Moet Hennessy, the wine and spirits division, signed a joint-venture agreement with state-owned agriculture development agency in Yinchuan, Ningxia Hui Autonomous Region in northwestern China. Just east of Helan Mountain, the area has been nationally protected for wine production.
LVMH’s first Chinese vineyard is 66-hectare or 163-acre, which is one of the largest area for sparkling wine production in China. LVMH will build a winery in the vicinity.
LVMH has been looking to build a vineyard since 2008 before finally partnering with Ningxia Farms. Ningxia hopes the partnership will raise the quality of its wine from the eastern Helan Mountain region and its profile. Certainly, LVMH will raise the standards of grape planting, production technology and management as well as attract international investors to the region.
Moet Hennessy already owns the famous Chinese white spirits brand, Wenjun. China is also a major market for Moet Hennessy’s Cognac.
Sparkling wine producers like Spain’s Freixenet have already seen strong demand in China.
Moet Hennessy is the leading global producer of sparkling wine under the Chandon label with productions in California and Argentina.