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Yantai-based Changyu Co is building up a top international wine brand through all-round efforts, said Sun Liqiang, president of the wine company.

 

With a history of 114 years, the wine company has developed a unique business culture. "Changyu has kept absorbing new ideas and advanced technologies to strengthen its competitiveness," Sun said.

 

By importing multi-source investors, the company was restructured into a more capital-balanced joint venture last year.

 

It also underwent drastic reform, overhauling its management and marketing strategy, and gained robust sales growth.

 

Its sales revenues exceeded 3 billion yuan (US$373 million), up 25 percent compared with the same period of the previous year

 

And pre-tax profits hit a record high of 800 million yuan (US$99 million), increasing 36.7 percent year-on-year.

 

As one of China's leading wine makers, the company values the importance of wine quality, Sun said.

 

It has strict standards on grape supply sources, ensuring that its wine is made from high-quality grape.

 

At present, the company has a grape farming base of 5,333 hectares, and other regular supply sources of grape.

 

The company's executives said Changyu plans to expand its grape farming area and optimize grape species for increased and improved supply.

 

Advanced technology and equipment, another key factor that influence the taste of wine, is also given high priority, Sun said.

 

Since the 1990s, the company has invested a total of 300 million yuan (US$37 million) in importing and absorbing advanced technologies and production equipment from abroad, seeking to keep up with the world's first-class wine makers.

 

It now has a State-level winemaking technology centre, with a competent force of scientific staff.

 

"We developed different products to meet the needs of various customers," Sun said, adding that the company now has more than 120 types of wine.

 

In recent years, Changyu has been focusing on the dry red and dry white market, and has outlined a development plan for restructuring product line over the next five years.

 

"As such a market targets the high-end customer group, sales revenues of these series are growing substantially," noted Sun.

 

Through a widespread marketing network, Changyu wine has been placed on the shelves of about 50,000 shopping centres, supermarkets and restaurants in more than 500 large- and medium-sized cities in China.

 

Meanwhile, the products have been exported to at least 40 countries and regions.

 

"Chinese wine industry is still at the initial stage. There is vast growth potential and we look forward to exciting market prospects." Sun said.

 

(China Daily March 11, 2006)