ASC Fine Wines and Grace Vineyard announced the expansion of their partnership at this year's Chengdu Wine Fair. Analysts said the joint venture will help promote Beijing's Greater Bay Area scheme.
After two years of partnership, the two Chinese companies announced that they will continue working together in distributing Grace Vineyard's wines, The Drinks Business reported.
The joint venture includes an agreement that ASC Fine Wines will also distribute Grace Vineyard wines in Macau and Hong Kong. Previously ASC only distributed in mainland China. With added distribution channels, it is expected that both firms will enhance their presence in China's wine market.
"We have seen the highest growth in history since we started working with ASC Fine Wines. Sales is one thing, but more importantly, it's brand building," president of Grace Vineyard, Judy Chan, said.
Grace Vineyard's most recent annual report revealed that the company's profit reached over RMB 72.5 million, accounting for a 3.1 increase in gains compared to figures from the previous year.
Aside from strengthening a partnership, industry analysts noted that the expansion will help promote the Chinese government's initiative for growing the Greater Bay Area. The scheme includes economic and social developments around Macau, HK, and areas in South China.
Meanwhile, the Chengdu Wine Fair 2019 also saw four China-based winery experts receive the VIA Italian Wine Ambassador award following days of lectures and examinations. The awardees are as follows: Marisa Wu, General Manager at M&B Wine Co., Yong Xue, Wine Training Manager at Vats Liquor Chain Store, Guangshuai Zhang, General Manager at Pro Italy International Trading Co., Ltd., and Long Zhang, Wine Educator at Ease Scent.
The event has given the title of Ambassador to a total of 168 professionals with 13 of them labeled as Experts. The next VIA Italian Wine Ambassador training program will take place in Verona, Italy, from March 29 to April 2. Finally, the third round of training will be hosted by New York City from June 24 to 28.
China's wine market is expected to keep transitioning in the coming years. A new study titled Research Report on Wine Import in China 2019-2023 suggested that wine importers should continue distributing brands and wine products that suit the Chinese market's taste.
The study noted that new categories are being added to the list of Chinese target markets. Young people are starting to explore the product and elderly people are now increasingly interested in wine for health purposes. Furthermore, the study indicated that China's wine market will take around five to 10 years before it gets standardized.
