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The luxury brands firm Moët Hennessy formed an agreement with a Chinese company to produce premium red wine in Southwest China's Yunnan province, according to an article in China Daily. This comes after 26% of Moët Hennessy's revenue for last year came from Asia, with the bulk of it from China.
The article states further that the venture will establish roughly 30-hectare vineyards at about 2400 meters above sea level. Cabernet Sauvignon, Merlot and Cabernet Franc will be planted first, with other grapes to follow later. The wines will be matured for at least two years and will be on sale within three to four years. The company has yet to decide on a brand name and packaging for the wine, but are giving it serious thought, as the presentation of products in China plays a cardinal role in sales and conumer perception.
According to Christophe Navarre, CEO of Moët Hennessy, 'China is going to surpass the United States to be the largest market for Moët Hennessy this year. There has been very strong developments in China's wine market over the last decade or so,which has led Moët Hennessy to place continuous focus on this market and in turn increase its strategic investments in local production and distribution.'
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