The new enterprise, Jiangsu Shengguo Wine, will be based in Nantong, with the construction of a factory scheduled for completion in August.
Further expansion is reportedly planned for the markets of Shanghai and Zhejiang.
Asahi, already an established presence in the wine sector in Japan in the form of Ste. Neige, will take advantage of a long-standing business relationship between Marubeni and Fuhao.
Further expansion is reportedly planned for the markets of Shanghai and Zhejiang.
Asahi, already an established presence in the wine sector in Japan in the form of Ste. Neige, will take advantage of a long-standing business relationship between Marubeni and Fuhao.
The new company will use Asahi’s brewing technology and marketing experience, while Fuhao will provide access to its distribution network. Approximately five million litres of wine are expected to be produced each year, using grapes imported from South America by Marubeni.
A spokesperson for Asahi explained that while the initial focus would be on manufacturing red wine, white wine would potentially be produced at a later stage.
The spokesperson added that Jiangsu Shengguo would seek to “drive out” its competitors, which include Great Wall. The company has yet to establish a brand for its wine or select a creative and media partner.
China is an important market for alcoholic beverage companies, with wine consumption increasing steadily by 10 to 15 per cent every year since the reduction of wine tax in 2004.
Asahi’s move follows the recent establishment by Louis Vuitton Moet Hennessy (LVMH) of a luxury bai jiu (rice wine) brand, Wen Jun.
Katrina Bennett, director of creative strategy at Design Bridge, who developed the brand’s identity, explained that luxury positioning was an important factor for international alcoholic drinks brands seeking to break into the Chinese market. “Chinese consumers have a more overt sense of luxury,” she said.
