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Legacy Shifts Gears and Will Begin to Bottle Wine in China to Partake in the Multi-Million Dollar Emerging Asian Wine Market
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Press Release Source: Legacy Wine and Spirits International Ltd. On Wednesday February 23, 2011, 7:30 am EST
NEW YORK, Feb. 23, 2011 (GLOBE NEWSWIRE) -- Legacy Wine and Spirits International Ltd. (Pink Sheets:LWSP - News), an importer, wholesaler and retailer of fine wines in China, announced today that the Company, led by recently appointed President Jaclyn Cruz, has started the process of changing the business strategy from not just importing bottled wine to also bottling the wine in China.
www.legacywineandspirits.com
Within the last two years importing and blending domestic and imported wines has risen over 15%; whereas imports have risen by 58.3%, an equivalent of $377.11 million dollars. These trends show no signs of slowing and experts agree that China is the fastest growing market for wine production, wine consumption and cultivating grapes. Overall, consumption of wine in China had now reached one bottle per year per person - which might not sound like much until you realize it accounted for 1.34 billion bottles. And that's double what it was five years ago.
According to international wine experts, starting from 2010, mainland China and Hong Kong will be entering the era of the "golden decade" for its wine market. China will rank first in the world for its wine consumption by 2020. The current situation in China is that domestic wine production doesn't meet its market's need, which has resulted in a surge growth of imported wine. Statistics show that imported bottled wine to China has increased 2368% since 2002 to 2009.
By importing bulk wine from countries like Spain, Chile and the U.S. while bottling the wine in China, the Company can improve profit margins while honoring prior import contracts. In short, the Company can still state on the final bottled wine that it is a product of where the bulk wine is imported from,( e.g. Product of Chile). Bottling imported bulk wine in China will allow Legacy to be more price competitive while taking advantage of the lower labor costs, lower taxes for an incomplete product and the option to blend the imported wines with Chinese local wines. This blend makes up the majority of wine consumed in China.
"This new business model will allow Legacy to be more price competitive with local wines as well as the lower priced imported wines. The Company will continue its wholesale and retail business while building upon it," states Jaclyn Cruz, President of Legacy. "China currently enjoys the highest wine consumption growth rate in the world. Now we are seeing a new opportunity for growth while traditional wine markets have been stagnant," added Cruz.
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