Yantai Changyu Pioneer Wine Co. Ltd., one of China's leading wine producers, has recently acquired Spanish wine firm Marques del Atrio as part of its efforts to expand its operations abroad.
Since its establishment over a year ago by Chinese diplomat Zhang Bishi, Changyu has made its presence felt by the global community through participating in exhibits.
Meanwhile, Marques del Atrio has been able to sell products in more than 40 countries. Its overseas revenues account for around 55 percent of the firm's revenue in total.
Marques del Atrio has also forged close ties with other leading retailers across the globe, such as Tesco Pic and Carrefour SA.
Changyu's acquisition comes after it had taken over France's Roullet-Fransac Cognac two years ago.
Zhou Hongjiang, Changyu's general manager, said that the acquisition of the Spanish wine maker will help the firm's globalization strategy. However, details are not yet disclosed.
"Changyu should possess a number of world famous brands if it wants to become a top-rated winery in the world. Excellent grape-growing regions are not easily available anywhere in the world right now," Zhou shared.
"Changyu must invest more to acquire such resources. Only by having a well-stocked global wine portfolio can the company effectively compete with its peers. They are also important from a long-term growth perspective," he added.
Junan Securities Co.-affiliated senior analyst Yan Wei estimated that the overseas annual capacity of Changyu can reach 20,000 tons once the acquisition is completed.
Zhang Yuguang, a senior analyst at Ping An Securities, also remarked that Changyu "will probably continue with other acquisitions in the future" to continue boosting its globalization efforts.
According to the 2015 edition of Hurun Most Valuable Chinese Brands, Changyu still occupies the top spot among privately owned wine brands in the country. It has a market value of 6 billion yuan.