Chinese buy into wine company Kilikanoon

Apparently, Asian buyers like investing in Australia. After a wave of Japanese investments in Australian beer and food companies, it’s the turn of the Chinese.

In December 2017, China’s biggest and oldest wine company – Changyu Pioneer – entered into Australia via an AUD 21 million (USD 17 million) purchase of an 80 percent stake of the winery Kilikanoon Estate in the Clare Valley north of Adelaide.

The Shanghai Stock Exchange-listed company with a market capitalisation of nearly USD three billion was established in 1892. It owns 20,000 ha of vineyards in six regions in China, plus 20 wineries. Globally, it owns a majority of French cognac maker Roullet Fransac and Spanish wine producer Marqués del Atrio.

Of interest to Australian producers will be the efforts of Changyu in capitalising on the thirst in China for the whole culture of wine-drinking. New figures show that Greater China (including Hong Kong and Macao) is Australia’s most valuable export market for wine, already capturing 35 percent of total exports in value terms.

Since 2012 the group has been building a USD one billion ‘wine city’ in China’s Shandong province. Reminiscent of a Disneyland theme park, it is complete with nine chateaus, two of which are under construction.

Australian wine exports in AUD (12 months until end of September 2017)