Date£º
2018-07-04 14:28 Source£º
https://www.thedrinksbusiness.com Author:
Natalie Wang Translator:
Chinese winery Grace Vineyard was listed on the Hong Kong Stock Exchange last week, raising over HK$406 million, the majority of which will be invested in building its winemaking facilities in Ningxia province, China¡¯s leading winemaking region.
Founded in 1997, the family owned winery operates from its home base in Shanxi province, and makes a range of red, white and sparkling wines. About 60% of Grace Vineyard¡¯s wines are sold within its home region of Shanxi. According to a report by research firm Frost & Sullivan, the winery is the biggest wine producer in Shanxi, accounting for 14.9% of the market by value.
¡°We believe it¡¯s the right time to move our winery to a new stage. Being a listed company, it forces us to be more disciplined, as well as more transparant. We believe having a better corporate governance helps Grace Vineyard in the long run. Also, it¡¯s a good brand building event for us,¡± the company told dbHK.
The public IPO in Hong Kong suggests the company has grander ambitions beyond its home base, as it looks to increase its production by 18% when the new winery in Ningxia is put into use.
The majority of the capital raised, according to the company, is going to be invested in Grace Vineyard¡¯s winery and winemaking facility in Ningxia, neighbouring Shanxi province, known as ¡®China¡¯s Bordeaux¡¯.
The first phase of construction was completed last December, and the facility is expected to be in operation before the 2018 harvest. The second phase of construction is set to be completed by 2020.
The new winery spanning 72,800 square metres is will be able to produce an estimated 650 tonnes of wines annually, while its Shanxi winery production capacity stands at 2,200 tonnes, bringing its overall total to 2,850 tonnes when completed.
Asked about the new project, the company replied that the new winery in Ningxia will help the Chinese winery better understand different terroirs in Ningxia and Shanxi. ¡°Our goal is find out where to plant and what to plant in China. We have studied Ningxia for quite some time now. Having a second winery there allows us to access to Ningxia grapes. We will soon launch a 100% Ningxia Cabernet Sauvignon vs 100% Shanxi Cabernet Sauvignon. In the future, there will be more Ningxia vs Shanxi, or Ningxia mixed with Shanxi wines coming out from Grace Vineyard,¡± said the winery.
The company was among the first boutique family wineries in China that drew international attention to Chinese wines. Its medium to higher range wines, priced between RMB 199 and RMB 598, contributed to 62.9% of the company¡¯s revenues in 2017 based on the financial report it filed for the listing.
Grace Vineyard parted ways with its longtime distributor Torres China in 2017 and joined ASC Fine Wines for the mainland market. In Hong Kong, the wines are distributed by Ponti Wine Cellars.
(https://www.thedrinksbusiness.com/2018/07/grace-vineyard-listed-on-hk-stock-exchange/)