Moët Hennessy starts wine production in China

Friday, 24. February 2012 | 11:32 Uhr | RED.YOOPRESS | WINE COMPANIES
It is not only the sale but as well the production of wine in China that becomes more and more lucrative for the big ones within the branch - Merlot grapes in the facilities of Rongchen Vineyard in the north-eastern province of Hebei (Photo: YOOPRESS)

CHINA (Yunnan) - According to CHALLENGES French business magazine, Moët Hennessy, daughter of LVHM, has signed a cooperation agreement with the Chinese VATS group. Together, they want to produce wines in the mountains of the province of Yunnan near the Tibetan frontier in the south west of the country.

To do so, 30 hectares of vines are to be cultivated at an altitude of 2,400 meters. They are planning to harvest their first vintage in 2017 – the whole vintage is meant to be exclusively for the Chinese market. The VATS group is responsible for the sale.

In 2007, Moët Hennessy started its expansion in China by taking over the majority share of Wenjun, a Chinese spirits brand based in Sichuan; in the past year, the company started the production of prime champagnes in the province of Ningxia Hui; now, the winery continues its expansion in China with its own vineyards.

As early as in 2010, the domaine Barons de Rothschild, owner of the Château Lafite Rothschild and others, started the cultivation of 25 hectares of vineyards on the pen-insula of Penglai, province of Shandong. The Torres company, a big Spanish wine producer, has, too, been working together with Chinese producers of wines that are determined to be sold on the Chinese market.


The VATS group is a marketing agency founded in 1996; it had developed from a cooperation with the Chinese Wuliangye Distillery, the leading distillates producer in China. From the beginning, the tasks of the VATS group have been to professional-ize the sales network and the employees who are necessary to run it. As early as 10 years after its foundation, the VATS group employed 100 sales talents, 2,000 sales professionals, and about 5,000 sales promoters. Today, the VATS controls 20 of the most important markets in China, employs over 2,000 sales agents who supply over 10,000 distributors. Moreover, the VATS group has under contract almost 5,000 shopping malls, and 8,000 hotels as regular customers in addition, and purchase agreements with 15,000 single retailers in 31 provinces.

The VATS group’s portfolio mainly consists of very well-known domestic brands such as JinLiufu, Liufurenjia and Fujui, as well as local brands like Kaikouxiao, Xiangjiao, Linshui, Shaoyang Daqu, Daolang, Junyuanchun and Bashurenjia. The VATS group currently generates an annual turnover of about 3 billion RMB (about 360 million euro) - at the moment, the company is worth an estimated 4.25 billion RMB (about 510 million euro). Currently, the VATS group wants to invest in the production of wine and, thus, changes from an agent to a producer, Moët Hennessy being its partner. (red.yoopress)

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