Dynasty eyes vinyards in the New World regions

„There are onliy a few available locations for vineyards in China,“ Bai said. The company is looking mostly to New World wine regions because they „have different harvesting seasons and that complements our production schedule as well“.

The executive estimates „double-digit“ sales growth this year, driven by demand in China, where rising househild incomes are boosting wine consumption. China is on track to become the world´s seventh-largest wine market by 2013, according to a study by the Vinexpo Asia-Pacific industry exibition and market researcher International Wine and Spirit Record.

„China is still a realitvely young market for wines, and consumers are just starting to enjoy them,“ Bai said. „Demand is fast-growing and the market potential is huge“.

Dynasty is also surveying potential assets in France atracted to the country´s quality grape vintages and varieties,“ Bai said.

Dynasty, which is 27 percent owned by Remy Cointreau SA, is also looking to expand wine production in the world fastest-growing major economy. „Chinese ouput of the beverage is about 1 million metric tons a year, meeting a fraktion of demand,“ Bai said.

Dynasty estimates domestic demand for wine will rise 10 percent this year. Consumption may increase t0 900 millon liters in 2013 from 675 millions liters in 2008, according to the Vinexpo/IWSR study. Red wines account for 88 percent of all wines consumed in China, the study showed.

Dynasty rose 3,7 percent to HK,80 in Hong Kong on Wednesday. The stock has risen 11 percent this year, compared with a 12 percent decline in the benchmark Hang seng Index. The company typically invests between 100 million yuan and 200 million yuan a year to expand and capital spending „will remain steady during the next three years“, Bai said.

Net income in 2009 rose 9,1 percent to HK6,1 million ( million) and sales gained 8,9 percent to HK,48 billion, according to a March 31 company filing to the stock exchange.

„China ist he world´s fastest-growing wine market“, said Dominique Heriard-Dubreuil, chairwoman of Vinexpo Overseas. „There is an overall trend of drinking more wines and they want to be part of the trend,“ she said. „The market is growing in all dimensions and sophisticated consumption is part of it“. Still, beer and local white liquor, known als „Baijiu“ and produced by companies including Kweichow Moutai Co., „will remain the most popular alcoholic beverages in China“, Bai said.

„Dynasty exports small volumes of ist output to about 10 countries globally, including the USA, France, Italy, Japan, the Philippines and Singapure“, Bai said. „I want the best quality of the old world vintages and the production scale of the new world wines“, Bai said. „I want people overseas to taste Chinese wines“. (aw.yoopress)