Competitiveness

The Chinese wine market has grown 16.7 percent annually in recent years, according to China Vine and Wine Association, as living standards and disposable income continue to improve.

Yet consumption is still much lower than the world per capita average of six liters.

Seeing the potential, wine producers from Europe and the Americas are coming to China in greater numbers.

Faced with increasing imports, Changyu has been working to convince consumers its wines can rival the world's best.

It has also built iconic chateaus at its vineyards, with another in Xinjiang - Chateau Changyu Baron Balboa - now under construction.

This chateau in Shihezi is expected to be operational next year.

With French-style gardens, Xinjiang's grape growing culture and Changyu's century-old winemaking history, the chateau is set to be the most prestigious in West China.

The company already operates Chateau Changyu-Castel in Yantai, Chateau Changyu AFIP Global in Beijing and an ice wine chateau in Liaoning.

Chateaus in Shaanxi and Ningxia are also under construction.

"The wines produced at the chateaus are the main part of Changyu's high-end products," said Cheng Guoli.

The company has also forged partnerships with four overseas chateaus.

Changyu's high-end wines have been served at Beijing's Great Hall of the People and Diaoyutai State Guesthouse.

And more people in China are expected to have access to Changyu wines as its output will double to reach 400,000 tons by 2015, said Zhou Hongjiang, the winemaker's general manager.

By Ju Chuanjiang and Zhao Ruixue (China Daily)

(China Daily 11/02/2011 page24)