Cofco Buys Chilean Vineyard for $18 Million

Cofco Wine & Spirits, the wine unit of China's state-owned food company Cofco, recently sealed the acquisition of Chilean winery Biscottes for US$18 million, marking its first ever overseas purchase.

The negotiation between Cofco and Biscottes, one of the top ten largest wineries in Chile, went on for over a year before completing the acquisition. According to Qu Zhe, board chairman of Cofco Wine, the deal includes a 5,300-mu vineyard and wine production capacity of 14,000 tons per year.

After the deal, Cofco aims to launch a new mid- to high-end wine brand that targets both the domestic and overseas markets of Europe and the United States.

Sources say that several other Cofco overseas acquisitions are also running smoothly.