NEWS
CHINA'S MOUTAI FORGED STRATEGIC PARTNERSHIP WITH CHILEAN WINERY
By David Ma
26-4-2019
Chilean winery Viñedos Marchigüe in Colchagua has recently forged a strategic partnership with China’s Moutai Wine Company (MWC), the wine making arm of China’s leading baijiu producer Kweichow Moutai.
A small hill in Viñedos Marchigüe is christened Moutai Shan to mark the partnership which will see the winery becoming an offshore production base for MWC.
With more than 3,000 hectares of vineyards in Colchagua, Viñedos Marchigüe is MWC’s second overseas partner after Château Loudenne in Bordeaux.
In a recent high profile visit to Chile, Argentina and Peru to promote the top-selling baijiu brand, Kweichow Moutai Group has expressed determination to establish a stronger presence in South America.
Led by CEO Li Baofang, the delegation’s first stop was Chilean wine giant Concha Y Toro. They were received by Chairman Alfonso Larraín Santa Maria and were briefed on the viticulture, winemaking and maturation specifics of the company.
According to Li, Chile is the biggest profit contributor to Moutai’s wine business. Some Chinese media predicted that MWC would likely expand further their production base in South America.
“In our opinion, Chile’s wine industry, with its long history and advanced production technologies, is not only an important partner at this time when Moutai is going global, but also an important partner in the extensive production and marketing chain of our company,” Li said in a business forum held in Santiago.
“South America, especially Chile and Argentina, will represent a huge potential market for us, despite that our current market share is small,” he added.
Earlier this year, The Wine Chronicle reported that MWC is seeking to establish a production base in Italy, possibly in vineyards owned by former Italian Prime Minister Massimo D’Alema in southern Umbria.
The company acquired Château Loudenne in Bordeaux in 2013 and recently signed a strategic partnership with Viñedos Marchigue in Chile.
Established in 2002 with registered capital of 268 million yuan, the MWC is 60% controlled by Kweichow Moutai Group.
The wine company’s revenue soared to RMB 304 million in 2012, but had been in decline since to around RMB100 million because of the anti-graft campaign started by President Xi Jinping.
Sales recovered to around RMB200 million in 2017 when the company declared its targets of hitting the top 3 spots in domestic sales in 3 years and getting listed in 5 years time.
(the writer can be contacted at: DavidMa@thewinechronicle.com)
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