Dynasty ready to flow west
Updated: 2010-05-26 07:38
By Timothy Chui(HK Edition)
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Zhisheng Bai (center), chairman and executive director of Dynasty, poses with models at the company's exhibition booth during the first day of Vinexpo Asia Pacific at the Hong Kong Convention and Exhibition Centre Tuesday. EDMOND TANG / CHINA DAILY |
Wine group hopes to expand exports to Europe from 1% to 10% within 5 years
Just three decades after it was first established in China, Dynasty Fine Wines Group is ready to take on the major wine markets of Europe.
Making the announcement at the launch of Hong Kong's third Asia Pacific Vinexpo Tuesday, Chairman of Dynasty Bai Zhisheng said his company hopes to see its exports grow from 1 percent of overall sales to at least 10 percent, in the coming five years with most of the exports heading to Old World wine bastions like France and Germany.
Bai expressed confidence in his company's joint-venture with France-based wine company Remy Cointreau. He believes it can compete in the European market, adding that international consultant Michel Rolland told him his label had come a long way in only thirty years.
The company struck a deal with Les Grands Chais de France last year to plug into each other's respective distribution networks, distributing Dynasty's wines in Europe and GCF's JP Chenet range in China.
The company is also expanding production to reach 93.3 million bottles by the second half of the year to satisfy export targets, but also to satisfy domestic demand which the company expects will grow 10 percent a year.
In contrast, the number of bottles produced by New South Wales based Casella Wines' Yellow Tail label was at roughly 144 million according to the company's website.
In a recent study by Vinexpo, the number of mainland wine drinkers will increase by 60 percent between 2009 and 2013.
The lofty expectations amid lackluster sales in the rest of the world have attracted 840 exhibitors from 32 countries to Vinexpo's three-day fair at the Hong Kong Convention and Exhibition Centre in the hopes of cashing in on an expected 10,000 visitors.
French wine exports fell 17 per cent last year due to US and European consumers cutting back on luxuries, especially champagnes and cognacs, according to the Federation of French Exporters of Wine and Spirits.
French pavilions at the expo take up nearly half of the 8,500 square meters alongside displays by Italian, Spanish and German exhibitors and New World entrants from Australia, New Zealand, South America and the American west coast, which has doubled its presence over last year.
According to Managing Director David Bolzan of merchant bottler Cordier-Mestrezat Grands Crus, "China is a high potential market and is still maturing. The top end wines Mouton, Lafite and Margaux are recognized by customers and in demand."
"Right now, they account for 20 percent of our worldwide business, growing by 30 percent since the beginning of the year. It's remarkable that the market will be on par with the best export markets that have taken 30 years to mature to a level that China will reach in four to five years," he said.
Speaking at the launch of the expo, Financial Secretary John Tsang said Hong Kong was well placed to capitalize on the growth of the Chinese market and become the region's wine hub.
"Over the past two years, we have seen robust growth in wine-related businesses. The value of our total wine imports increased 80 percent over 2008, and a further 45 percent last year, reaching nearly HK$4.6 billion," he said.
The city has hosted 27 wine auctions totaling more than HK$1.01 billion since the start of 2008 with another four auctions before the end of the month.
"Over 150 new companies have been established here since the duty exemption in 2008. These companies have created jobs, opportunities and wealth - all this during a difficult time with the global crisis," he said.
According to a Nielsen Co survey, more than 10 million bottles were sold in Hong Kong last year, up 16 percent by volume and attributed to more affordable wines and thriving fine wine auctions.
China Daily
(HK Edition 05/26/2010 page1)