China's business taste for wine

The Financial Times reports that, "China's private equity firm Hina Group has launched the $100m Hina Vineyard Fund to raise money from rich Chinese who want a share of the (Chinese) wine boom without having to traipse around muddy fields picking out their vines."

Meanwhile, retired NBA Houston Rockets basketball player, Yao Ming, has launched his own label. Yao Family Wines that will get distributed in a limited supply of Yao Ming 2009 Napa Valley Cabernet Sauvignon and Yao Ming 2009 Family Reserve Cabernet Sauvignon to high-class wine shops and restaurants across the US after enjoying success from its sales in China.

However, the hottest trend for Chinese investors appears to be cashing in on California's top wineries, according to Richard Wollock, founder of Premier Pacific Vineyards.

"Everyday, we're getting more contacts from properties, some not officially on the market and some that are," he said. "We're looking at existing producing vineyards, ones that are already developed in the high-end space, in places like Napa, Sonoma and other highlands areas in California."

The business strategy holds some appeal for families of vineyards that are struggling financially, as they are keen to sell off their properties. Chinese investors are rushing to their rescue.

Nonetheless, to sustain a boom in the global wine industry, its not investors, but Chinese consumers who would be expected to play the most pivotal role. Accordingly, the French Louis Vuitton family intends to sell a special brand of wines for Asians.

"Xavier-Louis' son Quentin-Louis, who has taken on the role of cellar master, was at (the recent) HTDC International Wine & Spirits Fair to introduce (the brand)," as reported by the Drinks Times.

He said, "I made many trips to Asia to understand the Asian palate."

But what's more important, do Chinese wine investors better understand the palates of international wine drinkers. If they do, then they can pour into greater success.

The views do not necessarily reflect those of China Daily.

McGregor@chinadaily.com.cn

Tom McGregor's previous articles:

HSBC gives thumbs up to Zoomlion

Singapore captivates Chinese investors

China's aviation industry ready for lift off

Golden opportunity for Shanghai Gold Exchange

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