Yantai Changyu Pioneer Wine Co Ltd, a leading Chinese wine producer, has continued its overseas moves with the acquisition of Marques del Atrio, a wine company in Spain.
The acquisition follows Changyu's takeover of France-based Roullet-Fransac Cognac in 2013.
This acquisition will further strengthen Changyu's globalization strategy. Changyu is growing an international vision for the growth of its company. To compete internationally, Changyu needs to acquire an international portfolio of brands in order to respond to its market in China but also control some main regional growths where wine & spirits are culturally bound.
Spanish wine is not going anywhere and it is here to stay, hence a safe investment in the long run for Changyu. Since China is going to eventually need more of the same, it is wise for Changyu to gain access to its own stocks of wine & spirits to weather the storms.
Changyu's interim results showed that its sales revenue rose 22.8 percent year-on-year to reach 2.83 billion yuan ($443.8 million) in the first six months of this year.
According to the Hurun Most Valuable Chinese Brands 2015 list, Changyu remains the most valuable privately owned wine brand in China, with market value of about 6 billion yuan.
Source: China Daily
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