The rapidly increasing demand for luxury goods in China has compelled the luxury brands to increase their focus on the domestic Chinese market. Moët-Hennessy, the renowned champagne brand which is now part of the largest luxury conglomerate LVMH, has invested in a vineyard in the mountains of China. It will produce red wine for the local market. It will go a long way in developing the wine business in the country. This major move was widely reported in France. Challenges.fr, a French business magazine has reported extensively on the matter.
According to the reports published on February 14, the luxury conglomerate LVMH has entered into an agreement with a major alcohol, wine and spirits distributor in China, VATS. As per the agreement signed, 30 hectares of vineyards will be developed at an altitude of 2,400meters in the mountains of Yunnan which is a Southwestern province of China. Moët-Hennessy has been very active in the Chinese markets in the recent past. The luxury champagne brand has grown aggressively and has been helped in great measure by the acquisition of a Chinese spirits brand from the Sichuan area of China five years ago.
Moët-Hennessy already has a production facility in the province of Ningxia Hui where they have begun the production of premium sparkling wine since last year. Like other luxury goods, wine is also a rapidly growing segment in China. All the major wine brands from around the world have become active in China and are targeting the growing middle and upper classes of the Chinese society. Les Domaines Barons de Rothschild was the first company that developed 25 hectares of vineyards in the province of Shandong in 2008. The vineyard is capable of producing 240,000 bottles of premium wine. The wine produced there will be aged till 2014 before being bottled for distribution.
Via: news.yahoo
