Changyu's growth

When Zhang Bishi, an overseas Chinese from Malaysia, founded Changyu in 1892, there was no way he could have dreamed that, 119 years later, Changyu would be known around the world.

But, in 1915, Changyu wines had already won four gold medals and quality certificates at the Panama-Pacific International Exposition, in San Francisco, California. This was the first time for a Chinese product to win an international exhibition award.

Now, thanks to Changyu, the coastal city of Yantai is the only Asian city to have been granted the "International Grape and Wine City" status by the OIV.

Thanks to their quality, Changyu wines are frequently served at state banquets and international summits, such as the opening ceremony of the Shanghai World Expo, last year, the welcoming banquet of the BRICS China summit, in Hainan, this past April, and the G20 seminar on an international monetary system, in Nanjing this March.

Market potential

China is now the world's seventh largest producer and consumer of wine by volume and is likely to become the sixth largest consumer by 2014, according to Vinexpo research published in March.

In 2009, wine consumption in China stood at nearly 1.16 billion bottles, up 104 percent from 2005.

China Vine and Wine Association statistics show that Chinese vineyards produced nearly 1.09 million kiloliters of wine in 2010, a year-on-year increase of 12.38 percent. These resulted in 29.47 billion yuan in sales, a year-on-year increase of 29.15 percent.

China's wine market is still expanding, as the standard of living continues to improve.

One 2011 forecast shows wine consumption in China undergoing a large increase over the next five years, with yearly per capita consumption at one liter, in 2012.

However, that is still in the future. Consumption in China is still much lower than the 6 liters that is now the world average, but that indicates the huge potential.

The Chinese wine market has attracted producers from Europe and the Americas, and this has made the market here a bit complicated, if not chaotic.

Statistics from the French wine association Conseil Interprofessionnel Du Vin de Bordeaux (CIVB) show China as the largest importer of Bordeaux wines, with a trade volume that was worth 90 million euros ($128.4 million) last year.

Still although Chinese wine producers face stiff challenges from overseas brands, the domestics account for 85 percent of the market here.

And, one major force among those domestic wines is Changyu, with a market share above 20 percent, for several years running.

Zhou Hongjiang, general manager of Changyu, concludes with this, "I believe that Changyu is capable of rivaling any other wine since we have sound terroir conditions, first-class grapes, and competitive sales network."

By Zhao Ruixue and Ju Chuanjiang (China Daily)

(China Daily 08/10/2011 page15)