China is the world’s fifth-largest wine market, and last year, Chinese became the world’s top consumers of red wine by drinking 1.865 billion bottles. To keep up with the demand, Chinese investors are investing in Bordeaux and other wine-growing areas in France.
With packing millionaire James Zhou’s acquisition of Chateau Renon in Tabanac, Chinese investors now own 100 châteaux in Bordeaux, according to wines info. Bought for an undisclosed sum, the 18th century chateau came with 20 acres of vineyards and more than five hectares of park and garden land.
Chinese investors spend an average of 10 million euros on these Bordeaux chateaux, generally favoring mid-range chateaux.
With the Chinese Bordeaux buying frenzy beginning in 2010, Chinese investors still only own 1.3 percent of the approximately 7,400 chateaux in Bordeaux. The Belgians are the top foreign investors in the area, but the Chinese have moved into second and are catching up fast.
In terms of value, China is number one for Bordeaux wines, having bought 240 million euros worth last year. Britain came in second, spending 218 million euros, and Hong Kong came in third with 214 million euros.
Due to demand for Bordeaux wines in China, a Bordeaux vineyard owner can sell a bottle in China for up to ten times what it would fetch in France.
With the success in Bordeaux, many Chinese investors are now also turning their attention to Burgundy. The most recent investment there is Chinese gambling tycoon Louis Ng Chi Sing’s purchase of Chateau de Gevrey-Chambertin for 8 million euros.
image source: paul tridon