons within three years from 70,000 metric tons now.

Bai sees a double-digit sales growth this year as wine consumption is growing due to increasing demand.

Dynasty Fine Wines' net income rose 9.1% year on year to HK$156.1 million in 2009, and sales rose 8.9% to HK$1.48 billion. The company exports small volumes of its output to about ten countries, including the U.S., France, Italy, Japan, the Philippines and Singapore.