MARQUES DEL ATRIO IS NOW PART OF CHANGYU

Yantai Changyu Pioneer Wine Co Ltd, a leading Chinese wine producer, has continued its overseas moves with the acquisition of Marques del Atrio, a wine company in Spain.

The acquisition follows Changyu's takeover of France-based Roullet-Fransac Cognac in 2013.

This acquisition will further strengthen Changyu's globalization strategy. Changyu is growing an international vision for the growth of its company. To compete internationally, Changyu needs to acquire an international portfolio of brands in order to respond to its market in China but also control some main regional growths where wine & spirits are culturally bound.

Spanish wine is not going anywhere and it is here to stay, hence a safe investment in the long run for Changyu. Since China is going to eventually need more of the same, it is wise for Changyu to gain access to its own stocks of wine & spirits to weather the storms.

Changyu's interim results showed that its sales revenue rose 22.8 percent year-on-year to reach 2.83 billion yuan ($443.8 million) in the first six months of this year.

According to the Hurun Most Valuable Chinese Brands 2015 list, Changyu remains the most valuable privately owned wine brand in China, with market value of about 6 billion yuan.

Source: China Daily

CHINA WILL HAVE THE WORLD'S LARGEST WINE AND BRANDY PRODUCTION PLANT OWNED BY CHANGYU

China’s oldest and largest winery, Changyu Pioneer Wine Co., is to build an international “wine city” in Yantai, Shandong province, at a cost of £600m.

The project, covering an area of 413 hectares, will be home to a national wine research institute and wine production centre.

Changyu Wine City

It will also include grape planting areas, an international wine trading center, a European-style village, and two high-end châteaux.

The wine production centre will cover an area of 220,000 square metres, making it one of the world’s largest wine and brandy production plants.

Changyu Wine City

The city – an amalgam of research, winemaking and tourism – is expected to be completed by 2016.

Changyu Pioneer Wine Co. was established in 1892, when cuttings from Bordeaux, Burgundy and Alsace were planted in Yantai.

In 2002, the company built its first French-style château – Château Changyu-Castel – in Yantai in cooperation with the Castel Group, planted primarily with Cabernet Gernischt – a red variety similar to Cabernet Franc.

It has since added a further five châteaux to its portfolio, three of which are operational.

Changyu Wine City

The other three: Château Changyu Baron Balboa in Xinjiang Uygur, Château Changyu Moser XV in Ningxia Hui and Château Changyu Reina in Shaanxi province, are expected to open in the next six months.

In 2006, Changyu collaborated with Canadian company Aurora to build the largest ice wine château in the world near Huanlong Lake in Liaoning province. It has also expanded overseas, with Château Changyu Kely in New Zealand.

Changyu Pioneer Wine Co. is the tenth largest wine company in the world.

Changyu acquired the cognac house on Saulnier street named Roullet-Fransac in 2013.

Source: www.thedrinksbusiness.com

CHANGYU PIONEER WINE PURCHASED COGNAC ROULLET-FRANSAC

Changyu Pioneer Wine Co Inc, more commonly recognized under Chateau Changyu or simply Changyu is the oldest and largest winery in China. In the past 10 years, it has developed an impressive number of partnerships with the most significant being with the French Castel group which dominates the French production of wines in volume.

Changyu Logo

Hence, this company has a very European style in everything it does: Chateau Castels and Chateau Moser are buildings constructed like European castles but using the most advanced production methods.

Personally, I was impressed the first time I saw a bottle of wine produced by Changyu as I could see a right the balance of things on it to make me feel comfortable and familiar with, and a touch of details just enough to remind me it was Chinese.

Changyu Pioneer Wines

The big news these past few days is that Changyu just purchased Roullet-Fransac, a small cognac negociant whose business was slowing down. These past 5 years, Georges Roullet had mentioned he was selling its business including the impressive property on the docks of Cognac, corner of rue Saulnier and Quai des Flamands, direct neighbor with the impressive headquarter of Cognac Hennessy.

A few months ago some Armenians almost made a deal but it fell apart and I knew that this business would go to an impressive and large Chinese wine & spirit business. It was obvious! Roullet-Fransac were savvy in getting the property from the Firino-Martell years back when this family passed the relay to Pernod-Ricard, and now the world economy is such than the Chinese are leading the expansion. Cognac has never really been totally French. Many cultures have influenced the advance and stability of Cognac/ cognac: the Dutch, the English, the Russians, the Japanese, the Rappers and now the Chinese.

The newspaper the Sud Ouest has had a poll where 90% of the people have voted that they were worried that this was going to be a loss more than a gain for cognac (www.sudouest.fr).

This news brings two things: (1) people including Chinese are investing in cognac, and (2) Hennessy might not be the biggest company in Cognac anymore but it could be Roullet-Fransac now!